--H.R.3009--
H.R.3009
One Hundred Seventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the twenty-third day of January, two thousand and two
An Act
To extend the Andean Trade Preference Act, to grant additional trade
benefits under that Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Trade Act of 2002'.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.
(a) DIVISIONS- This Act is organized into 5 divisions as follows:
(1) DIVISION A- Trade Adjustment Assistance.
(2) DIVISION B- Bipartisan Trade Promotion Authority.
(3) DIVISION C- Andean Trade Preference Act.
(4) DIVISION D- Extension of Certain Preferential Trade Treatment and
Other Provisions.
(5) DIVISION E- Miscellaneous Provisions.
(b) TABLE OF CONTENTS- The table of contents for this Act is as
follows:
Sec. 2. Organization of Act into divisions; table of contents.
DIVISION A--TRADE ADJUSTMENT ASSISTANCE
TITLE I--TRADE ADJUSTMENT ASSISTANCE PROGRAM
Subtitle A--Trade Adjustment Assistance For Workers
Sec. 111. Reauthorization of trade adjustment assistance program.
Sec. 112. Filing of petitions and provision of rapid response
assistance; expedited review of petitions by secretary of labor.
Sec. 113. Group eligibility requirements.
Sec. 114. Qualifying requirements for trade readjustment
allowances.
Sec. 115. Waivers of training requirements.
Sec. 116. Amendments to limitations on trade readjustment
allowances.
Sec. 117. Annual total amount of payments for training.
Sec. 118. Provision of employer-based training.
Sec. 119. Coordination with title I of the Workforce Investment Act of
1998.
Sec. 120. Expenditure period.
Sec. 121. Job search allowances.
Sec. 122. Relocation allowances.
Sec. 123. Repeal of NAFTA transitional adjustment assistance
program.
Sec. 124. Demonstration project for alternative trade adjustment
assistance for older workers.
Sec. 125. Declaration of policy; sense of Congress.
Subtitle B--Trade Adjustment Assistance For Firms
Sec. 131. Reauthorization of program.
Subtitle C--Trade Adjustment Assistance For Farmers
Sec. 141. Trade adjustment assistance for farmers.
Sec. 142. Conforming amendments.
Sec. 143. Study on TAA for fishermen.
Subtitle D--Effective Date
Sec. 151. Effective date.
TITLE II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS
Sec. 201. Credit for health insurance costs of individuals receiving a
trade readjustment allowance or a benefit from the Pension Benefit Guaranty
Corporation.
Sec. 202. Advance payment of credit for health insurance costs of
eligible individuals.
Sec. 203. Health insurance assistance for eligible individuals.
TITLE III--CUSTOMS REAUTHORIZATION
Subtitle A--United States Customs Service
Chapter 1--Drug Enforcement and Other Noncommercial and Commercial
Operations
Sec. 311. Authorization of appropriations for noncommercial operations,
commercial operations, and air and marine interdiction.
Sec. 312. Antiterrorist and illicit narcotics detection equipment for
the United States-Mexico border, United States-Canada border, and Florida
and the Gulf Coast seaports.
Sec. 313. Compliance with performance plan requirements.
Chapter 2--Child Cyber-smuggling Center of the Customs Service
Sec. 321. Authorization of appropriations for program to prevent child
pornography/child sexual exploitation.
Chapter 3--Miscellaneous Provisions
Sec. 331. Additional Customs Service officers for United States-Canada
Border.
Sec. 332. Study and report relating to personnel practices of the
Customs Service.
Sec. 333. Study and report relating to accounting and auditing
procedures of the Customs Service.
Sec. 334. Establishment and implementation of cost accounting system;
reports.
Sec. 335. Study and report relating to timeliness of prospective
rulings.
Sec. 336. Study and report relating to customs user fees.
Sec. 337. Fees for customs inspections at express courier
facilities.
Sec. 338. National Customs Automation Program.
Sec. 339. Authorization of appropriations for customs staffing.
Chapter 4--Antiterrorism Provisions
Sec. 341. Immunity for United States officials that act in good
faith.
Sec. 342. Emergency adjustments to offices, ports of entry, or staffing
of the customs service.
Sec. 343. Mandatory advanced electronic information for cargo and other
improved Customs reporting procedures.
Sec. 343A. Secure systems of transportation.
Sec. 344. Border search authority for certain contraband in outbound
mail.
Sec. 345. Authorization of appropriations for reestablishment of customs
operations in New York City.
Chapter 5--Textile Transshipment Provisions
Sec. 351. GAO audit of textile transshipment monitoring by Customs
Service.
Sec. 352. Authorization of appropriations for textile transshipment
enforcement operations.
Sec. 353. Implementation of the African Growth and Opportunity
Act.
Subtitle B--Office of the United States Trade Representative
Sec. 361. Authorization of appropriations.
Subtitle C--United States International Trade Commission
Sec. 371. Authorization of appropriations.
Subtitle D--Other trade provisions
Sec. 381. Increase in aggregate value of articles exempt from duty
acquired abroad by United States residents.
Sec. 382. Regulatory audit procedures.
Sec. 383. Payment of duties and fees.
DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI--TRADE PROMOTION AUTHORITY
Sec. 2101. Short title and findings.
Sec. 2102. Trade negotiating objectives.
Sec. 2103. Trade agreements authority.
Sec. 2104. Consultations and assessment.
Sec. 2105. Implementation of trade agreements.
Sec. 2106. Treatment of certain trade agreements for which negotiations
have already begun.
Sec. 2107. Congressional Oversight Group.
Sec. 2108. Additional implementation and enforcement requirements.
Sec. 2109. Committee staff.
Sec. 2110. Conforming amendments.
Sec. 2111. Report on impact of trade promotion authority.
Sec. 2112. Interests of small business.
DIVISION C--ANDEAN TRADE PREFERENCE ACT
TITLE XXXI--ANDEAN TRADE PREFERENCE
Sec. 3103. Articles eligible for preferential treatment.
Sec. 3105. Report on Free Trade Agreement with Israel.
Sec. 3106. Modification of duty treatment for tuna.
Sec. 3107. Trade benefits under the caribbean basin economic recovery
act.
Sec. 3108. Trade benefits under the African Growth and Opportunity
Act.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
Sec. 4101. Extension of generalized system of preferences.
Sec. 4102. Amendments to generalized system of preferences.
DIVISION E--MISCELLANEOUS PROVISIONS
TITLE L--MISCELLANEOUS TRADE BENEFITS
Subtitle A--Wool Provisions
Sec. 5101. Wool provisions.
Sec. 5102. Duty suspension on wool.
Subtitle B--Other Provisions
Sec. 5201. Fund for WTO dispute settlements.
Sec. 5202. Certain steam or other vapor generating boilers used in
nuclear facilities.
Sec. 5203. Sugar tariff-rate quota circumvention.
DIVISION A--TRADE ADJUSTMENT ASSISTANCE
SEC. 101. SHORT TITLE.
This division may be cited as the `Trade Adjustment Assistance Reform Act
of 2002'.
TITLE I--TRADE ADJUSTMENT ASSISTANCE PROGRAM
Subtitle A--Trade Adjustment Assistance For Workers
SEC. 111. REAUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM.
(a) ASSISTANCE FOR WORKERS- Section 245 of the Trade Act of 1974 (19
U.S.C. 2317) is amended by striking `October 1, 1998, and ending September 30,
2001,' each place it appears and inserting `October 1, 2001, and ending
September 30, 2007,'.
(b) ASSISTANCE FOR FIRMS- Section 256(b) of the Trade Act of 1974 (19
U.S.C. 2346(b)) is amended by striking `October 1, 1998, and ending September
30, 2001' and inserting `October 1, 2001, and ending September 30, 2007,'.
(c) TERMINATION- Section 285 of the Trade Act of 1974 is amended to read
as follows:
`SEC. 285. TERMINATION.
`(a) ASSISTANCE FOR WORKERS-
`(1) IN GENERAL- Except as provided in paragraph (2), trade adjustment
assistance, vouchers, allowances, and other payments or benefits may not be
provided under chapter 2 after September 30, 2007.
`(2) EXCEPTION- Notwithstanding paragraph (1), a worker shall continue
to receive trade adjustment assistance benefits and other benefits under
chapter 2 for any week for which the worker meets the eligibility
requirements of that chapter, if on or before September 30, 2007, the worker
is--
`(A) certified as eligible for trade adjustment assistance benefits
under chapter 2 of this title; and
`(B) otherwise eligible to receive trade adjustment assistance
benefits under chapter 2.
`(1) ASSISTANCE FOR FIRMS- Technical assistance may not be provided
under chapter 3 after September 30, 2007.
`(2) ASSISTANCE FOR FARMERS-
`(A) IN GENERAL- Except as provided in subparagraph (B), adjustment
assistance, vouchers, allowances, and other payments or benefits may not
be provided under chapter 6 after September 30, 2007.
`(B) EXCEPTION- Notwithstanding subparagraph (A), an agricultural
commodity producer (as defined in section 291(2)) shall continue to
receive adjustment assistance benefits and other benefits under chapter 6,
for any week for which the agricultural commodity producer meets the
eligibility requirements of chapter 6, if on or before September 30, 2007,
the agricultural commodity producer is--
`(i) certified as eligible for adjustment assistance benefits under
chapter 6; and
`(ii) is otherwise eligible to receive adjustment assistance
benefits under such chapter 6.'.
SEC. 112. FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE ASSISTANCE;
EXPEDITED REVIEW OF PETITIONS BY SECRETARY OF LABOR.
(a) FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE ASSISTANCE-
Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a)) is amended to read
as follows:
`(a)(1) A petition for certification of eligibility to apply for
adjustment assistance for a group of workers under this chapter may be filed
simultaneously with the Secretary and with the Governor of the State in which
such workers' firm or subdivision is located by any of the following:
`(A) The group of workers (including workers in an agricultural firm or
subdivision of any agricultural firm).
`(B) The certified or recognized union or other duly authorized
representative of such workers.
`(C) Employers of such workers, one-stop operators or one-stop partners
(as defined in section 101 of the Workforce Investment Act of 1998 (29
U.S.C. 2801)), including State employment security agencies, or the State
dislocated worker unit established under title I of such Act, on behalf of
such workers.
`(2) Upon receipt of a petition filed under paragraph (1), the Governor
shall--
`(A) ensure that rapid response assistance, and appropriate core and
intensive services (as described in section 134 of the Workforce Investment
Act of 1998 (29 U.S.C. 2864)) authorized under other Federal laws are made
available to the workers covered by the petition to the extent authorized
under such laws; and
`(B) assist the Secretary in the review of the petition by verifying
such information and providing such other assistance as the Secretary may
request.
`(3) Upon receipt of the petition, the Secretary shall promptly publish
notice in the Federal Register that the Secretary has received the petition
and initiated an investigation.'.
(b) EXPEDITED REVIEW OF PETITIONS BY SECRETARY OF LABOR- Section 223(a) of
such Act (19 U.S.C. 2273(a)) is amended in the first sentence by striking `60
days' and inserting `40 days'.
SEC. 113. GROUP ELIGIBILITY REQUIREMENTS.
(a) TRADE ADJUSTMENT ASSISTANCE PROGRAM-
(1) IN GENERAL- Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is
amended--
(A) by amending subsection (a) to read as follows:
`(a) IN GENERAL- A group of workers (including workers in any agricultural
firm or subdivision of an agricultural firm) shall be certified by the
Secretary as eligible to apply for adjustment assistance under this chapter
pursuant to a petition filed under section 221 if the Secretary determines
that--
`(1) a significant number or proportion of the workers in such workers'
firm, or an appropriate subdivision of the firm, have become totally or
partially separated, or are threatened to become totally or partially
separated; and
`(2)(A)(i) the sales or production, or both, of such firm or subdivision
have decreased absolutely;
`(ii) imports of articles like or directly competitive with articles
produced by such firm or subdivision have increased; and
`(iii) the increase in imports described in clause (ii) contributed
importantly to such workers' separation or threat of separation and to the
decline in the sales or production of such firm or subdivision; or
`(B)(i) there has been a shift in production by such workers' firm or
subdivision to a foreign country of articles like or directly competitive
with articles which are produced by such firm or subdivision; and
`(ii)(I) the country to which the workers' firm has shifted production
of the articles is a party to a free trade agreement with the United
States;
`(II) the country to which the workers' firm has shifted production of
the articles is a beneficiary country under the Andean Trade Preference Act,
African Growth and Opportunity Act, or the Caribbean Basin Economic Recovery
Act; or
`(III) there has been or is likely to be an increase in imports of
articles that are like or directly competitive with articles which are or
were produced by such firm or subdivision.';
(B) by redesignating subsection (b) as subsection (c); and
(C) by inserting after subsection (a) the following:
`(b) ADVERSELY AFFECTED SECONDARY WORKERS- A group of workers (including
workers in any agricultural firm or subdivision of an agricultural firm) shall
be certified by the Secretary as eligible to apply for trade adjustment
assistance benefits under this chapter if the Secretary determines that--
`(1) a significant number or proportion of the workers in the workers'
firm or an appropriate subdivision of the firm have become totally or
partially separated, or are threatened to become totally or partially
separated;
`(2) the workers' firm (or subdivision) is a supplier or downstream
producer to a firm (or subdivision) that employed a group of workers who
received a certification of eligibility under subsection (a), and such
supply or production is related to the article that was the basis for such
certification (as defined in subsection (c) (3) and (4)); and
`(A) the workers' firm is a supplier and the component parts it
supplied to the firm (or subdivision) described in paragraph (2) accounted
for at least 20 percent of the production or sales of the workers' firm;
or
`(B) a loss of business by the workers' firm with the firm (or
subdivision) described in paragraph (2) contributed importantly to the
workers' separation or threat of separation determined under paragraph
(1).'.
(b) DEFINITIONS- Section 222(c) of such Act, as redesignated by paragraph
(1)(A), is amended--
(1) in the matter preceding paragraph (1), by striking `subsection
(a)(3)' and inserting `this section'; and
(2) by adding at the end the following:
`(3) DOWNSTREAM PRODUCER- The term `downstream producer' means a firm
that performs additional, value-added production processes for a firm or
subdivision, including a firm that performs final assembly or finishing,
directly for another firm (or subdivision), for articles that were the basis
for a certification of eligibility under subsection (a) of a group of
workers employed by such other firm, if the certification of eligibility
under subsection (a) is based on an increase in imports from, or a shift in
production to, Canada or Mexico.
`(4) SUPPLIER- The term `supplier' means a firm that produces and
supplies directly to another firm (or subdivision) component parts for
articles that were the basis for a certification of eligibility under
subsection (a) of a group of workers employed by such other firm.'.
SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READJUSTMENT ALLOWANCES.
(a) CLARIFICATION OF CERTAIN REDUCTIONS- Section 231(a)(3)(B) of the Trade
Act of 1974 (19 U.S.C. 2291(a)(3)(B)) is amended by inserting after `any
unemployment insurance' the following: `, except additional compensation that
is funded by a State and is not reimbursed from any Federal funds,'.
(b) ENROLLMENT IN TRAINING REQUIREMENT- Section 231(a)(5)(A) of such Act
(19 U.S.C. 2291(a)(5)(A)) is amended--
(1) by inserting `(i)' after `(A)';
(2) by adding `and' after the comma at the end; and
(3) by adding at the end the following:
`(ii) the enrollment required under clause (i) occurs no later than
the latest of--
`(I) the last day of the 16th week after the worker's most recent
total separation from adversely affected employment which meets the
requirements of paragraphs (1) and (2),
`(II) the last day of the 8th week after the week in which the
Secretary issues a certification covering the worker,
`(III) 45 days after the later of the dates specified in subclause
(I) or (II), if the Secretary determines there are extenuating
circumstances that justify an extension in the enrollment period,
or
`(IV) the last day of a period determined by the Secretary to be
approved for enrollment after the termination of a waiver issued
pursuant to subsection (c),'.
SEC. 115. WAIVERS OF TRAINING REQUIREMENTS.
(a) IN GENERAL- Section 231(c) of the Trade Act of 1974 (19 U.S.C.
2291(c)) is amended to read as follows:
`(c) WAIVERS OF TRAINING REQUIREMENTS-
`(1) ISSUANCE OF WAIVERS- The Secretary may issue a written statement to
an adversely affected worker waiving the requirement to be enrolled in
training described in subsection (a)(5)(A) if the Secretary determines that
it is not feasible or appropriate for the worker, because of 1 or more of
the following reasons:
`(A) RECALL- The worker has been notified that the worker will be
recalled by the firm from which the separation occurred.
`(B) MARKETABLE SKILLS- The worker possesses marketable skills for
suitable employment (as determined pursuant to an assessment of the
worker, which may include the profiling system under section 303(j) of the
Social Security Act (42 U.S.C. 503(j)), carried out in accordance with
guidelines issued by the Secretary) and there is a reasonable expectation
of employment at equivalent wages in the foreseeable future.
`(C) RETIREMENT- The worker is within 2 years of meeting all
requirements for entitlement to either--
`(i) old-age insurance benefits under title II of the Social
Security Act (42 U.S.C. 401 et seq.) (except for application therefor);
or
`(ii) a private pension sponsored by an employer or labor
organization.
`(D) HEALTH- The worker is unable to participate in training due to
the health of the worker, except that a waiver under this subparagraph
shall not be construed to exempt a worker from requirements relating to
the availability for work, active search for work, or refusal to accept
work under Federal or State unemployment compensation laws.
`(E) ENROLLMENT UNAVAILABLE- The first available enrollment date for
the approved training of the worker is within 60 days after the date of
the determination made under this paragraph, or, if later, there are
extenuating circumstances for the delay in enrollment, as determined
pursuant to guidelines issued by the Secretary.
`(F) TRAINING NOT AVAILABLE- Training approved by the Secretary is not
reasonably available to the worker from either governmental agencies or
private sources (which may include area vocational education schools, as
defined in section 3 of the Carl D. Perkins Vocational and Technical
Education Act of 1998 (20 U.S.C. 2302), and employers), no training that
is suitable for the worker is available at a reasonable cost, or no
training funds are available.
`(2) DURATION OF WAIVERS-
`(A) IN GENERAL- A waiver issued under paragraph (1) shall be
effective for not more than 6 months after the date on which the waiver is
issued, unless the Secretary determines otherwise.
`(B) REVOCATION- The Secretary shall revoke a waiver issued under
paragraph (1) if the Secretary determines that the basis of a waiver is no
longer applicable to the worker and shall notify the worker in writing of
the revocation.
`(3) AGREEMENTS UNDER SECTION 239-
`(A) ISSUANCE BY COOPERATING STATES- Pursuant to an agreement under
section 239, the Secretary may authorize a cooperating State to issue
waivers as described in paragraph (1).
`(B) SUBMISSION OF STATEMENTS- An agreement under section 239 shall
include a requirement that the cooperating State submit to the Secretary
the written statements provided under paragraph (1) and a statement of the
reasons for the waiver.'.
(b) CONFORMING AMENDMENT- Section 231(a)(5)(C) of such Act (19 U.S.C.
2291(a)(5)(C)) is amended by striking `certified'.
SEC. 116. AMENDMENTS TO LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.
(a) INCREASE IN MAXIMUM NUMBER OF WEEKS- Section 233(a) of the Trade Act
of 1974 (19 U.S.C. 2293(a)) is amended--
(1) in paragraph (2), by inserting after `104-week period' the
following: `(or, in the case of an adversely affected worker who requires a
program of remedial education (as described in section 236(a)(5)(D)) in
order to complete training approved for the worker under section 236, the
130-week period)'; and
(2) in paragraph (3), by striking `26' each place it appears and
inserting `52'.
(b) SPECIAL RULE RELATING TO BREAK IN TRAINING- Section 233(f) of the
Trade Act of 1974 (19 U.S.C. 2293(f)) is amended in the matter preceding
paragraph (1) by striking `14 days' and inserting `30 days'.
(c) ADDITIONAL WEEKS FOR INDIVIDUALS IN NEED OF REMEDIAL EDUCATION-
Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended by adding at
the end the following:
`(g) Notwithstanding any other provision of this section, in order to
assist an adversely affected worker to complete training approved for the
worker under section 236 which includes a program of remedial education (as
described in section 236(a)(5)(D)), and in accordance with regulations
prescribed by the Secretary, payments may be made as trade readjustment
allowances for up to 26 additional weeks in the 26-week period that follows
the last week of entitlement to trade readjustment allowances otherwise
payable under this chapter.'.
SEC. 117. ANNUAL TOTAL AMOUNT OF PAYMENTS FOR TRAINING.
Section 236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C. 2296(a)(2)(A)) is
amended by striking `$80,000,000' and all that follows through `$70,000,000'
and inserting `$220,000,000'.
SEC. 118. PROVISION OF EMPLOYER-BASED TRAINING.
(a) IN GENERAL- Section 236(a)(5)(A) of the Trade Act of 1974 (19 U.S.C.
2296(a)(5)(A)) is amended to read as follows:
`(A) employer-based training, including--
`(i) on-the-job training, and
`(ii) customized training,'.
(b) REIMBURSEMENT- Section 236(c)(8) of such Act (19 U.S.C. 2296(c)(8)) is
amended to read as follows:
`(8) the employer is provided reimbursement of not more than 50 percent
of the wage rate of the participant, for the cost of providing the training
and additional supervision related to the training,'.
(c) DEFINITION- Section 236 of such Act (19 U.S.C. 2296) is amended by
adding at the end the following new subsection:
`(f) For purposes of this section, the term `customized training' means
training that is--
`(1) designed to meet the special requirements of an employer or group
of employers;
`(2) conducted with a commitment by the employer or group of employers
to employ an individual upon successful completion of the training;
and
`(3) for which the employer pays for a significant portion (but in no
case less than 50 percent) of the cost of such training, as determined by
the Secretary.'.
SEC. 119. COORDINATION WITH TITLE I OF THE WORKFORCE INVESTMENT ACT OF
1998.
Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended by
inserting before the period at the end of the first sentence the following: `,
including the services provided through one-stop delivery systems described in
section 134(c) of the Workforce Investment Act of 1998 (29 U.S.C.
2864(c))'.
SEC. 120. EXPENDITURE PERIOD.
Section 245 of the Trade Act of 1974 (19 U.S.C. 2317), as amended by
section 111(a) of this Act, is further amended by amending subsection (b) to
read as follows:
`(b) PERIOD OF EXPENDITURE- Funds obligated for any fiscal year to carry
out activities under sections 235 through 238 may be expended by each State
receiving such funds during that fiscal year and the succeeding two fiscal
years.'.
SEC. 121. JOB SEARCH ALLOWANCES.
Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended to read
as follows:
`SEC. 237. JOB SEARCH ALLOWANCES.
`(a) JOB SEARCH ALLOWANCE AUTHORIZED-
`(1) IN GENERAL- An adversely affected worker covered by a certification
issued under subchapter A of this chapter may file an application with the
Secretary for payment of a job search allowance.
`(2) APPROVAL OF APPLICATIONS- The Secretary may grant an allowance
pursuant to an application filed under paragraph (1) when all of the
following apply:
`(A) ASSIST ADVERSELY AFFECTED WORKER- The allowance is paid to assist
an adversely affected worker who has been totally separated in securing a
job within the United States.
`(B) LOCAL EMPLOYMENT NOT AVAILABLE- The Secretary determines that the
worker cannot reasonably be expected to secure suitable employment in the
commuting area in which the worker resides.
`(C) APPLICATION- The worker has filed an application for the
allowance with the Secretary before--
`(I) the 365th day after the date of the certification under which
the worker is certified as eligible; or
`(II) the 365th day after the date of the worker's last total
separation; or
`(ii) the date that is the 182d day after the date on which the
worker concluded training, unless the worker received a waiver under
section 231(c).
`(b) AMOUNT OF ALLOWANCE-
`(1) IN GENERAL- An allowance granted under subsection (a) shall provide
reimbursement to the worker of 90 percent of the cost of necessary job
search expenses as prescribed by the Secretary in regulations.
`(2) MAXIMUM ALLOWANCE- Reimbursement under this subsection may not
exceed $1,250 for any worker.
`(3) ALLOWANCE FOR SUBSISTENCE AND TRANSPORTATION- Reimbursement under
this subsection may not be made for subsistence and transportation expenses
at levels exceeding those allowable under section 236(b) (1) and (2).
`(c) EXCEPTION- Notwithstanding subsection (b), the Secretary shall
reimburse any adversely affected worker for necessary expenses incurred by the
worker in participating in a job search program approved by the
Secretary.'.
SEC. 122. RELOCATION ALLOWANCES.
Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended to read
as follows:
`SEC. 238. RELOCATION ALLOWANCES.
`(a) RELOCATION ALLOWANCE AUTHORIZED-
`(1) IN GENERAL- Any adversely affected worker covered by a
certification issued under subchapter A of this chapter may file an
application for a relocation allowance with the Secretary, and the Secretary
may grant the relocation allowance, subject to the terms and conditions of
this section.
`(2) CONDITIONS FOR GRANTING ALLOWANCE- A relocation allowance may be
granted if all of the following terms and conditions are met:
`(A) ASSIST AN ADVERSELY AFFECTED WORKER- The relocation allowance
will assist an adversely affected worker in relocating within the United
States.
`(B) LOCAL EMPLOYMENT NOT AVAILABLE- The Secretary determines that the
worker cannot reasonably be expected to secure suitable employment in the
commuting area in which the worker resides.
`(C) TOTAL SEPARATION- The worker is totally separated from employment
at the time relocation commences.
`(D) SUITABLE EMPLOYMENT OBTAINED- The worker--
`(i) has obtained suitable employment affording a reasonable
expectation of long-term duration in the area in which the worker wishes
to relocate; or
`(ii) has obtained a bona fide offer of such employment.
`(E) APPLICATION- The worker filed an application with the Secretary
before--
`(I) the 425th day after the date of the certification under
subchapter A of this chapter; or
`(II) the 425th day after the date of the worker's last total
separation; or
`(ii) the date that is the 182d day after the date on which the
worker concluded training, unless the worker received a waiver under
section 231(c).
`(b) AMOUNT OF ALLOWANCE- The relocation allowance granted to a worker
under subsection (a) includes--
`(1) 90 percent of the reasonable and necessary expenses (including, but
not limited to, subsistence and transportation expenses at levels not
exceeding those allowable under section 236(b) (1) and (2) specified in
regulations prescribed by the Secretary, incurred in transporting the
worker, the worker's family, and household effects; and
`(2) a lump sum equivalent to 3 times the worker's average weekly wage,
up to a maximum payment of $1,250.
`(c) LIMITATIONS- A relocation allowance may not be granted to a worker
unless--
`(1) the relocation occurs within 182 days after the filing of the
application for relocation assistance; or
`(2) the relocation occurs within 182 days after the conclusion of
training, if the worker entered a training program approved by the Secretary
under section 236(b) (1) and (2).'.
SEC. 123. REPEAL OF NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE PROGRAM.
(a) IN GENERAL- Subchapter D of chapter 2 of title II of such Act (19
U.S.C. 2331) is repealed.
(b) CONFORMING AMENDMENTS-
(1) Section 225(b) (1) and (2) of the Trade Act of 1974 (19 U.S.C.
2275(b) (1) and (2)) is amended by striking `or subchapter D' each place it
appears.
(2) Section 249A of such Act (19 U.S.C. 2322) is repealed.
(3) The table of contents of such Act is amended--
(A) by striking the item relating to section 249A; and
(B) by striking the items relating to subchapter D of chapter 2 of
title II.
(4) Section 284(a) of such Act is amended by striking `or section
250(c)'.
(1) IN GENERAL- The amendments made by this section shall apply with
respect to petitions filed under chapter 2 of title II of the Trade Act of
1974, on or after the date that is 90 days after the date of enactment of
this Act.
(2) WORKERS CERTIFIED AS ELIGIBLE BEFORE EFFECTIVE DATE- Notwithstanding
subsection (a), a worker receiving benefits under chapter 2 of title II of
the Trade Act of 1974 shall continue to receive (or be eligible to receive)
benefits and services under chapter 2 of title II of the Trade Act of 1974,
as in effect on the day before the amendments made by this section take
effect under subsection (a), for any week for which the worker meets the
eligibility requirements of such chapter 2 as in effect on such date.
SEC. 124. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE
FOR OLDER WORKERS.
(a) DEMONSTRATION PROGRAM- Chapter 2 of title II of the Trade Act of 1974
(19 U.S.C. 2271 et seq.) is amended by striking section 246 and inserting the
following new section:
`SEC. 246. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE
FOR OLDER WORKERS.
`(1) ESTABLISHMENT- Not later than 1 year after the date of enactment of
the Trade Adjustment Assistance Reform Act of 2002, the Secretary shall
establish an alternative trade adjustment assistance program for older
workers that provides the benefits described in paragraph (2).
`(A) PAYMENTS- A State shall use the funds provided to the State under
section 241 to pay, for a period not to exceed 2 years, to a worker
described in paragraph (3)(B), 50 percent of the difference
between--
`(i) the wages received by the worker from reemployment;
and
`(ii) the wages received by the worker at the time of
separation.
`(B) HEALTH INSURANCE- A worker described in paragraph (3)(B)
participating in the program established under paragraph (1) is eligible
to receive, for a period not to exceed 2 years, a credit for health
insurance costs under section 35 of the Internal Revenue Code of 1986, as
added by section 201 of the Trade Act of 2002.
`(i) IN GENERAL- The Secretary shall provide the opportunity for a
group of workers on whose behalf a petition is filed under section 221
to request that the group of workers be certified for the alternative
trade adjustment assistance program under this section at the time the
petition is filed.
`(ii) CRITERIA- In determining whether to certify a group of workers
as eligible for the alternative trade adjustment assistance program, the
Secretary shall consider the following criteria:
`(I) Whether a significant number of workers in the workers' firm
are 50 years of age or older.
`(II) Whether the workers in the workers' firm possess skills that
are not easily transferable.
`(III) The competitive conditions within the workers'
industry.
`(iii) DEADLINE- The Secretary shall determine whether the workers
in the group are eligible for the alternative trade adjustment
assistance program by the date specified in section 223(a).
`(B) INDIVIDUAL ELIGIBILITY- A worker in the group that the Secretary
has certified as eligible for the alternative trade adjustment assistance
program may elect to receive benefits under the alternative trade
adjustment assistance program if the worker--
`(i) is covered by a certification under subchapter A of this
chapter;
`(ii) obtains reemployment not more than 26 weeks after the date of
separation from the adversely affected employment;
`(iii) is at least 50 years of age; and
`(iv) earns not more than $50,000 a year in wages from
reemployment;
`(v) is employed on a full-time basis as defined by State law in the
State in which the worker is employed; and
`(vi) does not return to the employment from which the worker was
separated.
`(4) TOTAL AMOUNT OF PAYMENTS- The payments described in paragraph
(2)(A) made to a worker may not exceed $10,000 per worker during the 2-year
eligibility period.
`(5) LIMITATION ON OTHER BENEFITS- Except as provided in section
238(a)(2)(B), if a worker is receiving payments pursuant to the program
established under paragraph (1), the worker shall not be eligible to receive
any other benefits under this title.
`(1) IN GENERAL- Except as provided in paragraph (2), no payments may be
made by a State under the program established under subsection (a)(1) after
the date that is 5 years after the date on which such program is implemented
by the State.
`(2) EXCEPTION- Notwithstanding paragraph (1), a worker receiving
payments under the program established under subsection (a)(1) on the
termination date described in paragraph (1) shall continue to receive such
payments provided that the worker meets the criteria described in subsection
(a)(3)(B).'.
(b) TABLE OF CONTENTS- The Trade Act of 1974 (U.S.C. et seq.) is amended
in the table of contents by inserting after the item relating to section 245
the following new item:
`Sec. 246. Demonstration project for alternative trade adjustment
assistance for older workers.'.
SEC. 125. DECLARATION OF POLICY; SENSE OF CONGRESS.
(a) DECLARATION OF POLICY- Congress reiterates that, under the trade
adjustment assistance program under chapter 2 of title II of the Trade Act of
1974, workers are eligible for transportation, childcare, and healthcare
assistance, as well as other related assistance under programs administered by
the Department of Labor.
(b) SENSE OF CONGRESS- It is the sense of Congress that the Secretary of
Labor, working independently and in conjunction with the States, should, in
accordance with section 225 of the Trade Act of 1974, provide more specific
information about benefit allowances, training, and other employment services,
and the petition and application procedures (including appropriate filing
dates) for such allowances, training, and services, under the trade adjustment
assistance program under chapter 2 of title II of the Trade Act of 1974 to
workers who are applying for, or are certified to receive, assistance under
that program, including information on all other Federal assistance available
to such workers.
Subtitle B--Trade Adjustment Assistance For Firms
SEC. 131. REAUTHORIZATION OF PROGRAM.
Section 256(b) of chapter 3 of title II of the Trade Act of 1974 (19
U.S.C. 2346(b)) is amended to read as follows:
`(b) There are authorized to be appropriated to the Secretary $16,000,000
for each of fiscal years 2003 through 2007, to carry out the Secretary's
functions under this chapter in connection with furnishing adjustment
assistance to firms. Amounts appropriated under this subsection shall remain
available until expended.'.
Subtitle C--Trade Adjustment Assistance For Farmers
SEC. 141. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.
(a) IN GENERAL- Title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.)
is amended by adding at the end the following new chapter:
`CHAPTER 6--ADJUSTMENT ASSISTANCE FOR FARMERS
`SEC. 291. DEFINITIONS.
`(1) AGRICULTURAL COMMODITY- The term `agricultural commodity' means any
agricultural commodity (including livestock) in its raw or natural
state.
`(2) AGRICULTURAL COMMODITY PRODUCER- The term `agricultural commodity
producer' has the same meaning as the term `person' as prescribed by
regulations promulgated under section 1001(5) of the Food Security Act of
1985 (7 U.S.C. 1308(5)).
`(3) CONTRIBUTED IMPORTANTLY-
`(A) IN GENERAL- The term `contributed importantly' means a cause
which is important but not necessarily more important than any other
cause.
`(B) DETERMINATION OF CONTRIBUTED IMPORTANTLY- The determination of
whether imports of articles like or directly competitive with an
agricultural commodity with respect to which a petition under this chapter
was filed contributed importantly to a decline in the price of the
agricultural commodity shall be made by the Secretary.
`(4) DULY AUTHORIZED REPRESENTATIVE- The term `duly authorized
representative' means an association of agricultural commodity
producers.
`(5) NATIONAL AVERAGE PRICE- The term `national average price' means the
national average price paid to an agricultural commodity producer for an
agricultural commodity in a marketing year as determined by the
Secretary.
`(6) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
`SEC. 292. PETITIONS; GROUP ELIGIBILITY.
`(a) IN GENERAL- A petition for a certification of eligibility to apply
for adjustment assistance under this chapter may be filed with the Secretary
by a group of agricultural commodity producers or by their duly authorized
representative. Upon receipt of the petition, the Secretary shall promptly
publish notice in the Federal Register that the Secretary has received the
petition and initiated an investigation.
`(b) HEARINGS- If the petitioner, or any other person found by the
Secretary to have a substantial interest in the proceedings, submits not later
than 10 days after the date of the Secretary's publication under subsection
(a) a request for a hearing, the Secretary shall provide for a public hearing
and afford such interested person an opportunity to be present, to produce
evidence, and to be heard.
`(c) GROUP ELIGIBILITY REQUIREMENTS- The Secretary shall certify a group
of agricultural commodity producers as eligible to apply for adjustment
assistance under this chapter if the Secretary determines--
`(1) that the national average price for the agricultural commodity, or
a class of goods within the agricultural commodity, produced by the group
for the most recent marketing year for which the national average price is
available is less than 80 percent of the average of the national average
price for such agricultural commodity, or such class of goods, for the 5
marketing years preceding the most recent marketing year; and
`(2) that increases in imports of articles like or directly competitive
with the agricultural commodity, or class of goods within the agricultural
commodity, produced by the group contributed importantly to the decline in
price described in paragraph (1).
`(d) SPECIAL RULE FOR QUALIFIED SUBSEQUENT YEARS- A group of agricultural
commodity producers certified as eligible under section 293 shall be eligible
to apply for assistance under this chapter in any qualified year after the
year the group is first certified, if the Secretary determines that--
`(1) the national average price for the agricultural commodity, or class
of goods within the agricultural commodity, produced by the group for the
most recent marketing year for which the national average price is available
is equal to or less than the price determined under subsection (c)(1);
and
`(2) the requirements of subsection (c)(2) are met.
`(e) DETERMINATION OF QUALIFIED YEAR AND COMMODITY- In this chapter:
`(1) QUALIFIED YEAR- The term `qualified year', with respect to a group
of agricultural commodity producers certified as eligible under section 293,
means each consecutive year after the year in which the group is certified
and in which the Secretary makes the determination under subsection (c) or
(d), as the case may be.
`(2) CLASSES OF GOODS WITHIN A COMMODITY- In any case in which there are
separate classes of goods within an agricultural commodity, the Secretary
shall treat each class as a separate commodity in determining group
eligibility, the national average price, and level of imports under this
section and section 296.
`SEC. 293. DETERMINATIONS BY SECRETARY OF AGRICULTURE.
`(a) IN GENERAL- As soon as practicable after the date on which a petition
is filed under section 292, but in any event not later than 40 days after that
date, the Secretary shall determine whether the petitioning group meets the
requirements of section 292 (c) or (d), as the case may be, and shall, if the
group meets the requirements, issue a certification of eligibility to apply
for assistance under this chapter covering agricultural commodity producers in
any group that meets the requirements. Each certification shall specify the
date on which eligibility under this chapter begins.
`(b) NOTICE- Upon making a determination on a petition, the Secretary
shall promptly publish a summary of the determination in the Federal Register,
together with the Secretary's reasons for making the determination.
`(c) TERMINATION OF CERTIFICATION- Whenever the Secretary determines, with
respect to any certification of eligibility under this chapter, that the
decline in price for the agricultural commodity covered by the certification
is no longer attributable to the conditions described in section 292, the
Secretary shall terminate such certification and promptly cause notice of such
termination to be published in the Federal Register, together with the
Secretary's reasons for making such determination.
`SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN INTERNATIONAL TRADE
COMMISSION BEGINS INVESTIGATION.
`(a) IN GENERAL- Whenever the International Trade Commission (in this
chapter referred to as the `Commission') begins an investigation under section
202 with respect to an agricultural commodity, the Commission shall
immediately notify the Secretary of the investigation. Upon receipt of the
notification, the Secretary shall immediately conduct a study of--
`(1) the number of agricultural commodity producers producing a like or
directly competitive agricultural commodity who have been or are likely to
be certified as eligible for adjustment assistance under this chapter,
and
`(2) the extent to which the adjustment of such producers to the import
competition may be facilitated through the use of existing programs.
`(b) REPORT- Not later than 15 days after the day on which the Commission
makes its report under section 202(f), the Secretary shall submit a report to
the President setting forth the findings of the study described in subsection
(a). Upon making the report to the President, the Secretary shall also
promptly make the report public (with the exception of information which the
Secretary determines to be confidential) and shall have a summary of the
report published in the Federal Register.
`SEC. 295. BENEFIT INFORMATION TO AGRICULTURAL COMMODITY PRODUCERS.
`(a) IN GENERAL- The Secretary shall provide full information to
agricultural commodity producers about the benefit allowances, training, and
other employment services available under this title and about the petition
and application procedures, and the appropriate filing dates, for such
allowances, training, and services. The Secretary shall provide whatever
assistance is necessary to enable groups to prepare petitions or applications
for program benefits under this title.
`(1) IN GENERAL- The Secretary shall mail written notice of the benefits
available under this chapter to each agricultural commodity producer that
the Secretary has reason to believe is covered by a certification made under
this chapter.
`(2) OTHER NOTICE- The Secretary shall publish notice of the benefits
available under this chapter to agricultural commodity producers that are
covered by each certification made under this chapter in newspapers of
general circulation in the areas in which such producers reside.
`(3) OTHER FEDERAL ASSISTANCE- The Secretary shall also provide
information concerning procedures for applying for and receiving all other
Federal assistance and services available to workers facing economic
distress.
`SEC. 296. QUALIFYING REQUIREMENTS FOR AGRICULTURAL COMMODITY
PRODUCERS.
`(1) REQUIREMENTS- Payment of a trade adjustment allowance shall be made
to an adversely affected agricultural commodity producer covered by a
certification under this chapter who files an application for such allowance
within 90 days after the date on which the Secretary makes a determination
and issues a certification of eligibility under section 293, if the
following conditions are met:
`(A) The producer submits to the Secretary sufficient information to
establish the amount of agricultural commodity covered by the application
filed under subsection (a) that was produced by the producer in the most
recent year.
`(B) The producer certifies that the producer has not received cash
benefits under any provision of this title other than this
chapter.
`(C) The producer's net farm income (as determined by the Secretary)
for the most recent year is less than the producer's net farm income for
the latest year in which no adjustment assistance was received by the
producer under this chapter.
`(D) The producer certifies that the producer has met with an
Extension Service employee or agent to obtain, at no cost to the producer,
information and technical assistance that will assist the producer in
adjusting to import competition with respect to the adversely affected
agricultural commodity, including--
`(i) information regarding the feasibility and desirability of
substituting 1 or more alternative commodities for the adversely
affected agricultural commodity; and
`(ii) technical assistance that will improve the competitiveness of
the production and marketing of the adversely affected agricultural
commodity by the producer, including yield and marketing
improvements.
`(A) ADJUSTED GROSS INCOME-
`(i) IN GENERAL- Notwithstanding any other provision of this
chapter, an agricultural commodity producer shall not be eligible for
assistance under this chapter in any year in which the average adjusted
gross income of the producer exceeds the level set forth in section
1001D of the Food Security Act of 1985.
`(ii) CERTIFICATION- To comply with the limitation under
subparagraph (A), an individual or entity shall provide to the
Secretary--
`(I) a certification by a certified public accountant or another
third party that is acceptable to the Secretary that the average
adjusted gross income of the producer does not exceed the level set
forth in section 1001D of the Food Security Act of 1985;
or
`(II) information and documentation regarding the adjusted gross
income of the producer through other procedures established by the
Secretary.
`(B) COUNTER-CYCLICAL PAYMENTS- The total amount of payments made to
an agricultural producer under this chapter during any crop year may not
exceed the limitation on counter-cyclical payments set forth in section
1001(c) of the Food Security Act of 1985.
`(C) DEFINITIONS- In this subsection:
`(i) ADJUSTED GROSS INCOME- The term `adjusted gross income' means
adjusted gross income of an agricultural commodity
producer--
`(I) as defined in section 62 of the Internal Revenue Code of 1986
and implemented in accordance with procedures established by the
Secretary; and
`(II) that is earned directly or indirectly from all agricultural
and nonagricultural sources of an individual or entity for a fiscal or
corresponding crop year.
`(ii) AVERAGE ADJUSTED GROSS INCOME-
`(I) IN GENERAL- The term `average adjusted gross income' means
the average adjusted gross income of a producer for each of the 3
preceding taxable years.
`(II) EFFECTIVE ADJUSTED GROSS INCOME- In the case of a producer
that does not have an adjusted gross income for each of the 3
preceding taxable years, the Secretary shall establish rules that
provide the producer with an effective adjusted gross income for the
applicable year.
`(b) AMOUNT OF CASH BENEFITS-
`(1) IN GENERAL- Subject to the provisions of section 298, an adversely
affected agricultural commodity producer described in subsection (a) shall
be entitled to adjustment assistance under this chapter in an amount equal
to the product of--
`(A) one-half of the difference between--
`(i) an amount equal to 80 percent of the average of the national
average price of the agricultural commodity covered by the application
described in subsection (a) for the 5 marketing years preceding the most
recent marketing year, and
`(ii) the national average price of the agricultural commodity for
the most recent marketing year, and
`(B) the amount of the agricultural commodity produced by the
agricultural commodity producer in the most recent marketing
year.
`(2) SPECIAL RULE FOR SUBSEQUENT QUALIFIED YEARS- The amount of cash
benefits for a qualified year shall be determined in the same manner as cash
benefits are determined under paragraph (1) except that the average national
price of the agricultural commodity shall be determined under paragraph
(1)(A)(i) by using the 5-marketing-year period used to determine the amount
of cash benefits for the first certification.
`(c) MAXIMUM AMOUNT OF CASH ASSISTANCE- The maximum amount of cash
benefits an agricultural commodity producer may receive in any 12-month period
shall not exceed $10,000.
`(d) LIMITATIONS ON OTHER ASSISTANCE- An agricultural commodity producer
entitled to receive a cash benefit under this chapter--
`(1) shall not be eligible for any other cash benefit under this title,
and
`(2) shall be entitled to employment services and training benefits
under part II of subchapter B of chapter 2.
`SEC. 297. FRAUD AND RECOVERY OF OVERPAYMENTS.
`(1) REPAYMENT- If the Secretary, or a court of competent jurisdiction,
determines that any person has received any payment under this chapter to
which the person was not entitled, such person shall be liable to repay such
amount to the Secretary, except that the Secretary may waive such repayment
if the Secretary determines, in accordance with guidelines prescribed by the
Secretary, that--
`(A) the payment was made without fault on the part of such person;
and
`(B) requiring such repayment would be contrary to equity and good
conscience.
`(2) RECOVERY OF OVERPAYMENT- Unless an overpayment is otherwise
recovered, or waived under paragraph (1), the Secretary shall recover the
overpayment by deductions from any sums payable to such person under this
chapter.
`(b) FALSE STATEMENT- A person shall, in addition to any other penalty
provided by law, be ineligible for any further payments under this
chapter--
`(1) if the Secretary, or a court of competent jurisdiction, determines
that the person--
`(A) knowingly has made, or caused another to make, a false statement
or representation of a material fact; or
`(B) knowingly has failed, or caused another to fail, to disclose a
material fact; and
`(2) as a result of such false statement or representation, or of such
nondisclosure, such person has received any payment under this chapter to
which the person was not entitled.
`(c) NOTICE AND DETERMINATION- Except for overpayments determined by a
court of competent jurisdiction, no repayment may be required, and no
deduction may be made, under this section until a determination under
subsection (a)(1) by the Secretary has been made, notice of the determination
and an opportunity for a fair hearing thereon has been given to the person
concerned, and the determination has become final.
`(d) PAYMENT TO TREASURY- Any amount recovered under this section shall be
returned to the Treasury of the United States.
`(e) PENALTIES- Whoever makes a false statement of a material fact knowing
it to be false, or knowingly fails to disclose a material fact, for the
purpose of obtaining or increasing for himself or for any other person any
payment authorized to be furnished under this chapter shall be fined not more
than $10,000 or imprisoned for not more than 1 year, or both.
`SEC. 298. AUTHORIZATION OF APPROPRIATIONS.
`(a) IN GENERAL- There are authorized to be appropriated and there are
appropriated to the Department of Agriculture not to exceed $90,000,000 for
each of the fiscal years 2003 through 2007 to carry out the purposes of this
chapter.
`(b) PROPORTIONATE REDUCTION- If in any year the amount appropriated under
this chapter is insufficient to meet the requirements for adjustment
assistance payable under this chapter, the amount of assistance payable under
this chapter shall be reduced proportionately.'.
(b) EFFECTIVE DATE- The amendments made by this title shall take effect on
the date that is 180 days after the date of enactment of this Act.
SEC. 142. CONFORMING AMENDMENTS.
(1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a)) is
amended--
(A) by inserting `an agricultural commodity producer (as defined in
section 291(2)) aggrieved by a determination of the Secretary of
Agriculture under section 293, ' after `section 251 of this title,';
and
(B) in the second sentence of subsection (a) and in subsections (b)
and (c), by striking `or the Secretary of Commerce' each place it appears
and inserting `, the Secretary of Commerce, or the Secretary of
Agriculture'.
(b) Chapters 6- The table of contents for title II of the Trade Act of
1974, as amended by subparagraph (A), is amended by inserting after the items
relating to chapter 5 the following:
`Chapter 6--Adjustment Assistance for Farmers
`Sec. 292. Petitions; group eligibility.
`Sec. 293. Determinations by Secretary of Agriculture.
`Sec. 294. Study by Secretary of Agriculture when International Trade
Commission begins investigation.
`Sec. 295. Benefit information to agricultural commodity
producers.
`Sec. 296. Qualifying requirements for agricultural commodity
producers.
`Sec. 297. Fraud and recovery of overpayments.
`Sec. 298. Authorization of appropriations.'.
SEC. 143. STUDY ON TAA FOR FISHERMEN.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Commerce shall conduct a study and report to Congress regarding
whether a trade adjustment assistance program is appropriate and feasible for
fishermen. For purposes of the preceding sentence, the term `fishermen' means
any person who is engaged in commercial fishing or is a United States fish
processor.
Subtitle D--Effective Date
SEC. 151. EFFECTIVE DATE.
(a) IN GENERAL- Except as otherwise provided in sections 123(c) and
141(b), and subsections (b), (c), and (d) of this section, the amendments made
by this division shall apply to petitions for certification filed under
chapter 2 or 3 of title II of the Trade Act of 1974 on or after the date that
is 90 days after the date of enactment of this Act.
(b) WORKERS CERTIFIED AS ELIGIBLE BEFORE EFFECTIVE DATE- Notwithstanding
subsection (a), a worker shall continue to receive (or be eligible to receive)
trade adjustment assistance and other benefits under chapter 2 of title II of
the Trade Act of 1974, as in effect on September 30, 2001, for any week for
which the worker meets the eligibility requirements of such chapter 2 as in
effect on such date, if on or before such date, the worker--
(1) was certified as eligible for trade adjustment assistance benefits
under such chapter as in effect on such date; and
(2) would otherwise be eligible to receive trade adjustment assistance
benefits under such chapter as in effect on such date.
(c) WORKERS WHO BECAME ELIGIBLE DURING QUALIFIED PERIOD-
(1) IN GENERAL- Notwithstanding subsection (a) or any other provision of
law, including section 285 of the Trade Act of 1974, any worker who would
have been eligible to receive trade adjustment assistance or other benefits
under chapter 2 of title II of the Trade Act of 1974 during the qualified
period if such chapter 2 had been in effect during such period, shall be
eligible to receive trade adjustment assistance and other benefits under
chapter 2 of title II of the Trade Act of 1974, as in effect on September
30, 2001, for any week during the qualified period for which the worker
meets the eligibility requirements of such chapter 2 as in effect on
September 30, 2001.
(2) QUALIFIED PERIOD- For purposes of this subsection, the term
`qualified period' means the period beginning on January 11, 2002, and
ending on the date that is 90 days after the date of enactment of this
Act.
(d) ADJUSTMENT ASSISTANCE FOR FIRMS-
(1) IN GENERAL- Notwithstanding subsection (a) or any other provision of
law, including section 285 of the Trade Act of 1974, and except as provided
in paragraph (2), any firm that would have been eligible to receive
adjustment assistance under chapter 3 of title II of the Trade Act if 1974
during the qualified period if such chapter 3 had been in effect during such
period, shall be eligible to receive adjustment assistance under chapter 3
of title II of the Trade Act of 1974, as in effect on September 30, 2001,
for any week during the qualified period for which the firm meets the
eligibility requirements of such chapter 3 as in effect on September 30,
2001.
(2) QUALIFIED PERIOD- For purposes of this subsection, the term
`qualified period' means the period beginning on October 1, 2001, and ending
on the date that is 90 days after the date of enactment of this Act.
TITLE II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE
INDIVIDUALS
SEC. 201. CREDIT FOR HEALTH INSURANCE COSTS OF INDIVIDUALS RECEIVING A TRADE
READJUSTMENT ALLOWANCE OR A BENEFIT FROM THE PENSION BENEFIT GUARANTY
CORPORATION.
(a) IN GENERAL- Subpart C of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to refundable credits) is amended by
redesignating section 35 as section 36 and inserting after section 34 the
following new section:
`SEC. 35. HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.
`(a) IN GENERAL- In the case of an individual, there shall be allowed as a
credit against the tax imposed by subtitle A an amount equal to 65 percent of
the amount paid by the taxpayer for coverage of the taxpayer and qualifying
family members under qualified health insurance for eligible coverage months
beginning in the taxable year.
`(b) ELIGIBLE COVERAGE MONTH- For purposes of this section--
`(1) IN GENERAL- The term `eligible coverage month' means any month
if--
`(A) as of the first day of such month, the taxpayer--
`(i) is an eligible individual,
`(ii) is covered by qualified health insurance, the premium for
which is paid by the taxpayer,
`(iii) does not have other specified coverage, and
`(iv) is not imprisoned under Federal, State, or local authority,
and
`(B) such month begins more than 90 days after the date of the
enactment of the Trade Act of 2002.
`(2) JOINT RETURNS- In the case of a joint return, the requirements of
paragraph (1)(A) shall be treated as met with respect to any month if at
least 1 spouse satisfies such requirements.
`(c) ELIGIBLE INDIVIDUAL- For purposes of this section--
`(1) IN GENERAL- The term `eligible individual' means--
`(A) an eligible TAA recipient,
`(B) an eligible alternative TAA recipient, and
`(C) an eligible PBGC pension recipient.
`(2) ELIGIBLE TAA RECIPIENT- The term `eligible TAA recipient' means,
with respect to any month, any individual who is receiving for any day of
such month a trade readjustment allowance under chapter 2 of title II of the
Trade Act of 1974 or who would be eligible to receive such allowance if
section 231 of such Act were applied without regard to subsection (a)(3)(B)
of such section. An individual shall continue to be treated as an eligible
TAA recipient during the first month that such individual would otherwise
cease to be an eligible TAA recipient by reason of the preceding
sentence.
`(3) ELIGIBLE ALTERNATIVE TAA RECIPIENT- The term `eligible alternative
TAA recipient' means, with respect to any month, any individual who--
`(A) is a worker described in section 246(a)(3)(B) of the Trade Act of
1974 who is participating in the program established under section
246(a)(1) of such Act, and
`(B) is receiving a benefit for such month under section 246(a)(2) of
such Act.
An individual shall continue to be treated as an eligible alternative
TAA recipient during the first month that such individual would otherwise
cease to be an eligible alternative TAA recipient by reason of the preceding
sentence.
`(4) ELIGIBLE PBGC PENSION RECIPIENT- The term `eligible PBGC pension
recipient' means, with respect to any month, any individual who--
`(A) has attained age 55 as of the first day of such month,
and
`(B) is receiving a benefit for such month any portion of which is
paid by the Pension Benefit Guaranty Corporation under title IV of the
Employee Retirement Income Security Act of 1974.
`(d) QUALIFYING FAMILY MEMBER- For purposes of this section--
`(1) IN GENERAL- The term `qualifying family member' means--
`(A) the taxpayer's spouse, and
`(B) any dependent of the taxpayer with respect to whom the taxpayer
is entitled to a deduction under section 151(c).
Such term does not include any individual who has other specified
coverage.
`(2) SPECIAL DEPENDENCY TEST IN CASE OF DIVORCED PARENTS, ETC- If
paragraph (2) or (4) of section 152(e) applies to any child with respect to
any calendar year, in the case of any taxable year beginning in such
calendar year, such child shall be treated as described in paragraph (1)(B)
with respect to the custodial parent (within the meaning of section
152(e)(1)) and not with respect to the noncustodial parent.
`(e) QUALIFIED HEALTH INSURANCE- For purposes of this section--
`(1) IN GENERAL- The term `qualified health insurance' means any of the
following:
`(A) Coverage under a COBRA continuation provision (as defined in
section 9832(d)(1)).
`(B) State-based continuation coverage provided by the State under a
State law that requires such coverage.
`(C) Coverage offered through a qualified State high risk pool (as
defined in section 2744(c)(2) of the Public Health Service Act).
`(D) Coverage under a health insurance program offered for State
employees.
`(E) Coverage under a State-based health insurance program that is
comparable to the health insurance program offered for State
employees.
`(F) Coverage through an arrangement entered into by a State
and--
`(i) a group health plan (including such a plan which is a
multiemployer plan as defined in section 3(37) of the Employee
Retirement Income Security Act of 1974),
`(ii) an issuer of health insurance coverage,
`(iii) an administrator, or
`(G) Coverage offered through a State arrangement with a private
sector health care coverage purchasing pool.
`(H) Coverage under a State-operated health plan that does not receive
any Federal financial participation.
`(I) Coverage under a group health plan that is available through the
employment of the eligible individual's spouse.
`(J) In the case of any eligible individual and such individual's
qualifying family members, coverage under individual health insurance if
the eligible individual was covered under individual health insurance
during the entire 30-day period that ends on the date that such individual
became separated from the employment which qualified such individual
for--
`(i) in the case of an eligible TAA recipient, the allowance
described in subsection (c)(2),
`(ii) in the case of an eligible alternative TAA recipient, the
benefit described in subsection (c)(3)(B), or
`(iii) in the case of any eligible PBGC pension recipient, the
benefit described in subsection (c)(4)(B).
For purposes of this subparagraph, the term `individual health
insurance' means any insurance which constitutes medical care offered to
individuals other than in connection with a group health plan and does not
include Federal- or State-based health insurance coverage.
`(2) REQUIREMENTS FOR STATE-BASED COVERAGE-
`(A) IN GENERAL- The term `qualified health insurance' does not
include any coverage described in subparagraphs (B) through (H) of
paragraph (1) unless the State involved has elected to have such coverage
treated as qualified health insurance under this section and such coverage
meets the following requirements:
`(i) GUARANTEED ISSUE- Each qualifying individual is guaranteed
enrollment if the individual pays the premium for enrollment or provides
a qualified health insurance costs credit eligibility certificate
described in section 7527 and pays the remainder of such
premium.
`(ii) NO IMPOSITION OF PREEXISTING CONDITION EXCLUSION- No
pre-existing condition limitations are imposed with respect to any
qualifying individual.
`(iii) NONDISCRIMINATORY PREMIUM- The total premium (as determined
without regard to any subsidies) with respect to a qualifying individual
may not be greater than the total premium (as so determined) for a
similarly situated individual who is not a qualifying
individual.
`(iv) SAME BENEFITS- Benefits under the coverage are the same as (or
substantially similar to) the benefits provided to similarly situated
individuals who are not qualifying individuals.
`(B) QUALIFYING INDIVIDUAL- For purposes of this paragraph, the term
`qualifying individual' means--
`(i) an eligible individual for whom, as of the date on which the
individual seeks to enroll in the coverage described in subparagraphs
(B) through (H) of paragraph (1), the aggregate of the periods of
creditable coverage (as defined in section 9801(c)) is 3 months or
longer and who, with respect to any month, meets the requirements of
clauses (iii) and (iv) of subsection (b)(1)(A); and
`(ii) the qualifying family members of such eligible
individual.
`(3) EXCEPTION- The term `qualified health insurance' shall not
include--
`(A) a flexible spending or similar arrangement, and
`(B) any insurance if substantially all of its coverage is of excepted
benefits described in section 9832(c).
`(f) OTHER SPECIFIED COVERAGE- For purposes of this section, an individual
has other specified coverage for any month if, as of the first day of such
month--
`(1) SUBSIDIZED COVERAGE-
`(A) IN GENERAL- Such individual is covered under any insurance which
constitutes medical care (except insurance substantially all of the
coverage of which is of excepted benefits described in section 9832(c))
under any health plan maintained by any employer (or former employer) of
the taxpayer or the taxpayer's spouse and at least 50 percent of the cost
of such coverage (determined under section 4980B) is paid or incurred by
the employer.
`(B) ELIGIBLE ALTERNATIVE TAA RECIPIENTS- In the case of an eligible
alternative TAA recipient, such individual is either--
`(i) eligible for coverage under any qualified health insurance
(other than insurance described in subparagraph (A), (B), or (F) of
subsection (e)(1)) under which at least 50 percent of the cost of
coverage (determined under section 4980B(f)(4)) is paid or incurred by
an employer (or former employer) of the taxpayer or the taxpayer's
spouse, or
`(ii) covered under any such qualified health insurance under which
any portion of the cost of coverage (as so determined) is paid or
incurred by an employer (or former employer) of the taxpayer or the
taxpayer's spouse.
`(C) TREATMENT OF CAFETERIA PLANS- For purposes of subparagraphs (A)
and (B), the cost of coverage shall be treated as paid or incurred by an
employer to the extent the coverage is in lieu of a right to receive cash
or other qualified benefits under a cafeteria plan (as defined in section
125(d)).
`(2) COVERAGE UNDER MEDICARE, MEDICAID, OR SCHIP- Such
individual--
`(A) is entitled to benefits under part A of title XVIII of the Social
Security Act or is enrolled under part B of such title, or
`(B) is enrolled in the program under title XIX or XXI of such Act
(other than under section 1928 of such Act).
`(3) CERTAIN OTHER COVERAGE- Such individual--
`(A) is enrolled in a health benefits plan under chapter 89 of title
5, United States Code, or
`(B) is entitled to receive benefits under chapter 55 of title 10,
United States Code.
`(1) COORDINATION WITH ADVANCE PAYMENTS OF CREDIT- With respect to any
taxable year, the amount which would (but for this subsection) be allowed as
a credit to the taxpayer under subsection (a) shall be reduced (but not
below zero) by the aggregate amount paid on behalf of such taxpayer under
section 7527 for months beginning in such taxable year.
`(2) COORDINATION WITH OTHER DEDUCTIONS- Amounts taken into account
under subsection (a) shall not be taken into account in determining any
deduction allowed under section 162(l) or 213.
`(3) MSA DISTRIBUTIONS- Amounts distributed from an Archer MSA (as
defined in section 220(d)) shall not be taken into account under subsection
(a).
`(4) DENIAL OF CREDIT TO DEPENDENTS- No credit shall be allowed under
this section to any individual with respect to whom a deduction under
section 151 is allowable to another taxpayer for a taxable year beginning in
the calendar year in which such individual's taxable year begins.
`(5) BOTH SPOUSES ELIGIBLE INDIVIDUALS- The spouse of the taxpayer shall
not be treated as a qualifying family member for purposes of subsection (a),
if--
`(A) the taxpayer is married at the close of the taxable
year,
`(B) the taxpayer and the taxpayer's spouse are both eligible
individuals during the taxable year, and
`(C) the taxpayer files a separate return for the taxable
year.
`(6) MARITAL STATUS; CERTAIN MARRIED INDIVIDUALS LIVING APART- Rules
similar to the rules of paragraphs (3) and (4) of section 21(e) shall apply
for purposes of this section.
`(7) INSURANCE WHICH COVERS OTHER INDIVIDUALS- For purposes of this
section, rules similar to the rules of section 213(d)(6) shall apply with
respect to any contract for qualified health insurance under which amounts
are payable for coverage of an individual other than the taxpayer and
qualifying family members.
`(8) TREATMENT OF PAYMENTS- For purposes of this section--
`(A) PAYMENTS BY SECRETARY- Payments made by the Secretary on behalf
of any individual under section 7527 (relating to advance payment of
credit for health insurance costs of eligible individuals) shall be
treated as having been made by the taxpayer on the first day of the month
for which such payment was made.
`(B) PAYMENTS BY TAXPAYER- Payments made by the taxpayer for eligible
coverage months shall be treated as having been made by the taxpayer on
the first day of the month for which such payment was made.
`(9) REGULATIONS- The Secretary may prescribe such regulations and other
guidance as may be necessary or appropriate to carry out this section,
section 6050T, and section 7527.'.
(b) PROMOTION OF STATE HIGH RISK POOLS- Title XXVII of the Public Health
Service Act is amended by inserting after section 2744 the following new
section:
`SEC. 2745. PROMOTION OF QUALIFIED HIGH RISK POOLS.
`(a) SEED GRANTS TO STATES- The Secretary shall provide from the funds
appropriated under subsection (c)(1) a grant of up to $1,000,000 to each State
that has not created a qualified high risk pool as of the date of the
enactment of this section for the State's costs of creation and initial
operation of such a pool.
`(b) MATCHING FUNDS FOR OPERATION OF POOLS-
`(1) IN GENERAL- In the case of a State that has established a qualified
high risk pool that--
`(A) restricts premiums charged under the pool to no more than 150
percent of the premium for applicable standard risk rates;
`(B) offers a choice of two or more coverage options through the pool;
and
`(C) has in effect a mechanism reasonably designed to ensure continued
funding of losses incurred by the State after the end of fiscal year 2004
in connection with operation of the pool;
the Secretary shall provide, from the funds appropriated under
subsection (c)(2) and allotted to the State under paragraph (2), a grant of
up to 50 percent of the losses incurred by the State in connection with the
operation of the pool.
`(2) ALLOTMENT- The amounts appropriated under subsection (c)(2) for a
fiscal year shall be made available to the States in accordance with a
formula that is based upon the number of uninsured individuals in the
States.
`(c) FUNDING- Out of any money in the Treasury of the United States not
otherwise appropriated, there are authorized and appropriated--
`(1) $20,000,000 for fiscal year 2003 to carry out subsection (a);
and
`(2) $40,000,000 for each of fiscal years 2003 and 2004 to carry out
subsection (b).
Funds appropriated under this subsection for a fiscal year shall remain
available for obligation through the end of the following fiscal year. Nothing
in this section shall be construed as providing a State with an entitlement to
a grant under this section.
`(d) QUALIFIED HIGH RISK POOL AND STATE DEFINED- For purposes of this
section, the term `qualified high risk pool' has the meaning given such term
in section 2744(c)(2) and the term `State' means any of the 50 States and the
District of Columbia.'.
(c) CONFORMING AMENDMENTS-
(1) Paragraph (2) of section 1324(b) of title 31, United States Code, is
amended by inserting before the period `, or from section 35 of such
Code'.
(2) The table of sections for subpart C of part IV of chapter 1 of the
Internal Revenue Code of 1986 is amended by striking the last item and
inserting the following new items:
`Sec. 35. Health insurance costs of eligible individuals.
`Sec. 36. Overpayments of tax.'.
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years beginning after December 31,
2001.
(2) STATE HIGH RISK POOLS- The amendment made by subsection (b) shall
take effect on the date of the enactment of this Act.
SEC. 202. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE
INDIVIDUALS.
(a) IN GENERAL- Chapter 77 of the Internal Revenue Code of 1986 (relating
to miscellaneous provisions) is amended by adding at the end the following new
section:
`SEC. 7527. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE
INDIVIDUALS.
`(a) GENERAL RULE- Not later than August 1, 2003, the Secretary shall
establish a program for making payments on behalf of certified individuals to
providers of qualified health insurance (as defined in section 35(e)) for such
individuals.
`(b) LIMITATION ON ADVANCE PAYMENTS DURING ANY TAXABLE YEAR- The Secretary
may make payments under subsection (a) only to the extent that the total
amount of such payments made on behalf of any individual during the taxable
year does not exceed 65 percent of the amount paid by the taxpayer for
coverage of the taxpayer and qualifying family members under qualified health
insurance for eligible coverage months beginning in the taxable year.
`(c) CERTIFIED INDIVIDUAL- For purposes of this section, the term
`certified individual' means any individual for whom a qualified health
insurance costs credit eligibility certificate is in effect.
`(d) QUALIFIED HEALTH INSURANCE COSTS CREDIT ELIGIBILITY CERTIFICATE- For
purposes of this section, the term `qualified health insurance costs credit
eligibility certificate' means any written statement that an individual is an
eligible individual (as defined in section 35(c)) if such statement provides
such information as the Secretary may require for purposes of this section
and--
`(1) in the case of an eligible TAA recipient (as defined in section
35(c)(2)) or an eligible alternative TAA recipient (as defined in section
35(c)(3)), is certified by the Secretary of Labor (or by any other person or
entity designated by the Secretary), or
`(2) in the case of an eligible PBGC pension recipient (as defined in
section 35(c)(4)), is certified by the Pension Benefit Guaranty Corporation
(or by any other person or entity designated by the Secretary).'.
(b) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF CARRYING OUT A
PROGRAM FOR ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE
INDIVIDUALS-
(1) IN GENERAL- Subsection (l) of section 6103 of such Code (relating to
disclosure of returns and return information for purposes other than tax
administration) is amended by adding at the end the following new
paragraph:
`(18) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF CARRYING OUT A
PROGRAM FOR ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE
INDIVIDUALS- The Secretary may disclose to providers of health insurance for
any certified individual (as defined in section 7527(c)) return information
with respect to such certified individual only to the extent necessary to
carry out the program established by section 7527 (relating to advance
payment of credit for health insurance costs of eligible
individuals).'.
(2) PROCEDURES AND RECORDKEEPING RELATED TO DISCLOSURES- Subsection (p)
of such section is amended--
(A) in paragraph (3)(A) by striking `or (17)' and inserting `(17), or
(18)', and
(B) in paragraph (4) by inserting `or (17)' after `any other person
described in subsection (l)(16)' each place it appears.
(3) UNAUTHORIZED INSPECTION OF RETURNS OR RETURN INFORMATION- Section
7213A(a)(1)(B) of such Code is amended by striking `section 6103(n)' and
inserting `subsection (l)(18) or (n) of section 6103'.
(c) INFORMATION REPORTING-
(1) IN GENERAL- Subpart B of part III of subchapter A of chapter 61 of
the Internal Revenue Code of 1986 (relating to information concerning
transactions with other persons) is amended by inserting after section 6050S
the following new section:
`SEC. 6050T. RETURNS RELATING TO CREDIT FOR HEALTH INSURANCE COSTS OF
ELIGIBLE INDIVIDUALS.
`(a) REQUIREMENT OF REPORTING- Every person who is entitled to receive
payments for any month of any calendar year under section 7527 (relating to
advance payment of credit for health insurance costs of eligible individuals)
with respect to any certified individual (as defined in section 7527(c))
shall, at such time as the Secretary may prescribe, make the return described
in subsection (b) with respect to each such individual.
`(b) FORM AND MANNER OF RETURNS- A return is described in this subsection
if such return--
`(1) is in such form as the Secretary may prescribe, and
`(A) the name, address, and TIN of each individual referred to in
subsection (a),
`(B) the number of months for which amounts were entitled to be
received with respect to such individual under section 7527 (relating to
advance payment of credit for health insurance costs of eligible
individuals),
`(C) the amount entitled to be received for each such month,
and
`(D) such other information as the Secretary may prescribe.
`(c) STATEMENTS TO BE FURNISHED TO INDIVIDUALS WITH RESPECT TO WHOM
INFORMATION IS REQUIRED- Every person required to make a return under
subsection (a) shall furnish to each individual whose name is required to be
set forth in such return a written statement showing--
`(1) the name and address of the person required to make such return and
the phone number of the information contact for such person, and
`(2) the information required to be shown on the return with respect to
such individual.
The written statement required under the preceding sentence shall be
furnished on or before January 31 of the year following the calendar year for
which the return under subsection (a) is required to be made.'.
(2) ASSESSABLE PENALTIES-
(A) Subparagraph (B) of section 6724(d)(1) of such Code (relating to
definitions) is amended by redesignating clauses (xi) through (xvii) as
clauses (xii) through (xviii), respectively, and by inserting after clause
(x) the following new clause:
`(xi) section 6050T (relating to returns relating to credit for
health insurance costs of eligible individuals),'.
(B) Paragraph (2) of section 6724(d) of such Code is amended by
striking `or' at the end of subparagraph (Z), by striking the period at
the end of subparagraph (AA) and inserting `, or', and by adding after
subparagraph (AA) the following new subparagraph:
`(BB) section 6050T (relating to returns relating to credit for health
insurance costs of eligible individuals).'.
(1) ADVANCE PAYMENT- The table of sections for chapter 77 of the
Internal Revenue Code of 1986 is amended by adding at the end the following
new item:
`Sec. 7527. Advance payment of credit for health insurance costs of eligible
individuals.'.
(2) INFORMATION REPORTING- The table of sections for subpart B of part
III of subchapter A of chapter 61 of such Code is amended by inserting after
the item relating to section 6050S the following new item:
`Sec. 6050T. Returns relating to credit for health insurance costs of
eligible individuals.'.
(e) EFFECTIVE DATE- The amendments made by this section shall take effect
on the date of the enactment of this Act.
SEC. 203. HEALTH INSURANCE ASSISTANCE FOR ELIGIBLE INDIVIDUALS.
(a) ELIGIBILITY FOR GRANTS- Section 173(a) of the Workforce Investment Act
of 1998 (29 U.S.C. 2918(a)) is amended--
(1) in paragraph (2), by striking `and' at the end;
(2) in paragraph (3), by striking the period and inserting `; and';
and
(3) by adding at the end the following:
`(4) from funds appropriated under section 174(c)--
`(A) to a State or entity (as defined in section 173(c)(1)(B)) to
carry out subsection (f), including providing assistance to eligible
individuals; and
`(B) to a State or entity (as so defined) to carry out subsection (g),
including providing assistance to eligible individuals.'.
(b) USE OF FUNDS FOR HEALTH INSURANCE COVERAGE- Section 173 of the
Workforce Investment Act of 1998 (29 U.S.C. 2918) is amended by adding at the
end the following:
`(f) HEALTH INSURANCE COVERAGE ASSISTANCE FOR ELIGIBLE INDIVIDUALS-
`(1) IN GENERAL- Funds made available to a State or entity under
paragraph (4)(A) of subsection (a) may be used by the State or entity for
the following:
`(A) HEALTH INSURANCE COVERAGE- To assist an eligible individual and
such individual's qualifying family members in enrolling in qualified
health insurance.
`(B) ADMINISTRATIVE AND START-UP EXPENSES- To pay the administrative
expenses related to the enrollment of eligible individuals and such
individuals' qualifying family members in qualified health insurance,
including--
`(i) eligibility verification activities;
`(ii) the notification of eligible individuals of available
qualified health insurance options;
`(iii) processing qualified health insurance costs credit
eligibility certificates provided for under section 7527 of the Internal
Revenue Code of 1986;
`(iv) providing assistance to eligible individuals in enrolling in
qualified health insurance;
`(v) the development or installation of necessary data management
systems; and
`(vi) any other expenses determined appropriate by the Secretary,
including start-up costs and on going administrative expenses to carry
out clauses (iv) through (ix) of paragraph (2)(A).
`(2) QUALIFIED HEALTH INSURANCE- For purposes of this subsection and
subsection (g)--
`(A) IN GENERAL- The term `qualified health insurance' means any of
the following:
`(i) Coverage under a COBRA continuation provision (as defined in
section 733(d)(1) of the Employee Retirement Income Security Act of
1974).
`(ii) State-based continuation coverage provided by the State under
a State law that requires such coverage.
`(iii) Coverage offered through a qualified State high risk pool (as
defined in section 2744(c)(2) of the Public Health Service
Act).
`(iv) Coverage under a health insurance program offered for State
employees.
`(v) Coverage under a State-based health insurance program that is
comparable to the health insurance program offered for State
employees.
`(vi) Coverage through an arrangement entered into by a State
and--
`(I) a group health plan (including such a plan which is a
multiemployer plan as defined in section 3(37) of the Employee
Retirement Income Security Act of 1974),
`(II) an issuer of health insurance coverage,
`(III) an administrator, or
`(vii) Coverage offered through a State arrangement with a private
sector health care coverage purchasing pool.
`(viii) Coverage under a State-operated health plan that does not
receive any Federal financial participation.
`(ix) Coverage under a group health plan that is available through
the employment of the eligible individual's spouse.
`(x) In the case of any eligible individual and such individual's
qualifying family members, coverage under individual health insurance if
the eligible individual was covered under individual health insurance
during the entire 30-day period that ends on the date that such
individual became separated from the employment which qualified such
individual for--
`(I) in the case of an eligible TAA recipient, the allowance
described in section 35(c)(2) of the Internal Revenue Code of
1986,
`(II) in the case of an eligible alternative TAA recipient, the
benefit described in section 35(c)(3)(B) of such Code,
or
`(III) in the case of any eligible PBGC pension recipient, the
benefit described in section 35(c)(4)(B) of such Code.
For purposes of this clause, the term `individual health insurance'
means any insurance which constitutes medical care offered to
individuals other than in connection with a group health plan and does
not include Federal- or State-based health insurance
coverage.
`(B) REQUIREMENTS FOR STATE-BASED COVERAGE-
`(i) IN GENERAL- The term `qualified health insurance' does not
include any coverage described in clauses (ii) through (viii) of
subparagraph (A) unless the State involved has elected to have such
coverage treated as qualified health insurance under this paragraph and
such coverage meets the following requirements:
`(I) GUARANTEED ISSUE- Each qualifying individual is guaranteed
enrollment if the individual pays the premium for enrollment or
provides a qualified health insurance costs credit eligibility
certificate described in section 7527 of the Internal Revenue Code of
1986 and pays the remainder of such premium.
`(II) NO IMPOSITION OF PREEXISTING CONDITION EXCLUSION- No
pre-existing condition limitations are imposed with respect to any
qualifying individual.
`(III) NONDISCRIMINATORY PREMIUM- The total premium (as determined
without regard to any subsidies) with respect to a qualifying
individual may not be greater than the total premium (as so
determined) for a similarly situated individual who is not a
qualifying individual.
`(IV) SAME BENEFITS- Benefits under the coverage are the same as
(or substantially similar to) the benefits provided to similarly
situated individuals who are not qualifying
individuals.
`(ii) QUALIFYING INDIVIDUAL- For purposes of this subparagraph, the
term `qualifying individual' means--
`(I) an eligible individual for whom, as of the date on which the
individual seeks to enroll in clauses (ii) through (viii) of
subparagraph (A), the aggregate of the periods of creditable coverage
(as defined in section 9801(c) of the Internal Revenue Code of 1986)
is 3 months or longer and who, with respect to any month, meets the
requirements of clauses (iii) and (iv) of section 35(b)(1)(A) of such
Code; and
`(II) the qualifying family members of such eligible
individual.
`(C) EXCEPTION- The term `qualified health insurance' shall not
include--
`(i) a flexible spending or similar arrangement, and
`(ii) any insurance if substantially all of its coverage is of
excepted benefits described in section 733(c) of the Employee Retirement
Income Security Act of 1974.
`(3) AVAILABILITY OF FUNDS-
`(A) EXPEDITED PROCEDURES- With respect to applications submitted by
States or entities for grants under this subsection, the Secretary
shall--
`(i) not later than 15 days after the date on which the Secretary
receives a completed application from a State or entity, notify the
State or entity of the determination of the Secretary with respect to
the approval or disapproval of such application;
`(ii) in the case of an application of a State or other entity that
is disapproved by the Secretary, provide technical assistance, at the
request of the State or entity, in a timely manner to enable the State
or entity to submit an approved application; and
`(iii) develop procedures to expedite the provision of funds to
States and entities with approved applications.
`(B) AVAILABILITY AND DISTRIBUTION OF FUNDS- The Secretary shall
ensure that funds made available under section 174(c)(1)(A) to carry out
subsection (a)(4)(A) are available to States and entities throughout the
period described in section 174(c)(2)(A).
`(4) ELIGIBLE INDIVIDUAL DEFINED- For purposes of this subsection and
subsection (g), the term `eligible individual' means--
`(A) an eligible TAA recipient (as defined in section 35(c)(2) of the
Internal Revenue Code of 1986),
`(B) an eligible alternative TAA recipient (as defined in section
35(c)(3) of the Internal Revenue Code of 1986), and
`(C) an eligible PBGC pension recipient (as defined in section
35(c)(4) of the Internal Revenue Code of 1986),
who, as of the first day of the month, does not have other specified
coverage and is not imprisoned under Federal, State, or local
authority.
`(5) QUALIFYING FAMILY MEMBER DEFINED- For purposes of this subsection
and subsection (g)--
`(A) IN GENERAL- The term `qualifying family member' means--
`(i) the eligible individual's spouse, and
`(ii) any dependent of the eligible individual with respect to whom
the individual is entitled to a deduction under section 151(c) of the
Internal Revenue Code of 1986.
Such term does not include any individual who has other specified
coverage.
`(B) SPECIAL DEPENDENCY TEST IN CASE OF DIVORCED PARENTS, ETC- If
paragraph (2) or (4) of section 152(e) of such Code applies to any child
with respect to any calendar year, in the case of any taxable year
beginning in such calendar year, such child shall be treated as described
in subparagraph (A)(ii) with respect to the custodial parent (within the
meaning of section 152(e)(1) of such Code) and not with respect to the
noncustodial parent.
`(6) STATE- For purposes of this subsection and subsection (g), the term
`State' includes an entity as defined in subsection (c)(1)(B).
`(7) OTHER SPECIFIED COVERAGE- For purposes of this subsection, an
individual has other specified coverage for any month if, as of the first
day of such month--
`(A) SUBSIDIZED COVERAGE-
`(i) IN GENERAL- Such individual is covered under any insurance
which constitutes medical care (except insurance substantially all of
the coverage of which is of excepted benefits described in section
9832(c) of the Internal Revenue Code of 1986) under any health plan
maintained by any employer (or former employer) of the taxpayer or the
taxpayer's spouse and at least 50 percent of the cost of such coverage
(determined under section 4980B of such Code) is paid or incurred by the
employer.
`(ii) ELIGIBLE ALTERNATIVE TAA RECIPIENTS- In the case of an
eligible alternative TAA recipient (as defined in section 35(c)(3) of
the Internal Revenue Code of 1986), such individual is
either--
`(I) eligible for coverage under any qualified health insurance
(other than insurance described in clause (i), (ii), or (vi) of
paragraph (2)(A)) under which at least 50 percent of the cost of
coverage (determined under section 4980B(f)(4) of such Code) is paid
or incurred by an employer (or former employer) of the taxpayer or the
taxpayer's spouse, or
`(II) covered under any such qualified health insurance under
which any portion of the cost of coverage (as so determined) is paid
or incurred by an employer (or former employer) of the taxpayer or the
taxpayer's spouse.
`(iii) TREATMENT OF CAFETERIA PLANS- For purposes of clauses (i) and
(ii), the cost of coverage shall be treated as paid or incurred by an
employer to the extent the coverage is in lieu of a right to receive
cash or other qualified benefits under a cafeteria plan (as defined in
section 125(d) of the Internal Revenue Code of 1986).
`(B) COVERAGE UNDER MEDICARE, MEDICAID, OR SCHIP- Such
individual--
`(i) is entitled to benefits under part A of title XVIII of the
Social Security Act or is enrolled under part B of such title,
or
`(ii) is enrolled in the program under title XIX or XXI of such Act
(other than under section 1928 of such Act).
`(C) CERTAIN OTHER COVERAGE- Such individual--
`(i) is enrolled in a health benefits plan under chapter 89 of title
5, United States Code, or
`(ii) is entitled to receive benefits under chapter 55 of title 10,
United States Code.
`(g) INTERIM HEALTH INSURANCE COVERAGE AND OTHER ASSISTANCE-
`(1) IN GENERAL- Funds made available to a State or entity under
paragraph (4)(B) of subsection (a) may be used by the State or entity to
provide assistance and support services to eligible individuals, including
health care coverage to the extent provided under subsection (f)(1)(A),
transportation, child care, dependent care, and income assistance.
`(2) INCOME SUPPORT- With respect to any income assistance provided to
an eligible individual with such funds, such assistance shall supplement and
not supplant other income support or assistance provided under chapter 2 of
title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) (as in effect on
the day before the effective date of the Trade Act of 2002) or the
unemployment compensation laws of the State where the eligible individual
resides.
`(3) HEALTH INSURANCE COVERAGE- With respect to any assistance provided
to an eligible individual with such funds in enrolling in qualified health
insurance, the following rules shall apply:
`(A) The State or entity may provide assistance in obtaining such
coverage to the eligible individual and to such individual's qualifying
family members.
`(B) Such assistance shall supplement and may not supplant any other
State or local funds used to provide health care coverage and may not be
included in determining the amount of non-Federal contributions required
under any program.
`(4) AVAILABILITY OF FUNDS-
`(A) EXPEDITED PROCEDURES- With respect to applications submitted by
States or entities for grants under this subsection, the Secretary
shall--
`(i) not later than 15 days after the date on which the Secretary
receives a completed application from a State or entity, notify the
State or entity of the determination of the Secretary with respect to
the approval or disapproval of such application;
`(ii) in the case of an application of a State or entity that is
disapproved by the Secretary, provide technical assistance, at the
request of the State or entity, in a timely manner to enable the State
or entity to submit an approved application; and
`(iii) develop procedures to expedite the provision of funds to
States and entities with approved applications.
`(B) AVAILABILITY AND DISTRIBUTION OF FUNDS- The Secretary shall
ensure that funds made available under section 174(c)(1)(B) to carry out
subsection (a)(4)(B) are available to States and entities throughout the
period described in section 174(c)(2)(B).
`(5) INCLUSION OF CERTAIN INDIVIDUALS AS ELIGIBLE INDIVIDUALS- For
purposes of this subsection, the term `eligible individual' includes an
individual who is a member of a group of workers certified after April 1,
2002, under chapter 2 of title II of the Trade Act of 1974 (as in effect on
the day before the effective date of the Trade Act of 2002) and is
participating in the trade adjustment allowance program under such chapter
(as so in effect) or who would be determined to be participating in such
program under such chapter (as so in effect) if such chapter were applied
without regard to section 231(a)(3)(B) of the Trade Act of 1974 (as so in
effect).'.
(c) AUTHORIZATION OF APPROPRIATIONS- Section 174 of the Workforce
Investment Act of 1998 (29 U.S.C. 2919) is amended by adding at the end the
following:
`(c) ASSISTANCE FOR ELIGIBLE WORKERS-
`(1) AUTHORIZATION AND APPROPRIATION FOR FISCAL YEAR 2002- There are
authorized to be appropriated and appropriated--
`(A) to carry out subsection (a)(4)(A) of section 173, $10,000,000 for
fiscal year 2002; and
`(B) to carry out subsection (a)(4)(B) of section 173, $50,000,000 for
fiscal year 2002.
`(2) AUTHORIZATION OF APPROPRIATIONS FOR SUBSEQUENT FISCAL YEARS- There
are authorized to be appropriated--
`(A) to carry out subsection (a)(4)(A) of section 173, $60,000,000 for
each of fiscal years 2003 through 2007; and
`(B) to carry out subsection (a)(4)(B) of section 173--
`(i) $100,000,000 for fiscal year 2003; and
`(ii) $50,000,000 for fiscal year 2004.
`(3) AVAILABILITY OF FUNDS- Funds appropriated pursuant to--
`(A) paragraphs (1)(A) and (2)(A) for each fiscal year shall,
notwithstanding section 189(g), remain available for obligation during the
pendency of any outstanding claim under the Trade Act of 1974, as amended
by the Trade Act of 2002; and
`(B) paragraph (1)(B) and (2)(B), for each fiscal year shall,
notwithstanding section 189(g), remain available during the period that
begins on the date of enactment of the Trade Act of 2002 and ends on
September 30, 2004.'.
(d) CONFORMING AMENDMENT- Section 132(a)(2)(A) of the Workforce Investment
Act of 1998 (29 U.S.C. 2862(a)(2)(A)) is amended by inserting `, other than
under subsection (a)(4), (f), and (g)' after `grants'.
(e) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR CERTAIN
INDIVIDUALS-
(1) ERISA AMENDMENTS- Section 605 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1165) is amended--
(A) by inserting `(a) IN GENERAL- ' before `For purposes of this
part'; and
(B) by adding at the end the following:
`(b) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR CERTAIN
INDIVIDUALS-
`(1) IN GENERAL- In the case of a nonelecting TAA-eligible individual
and notwithstanding subsection (a), such individual may elect continuation
coverage under this part during the 60-day period that begins on the first
day of the month in which the individual becomes a TAA-eligible individual,
but only if such election is made not later than 6 months after the date of
the TAA-related loss of coverage.
`(2) COMMENCEMENT OF COVERAGE; NO REACH-BACK- Any continuation coverage
elected by a TAA-eligible individual under paragraph (1) shall commence at
the beginning of the 60-day election period described in such paragraph and
shall not include any period prior to such 60-day election period.
`(3) PREEXISTING CONDITIONS- With respect to an individual who elects
continuation coverage pursuant to paragraph (1), the period--
`(A) beginning on the date of the TAA-related loss of coverage,
and
`(B) ending on the first day of the 60-day election period described
in paragraph (1),
shall be disregarded for purposes of determining the 63-day periods
referred to in section 701(c)(2), section 2701(c)(2) of the Public Health
Service Act, and section 9801(c)(2) of the Internal Revenue Code of
1986.
`(4) DEFINITIONS- For purposes of this subsection:
`(A) NONELECTING TAA-ELIGIBLE INDIVIDUAL- The term `nonelecting
TAA-eligible individual' means a TAA-eligible individual who--
`(i) has a TAA-related loss of coverage; and
`(ii) did not elect continuation coverage under this part during the
TAA-related election period.
`(B) TAA-ELIGIBLE INDIVIDUAL- The term `TAA-eligible individual'
means--
`(i) an eligible TAA recipient (as defined in paragraph (2) of
section 35(c) of the Internal Revenue Code of 1986), and
`(ii) an eligible alternative TAA recipient (as defined in paragraph
(3) of such section).
`(C) TAA-RELATED ELECTION PERIOD- The term `TAA-related election
period' means, with respect to a TAA-related loss of coverage, the 60-day
election period under this part which is a direct consequence of such
loss.
`(D) TAA-RELATED LOSS OF COVERAGE- The term `TAA-related loss of
coverage' means, with respect to an individual whose separation from
employment gives rise to being an TAA-eligible individual, the loss of
health benefits coverage associated with such separation.'.
(2) PHSA AMENDMENTS- Section 2205 of the Public Health Service Act (42
U.S.C. 300bb-5) is amended--
(A) by inserting `(a) IN GENERAL- ' before `For purposes of this
title'; and
(B) by adding at the end the following:
`(b) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR CERTAIN
INDIVIDUALS-
`(1) IN GENERAL- In the case of a nonelecting TAA-eligible individual
and notwithstanding subsection (a), such individual may elect continuation
coverage under this title during the 60-day period that begins on the first
day of the month in which the individual becomes a TAA-eligible individual,
but only if such election is made not later than 6 months after the date of
the TAA-related loss of coverage.
`(2) COMMENCEMENT OF COVERAGE; NO REACH-BACK- Any continuation coverage
elected by a TAA-eligible individual under paragraph (1) shall commence at
the beginning of the 60-day election period described in such paragraph and
shall not include any period prior to such 60-day election period.
`(3) PREEXISTING CONDITIONS- With respect to an individual who elects
continuation coverage pursuant to paragraph (1), the period--
`(A) beginning on the date of the TAA-related loss of coverage,
and
`(B) ending on the first day of the 60-day election period described
in paragraph (1),
shall be disregarded for purposes of determining the 63-day periods
referred to in section 2701(c)(2), section 701(c)(2) of the Employee
Retirement Income Security Act of 1974, and section 9801(c)(2) of the
Internal Revenue Code of 1986.
`(4) DEFINITIONS- For purposes of this subsection:
`(A) NONELECTING TAA-ELIGIBLE INDIVIDUAL- The term `nonelecting
TAA-eligible individual' means a TAA-eligible individual who--
`(i) has a TAA-related loss of coverage; and
`(ii) did not elect continuation coverage under this part during the
TAA-related election period.
`(B) TAA-ELIGIBLE INDIVIDUAL- The term `TAA-eligible individual'
means--
`(i) an eligible TAA recipient (as defined in paragraph (2) of
section 35(c) of the Internal Revenue Code of 1986), and
`(ii) an eligible alternative TAA recipient (as defined in paragraph
(3) of such section).
`(C) TAA-RELATED ELECTION PERIOD- The term `TAA-related election
period' means, with respect to a TAA-related loss of coverage, the 60-day
election period under this part which is a direct consequence of such
loss.
`(D) TAA-RELATED LOSS OF COVERAGE- The term `TAA-related loss of
coverage' means, with respect to an individual whose separation from
employment gives rise to being an TAA-eligible individual, the loss of
health benefits coverage associated with such separation.'.
(3) IRC AMENDMENTS- Paragraph (5) of section 4980B(f) of the Internal
Revenue Code of 1986 (relating to election) is amended by adding at the end
the following:
`(C) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR CERTAIN
INDIVIDUALS-
`(i) IN GENERAL- In the case of a nonelecting TAA-eligible
individual and notwithstanding subparagraph (A), such individual may
elect continuation coverage under this subsection during the 60-day
period that begins on the first day of the month in which the individual
becomes a TAA-eligible individual, but only if such election is made not
later than 6 months after the date of the TAA-related loss of
coverage.
`(ii) COMMENCEMENT OF COVERAGE; NO REACH-BACK- Any continuation
coverage elected by a TAA-eligible individual under clause (i) shall
commence at the beginning of the 60-day election period described in
such paragraph and shall not include any period prior to such 60-day
election period.
`(iii) PREEXISTING CONDITIONS- With respect to an individual who
elects continuation coverage pursuant to clause (i), the
period--
`(I) beginning on the date of the TAA-related loss of coverage,
and
`(II) ending on the first day of the 60-day election period
described in clause (i),
shall be disregarded for purposes of determining the 63-day periods
referred to in section 9801(c)(2), section 701(c)(2) of the Employee
Retirement Income Security Act of 1974, and section 2701(c)(2) of the
Public Health Service Act.
`(iv) DEFINITIONS- For purposes of this subsection:
`(I) NONELECTING TAA-ELIGIBLE INDIVIDUAL- The term `nonelecting
TAA-eligible individual' means a TAA-eligible individual who has a
TAA-related loss of coverage and did not elect continuation coverage
under this subsection during the TAA-related election
period.
`(II) TAA-ELIGIBLE INDIVIDUAL- The term `TAA-eligible individual'
means an eligible TAA recipient (as defined in paragraph (2) of
section 35(c)) and an eligible alternative TAA recipient (as defined
in paragraph (3) of such section).
`(III) TAA-RELATED ELECTION PERIOD- The term `TAA-related election
period' means, with respect to a TAA-related loss of coverage, the
60-day election period under this subsection which is a direct
consequence of such loss.
`(IV) TAA-RELATED LOSS OF COVERAGE- The term `TAA-related loss of
coverage' means, with respect to an individual whose separation from
employment gives rise to being an TAA-eligible individual, the loss of
health benefits coverage associated with such
separation.'.
(f) RULE OF CONSTRUCTION- Nothing in this title (or the amendments made by
this title), other than provisions relating to COBRA continuation coverage and
reporting requirements, shall be construed as creating any new mandate on any
party regarding health insurance coverage.
TITLE III--CUSTOMS REAUTHORIZATION
SEC. 301. SHORT TITLE.
This Act may be cited as the `Customs Border Security Act of 2002'.
Subtitle A--United States Customs Service
CHAPTER 1--DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND COMMERCIAL
OPERATIONS
SEC. 311. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL OPERATIONS,
COMMERCIAL OPERATIONS, AND AIR AND MARINE INTERDICTION.
(a) NONCOMMERCIAL OPERATIONS- Section 301(b)(1) of the Customs Procedural
Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)) is amended--
(1) by striking subparagraph (A), and inserting the following:
`(A) $1,365,456,000 for fiscal year 2003.'; and
(2) by striking subparagraph (B), and inserting the following:
`(B) $1,399,592,400 for fiscal year 2004.'.
(b) COMMERCIAL OPERATIONS-
(1) IN GENERAL- Section 301(b)(2)(A) of the Customs Procedural Reform
and Simplification Act of 1978 (19 U.S.C. 2075(b)(2)(A)) is amended--
(A) by striking clause (i), and inserting the following:
`(i) $1,642,602,000 for fiscal year 2003.'; and
(B) by striking clause (ii), and inserting the following:
`(ii) $1,683,667,050 for fiscal year 2004.'.
(2) AUTOMATED COMMERCIAL ENVIRONMENT COMPUTER SYSTEM- Of the amount made
available for each of fiscal years 2003 and 2004 under section 301(b)(2)(A)
of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(2)(A)), as amended by paragraph (1), $308,000,000 shall be available
until expended for each such fiscal year for the development, establishment,
and implementation of the Automated Commercial Environment computer
system.
(3) REPORTS- Not later than 90 days after the date of the enactment of
this Act, and not later than the end of each subsequent 90-day period, the
Commissioner of Customs shall prepare and submit to the Committee on Ways
and Means of the House of Representatives and the Committee on Finance of
the Senate a report demonstrating that the development and establishment of
the Automated Commercial Environment computer system is being carried out in
a cost-effective manner and meets the modernization requirements of title VI
of the North American Free Trade Agreement Implementation Act.
(c) AIR AND MARINE INTERDICTION- Section 301(b)(3) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(3)) is
amended--
(1) by striking subparagraph (A), and inserting the following:
`(A) $170,829,000 for fiscal year 2003.'; and
(2) by striking subparagraph (B), and inserting the following:
`(B) $175,099,725 for fiscal year 2004.'.
(d) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS- Section 301(a) of the
Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(a))
is amended by adding at the end the following:
`(3) By not later than the date on which the President submits to Congress
the budget of the United States Government for a fiscal year, the Commissioner
of Customs shall submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate the projected
amount of funds for the succeeding fiscal year that will be necessary for the
operations of the Customs Service as provided for in subsection (b).'.
SEC. 312. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION EQUIPMENT FOR THE
UNITED STATES-MEXICO BORDER, UNITED STATES-CANADA BORDER, AND FLORIDA AND THE
GULF COAST SEAPORTS.
(a) FISCAL YEAR 2003- Of the amounts made available for fiscal year 2003
under section 301(b)(1)(A) of the Customs Procedural Reform and Simplification
Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by section 311(a) of this
Act, $90,244,000 shall be available until expended for acquisition and other
expenses associated with implementation and deployment of antiterrorist and
illicit narcotics detection equipment along the United States-Mexico border,
the United States-Canada border, and Florida and the Gulf Coast seaports, as
follows:
(1) UNITED STATES-MEXICO BORDER- For the United States-Mexico border,
the following:
(A) $6,000,000 for 8 Vehicle and Container Inspection Systems
(VACIS).
(B) $11,200,000 for 5 mobile truck x-rays with transmission and
backscatter imaging.
(C) $13,000,000 for the upgrade of 8 fixed-site truck x-rays from the
present energy level of 450,000 electron volts to 1,000,000 electron volts
(1-MeV).
(D) $7,200,000 for 8 1-MeV pallet x-rays.
(E) $1,000,000 for 200 portable contraband detectors (busters) to be
distributed among ports where the current allocations are
inadequate.
(F) $600,000 for 50 contraband detection kits to be distributed among
all southwest border ports based on traffic volume.
(G) $500,000 for 25 ultrasonic container inspection units to be
distributed among all ports receiving liquid-filled cargo and to ports
with a hazardous material inspection facility.
(H) $2,450,000 for 7 automated targeting systems.
(I) $360,000 for 30 rapid tire deflator systems to be distributed to
those ports where port runners are a threat.
(J) $480,000 for 20 portable Treasury Enforcement Communications
Systems (TECS) terminals to be moved among ports as needed.
(K) $1,000,000 for 20 remote watch surveillance camera systems at
ports where there are suspicious activities at loading docks, vehicle
queues, secondary inspection lanes, or areas where visual surveillance or
observation is obscured.
(L) $1,254,000 for 57 weigh-in-motion sensors to be distributed among
the ports with the greatest volume of outbound traffic.
(M) $180,000 for 36 AM traffic information radio stations, with 1
station to be located at each border crossing.
(N) $1,040,000 for 260 inbound vehicle counters to be installed at
every inbound vehicle lane.
(O) $950,000 for 38 spotter camera systems to counter the surveillance
of customs inspection activities by persons outside the boundaries of
ports where such surveillance activities are occurring.
(P) $390,000 for 60 inbound commercial truck transponders to be
distributed to all ports of entry.
(Q) $1,600,000 for 40 narcotics vapor and particle detectors to be
distributed to each border crossing.
(R) $400,000 for license plate reader automatic targeting software to
be installed at each port to target inbound vehicles.
(2) UNITED STATES-CANADA BORDER- For the United States-Canada border,
the following:
(A) $3,000,000 for 4 Vehicle and Container Inspection Systems
(VACIS).
(B) $8,800,000 for 4 mobile truck x-rays with transmission and
backscatter imaging.
(C) $3,600,000 for 4 1-MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors (busters) to be
distributed among ports where the current allocations are
inadequate.
(E) $300,000 for 25 contraband detection kits to be distributed among
ports based on traffic volume.
(F) $240,000 for 10 portable Treasury Enforcement Communications
Systems (TECS) terminals to be moved among ports as needed.
(G) $400,000 for 10 narcotics vapor and particle detectors to be
distributed to each border crossing based on traffic volume.
(3) FLORIDA AND GULF COAST SEAPORTS- For Florida and the Gulf Coast
seaports, the following:
(A) $4,500,000 for 6 Vehicle and Container Inspection Systems
(VACIS).
(B) $11,800,000 for 5 mobile truck x-rays with transmission and
backscatter imaging.
(C) $7,200,000 for 8 1-MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors (busters) to be
distributed among ports where the current allocations are
inadequate.
(E) $300,000 for 25 contraband detection kits to be distributed among
ports based on traffic volume.
(b) FISCAL YEAR 2004- Of the amounts made available for fiscal year 2004
under section 301(b)(1)(B) of the Customs Procedural Reform and Simplification
Act of 1978 (19 U.S.C. 2075(b)(1)(B)), as amended by section 311(a) of this
Act, $9,000,000 shall be available until expended for the maintenance and
support of the equipment and training of personnel to maintain and support the
equipment described in subsection (a).
(c) ACQUISITION OF TECHNOLOGICALLY SUPERIOR EQUIPMENT; TRANSFER OF
FUNDS-
(1) IN GENERAL- The Commissioner of Customs may use amounts made
available for fiscal year 2003 under section 301(b)(1)(A) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)),
as amended by section 311(a) of this Act, for the acquisition of equipment
other than the equipment described in subsection (a) if such other
equipment--
(A)(i) is technologically superior to the equipment described in
subsection (a); and
(ii) will achieve at least the same results at a cost that is the same
or less than the equipment described in subsection (a); or
(B) can be obtained at a lower cost than the equipment described in
subsection (a).
(2) TRANSFER OF FUNDS- Notwithstanding any other provision of this
section, the Commissioner of Customs may reallocate an amount not to exceed
10 percent of--
(A) the amount specified in any of subparagraphs (A) through (R) of
subsection (a)(1) for equipment specified in any other of such
subparagraphs (A) through (R);
(B) the amount specified in any of subparagraphs (A) through (G) of
subsection (a)(2) for equipment specified in any other of such
subparagraphs (A) through (G); and
(C) the amount specified in any of subparagraphs (A) through (E) of
subsection (a)(3) for equipment specified in any other of such
subparagraphs (A) through (E).
SEC. 313. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.
As part of the annual performance plan for each of the fiscal years 2003
and 2004 covering each program activity set forth in the budget of the United
States Customs Service, as required under section 1115 of title 31, United
States Code, the Commissioner of Customs shall establish performance goals and
performance indicators, and shall comply with all other requirements contained
in paragraphs (1) through (6) of subsection (a) of such section with respect
to each of the activities to be carried out pursuant to section 312.
CHAPTER 2--CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE
SEC. 321. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO PREVENT CHILD
PORNOGRAPHY/CHILD SEXUAL EXPLOITATION.
(a) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Customs Service $10,000,000 for fiscal year 2003 to carry
out the program to prevent child pornography/child sexual exploitation
established by the Child Cyber-Smuggling Center of the Customs Service.
(b) USE OF AMOUNTS FOR CHILD PORNOGRAPHY CYBER TIPLINE- Of the amount
appropriated under subsection (a), the Customs Service shall provide 3.75
percent of such amount to the National Center for Missing and Exploited
Children for the operation of the child pornography cyber tipline of the
Center and for increased public awareness of the tipline.
CHAPTER 3--MISCELLANEOUS PROVISIONS
SEC. 331. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED STATES-CANADA
BORDER.
Of the amount made available for fiscal year 2003 under paragraphs (1) and
(2)(A) of section 301(b) of the Customs Procedural Reform and Simplification
Act of 1978 (19 U.S.C. 2075(b)), as amended by section 311 of this Act,
$28,300,000 shall be available until expended for the Customs Service to hire
approximately 285 additional Customs Service officers to address the needs of
the offices and ports along the United States-Canada border.
SEC. 332. STUDY AND REPORT RELATING TO PERSONNEL PRACTICES OF THE CUSTOMS
SERVICE.
(a) STUDY- The Commissioner of Customs shall conduct a study of current
personnel practices of the Customs Service, including an overview of
performance standards and the effect and impact of the collective bargaining
process on drug interdiction efforts of the Customs Service and a comparison
of duty rotation policies of the Customs Service and other Federal agencies
that employ similarly situated personnel.
(b) REPORT- Not later than 120 days after the date of the enactment of
this Act, the Commissioner of Customs shall submit to the Committee on Ways
and Means of the House of Representatives and the Committee on Finance of the
Senate a report containing the results of the study conducted under subsection
(a).
SEC. 333. STUDY AND REPORT RELATING TO ACCOUNTING AND AUDITING PROCEDURES OF
THE CUSTOMS SERVICE.
(a) STUDY- (1) The Commissioner of Customs shall conduct a study of
actions by the Customs Service to ensure that appropriate training is being
provided to Customs Service personnel who are responsible for financial
auditing of importers.
(2) In conducting the study, the Commissioner--
(A) shall specifically identify those actions taken to comply with
provisions of law that protect the privacy and trade secrets of importers,
such as section 552(b) of title 5, United States Code, and section 1905 of
title 18, United States Code; and
(B) shall provide for public notice and comment relating to verification
of the actions described in subparagraph (A).
(b) REPORT- Not later than 6 months after the date of the enactment of
this Act, the Commissioner of Customs shall submit to the Committee on Ways
and Means of the House of Representatives and the Committee on Finance of the
Senate a report containing the results of the study conducted under subsection
(a).
SEC. 334. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM;
REPORTS.
(a) ESTABLISHMENT AND IMPLEMENTATION-
(1) IN GENERAL- Not later than September 30, 2003, the Commissioner of
Customs shall, in accordance with the audit of the Customs Service's fiscal
years 2000 and 1999 financial statements (as contained in the report of the
Office of the Inspector General of the Department of the Treasury issued on
February 23, 2001), establish and implement a cost accounting system for
expenses incurred in both commercial and noncommercial operations of the
Customs Service.
(2) ADDITIONAL REQUIREMENT- The cost accounting system described in
paragraph (1) shall provide for an identification of expenses based on the
type of operation, the port at which the operation took place, the amount of
time spent on the operation by personnel of the Customs Service, and an
identification of expenses based on any other appropriate classification
necessary to provide for an accurate and complete accounting of the
expenses.
(b) REPORTS- Beginning on the date of the enactment of this Act and ending
on the date on which the cost accounting system described in subsection (a) is
fully implemented, the Commissioner of Customs shall prepare and submit to
Congress on a quarterly basis a report on the progress of implementing the
cost accounting system pursuant to subsection (a).
SEC. 335. STUDY AND REPORT RELATING TO TIMELINESS OF PROSPECTIVE
RULINGS.
(a) STUDY- The Comptroller General shall conduct a study on the extent to
which the Office of Regulations and Rulings of the Customs Service has made
improvements to decrease the amount of time to issue prospective rulings from
the date on which a request for the ruling is received by the Customs
Service.
(b) REPORT- Not later than 1 year after the date of the enactment of this
Act, the Comptroller General shall submit to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance of the Senate a
report containing the results of the study conducted under subsection (a).
(c) DEFINITION- In this section, the term `prospective ruling' means a
ruling that is requested by an importer on goods that are proposed to be
imported into the United States and that relates to the proper classification,
valuation, or marking of such goods.
SEC. 336. STUDY AND REPORT RELATING TO CUSTOMS USER FEES.
(a) STUDY- The Comptroller General shall conduct a study on the extent to
which the amount of each customs user fee imposed under section 13031(a) of
the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a))
is commensurate with the level of services provided by the Customs Service
relating to the fee so imposed.
(b) REPORT- Not later than 120 days after the date of the enactment of
this Act, the Comptroller General shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of the
Senate a report in classified form containing--
(1) the results of the study conducted under subsection (a); and
(2) recommendations for the appropriate amount of the customs user fees
if such results indicate that the fees are not commensurate with the level
of services provided by the Customs Service.
SEC. 337. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS COURIER FACILITIES.
(a) IN GENERAL- Section 13031(b)(9) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is amended as follows:
(1) In subparagraph (A)--
(A) in the matter preceding clause (i), by striking `the processing of
merchandise that is informally entered or released' and inserting `the
processing of letters, documents, records, shipments, merchandise, or any
other item that is valued at an amount that is less than $2,000 (or such
higher amount as the Secretary of the Treasury may set by regulation
pursuant to section 498 of the Tariff Act of 1930), except such items
entered for transportation and exportation or immediate exportation';
and
(B) by striking clause (ii), and inserting the following:
`(ii) Subject to the provisions of subparagraph (B), in the case of
an express consignment carrier facility or centralized hub facility,
$.66 per individual airway bill or bill of lading.'.
(2) By redesignating subparagraph (B) as subparagraph (C) and inserting
after subparagraph (A) the following:
`(B)(i) Beginning in fiscal year 2004, the Secretary of the Treasury
may adjust (not more than once per fiscal year) the amount described in
subparagraph (A)(ii) to an amount that is not less than $.35 and not more
than $1.00 per individual airway bill or bill of lading. The Secretary
shall provide notice in the Federal Register of a proposed adjustment
under the preceding sentence and the reasons therefor and shall allow for
public comment on the proposed adjustment.
`(ii) Notwithstanding section 451 of the Tariff Act of 1930, the
payment required by subparagraph (A)(ii) shall be the only payment
required for reimbursement of the Customs Service in connection with the
processing of an individual airway bill or bill of lading in accordance
with such subparagraph and for providing services at express consignment
carrier facilities or centralized hub facilities, except that the Customs
Service may require such facilities to cover expenses of the Customs
Service for adequate office space, equipment, furnishings, supplies, and
security.
`(iii)(I) The payment required by subparagraph (A)(ii) and clause (ii)
of this subparagraph shall be paid on a quarterly basis by the carrier
using the facility to the Customs Service in accordance with regulations
prescribed by the Secretary of the Treasury.
`(II) 50 percent of the amount of payments received under subparagraph
(A)(ii) and clause (ii) of this subparagraph shall, in accordance with
section 524 of the Tariff Act of 1930, be deposited in the Customs User
Fee Account and shall be used to directly reimburse each appropriation for
the amount paid out of that appropriation for the costs incurred in
providing services to express consignment carrier facilities or
centralized hub facilities. Amounts deposited in accordance with the
preceding sentence shall be available until expended for the provision of
customs services to express consignment carrier facilities or centralized
hub facilities.
`(III) Notwithstanding section 524 of the Tariff Act of 1930, the
remaining 50 percent of the amount of payments received under subparagraph
(A)(ii) and clause (ii) of this subparagraph shall be paid to the
Secretary of the Treasury, which is in lieu of the payment of fees under
subsection (a)(10) of this section.'.
(b) EFFECTIVE DATE- The amendments made by subsection (a) take effect on
October 1, 2002.
SEC. 338. NATIONAL CUSTOMS AUTOMATION PROGRAM.
Section 411(b) of the Tariff Act of 1930 (19 U.S.C. 1411(b)) is amended by
striking the second sentence and inserting the following: `The Secretary may,
by regulation, require the electronic submission of information described in
subsection (a) or any other information required to be submitted to the
Customs Service separately pursuant to this subpart.'.
SEC. 339. AUTHORIZATION OF APPROPRIATIONS FOR CUSTOMS STAFFING.
There are authorized to be appropriated to the Department of Treasury such
sums as may be necessary to provide an increase in the annual rate of basic
pay--
(1) for all journeyman Customs inspectors and Canine Enforcement
Officers who have completed at least one year's service and are receiving an
annual rate of basic pay for positions at GS-9 of the General Schedule under
section 5332 of title 5, United States Code, from the annual rate of basic
pay payable for positions at GS-9 of the General Schedule under such section
5332, to an annual rate of basic pay payable for positions at GS-11 of the
General Schedule under such section 5332; and
(2) for the support staff associated with the personnel described in
subparagraph (A), at the appropriate GS level of the General Schedule under
such section 5332.
CHAPTER 4--ANTITERRORISM PROVISIONS
SEC. 341. IMMUNITY FOR UNITED STATES OFFICIALS THAT ACT IN GOOD FAITH.
(a) IMMUNITY- Section 3061 of the Revised Statutes (19 U.S.C. 482) is
amended--
(1) by striking `Any of the officers' and inserting `(a) Any of the
officers'; and
(2) by adding at the end the following:
`(b) Any officer or employee of the United States conducting a search of a
person pursuant to subsection (a) shall not be held liable for any civil
damages as a result of such search if the officer or employee performed the
search in good faith and used reasonable means while effectuating such
search.'.
(b) REQUIREMENT TO POST POLICY AND PROCEDURES FOR SEARCHES OF PASSENGERS-
Not later than 30 days after the date of the enactment of this Act, the
Commissioner of Customs shall ensure that at each Customs border facility
appropriate notice is posted that provides a summary of the policy and
procedures of the Customs Service for searching passengers, including a
statement of the policy relating to the prohibition on the conduct of
profiling of passengers based on gender, race, color, religion, or ethnic
background.
SEC. 342. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS OF ENTRY, OR STAFFING OF
THE CUSTOMS SERVICE.
Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318) is amended--
(1) by striking `Whenever the President' and inserting `(a) Whenever the
President'; and
(2) by adding at the end the following:
`(b)(1) Notwithstanding any other provision of law, the Secretary of the
Treasury, when necessary to respond to a national emergency declared under the
National Emergencies Act (50 U.S.C. 1601 et seq.) or to a specific threat to
human life or national interests, is authorized to take the following actions
on a temporary basis:
`(A) Eliminate, consolidate, or relocate any office or port of entry of
the Customs Service.
`(B) Modify hours of service, alter services rendered at any location,
or reduce the number of employees at any location.
`(C) Take any other action that may be necessary to respond directly to
the national emergency or specific threat.
`(2) Notwithstanding any other provision of law, the Commissioner of
Customs, when necessary to respond to a specific threat to human life or
national interests, is authorized to close temporarily any Customs office or
port of entry or take any other lesser action that may be necessary to respond
to the specific threat.
`(3) The Secretary of the Treasury or the Commissioner of Customs, as the
case may be, shall notify the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate not later than 72
hours after taking any action under paragraph (1) or (2).'.
SEC. 343. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR CARGO AND OTHER
IMPROVED CUSTOMS REPORTING PROCEDURES.
(1) IN GENERAL- Subject to paragraphs (2) and (3), not later than 1 year
after the date of enactment of this Act, the Secretary shall promulgate
regulations providing for the transmission to the Customs Service, through
an electronic data interchange system, of information pertaining to cargo
destined for importation into the United States or exportation from the
United States, prior to such importation or exportation.
(2) INFORMATION REQUIRED- The information required by the regulations
promulgated pursuant to paragraph (1) under the parameters set forth in
paragraph (3) shall be such information as the Secretary determines to be
reasonably necessary to ensure aviation, maritime, and surface
transportation safety and security pursuant to those laws enforced and
administered by the Customs Service.
(3) PARAMETERS- In developing regulations pursuant to paragraph (1), the
Secretary shall adhere to the following parameters:
(A) The Secretary shall solicit comments from and consult with a broad
range of parties likely to be affected by the regulations, including
importers, exporters, carriers, customs brokers, and freight forwarders,
among other interested parties.
(B) In general, the requirement to provide particular information
shall be imposed on the party most likely to have direct knowledge of that
information. Where requiring information from the party with direct
knowledge of that information is not practicable, the regulations shall
take into account how, under ordinary commercial practices, information is
acquired by the party on which the requirement is imposed, and whether and
how such party is able to verify the information. Where information is not
reasonably verifiable by the party on which a requirement is imposed, the
regulations shall permit that party to transmit information on the basis
of what it reasonably believes to be true.
(C) The Secretary shall take into account the existence of competitive
relationships among the parties on which requirements to provide
particular information are imposed.
(D) Where the regulations impose requirements on carriers of cargo,
they shall take into account differences among different modes of
transportation, including differences in commercial practices, operational
characteristics, and technological capacity to collect and transmit
information electronically.
(E) The regulations shall take into account the extent to which the
technology necessary for parties to transmit and the Customs Service to
receive and analyze data in a timely fashion is available. To the extent
that the Secretary determines that the necessary technology will not be
widely available to particular modes of transportation or other affected
parties until after promulgation of the regulations, the regulations shall
provide interim requirements appropriate for the technology that is
available at the time of promulgation.
(F) The information collected pursuant to the regulations shall be
used exclusively for ensuring aviation, maritime, and surface
transportation safety and security, and shall not be used for determining
entry or for any other commercial enforcement purposes.
(G) The regulations shall protect the privacy of business proprietary
and any other confidential information provided to the Customs Service.
However, this parameter does not repeal, amend, or otherwise modify other
provisions of law relating to the public disclosure of information
transmitted to the Customs Service.
(H) In determining the timing for transmittal of any information, the
Secretary shall balance likely impact on flow of commerce with impact on
aviation, maritime, and surface transportation safety and security. With
respect to requirements that may be imposed on carriers of cargo, the
timing for transmittal of information shall take into account differences
among different modes of transportation, as described in subparagraph
(D).
(I) Where practicable, the regulations shall avoid imposing
requirements that are redundant with one another or that are redundant
with requirements in other provisions of law.
(J) The Secretary shall determine whether it is appropriate to provide
transition periods between promulgation of the regulations and the
effective date of the regulations and shall prescribe such transition
periods in the regulations, as appropriate. The Secretary may determine
that different transition periods are appropriate for different classes of
affected parties.
(K) With respect to requirements imposed on carriers, the Secretary,
in consultation with the Postmaster General, shall determine whether it is
appropriate to impose the same or similar requirements on shipments by the
United States Postal Service. If the Secretary determines that such
requirements are appropriate, then they shall be set forth in the
regulations.
(L) Not later than 60 days prior to promulgation of the regulations,
the Secretary shall transmit to the Committees on Finance and Commerce,
Science, and Transportation of the Senate and the Committees on Ways and
Means and Transportation and Infrastructure of the House of
Representatives a report setting forth--
(i) the proposed regulations;
(ii) an explanation of how particular requirements in the proposed
regulations meet the needs of aviation, maritime, and surface
transportation safety and security;
(iii) an explanation of how the Secretary expects the proposed
regulations to affect the commercial practices of affected parties;
and
(iv) an explanation of how the proposed regulations address
particular comments received from interested parties.
(b) DOCUMENTATION OF WATERBORNE CARGO- Part II of title IV of the Tariff
Act of 1930 is amended by inserting after section 431 the following new
section:
`SEC. 431A. DOCUMENTATION OF WATERBORNE CARGO.
`(a) APPLICABILITY- This section shall apply to all cargo to be exported
that is moved by a vessel carrier from a port in the United States.
`(b) DOCUMENTATION REQUIRED- (1) No shipper of cargo subject to this
section (including an ocean transportation intermediary that is a
non-vessel-operating common carrier (as defined in section 3(17)(B) of the
Shipping Act of 1984 (46 U.S.C. App. 1702(17)(B)) may tender or cause to be
tendered to a vessel carrier cargo subject to this section for loading on a
vessel in a United States port, unless such cargo is properly documented
pursuant to this subsection.
`(2) For the purposes of this subsection, cargo shall be considered
properly documented if the shipper submits to the vessel carrier or its agent
a complete set of shipping documents no later than 24 hours after the cargo is
delivered to the marine terminal operator, but under no circumstances later
than 24 hours prior to departure of the vessel.
`(3) A complete set of shipping documents shall include--
`(A) for shipments for which a shipper's export declaration is required,
a copy of the export declaration or, if the shipper files such declarations
electronically in the Automated Export System, the complete bill of lading,
and the master or equivalent shipping instructions, including the Internal
Transaction Number (ITN); or
`(B) for shipments for which a shipper's export declaration is not
required, a shipper's export declaration exemption statement and such other
documents or information as the Secretary may by regulation prescribe.
`(4) The Secretary shall by regulation prescribe the time, manner, and
form by which shippers shall transmit documents or information required under
this subsection to the Customs Service.
`(c) LOADING UNDOCUMENTED CARGO PROHIBITED-
`(1) No marine terminal operator (as defined in section 3(14) of the
Shipping Act of 1984 (46 U.S.C. App. 1702(14))) may load, or cause to be
loaded, any cargo subject to this section on a vessel unless instructed by
the vessel carrier operating the vessel that such cargo has been properly
documented in accordance with this section.
`(2) When cargo is booked by 1 vessel carrier to be transported on the
vessel of another vessel carrier, the booking carrier shall notify the
operator of the vessel that the cargo has been properly documented in
accordance with this section. The operator of the vessel may rely on such
notification in releasing the cargo for loading aboard the vessel.
`(d) REPORTING OF UNDOCUMENTED CARGO- A vessel carrier shall notify the
Customs Service of any cargo tendered to such carrier that is not properly
documented pursuant to this section and that has remained in the marine
terminal for more than 48 hours after being delivered to the marine terminal,
and the location of the cargo in the marine terminal. For vessel carriers that
are members of vessel sharing agreements (or any other arrangement whereby a
carrier moves cargo on another carrier's vessel), the vessel carrier accepting
the booking shall be responsible for reporting undocumented cargo, without
regard to whether it operates the vessel on which the transportation is to be
made.
`(e) ASSESSMENT OF PENALTIES- Whoever is found to have violated subsection
(b) of this section shall be liable to the United States for civil penalties
in a monetary amount up to the value of the cargo, or the actual cost of the
transportation, whichever is greater.
`(f) SEIZURE OF UNDOCUMENTED CARGO-
`(1) Any cargo that is not properly documented pursuant to this section
and has remained in the marine terminal for more than 48 hours after being
delivered to the marine terminal operator shall be subject to search,
seizure, and forfeiture.
`(2) The shipper of any such cargo is liable to the marine terminal
operator and to the ocean carrier for demurrage and other applicable charges
for any undocumented cargo which has been notified to or searched or seized
by the Customs Service for the entire period the cargo remains under the
order and direction of the Customs Service. Unless the cargo is seized by
the Customs Service and forfeited, the marine terminal operator and the
ocean carrier shall have a lien on the cargo for the amount of the demurrage
and other charges.
`(g) EFFECT ON OTHER PROVISIONS- Nothing in this section shall be
construed, interpreted, or applied to relieve or excuse any party from
compliance with any obligation or requirement arising under any other law,
regulation, or order with regard to the documentation or carriage of
cargo.'.
(c) SECRETARY- For purposes of this section, the term `Secretary' means
the Secretary of the Treasury. If, at the time the regulations required by
subsection (a)(1) are promulgated, the Customs Service is no longer located in
the Department of the Treasury, then the Secretary of the Treasury shall
exercise the authority under subsection (a) jointly with the Secretary of the
Department in which the Customs Service is located.
SEC. 343A. SECURE SYSTEMS OF TRANSPORTATION.
(a) JOINT TASK FORCE- The Secretary of the Treasury shall establish a
joint task force to evaluate, prototype, and certify secure systems of
transportation. The joint task force shall be comprised of officials from the
Department of Transportation and the Customs Service, and any other officials
that the Secretary deems appropriate. The task force shall establish a program
to evaluate and certify secure systems of international intermodal transport
no later than 1 year after the date of enactment of this Act. The task force
shall solicit and consider input from a broad range of interested parties.
(b) PROGRAM REQUIREMENTS- At a minimum the program referred to in
subsection (a) shall require certified systems of international intermodal
transport to be significantly more secure than existing transportation
programs, and the program shall--
(1) establish standards and a process for screening and evaluating cargo
prior to import into or export from the United States;
(2) establish standards and a process for a system of securing cargo and
monitoring it while in transit;
(3) establish standards and a process for allowing the United States
Government to ensure and validate compliance with the program elements;
and
(4) include any other elements that the task force deems necessary to
ensure the security and integrity of the international intermodal transport
movements.
(c) RECOGNITION OF CERTIFIED SYSTEMS-
(1) SECRETARY OF THE TREASURY- The Secretary of the Treasury shall
recognize certified systems of intermodal transport in the requirements of a
national security plan for United States seaports, and in the provisions
requiring planning to reopen United States ports for commerce.
(2) COMMISSIONER OF CUSTOMS- The Commissioner of Customs shall recognize
certified systems of intermodal transport in the evaluation of cargo risk
for purposes of United States imports and exports.
(d) REPORT- Within 1 year after the program described in subsection (a) is
implemented, the Secretary of the Treasury shall transmit a report to the
Committees on Commerce, Science, and Transportation and Finance of the Senate
and the Committees on Transportation and Infrastructure and Ways and Means of
the House of Representatives that--
(1) evaluates the program and its requirements;
(2) states the Secretary's views as to whether any procedure, system, or
technology evaluated as part of the program offers a higher level of
security than under existing procedures;
(3) states the Secretary's views as to the integrity of the procedures,
technology, or systems evaluated as part of the program; and
(4) makes a recommendation with respect to whether the program, or any
procedure, system, or technology should be incorporated in a nationwide
system for certified systems of intermodal transport.
SEC. 344. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND IN OUTBOUND
MAIL.
(a) IN GENERAL- The Tariff Act of 1930 is amended by inserting after
section 582 the following:
`SEC. 583. EXAMINATION OF OUTBOUND MAIL.
`(1) IN GENERAL- For purposes of ensuring compliance with the Customs
laws of the United States and other laws enforced by the Customs Service,
including the provisions of law described in paragraph (2), a Customs
officer may, subject to the provisions of this section, stop and search at
the border, without a search warrant, mail of domestic origin transmitted
for export by the United States Postal Service and foreign mail transiting
the United States that is being imported or exported by the United States
Postal Service.
`(2) PROVISIONS OF LAW DESCRIBED- The provisions of law described in
this paragraph are the following:
`(A) Section 5316 of title 31, United States Code (relating to reports
on exporting and importing monetary instruments).
`(B) Sections 1461, 1463, 1465, and 1466, and chapter 110 of title 18,
United States Code (relating to obscenity and child pornography).
`(C) Section 1003 of the Controlled Substances Import and Export Act
(relating to exportation of controlled substances) (21 U.S.C.
953).
`(D) The Export Administration Act of 1979 (50 U.S.C. App. 2401 et
seq.).
`(E) Section 38 of the Arms Export Control Act (22 U.S.C.
2778).
`(F) The International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.).
`(b) SEARCH OF MAIL NOT SEALED AGAINST INSPECTION AND OTHER MAIL- Mail not
sealed against inspection under the postal laws and regulations of the United
States, mail which bears a Customs declaration, and mail with respect to which
the sender or addressee has consented in writing to search, may be searched by
a Customs officer.
`(c) SEARCH OF MAIL SEALED AGAINST INSPECTION WEIGHING IN EXCESS OF 16
OUNCES-
`(1) IN GENERAL- Mail weighing in excess of 16 ounces sealed against
inspection under the postal laws and regulations of the United States may be
searched by a Customs officer, subject to paragraph (2), if there is
reasonable cause to suspect that such mail contains one or more of the
following:
`(A) Monetary instruments, as defined in section 1956 of title 18,
United States Code.
`(B) A weapon of mass destruction, as defined in section 2332a(b) of
title 18, United States Code.
`(C) A drug or other substance listed in schedule I, II, III, or IV in
section 202 of the Controlled Substances Act (21 U.S.C. 812).
`(D) National defense and related information transmitted in violation
of any of sections 793 through 798 of title 18, United States Code.
`(E) Merchandise mailed in violation of section 1715 or 1716 of title
18, United States Code.
`(F) Merchandise mailed in violation of any provision of chapter 71
(relating to obscenity) or chapter 110 (relating to sexual exploitation and
other abuse of children) of title 18, United States Code.
`(G) Merchandise mailed in violation of the Export Administration Act of
1979 (50 U.S.C. App. 2401 et seq.).
`(H) Merchandise mailed in violation of section 38 of the Arms Export
Control Act (22 U.S.C. 2778).
`(I) Merchandise mailed in violation of the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.).
`(J) Merchandise mailed in violation of the Trading with the Enemy Act
(50 U.S.C. App. 1 et seq.).
`(K) Merchandise subject to any other law enforced by the Customs
Service.
`(2) LIMITATION- No person acting under the authority of paragraph (1)
shall read, or authorize any other person to read, any correspondence
contained in mail sealed against inspection unless prior to so
reading--
`(A) a search warrant has been issued pursuant to rule 41 of the
Federal Rules of Criminal Procedure; or
`(B) the sender or addressee has given written authorization for such
reading.
`(d) SEARCH OF MAIL SEALED AGAINST INSPECTION WEIGHING 16 OUNCES OR LESS-
Notwithstanding any other provision of this section, subsection (a)(1) shall
not apply to mail weighing 16 ounces or less sealed against inspection under
the postal laws and regulations of the United States.'.
(b) CERTIFICATION BY SECRETARY- Not later than 3 months after the date of
enactment of this section, the Secretary of State shall determine whether the
application of section 583 of the Tariff Act of 1930 to foreign mail
transiting the United States that is imported or exported by the United States
Postal Service is being handled in a manner consistent with international law
and any international obligation of the United States. Section 583 of such Act
shall not apply to such foreign mail unless the Secretary certifies to
Congress that the application of such section 583 is consistent with
international law and any international obligation of the United States.
(1) IN GENERAL- Except as provided in paragraph (2), this section and
the amendments made by this section shall take effect on the date of
enactment of this Act.
(2) CERTIFICATION WITH RESPECT TO FOREIGN MAIL- The provisions of
section 583 of the Tariff Act of 1930 relating to foreign mail transiting
the United States that is imported or exported by the United States Postal
Service shall not take effect until the Secretary of State certifies to
Congress, pursuant to subsection (b), that the application of such section
583 is consistent with international law and any international obligation of
the United States.
SEC. 345. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISHMENT OF CUSTOMS
OPERATIONS IN NEW YORK CITY.
(a) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There is authorized to be appropriated for the
reestablishment of operations of the Customs Service in New York, New York,
such sums as may be necessary for fiscal year 2003.
(2) OPERATIONS DESCRIBED- The operations referred to in paragraph (1)
include, but are not limited to, the following:
(A) Operations relating to the Port Director of New York City, the New
York Customs Management Center (including the Director of Field
Operations), and the Special Agent-In-Charge for New York.
(B) Commercial operations, including textile enforcement operations
and salaries and expenses of--
(i) trade specialists who determine the origin and value of
merchandise;
(ii) analysts who monitor the entry data into the United States of
textiles and textile products; and
(iii) Customs officials who work with foreign governments to examine
textile makers and verify entry information.
(b) AVAILABILITY- Amounts appropriated pursuant to the authorization of
appropriations under subsection (a) are authorized to remain available until
expended.
CHAPTER 5--TEXTILE TRANSSHIPMENT PROVISIONS
SEC. 351. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY CUSTOMS
SERVICE.
(a) GAO AUDIT- The Comptroller General of the United States shall conduct
an audit of the system established and carried out by the Customs Service to
monitor transshipment.
(b) REPORT- Not later than 9 months after the date of enactment of this
Act, the Comptroller General shall submit to the Committee on Ways and Means
of the House of Representatives and Committee on Finance of the Senate a
report that contains the results of the study conducted under subsection (a),
including recommendations for improvements to the transshipment monitoring
system if applicable.
(c) TRANSSHIPMENT DESCRIBED- Transshipment within the meaning of this
section has occurred when preferential treatment under any provision of law
has been claimed for a textile or apparel article 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 the
preceding sentence, 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 the provision of law in
question.
SEC. 352. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANSSHIPMENT
ENFORCEMENT OPERATIONS.
(a) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There is authorized to be appropriated for transshipment
(as described in section 351(c)) enforcement operations, outreach, and
education of the Customs Service $9,500,000 for fiscal year 2003.
(2) AVAILABILITY- Amounts appropriated pursuant to the authorization of
appropriations under paragraph (1) are authorized to remain available until
expended.
(b) USE OF FUNDS- Of the amount appropriated pursuant to the authorization
of appropriations under subsection (a), the following amounts are authorized
to be made available for the following purposes:
(1) IMPORT SPECIALISTS- $1,463,000 for 21 Customs import specialists to
be assigned to selected ports for documentation review to support detentions
and exclusions and 1 additional Customs import specialist assigned to the
Customs headquarters textile program to administer the program and provide
oversight.
(2) INSPECTORS- $652,080 for 10 Customs inspectors to be assigned to
selected ports to examine targeted high-risk shipments.
(3) INVESTIGATORS- (A) $1,165,380 for 10 investigators to be assigned to
selected ports to investigate instances of smuggling, quota and trade
agreement circumvention, and use of counterfeit visas to enter inadmissible
goods.
(B) $149,603 for 1 investigator to be assigned to the Customs
headquarters textile program to coordinate and ensure implementation of
textile production verification team results from an investigation
perspective.
(4) INTERNATIONAL TRADE SPECIALISTS- $226,500 for 3 international trade
specialists to be assigned to Customs headquarters to be dedicated to
illegal textile transshipment policy issues, outreach, education, and other
free trade agreement enforcement issues.
(5) PERMANENT IMPORT SPECIALISTS FOR HONG KONG- $500,000 for 2 permanent
import specialist positions and $500,000 for 2 investigators to be assigned
to Hong Kong to work with Hong Kong and other government authorities in
Southeast Asia to assist such authorities in pursuing proactive enforcement
of bilateral trade agreements.
(6) VARIOUS PERMANENT TRADE POSITIONS- $3,500,000 for the
following:
(A) 2 permanent positions to be assigned to the Customs attache office
in Central America to address trade enforcement issues for that
region.
(B) 2 permanent positions to be assigned to the Customs attache office
in South Africa to address trade enforcement issues pursuant to the
African Growth and Opportunity Act (title I of Public Law
106-200).
(C) 4 permanent positions to be assigned to the Customs attache office
in Mexico to address the threat of illegal textile transshipment through
Mexico and other related issues under the North American Free Trade
Agreement Act.
(D) 2 permanent positions to be assigned to the Customs attache office
in Seoul, South Korea, to address the trade issues in the geographic
region.
(E) 2 permanent positions to be assigned to the proposed Customs
attache office in New Delhi, India, to address the threat of illegal
textile transshipment and other trade enforcement issues.
(F) 2 permanent positions to be assigned to the Customs attache office
in Rome, Italy, to address trade enforcement issues in the geographic
region, including issues under free trade agreements with Jordan and
Israel.
(7) ATTORNEYS- $179,886 for 2 attorneys for the Office of the Chief
Counsel of the Customs Service to pursue cases regarding illegal textile
transshipment.
(8) AUDITORS- $510,000 for 6 Customs auditors to perform internal
control reviews and document and record reviews of suspect importers.
(9) ADDITIONAL TRAVEL FUNDS- $250,000 for deployment of additional
textile production verification teams to sub-Saharan Africa.
(10) TRAINING- (A) $75,000 for training of Customs personnel.
(B) $200,000 for training for foreign counterparts in risk management
analytical techniques and for teaching factory inspection techniques, model
law development, and enforcement techniques.
(11) OUTREACH- $60,000 for outreach efforts to United States
importers.
SEC. 353. IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPORTUNITY ACT.
Of the amount made available for fiscal year 2003 under section
301(b)(2)(A) of the Customs Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)(2)(A)), as amended by section 311(b)(1) of this Act,
$1,317,000 shall be available until expended for the Customs Service to
provide technical assistance to help sub-Saharan African countries develop and
implement effective visa and anti-transshipment systems as required by the
African Growth and Opportunity Act (title I of Public Law 106-200), as
follows:
(1) TRAVEL FUNDS- $600,000 for import specialists, special agents, and
other qualified Customs personnel to travel to sub-Saharan African countries
to provide technical assistance in developing and implementing effective
visa and anti-transshipment systems.
(2) IMPORT SPECIALISTS- $266,000 for 4 import specialists to be assigned
to Customs headquarters to be dedicated to providing technical assistance to
sub-Saharan African countries for developing and implementing effective visa
and anti-transshipment systems.
(3) DATA RECONCILIATION ANALYSTS- $151,000 for 2 data reconciliation
analysts to review apparel shipments.
(4) SPECIAL AGENTS- $300,000 for 2 special agents to be assigned to
Customs headquarters to be available to provide technical assistance to
sub-Saharan African countries in the performance of investigations and other
enforcement initiatives.
Subtitle B--Office of the United States Trade
Representative
SEC. 361. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL- Section 141(g)(1) of the Trade Act of 1974 (19 U.S.C.
2171(g)(1)) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking `not to
exceed';
(B) by striking clause (i), and inserting the following:
`(i) $32,300,000 for fiscal year 2003.'; and
(C) by striking clause (ii), and inserting the following:
`(ii) $33,108,000 for fiscal year 2004.'; and
(2) in subparagraph (B)--
(A) in clause (i), by adding `and' at the end;
(B) by striking clause (ii); and
(C) by redesignating clause (iii) as clause (ii).
(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS- Section 141(g) of the Trade
Act of 1974 (19 U.S.C. 2171(g)) is amended by adding at the end the
following:
`(3) By not later than the date on which the President submits to Congress
the budget of the United States Government for a fiscal year, the United
States Trade Representative shall submit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of the Senate the
projected amount of funds for the succeeding fiscal year that will be
necessary for the Office to carry out its functions.'.
(c) ADDITIONAL STAFF FOR OFFICE OF ASSISTANT U.S. TRADE REPRESENTATIVE FOR
CONGRESSIONAL AFFAIRS-
(1) IN GENERAL- There is authorized to be appropriated such sums as may
be necessary for fiscal year 2003 for the salaries and expenses of two
additional legislative specialist employee positions within the Office of
the Assistant United States Trade Representative for Congressional
Affairs.
(2) AVAILABILITY- Amounts appropriated pursuant to the authorization of
appropriations under paragraph (1) are authorized to remain available until
expended.
Subtitle C--United States International Trade Commission
SEC. 371. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL- Section 330(e)(2)(A) of the Tariff Act of 1930 (19 U.S.C.
1330(e)(2)(A)) is amended--
(1) by striking clause (i), and inserting the following:
`(i) $54,000,000 for fiscal year 2003.'; and
(2) by striking clause (ii), and inserting the following:
`(ii) $57,240,000 for fiscal year 2004.'.
(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS- Section 330(e) of the
Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended by adding at the end the
following:
`(4) By not later than the date on which the President submits to Congress
the budget of the United States Government for a fiscal year, the Commission
shall submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate the projected
amount of funds for the succeeding fiscal year that will be necessary for the
Commission to carry out its functions.'.
Subtitle D--Other trade provisions
SEC. 381. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT FROM DUTY ACQUIRED
ABROAD BY UNITED STATES RESIDENTS.
(a) IN GENERAL- Subheading 9804.00.65 of the Harmonized Tariff Schedule of
the United States is amended in the article description column by striking
`$400' and inserting `$800'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
90 days after the date of the enactment of this Act.
SEC. 382. REGULATORY AUDIT PROCEDURES.
Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b)) is amended by
adding at the end the following:
`(6)(A) If during the course of any audit concluded under this
subsection, the Customs Service identifies overpayments of duties or fees or
over-declarations of quantities or values that are within the time period
and scope of the audit that the Customs Service has defined, then in
calculating the loss of revenue or monetary penalties under section 592, the
Customs Service shall treat the overpayments or over-declarations on finally
liquidated entries as an offset to any underpayments or underdeclarations
also identified on finally liquidated entries, if such overpayments or
over-declarations were not made by the person being audited for the purpose
of violating any provision of law.
`(B) Nothing in this paragraph shall be construed to authorize a refund
not otherwise authorized under section 520.'.
SEC. 383. PAYMENT OF DUTIES AND FEES.
Section 505(a) of the Tariff Act of 1930 (19 U.S.C. 1505(a)) is amended to
read as follows:
`(a) DEPOSIT OF ESTIMATED DUTIES AND FEES- Unless the entry is subject to
a periodic payment or the merchandise is entered for warehouse or
transportation, or under bond, the importer of record shall deposit with the
Customs Service at the time of entry, or at such later time as the Secretary
may prescribe by regulation (but not later than 10 working days after entry or
release) the amount of duties and fees estimated to be payable on such
merchandise. As soon as a periodic payment module of the Automated Commercial
Environment is developed, but no later than October 1, 2004, a participating
importer of record, or the importer's filer, may deposit estimated duties and
fees for entries of merchandise no later than the 15th day of the month
following the month in which the merchandise is entered or released, whichever
comes first.'.
DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI--TRADE PROMOTION AUTHORITY
SEC. 2101. SHORT TITLE AND FINDINGS.
(a) SHORT TITLE- This title may be cited as the `Bipartisan Trade
Promotion Authority Act of 2002'.
(b) FINDINGS- The Congress makes the following findings:
(1) The expansion of international trade is vital to the national
security of the United States. Trade is critical to the economic growth and
strength of the United States and to its leadership in the world. Stable
trading relationships promote security and prosperity. Trade agreements
today serve the same purposes that security pacts played during the Cold
War, binding nations together through a series of mutual rights and
obligations. Leadership by the United States in international trade fosters
open markets, democracy, and peace throughout the world.
(2) The national security of the United States depends on its economic
security, which in turn is founded upon a vibrant and growing industrial
base. Trade expansion has been the engine of economic growth. Trade
agreements maximize opportunities for the critical sectors and building
blocks of the economy of the United States, such as information technology,
telecommunications and other leading technologies, basic industries, capital
equipment, medical equipment, services, agriculture, environmental
technology, and intellectual property. Trade will create new opportunities
for the United States and preserve the unparalleled strength of the United
States in economic, political, and military affairs. The United States,
secured by expanding trade and economic opportunities, will meet the
challenges of the twenty-first century.
(3) Support for continued trade expansion requires that dispute
settlement procedures under international trade agreements not add to or
diminish the rights and obligations provided in such agreements.
Therefore--
(A) the recent pattern of decisions by dispute settlement panels of
the WTO and the Appellate Body to impose obligations and restrictions on
the use of antidumping, countervailing, and safeguard measures by WTO
members under the Antidumping Agreement, the Agreement on Subsidies and
Countervailing Measures, and the Agreement on Safeguards has raised
concerns; and
(B) the Congress is concerned that dispute settlement panels of the
WTO and the Appellate Body appropriately apply the standard of review
contained in Article 17.6 of the Antidumping Agreement, to provide
deference to a permissible interpretation by a WTO member of provisions of
that Agreement, and to the evaluation by a WTO member of the facts where
that evaluation is unbiased and objective and the establishment of the
facts is proper.
SEC. 2102. TRADE NEGOTIATING OBJECTIVES.
(a) OVERALL TRADE NEGOTIATING OBJECTIVES- The overall trade negotiating
objectives of the United States for agreements subject to the provisions of
section 2103 are--
(1) to obtain more open, equitable, and reciprocal market access;
(2) to obtain the reduction or elimination of barriers and distortions
that are directly related to trade and that decrease market opportunities
for United States exports or otherwise distort United States trade;
(3) to further strengthen the system of international trading
disciplines and procedures, including dispute settlement;
(4) to foster economic growth, raise living standards, and promote full
employment in the United States and to enhance the global economy;
(5) to ensure that trade and environmental policies are mutually
supportive and to seek to protect and preserve the environment and enhance
the international means of doing so, while optimizing the use of the world's
resources;
(6) to promote respect for worker rights and the rights of children
consistent with core labor standards of the ILO (as defined in section
2113(6)) and an understanding of the relationship between trade and worker
rights;
(7) to seek provisions in trade agreements under which parties to those
agreements strive to ensure that they do not weaken or reduce the
protections afforded in domestic environmental and labor laws as an
encouragement for trade;
(8) to ensure that trade agreements afford small businesses equal access
to international markets, equitable trade benefits, and expanded export
market opportunities, and provide for the reduction or elimination of trade
barriers that disproportionately impact small businesses; and
(9) to promote universal ratification and full compliance with ILO
Convention No. 182 Concerning the Prohibition and Immediate Action for the
Elimination of the Worst Forms of Child Labor.
(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES-
(1) TRADE BARRIERS AND DISTORTIONS- The principal negotiating objectives
of the United States regarding trade barriers and other trade distortions
are--
(A) to expand competitive market opportunities for United States
exports and to obtain fairer and more open conditions of trade by reducing
or eliminating tariff and nontariff barriers and policies and practices of
foreign governments directly related to trade that decrease market
opportunities for United States exports or otherwise distort United States
trade; and
(B) to obtain reciprocal tariff and nontariff barrier elimination
agreements, with particular attention to those tariff categories covered
in section 111(b) of the Uruguay Round Agreements Act (19 U.S.C.
3521(b)).
(2) TRADE IN SERVICES- The principal negotiating objective of the United
States regarding trade in services is to reduce or eliminate barriers to
international trade in services, including regulatory and other barriers
that deny national treatment and market access or unreasonably restrict the
establishment or operations of service suppliers.
(3) FOREIGN INVESTMENT- Recognizing that United States law on the whole
provides a high level of protection for investment, consistent with or
greater than the level required by international law, the principal
negotiating objectives of the United States regarding foreign investment are
to reduce or eliminate artificial or trade-distorting barriers to foreign
investment, while ensuring that foreign investors in the United States are
not accorded greater substantive rights with respect to investment
protections than United States investors in the United States, and to secure
for investors important rights comparable to those that would be available
under United States legal principles and practice, by--
(A) reducing or eliminating exceptions to the principle of national
treatment;
(B) freeing the transfer of funds relating to investments;
(C) reducing or eliminating performance requirements, forced
technology transfers, and other unreasonable barriers to the establishment
and operation of investments;
(D) seeking to establish standards for expropriation and compensation
for expropriation, consistent with United States legal principles and
practice;
(E) seeking to establish standards for fair and equitable treatment
consistent with United States legal principles and practice, including the
principle of due process;
(F) providing meaningful procedures for resolving investment
disputes;
(G) seeking to improve mechanisms used to resolve disputes between an
investor and a government through--
(i) mechanisms to eliminate frivolous claims and to deter the filing
of frivolous claims;
(ii) procedures to ensure the efficient selection of arbitrators and
the expeditious disposition of claims;
(iii) procedures to enhance opportunities for public input into the
formulation of government positions; and
(iv) providing for an appellate body or similar mechanism to provide
coherence to the interpretations of investment provisions in trade
agreements; and
(H) ensuring the fullest measure of transparency in the dispute
settlement mechanism, to the extent consistent with the need to protect
information that is classified or business confidential, by--
(i) ensuring that all requests for dispute settlement are promptly
made public;
(I) all proceedings, submissions, findings, and decisions are
promptly made public; and
(II) all hearings are open to the public; and
(iii) establishing a mechanism for acceptance of amicus curiae
submissions from businesses, unions, and nongovernmental
organizations.
(4) INTELLECTUAL PROPERTY- The principal negotiating objectives of the
United States regarding trade-related intellectual property are--
(A) to further promote adequate and effective protection of
intellectual property rights, including through--
(i)(I) ensuring accelerated and full implementation of the Agreement
on Trade-Related Aspects of Intellectual Property Rights referred to in
section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(15)), particularly with respect to meeting enforcement
obligations under that agreement; and
(II) ensuring that the provisions of any multilateral or bilateral
trade agreement governing intellectual property rights that is entered
into by the United States reflect a standard of protection similar to
that found in United States law;
(ii) providing strong protection for new and emerging technologies
and new methods of transmitting and distributing products embodying
intellectual property;
(iii) preventing or eliminating discrimination with respect to
matters affecting the availability, acquisition, scope, maintenance,
use, and enforcement of intellectual property rights;
(iv) ensuring that standards of protection and enforcement keep pace
with technological developments, and in particular ensuring that
rightholders have the legal and technological means to control the use
of their works through the Internet and other global communication
media, and to prevent the unauthorized use of their works;
and
(v) providing strong enforcement of intellectual property rights,
including through accessible, expeditious, and effective civil,
administrative, and criminal enforcement mechanisms;
(B) to secure fair, equitable, and nondiscriminatory market access
opportunities for United States persons that rely upon intellectual
property protection; and
(C) to respect the Declaration on the TRIPS Agreement and Public
Health, adopted by the World Trade Organization at the Fourth Ministerial
Conference at Doha, Qatar on November 14, 2001.
(5) TRANSPARENCY- The principal negotiating objective of the United
States with respect to transparency is to obtain wider and broader
application of the principle of transparency through--
(A) increased and more timely public access to information regarding
trade issues and the activities of international trade
institutions;
(B) increased openness at the WTO and other international trade fora
by increasing public access to appropriate meetings, proceedings, and
submissions, including with regard to dispute settlement and investment;
and
(C) increased and more timely public access to all notifications and
supporting documentation submitted by parties to the WTO.
(6) ANTI-CORRUPTION- The principal negotiating objectives of the United
States with respect to the use of money or other things of value to
influence acts, decisions, or omissions of foreign governments or officials
or to secure any improper advantage in a manner affecting trade are--
(A) to obtain high standards and appropriate domestic enforcement
mechanisms applicable to persons from all countries participating in the
applicable trade agreement that prohibit such attempts to influence acts,
decisions, or omissions of foreign governments; and
(B) to ensure that such standards do not place United States persons
at a competitive disadvantage in international trade.
(7) IMPROVEMENT OF THE WTO AND MULTILATERAL TRADE AGREEMENTS- The
principal negotiating objectives of the United States regarding the
improvement of the World Trade Organization, the Uruguay Round Agreements,
and other multilateral and bilateral trade agreements are--
(A) to achieve full implementation and extend the coverage of the
World Trade Organization and such agreements to products, sectors, and
conditions of trade not adequately covered; and
(B) to expand country participation in and enhancement of the
Information Technology Agreement and other trade agreements.
(8) REGULATORY PRACTICES- The principal negotiating objectives of the
United States regarding the use of government regulation or other practices
by foreign governments to provide a competitive advantage to their domestic
producers, service providers, or investors and thereby reduce market access
for United States goods, services, and investments are--
(A) to achieve increased transparency and opportunity for the
participation of affected parties in the development of
regulations;
(B) to require that proposed regulations be based on sound science,
cost-benefit analysis, risk assessment, or other objective
evidence;
(C) to establish consultative mechanisms among parties to trade
agreements to promote increased transparency in developing guidelines,
rules, regulations, and laws for government procurement and other
regulatory regimes; and
(D) to achieve the elimination of government measures such as price
controls and reference pricing which deny full market access for United
States products.
(9) ELECTRONIC COMMERCE- The principal negotiating objectives of the
United States with respect to electronic commerce are--
(A) to ensure that current obligations, rules, disciplines, and
commitments under the World Trade Organization apply to electronic
commerce;
(i) electronically delivered goods and services receive no less
favorable treatment under trade rules and commitments than like products
delivered in physical form; and
(ii) the classification of such goods and services ensures the most
liberal trade treatment possible;
(C) to ensure that governments refrain from implementing trade-related
measures that impede electronic commerce;
(D) where legitimate policy objectives require domestic regulations
that affect electronic commerce, to obtain commitments that any such
regulations are the least restrictive on trade, nondiscriminatory, and
transparent, and promote an open market environment; and
(E) to extend the moratorium of the World Trade Organization on duties
on electronic transmissions.
(10) RECIPROCAL TRADE IN AGRICULTURE- (A) The principal negotiating
objective of the United States with respect to agriculture is to obtain
competitive opportunities for United States exports of agricultural
commodities in foreign markets substantially equivalent to the competitive
opportunities afforded foreign exports in United States markets and to
achieve fairer and more open conditions of trade in bulk, specialty crop,
and value-added commodities by--
(i) reducing or eliminating, by a date certain, tariffs or other
charges that decrease market opportunities for United States
exports--
(I) giving priority to those products that are subject to
significantly higher tariffs or subsidy regimes of major producing
countries; and
(II) providing reasonable adjustment periods for United States
import-sensitive products, in close consultation with the Congress on
such products before initiating tariff reduction
negotiations;
(ii) reducing tariffs to levels that are the same as or lower than
those in the United States;
(iii) reducing or eliminating subsidies that decrease market
opportunities for United States exports or unfairly distort agriculture
markets to the detriment of the United States;
(iv) allowing the preservation of programs that support family farms
and rural communities but do not distort trade;
(v) developing disciplines for domestic support programs, so that
production that is in excess of domestic food security needs is sold at
world prices;
(vi) eliminating government policies that create price-depressing
surpluses;
(vii) eliminating state trading enterprises whenever
possible;
(viii) developing, strengthening, and clarifying rules and effective
dispute settlement mechanisms to eliminate practices that unfairly
decrease United States market access opportunities or distort agricultural
markets to the detriment of the United States, particularly with respect
to import-sensitive products, including--
(I) unfair or trade-distorting activities of state trading
enterprises and other administrative mechanisms, with emphasis on
requiring price transparency in the operation of state trading
enterprises and such other mechanisms in order to end cross
subsidization, price discrimination, and price undercutting;
(II) unjustified trade restrictions or commercial requirements, such
as labeling, that affect new technologies, including
biotechnology;
(III) unjustified sanitary or phytosanitary restrictions, including
those not based on scientific principles in contravention of the Uruguay
Round Agreements;
(IV) other unjustified technical barriers to trade; and
(V) restrictive rules in the administration of tariff rate
quotas;
(ix) eliminating practices that adversely affect trade in perishable
or cyclical products, while improving import relief mechanisms to
recognize the unique characteristics of perishable and cyclical
agriculture;
(x) ensuring that import relief mechanisms for perishable and cyclical
agriculture are as accessible and timely to growers in the United States
as those mechanisms that are used by other countries;
(xi) taking into account whether a party to the negotiations has
failed to adhere to the provisions of already existing trade agreements
with the United States or has circumvented obligations under those
agreements;
(xii) taking into account whether a product is subject to market
distortions by reason of a failure of a major producing country to adhere
to the provisions of already existing trade agreements with the United
States or by the circumvention by that country of its obligations under
those agreements;
(xiii) otherwise ensuring that countries that accede to the World
Trade Organization have made meaningful market liberalization commitments
in agriculture;
(xiv) taking into account the impact that agreements covering
agriculture to which the United States is a party, including the North
American Free Trade Agreement, have on the United States agricultural
industry;
(xv) maintaining bona fide food assistance programs and preserving
United States market development and export credit programs; and
(xvi) striving to complete a general multilateral round in the World
Trade Organization by January 1, 2005, and seeking the broadest market
access possible in multilateral, regional, and bilateral negotiations,
recognizing the effect that simultaneous sets of negotiations may have on
United States import-sensitive commodities (including those subject to
tariff-rate quotas).
(B)(i) Before commencing negotiations with respect to agriculture, the
United States Trade Representative, in consultation with the Congress, shall
seek to develop a position on the treatment of seasonal and perishable
agricultural products to be employed in the negotiations in order to develop
an international consensus on the treatment of seasonal or perishable
agricultural products in investigations relating to dumping and safeguards
and in any other relevant area.
(ii) During any negotiations on agricultural subsidies, the United
States Trade Representative shall seek to establish the common base year for
calculating the Aggregated Measurement of Support (as defined in the
Agreement on Agriculture) as the end of each country's Uruguay Round
implementation period, as reported in each country's Uruguay Round market
access schedule.
(iii) The negotiating objective provided in subparagraph (A) applies
with respect to agricultural matters to be addressed in any trade agreement
entered into under section 2103(a) or (b), including any trade agreement
entered into under section 2103(a) or (b) that provides for accession to a
trade agreement to which the United States is already a party, such as the
North American Free Trade Agreement and the United States-Canada Free Trade
Agreement.
(11) LABOR AND THE ENVIRONMENT- The principal negotiating objectives of
the United States with respect to labor and the environment are--
(A) to ensure that a party to a trade agreement with the United States
does not fail to effectively enforce its environmental or labor laws,
through a sustained or recurring course of action or inaction, in a manner
affecting trade between the United States and that party after entry into
force of a trade agreement between those countries;
(B) to recognize that parties to a trade agreement retain the right to
exercise discretion with respect to investigatory, prosecutorial,
regulatory, and compliance matters and to make decisions regarding the
allocation of resources to enforcement with respect to other labor or
environmental matters determined to have higher priorities, and to
recognize that a country is effectively enforcing its laws if a course of
action or inaction reflects a reasonable exercise of such discretion, or
results from a bona fide decision regarding the allocation of resources,
and no retaliation may be authorized based on the exercise of these rights
or the right to establish domestic labor standards and levels of
environmental protection;
(C) to strengthen the capacity of United States trading partners to
promote respect for core labor standards (as defined in section
2113(6));
(D) to strengthen the capacity of United States trading partners to
protect the environment through the promotion of sustainable
development;
(E) to reduce or eliminate government practices or policies that
unduly threaten sustainable development;
(F) to seek market access, through the elimination of tariffs and
nontariff barriers, for United States environmental technologies, goods,
and services; and
(G) to ensure that labor, environmental, health, or safety policies
and practices of the parties to trade agreements with the United States do
not arbitrarily or unjustifiably discriminate against United States
exports or serve as disguised barriers to trade.
(12) DISPUTE SETTLEMENT AND ENFORCEMENT- The principal negotiating
objectives of the United States with respect to dispute settlement and
enforcement of trade agreements are--
(A) to seek provisions in trade agreements providing for resolution of
disputes between governments under those trade agreements in an effective,
timely, transparent, equitable, and reasoned manner, requiring
determinations based on facts and the principles of the agreements, with
the goal of increasing compliance with the agreements;
(B) to seek to strengthen the capacity of the Trade Policy Review
Mechanism of the World Trade Organization to review compliance with
commitments;
(C) to seek adherence by panels convened under the Dispute Settlement
Understanding and by the Appellate Body to the standard of review
applicable under the Uruguay Round Agreement involved in the dispute,
including greater deference, where appropriate, to the fact-finding and
technical expertise of national investigating authorities;
(D) to seek provisions encouraging the early identification and
settlement of disputes through consultation;
(E) to seek provisions to encourage the provision of trade-expanding
compensation if a party to a dispute under the agreement does not come
into compliance with its obligations under the agreement;
(F) to seek provisions to impose a penalty upon a party to a dispute
under the agreement that--
(i) encourages compliance with the obligations of the
agreement;
(ii) is appropriate to the parties, nature, subject matter, and
scope of the violation; and
(iii) has the aim of not adversely affecting parties or interests
not party to the dispute while maintaining the effectiveness of the
enforcement mechanism; and
(G) to seek provisions that treat United States principal negotiating
objectives equally with respect to--
(i) the ability to resort to dispute settlement under the applicable
agreement;
(ii) the availability of equivalent dispute settlement procedures;
and
(iii) the availability of equivalent remedies.
(13) WTO EXTENDED NEGOTIATIONS- The principal negotiating objectives of
the United States regarding trade in civil aircraft are those set forth in
section 135(c) of the Uruguay Round Agreements Act (19 U.S.C. 3355(c)) and
regarding rules of origin are the conclusion of an agreement described in
section 132 of that Act (19 U.S.C. 3552).
(14) TRADE REMEDY LAWS- The principal negotiating objectives of the
United States with respect to trade remedy laws are--
(A) to preserve the ability of the United States to enforce rigorously
its trade laws, including the antidumping, countervailing duty, and
safeguard laws, and avoid agreements that lessen the effectiveness of
domestic and international disciplines on unfair trade, especially dumping
and subsidies, or that lessen the effectiveness of domestic and
international safeguard provisions, in order to ensure that United States
workers, agricultural producers, and firms can compete fully on fair terms
and enjoy the benefits of reciprocal trade concessions; and
(B) to address and remedy market distortions that lead to dumping and
subsidization, including overcapacity, cartelization, and market-access
barriers.
(15) BORDER TAXES- The principal negotiating objective of the United
States regarding border taxes is to obtain a revision of the WTO rules with
respect to the treatment of border adjustments for internal taxes to redress
the disadvantage to countries relying primarily on direct taxes for revenue
rather than indirect taxes.
(16) TEXTILE NEGOTIATIONS- The principal negotiating objectives of the
United States with respect to trade in textiles and apparel articles are to
obtain competitive opportunities for United States exports of textiles and
apparel in foreign markets substantially equivalent to the competitive
opportunities afforded foreign exports in United States markets and to
achieve fairer and more open conditions of trade in textiles and
apparel.
(17) WORST FORMS OF CHILD LABOR- The principal negotiating objective of
the United States with respect to the trade-related aspects of the worst
forms of child labor are to seek commitments by parties to trade agreements
to vigorously enforce their own laws prohibiting the worst forms of child
labor.
(c) PROMOTION OF CERTAIN PRIORITIES- In order to address and maintain
United States competitiveness in the global economy, the President shall--
(1) seek greater cooperation between the WTO and the ILO;
(2) seek to establish consultative mechanisms among parties to trade
agreements to strengthen the capacity of United States trading partners to
promote respect for core labor standards (as defined in section 2113(6)) and
to promote compliance with ILO Convention No. 182 Concerning the Prohibition
and Immediate Action for the Elimination of the Worst Forms of Child Labor,
and report to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate on the content
and operation of such mechanisms;
(3) seek to establish consultative mechanisms among parties to trade
agreements to strengthen the capacity of United States trading partners to
develop and implement standards for the protection of the environment and
human health based on sound science, and report to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of the
Senate on the content and operation of such mechanisms;
(4) conduct environmental reviews of future trade and investment
agreements, consistent with Executive Order 13141 of November 16, 1999, and
its relevant guidelines, and report to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of the Senate on
such reviews;
(5) review the impact of future trade agreements on United States
employment, including labor markets, modeled after Executive Order 13141 to
the extent appropriate in establishing procedures and criteria, report to
the Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate on such review, and make that report
available to the public;
(6) take into account other legitimate United States domestic objectives
including, but not limited to, the protection of legitimate health or
safety, essential security, and consumer interests and the law and
regulations related thereto;
(7) direct the Secretary of Labor to consult with any country seeking a
trade agreement with the United States concerning that country's labor laws
and provide technical assistance to that country if needed;
(8) in connection with any trade negotiations entered into under this
Act, submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a meaningful
labor rights report of the country, or countries, with respect to which the
President is negotiating, on a time frame determined in accordance with
section 2107(b)(2)(E);
(9) with respect to any trade agreement which the President seeks to
implement under trade authorities procedures, submit to the Congress a
report describing the extent to which the country or countries that are
parties to the agreement have in effect laws governing exploitative child
labor;
(10) continue to promote consideration of multilateral environmental
agreements and consult with parties to such agreements regarding the
consistency of any such agreement that includes trade measures with existing
environmental exceptions under Article XX of the GATT 1994;
(11) report to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate, not later than
12 months after the imposition of a penalty or remedy by the United States
permitted by a trade agreement to which this title applies, on the
effectiveness of the penalty or remedy applied under United States law in
enforcing United States rights under the trade agreement; and
(12) seek to establish consultative mechanisms among parties to trade
agreements to examine the trade consequences of significant and
unanticipated currency movements and to scrutinize whether a foreign
government engaged in a pattern of manipulating its currency to promote a
competitive advantage in international trade.
The report under paragraph (11) shall address whether the penalty or
remedy was effective in changing the behavior of the targeted party and
whether the penalty or remedy had any adverse impact on parties or interests
not party to the dispute.
(1) CONSULTATIONS WITH CONGRESSIONAL ADVISERS- In the course of
negotiations conducted under this title, the United States Trade
Representative shall consult closely and on a timely basis with, and keep
fully apprised of the negotiations, the Congressional Oversight Group
convened under section 2107 and all committees of the House of
Representatives and the Senate with jurisdiction over laws that would be
affected by a trade agreement resulting from the negotiations.
(2) CONSULTATION BEFORE AGREEMENT INITIALED- In the course of
negotiations conducted under this title, the United States Trade
Representative shall--
(A) consult closely and on a timely basis (including immediately
before initialing an agreement) with, and keep fully apprised of the
negotiations, the congressional advisers for trade policy and negotiations
appointed under section 161 of the Trade Act of 1974 (19 U.S.C. 2211), the
Committee on Ways and Means of the House of Representatives, the Committee
on Finance of the Senate, and the Congressional Oversight Group convened
under section 2107; and
(B) with regard to any negotiations and agreement relating to
agricultural trade, also consult closely and on a timely basis (including
immediately before initialing an agreement) with, and keep fully apprised
of the negotiations, the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate.
(e) ADHERENCE TO OBLIGATIONS UNDER URUGUAY ROUND AGREEMENTS- In
determining whether to enter into negotiations with a particular country, the
President shall take into account the extent to which that country has
implemented, or has accelerated the implementation of, its obligations under
the Uruguay Round Agreements.
SEC. 2103. TRADE AGREEMENTS AUTHORITY.
(a) AGREEMENTS REGARDING TARIFF BARRIERS-
(1) IN GENERAL- Whenever the President determines that one or more
existing duties or other import restrictions of any foreign country or the
United States are unduly burdening and restricting the foreign trade of the
United States and that the purposes, policies, priorities, and objectives of
this title will be promoted thereby, the President--
(A) may enter into trade agreements with foreign countries
before--
(ii) June 1, 2007, if trade authorities procedures are extended
under subsection (c); and
(B) may, subject to paragraphs (2) and (3), proclaim--
(i) such modification or continuance of any existing
duty,
(ii) such continuance of existing duty-free or excise treatment,
or
(iii) such additional duties,
as the President determines to be required or appropriate to carry out
any such trade agreement.
The President shall notify the Congress of the President's intention to
enter into an agreement under this subsection.
(2) LIMITATIONS- No proclamation may be made under paragraph (1)
that--
(A) reduces any rate of duty (other than a rate of duty that does not
exceed 5 percent ad valorem on the date of the enactment of this Act) to a
rate of duty which is less than 50 percent of the rate of such duty that
applies on such date of enactment;
(B) reduces the rate of duty below that applicable under the Uruguay
Round Agreements, on any import sensitive agricultural product;
or
(C) increases any rate of duty above the rate that applied on the date
of the enactment of this Act.
(3) AGGREGATE REDUCTION; EXEMPTION FROM STAGING-
(A) AGGREGATE REDUCTION- Except as provided in subparagraph (B), the
aggregate reduction in the rate of duty on any article which is in effect
on any day pursuant to a trade agreement entered into under paragraph (1)
shall not exceed the aggregate reduction which would have been in effect
on such day if--
(i) a reduction of 3 percent ad valorem or a reduction of one-tenth
of the total reduction, whichever is greater, had taken effect on the
effective date of the first reduction proclaimed under paragraph (1) to
carry out such agreement with respect to such article; and
(ii) a reduction equal to the amount applicable under clause (i) had
taken effect at 1-year intervals after the effective date of such first
reduction.
(B) EXEMPTION FROM STAGING- No staging is required under subparagraph
(A) with respect to a duty reduction that is proclaimed under paragraph
(1) for an article of a kind that is not produced in the United States.
The United States International Trade Commission shall advise the
President of the identity of articles that may be exempted from staging
under this subparagraph.
(4) ROUNDING- If the President determines that such action will simplify
the computation of reductions under paragraph (3), the President may round
an annual reduction by an amount equal to the lesser of--
(A) the difference between the reduction without regard to this
paragraph and the next lower whole number; or
(B) one-half of 1 percent ad valorem.
(5) OTHER LIMITATIONS- A rate of duty reduction that may not be
proclaimed by reason of paragraph (2) may take effect only if a provision
authorizing such reduction is included within an implementing bill provided
for under section 2105 and that bill is enacted into law.
(6) OTHER TARIFF MODIFICATIONS- Notwithstanding paragraphs (1)(B),
(2)(A), (2)(C), and (3) through (5), and subject to the consultation and
layover requirements of section 115 of the Uruguay Round Agreements Act, the
President may proclaim the modification of any duty or staged rate reduction
of any duty set forth in Schedule XX, as defined in section 2(5) of that
Act, if the United States agrees to such modification or staged rate
reduction in a negotiation for the reciprocal elimination or harmonization
of duties under the auspices of the World Trade Organization.
(7) AUTHORITY UNDER URUGUAY ROUND AGREEMENTS ACT NOT AFFECTED- Nothing
in this subsection shall limit the authority provided to the President under
section 111(b) of the Uruguay Round Agreements Act (19 U.S.C.
3521(b)).
(b) AGREEMENTS REGARDING TARIFF AND NONTARIFF BARRIERS-
(1) IN GENERAL- (A) Whenever the President determines that--
(i) one or more existing duties or any other import restriction of any
foreign country or the United States or any other barrier to, or other
distortion of, international trade unduly burdens or restricts the foreign
trade of the United States or adversely affects the United States economy,
or
(ii) the imposition of any such barrier or distortion is likely to
result in such a burden, restriction, or effect,
and that the purposes, policies, priorities, and objectives of this
title will be promoted thereby, the President may enter into a trade
agreement described in subparagraph (B) during the period described in
subparagraph (C).
(B) The President may enter into a trade agreement under subparagraph
(A) with foreign countries providing for--
(i) the reduction or elimination of a duty, restriction, barrier, or
other distortion described in subparagraph (A); or
(ii) the prohibition of, or limitation on the imposition of, such
barrier or other distortion.
(C) The President may enter into a trade agreement under this paragraph
before--
(ii) June 1, 2007, if trade authorities procedures are extended under
subsection (c).
(2) CONDITIONS- A trade agreement may be entered into under this
subsection only if such agreement makes progress in meeting the applicable
objectives described in section 2102(a) and (b) and the President satisfies
the conditions set forth in section 2104.
(3) BILLS QUALIFYING FOR TRADE AUTHORITIES PROCEDURES- (A) The
provisions of section 151 of the Trade Act of 1974 (in this title referred
to as `trade authorities procedures') apply to a bill of either House of
Congress which contains provisions described in subparagraph (B) to the same
extent as such section 151 applies to implementing bills under that section.
A bill to which this paragraph applies shall hereafter in this title be
referred to as an `implementing bill'.
(B) The provisions referred to in subparagraph (A) are--
(i) a provision approving a trade agreement entered into under this
subsection and approving the statement of administrative action, if any,
proposed to implement such trade agreement; and
(ii) if changes in existing laws or new statutory authority are
required to implement such trade agreement or agreements, provisions,
necessary or appropriate to implement such trade agreement or agreements,
either repealing or amending existing laws or providing new statutory
authority.
(c) EXTENSION DISAPPROVAL PROCESS FOR CONGRESSIONAL TRADE AUTHORITIES
PROCEDURES-
(1) IN GENERAL- Except as provided in section 2105(b)--
(A) the trade authorities procedures apply to implementing bills
submitted with respect to trade agreements entered into under subsection
(b) before July 1, 2005; and
(B) the trade authorities procedures shall be extended to implementing
bills submitted with respect to trade agreements entered into under
subsection (b) after June 30, 2005, and before July 1, 2007, if (and only
if)--
(i) the President requests such extension under paragraph (2);
and
(ii) neither House of the Congress adopts an extension disapproval
resolution under paragraph (5) before June 1, 2005.
(2) REPORT TO CONGRESS BY THE PRESIDENT- If the President is of the
opinion that the trade authorities procedures should be extended to
implementing bills described in paragraph (1)(B), the President shall submit
to the Congress, not later than March 1, 2005, a written report that
contains a request for such extension, together with--
(A) a description of all trade agreements that have been negotiated
under subsection (b) and the anticipated schedule for submitting such
agreements to the Congress for approval;
(B) a description of the progress that has been made in negotiations
to achieve the purposes, policies, priorities, and objectives of this
title, and a statement that such progress justifies the continuation of
negotiations; and
(C) a statement of the reasons why the extension is needed to complete
the negotiations.
(3) OTHER REPORTS TO CONGRESS-
(A) REPORT BY THE ADVISORY COMMITTEE- The President shall promptly
inform the Advisory Committee for Trade Policy and Negotiations
established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155) of
the President's decision to submit a report to the Congress under
paragraph (2). The Advisory Committee shall submit to the Congress as soon
as practicable, but not later than May 1, 2005, a written report that
contains--
(i) its views regarding the progress that has been made in
negotiations to achieve the purposes, policies, priorities, and
objectives of this title; and
(ii) a statement of its views, and the reasons therefor, regarding
whether the extension requested under paragraph (2) should be approved
or disapproved.
(B) REPORT BY ITC- The President shall promptly inform the
International Trade Commission of the President's decision to submit a
report to the Congress under paragraph (2). The International Trade
Commission shall submit to the Congress as soon as practicable, but not
later than May 1, 2005, a written report that contains a review and
analysis of the economic impact on the United States of all trade
agreements implemented between the date of enactment of this Act and the
date on which the President decides to seek an extension requested under
paragraph (2).
(4) STATUS OF REPORTS- The reports submitted to the Congress under
paragraphs (2) and (3), or any portion of such reports, may be classified to
the extent the President determines appropriate.
(5) EXTENSION DISAPPROVAL RESOLUTIONS- (A) For purposes of paragraph
(1), the term `extension disapproval resolution' means a resolution of
either House of the Congress, the sole matter after the resolving clause of
which is as follows: `That the XX disapproves the request of the
President for the extension, under section 2103(c)(1)(B)(i) of the
Bipartisan Trade Promotion Authority Act of 2002, of the trade authorities
procedures under that Act to any implementing bill submitted with respect to
any trade agreement entered into under section 2103(b) of that Act after
June 30, 2005.', with the blank space being filled with the name of the
resolving House of the Congress.
(B) Extension disapproval resolutions--
(i) may be introduced in either House of the Congress by any member of
such House; and
(ii) shall be referred, in the House of Representatives, to the
Committee on Ways and Means and, in addition, to the Committee on
Rules.
(C) The provisions of section 152(d) and (e) of the Trade Act of 1974
(19 U.S.C. 2192(d) and (e)) (relating to the floor consideration of certain
resolutions in the House and Senate) apply to extension disapproval
resolutions.
(D) It is not in order for--
(i) the Senate to consider any extension disapproval resolution not
reported by the Committee on Finance;
(ii) the House of Representatives to consider any extension
disapproval resolution not reported by the Committee on Ways and Means
and, in addition, by the Committee on Rules; or
(iii) either House of the Congress to consider an extension
disapproval resolution after June 30, 2005.
(d) COMMENCEMENT OF NEGOTIATIONS- In order to contribute to the continued
economic expansion of the United States, the President shall commence
negotiations covering tariff and nontariff barriers affecting any industry,
product, or service sector, and expand existing sectoral agreements to
countries that are not parties to those agreements, in cases where the
President determines that such negotiations are feasible and timely and would
benefit the United States. Such sectors include agriculture, commercial
services, intellectual property rights, industrial and capital goods,
government procurement, information technology products, environmental
technology and services, medical equipment and services, civil aircraft, and
infrastructure products. In so doing, the President shall take into account
all of the principal negotiating objectives set forth in section 2102(b).
SEC. 2104. CONSULTATIONS AND ASSESSMENT.
(a) NOTICE AND CONSULTATION BEFORE NEGOTIATION- The President, with
respect to any agreement that is subject to the provisions of section 2103(b),
shall--
(1) provide, at least 90 calendar days before initiating negotiations,
written notice to the Congress of the President's intention to enter into
the negotiations and set forth therein the date the President intends to
initiate such negotiations, the specific United States objectives for the
negotiations, and whether the President intends to seek an agreement, or
changes to an existing agreement;
(2) before and after submission of the notice, consult regarding the
negotiations with the Committee on Finance of the Senate and the Committee
on Ways and Means of the House of Representatives, such other committees of
the House and Senate as the President deems appropriate, and the
Congressional Oversight group convened under section 2107; and
(3) upon the request of a majority of the members of the Congressional
Oversight Group under section 2107(c), meet with the Congressional Oversight
Group before initiating the negotiations or at any other time concerning the
negotiations.
(b) NEGOTIATIONS REGARDING AGRICULTURE-
(1) IN GENERAL- Before initiating or continuing negotiations the subject
matter of which is directly related to the subject matter under section
2102(b)(10)(A)(i) with any country, the President shall assess whether
United States tariffs on agricultural products that were bound under the
Uruguay Round Agreements are lower than the tariffs bound by that country.
In addition, the President shall consider whether the tariff levels bound
and applied throughout the world with respect to imports from the United
States are higher than United States tariffs and whether the negotiation
provides an opportunity to address any such disparity. The President shall
consult with the Committee on Ways and Means and the Committee on
Agriculture of the House of Representatives and the Committee on Finance and
the Committee on Agriculture, Nutrition, and Forestry of the Senate
concerning the results of the assessment, whether it is appropriate for the
United States to agree to further tariff reductions based on the conclusions
reached in the assessment, and how all applicable negotiating objectives
will be met.
(2) SPECIAL CONSULTATIONS ON IMPORT SENSITIVE PRODUCTS- (A) Before
initiating negotiations with regard to agriculture, and, with respect to the
Free Trade Area for the Americas and negotiations with regard to agriculture
under the auspices of the World Trade Organization, as soon as practicable
after the enactment of this Act, the United States Trade Representative
shall--
(i) identify those agricultural products subject to tariff-rate quotas
on the date of enactment of this Act, and agricultural products subject to
tariff reductions by the United States as a result of the Uruguay Round
Agreements, for which the rate of duty was reduced on January 1, 1995, to
a rate which was not less than 97.5 percent of the rate of duty that
applied to such article on December 31, 1994;
(ii) consult with the Committee on Ways and Means and the Committee on
Agriculture of the House of Representatives and the Committee on Finance
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
concerning--
(I) whether any further tariff reductions on the products identified
under clause (i) should be appropriate, taking into account the impact
of any such tariff reduction on the United States industry producing the
product concerned;
(II) whether the products so identified face unjustified sanitary or
phytosanitary restrictions, including those not based on scientific
principles in contravention of the Uruguay Round Agreements;
and
(III) whether the countries participating in the negotiations
maintain export subsidies or other programs, policies, or practices that
distort world trade in such products and the impact of such programs,
policies, and practices on United States producers of the
products;
(iii) request that the International Trade Commission prepare an
assessment of the probable economic effects of any such tariff reduction
on the United States industry producing the product concerned and on the
United States economy as a whole; and
(iv) upon complying with clauses (i), (ii), and (iii), notify the
Committee on Ways and Means and the Committee on Agriculture of the House
of Representatives and the Committee on Finance and the Committee on
Agriculture, Nutrition, and Forestry of the Senate of those products
identified under clause (i) for which the Trade Representative intends to
seek tariff liberalization in the negotiations and the reasons for seeking
such tariff liberalization.
(B) If, after negotiations described in subparagraph (A) are
commenced--
(i) the United States Trade Representative identifies any additional
agricultural product described in subparagraph (A)(i) for tariff
reductions which were not the subject of a notification under subparagraph
(A)(iv), or
(ii) any additional agricultural product described in subparagraph
(A)(i) is the subject of a request for tariff reductions by a party to the
negotiations,
the Trade Representative shall, as soon as practicable, notify the
committees referred to in subparagraph (A)(iv) of those products and the
reasons for seeking such tariff reductions.
(3) NEGOTIATIONS REGARDING THE FISHING INDUSTRY- Before initiating, or
continuing, negotiations which directly relate to fish or shellfish trade
with any country, the President shall consult with the Committee on Ways and
Means and the Committee on Resources of the House of Representatives, and
the Committee on Finance and the Committee on Commerce, Science, and
Transportation of the Senate, and shall keep the Committees apprised of
negotiations on an ongoing and timely basis.
(c) NEGOTIATIONS REGARDING TEXTILES- Before initiating or continuing
negotiations the subject matter of which is directly related to textiles and
apparel products with any country, the President shall assess whether United
States tariffs on textile and apparel products that were bound under the
Uruguay Round Agreements are lower than the tariffs bound by that country and
whether the negotiation provides an opportunity to address any such disparity.
The President shall consult with the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate concerning the
results of the assessment, whether it is appropriate for the United States to
agree to further tariff reductions based on the conclusions reached in the
assessment, and how all applicable negotiating objectives will be met.
(d) CONSULTATION WITH CONGRESS BEFORE AGREEMENTS ENTERED INTO-
(1) CONSULTATION- Before entering into any trade agreement under section
2103(b), the President shall consult with--
(A) the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate;
(B) each other committee of the House and the Senate, and each joint
committee of the Congress, which has jurisdiction over legislation
involving subject matters which would be affected by the trade agreement;
and
(C) the Congressional Oversight Group convened under section
2107.
(2) SCOPE- The consultation described in paragraph (1) shall include
consultation with respect to--
(A) the nature of the agreement;
(B) how and to what extent the agreement will achieve the applicable
purposes, policies, priorities, and objectives of this title; and
(C) the implementation of the agreement under section 2105, including
the general effect of the agreement on existing laws.
(3) REPORT REGARDING UNITED STATES TRADE REMEDY LAWS-
(A) CHANGES IN CERTAIN TRADE LAWS- The President, at least 180
calendar days before the day on which the President enters into a trade
agreement under section 2103(b), shall report to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of the
Senate--
(i) the range of proposals advanced in the negotiations with respect
to that agreement, that may be in the final agreement, and that could
require amendments to title VII of the Tariff Act of 1930 or to chapter
1 of title II of the Trade Act of 1974; and
(ii) how these proposals relate to the objectives described in
section 2102(b)(14).
(B) CERTAIN AGREEMENTS- With respect to a trade agreement entered into
with Chile or Singapore, the report referred to in subparagraph (A) shall
be submitted by the President at least 90 calendar days before the day on
which the President enters into that agreement.
(C) RESOLUTIONS- (i) At any time after the transmission of the report
under subparagraph (A), if a resolution is introduced with respect to that
report in either House of Congress, the procedures set forth in clauses
(iii) through (vi) shall apply to that resolution if--
(I) no other resolution with respect to that report has previously
been reported in that House of Congress by the Committee on Ways and
Means or the Committee on Finance, as the case may be, pursuant to those
procedures; and
(II) no procedural disapproval resolution under section 2105(b)
introduced with respect to a trade agreement entered into pursuant to
the negotiations to which the report under subparagraph (A) relates has
previously been reported in that House of Congress by the Committee on
Ways and Means or the Committee on Finance, as the case may
be.
(ii) For purposes of this subparagraph, the term `resolution' means
only a resolution of either House of Congress, the matter after the
resolving clause of which is as follows: `That the XX finds that
the proposed changes to United States trade remedy laws contained in the
report of the President transmitted to the Congress on XX under
section 2104(d)(3) of the Bipartisan Trade Promotion Authority Act of 2002
with respect to XX, are inconsistent with the negotiating
objectives described in section 2102(b)(14) of that Act.', with the first
blank space being filled with the name of the resolving House of Congress,
the second blank space being filled with the appropriate date of the
report, and the third blank space being filled with the name of the
country or countries involved.
(iii) Resolutions in the House of Representatives--
(I) may be introduced by any Member of the House;
(II) shall be referred to the Committee on Ways and Means and, in
addition, to the Committee on Rules; and
(III) may not be amended by either Committee.
(iv) Resolutions in the Senate--
(I) may be introduced by any Member of the Senate;
(II) shall be referred to the Committee on Finance; and
(III) may not be amended.
(iv) It is not in order for the House of Representatives to consider
any resolution that is not reported by the Committee on Ways and Means
and, in addition, by the Committee on Rules.
(v) It is not in order for the Senate to consider any resolution that
is not reported by the Committee on Finance.
(vi) The provisions of section 152(d) and (e) of the Trade Act of 1974
(19 U.S.C. 2192(d) and (e)) (relating to floor consideration of certain
resolutions in the House and Senate) shall apply to resolutions.
(e) ADVISORY COMMITTEE REPORTS- The report required under section
135(e)(1) of the Trade Act of 1974 regarding any trade agreement entered into
under section 2103(a) or (b) of this Act shall be provided to the President,
the Congress, and the United States Trade Representative not later than 30
days after the date on which the President notifies the Congress under section
2103(a)(1) or 2105(a)(1)(A) of the President's intention to enter into the
agreement.
(1) IN GENERAL- The President, at least 90 calendar days before the day
on which the President enters into a trade agreement under section 2103(b),
shall provide the International Trade Commission (referred to in this
subsection as `the Commission') with the details of the agreement as it
exists at that time and request the Commission to prepare and submit an
assessment of the agreement as described in paragraph (2). Between the time
the President makes the request under this paragraph and the time the
Commission submits the assessment, the President shall keep the Commission
current with respect to the details of the agreement.
(2) ITC ASSESSMENT- Not later than 90 calendar days after the President
enters into the agreement, the Commission shall submit to the President and
the Congress a report assessing the likely impact of the agreement on the
United States economy as a whole and on specific industry sectors, including
the impact the agreement will have on the gross domestic product, exports
and imports, aggregate employment and employment opportunities, the
production, employment, and competitive position of industries likely to be
significantly affected by the agreement, and the interests of United States
consumers.
(3) REVIEW OF EMPIRICAL LITERATURE- In preparing the assessment, the
Commission shall review available economic assessments regarding the
agreement, including literature regarding any substantially equivalent
proposed agreement, and shall provide in its assessment a description of the
analyses used and conclusions drawn in such literature, and a discussion of
areas of consensus and divergence between the various analyses and
conclusions, including those of the Commission regarding the
agreement.
SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.
(1) NOTIFICATION AND SUBMISSION- Any agreement entered into under
section 2103(b) shall enter into force with respect to the United States if
(and only if)--
(A) the President, at least 90 calendar days before the day on which
the President enters into the trade agreement, notifies the House of
Representatives and the Senate of the President's intention to enter into
the agreement, and promptly thereafter publishes notice of such intention
in the Federal Register;
(B) within 60 days after entering into the agreement, the President
submits to the Congress a description of those changes to existing laws
that the President considers would be required in order to bring the
United States into compliance with the agreement;
(C) after entering into the agreement, the President submits to the
Congress, on a day on which both Houses of Congress are in session, a copy
of the final legal text of the agreement, together with--
(i) a draft of an implementing bill described in section
2103(b)(3);
(ii) a statement of any administrative action proposed to implement
the trade agreement; and
(iii) the supporting information described in paragraph (2);
and
(D) the implementing bill is enacted into law.
(2) SUPPORTING INFORMATION- The supporting information required under
paragraph (1)(C)(iii) consists of--
(A) an explanation as to how the implementing bill and proposed
administrative action will change or affect existing law; and
(i) asserting that the agreement makes progress in achieving the
applicable purposes, policies, priorities, and objectives of this title;
and
(ii) setting forth the reasons of the President
regarding--
(I) how and to what extent the agreement makes progress in
achieving the applicable purposes, policies, and objectives referred
to in clause (i);
(II) whether and how the agreement changes provisions of an
agreement previously negotiated;
(III) how the agreement serves the interests of United States
commerce;
(IV) how the implementing bill meets the standards set forth in
section 2103(b)(3); and
(V) how and to what extent the agreement makes progress in
achieving the applicable purposes, policies, and objectives referred
to in section 2102(c) regarding the promotion of certain
priorities.
(3) RECIPROCAL BENEFITS- In order to ensure that a foreign country that
is not a party to a trade agreement entered into under section 2103(b) does
not receive benefits under the agreement unless the country is also subject
to the obligations under the agreement, the implementing bill submitted with
respect to the agreement shall provide that the benefits and obligations
under the agreement apply only to the parties to the agreement, if such
application is consistent with the terms of the agreement. The implementing
bill may also provide that the benefits and obligations under the agreement
do not apply uniformly to all parties to the agreement, if such application
is consistent with the terms of the agreement.
(4) DISCLOSURE OF COMMITMENTS- Any agreement or other understanding with
a foreign government or governments (whether oral or in writing)
that--
(A) relates to a trade agreement with respect to which the Congress
enacts an implementing bill under trade authorities procedures,
and
(B) is not disclosed to the Congress before an implementing bill with
respect to that agreement is introduced in either House of
Congress,
shall not be considered to be part of the agreement approved by the
Congress and shall have no force and effect under United States law or in
any dispute settlement body.
(b) LIMITATIONS ON TRADE AUTHORITIES PROCEDURES-
(1) FOR LACK OF NOTICE OR CONSULTATIONS-
(A) IN GENERAL- The trade authorities procedures shall not apply to
any implementing bill submitted with respect to a trade agreement or trade
agreements entered into under section 2103(b) if during the 60-day period
beginning on the date that one House of Congress agrees to a procedural
disapproval resolution for lack of notice or consultations with respect to
such trade agreement or agreements, the other House separately agrees to a
procedural disapproval resolution with respect to such trade agreement or
agreements.
(B) PROCEDURAL DISAPPROVAL RESOLUTION- (i) For purposes of this
paragraph, the term `procedural disapproval resolution' means a resolution
of either House of Congress, the sole matter after the resolving clause of
which is as follows: `That the President has failed or refused to notify
or consult in accordance with the Bipartisan Trade Promotion Authority Act
of 2002 on negotiations with respect to XXXXXX and, therefore, the
trade authorities procedures under that Act shall not apply to any
implementing bill submitted with respect to such trade agreement or
agreements.', with the blank space being filled with a description of the
trade agreement or agreements with respect to which the President is
considered to have failed or refused to notify or consult.
(ii) For purposes of clause (i), the President has `failed or refused
to notify or consult in accordance with the Bipartisan Trade Promotion
Authority Act of 2002' on negotiations with respect to a trade agreement
or trade agreements if--
(I) the President has failed or refused to consult (as the case may
be) in accordance with section 2104 or 2105 with respect to the
negotiations, agreement, or agreements;
(II) guidelines under section 2107(b) have not been developed or met
with respect to the negotiations, agreement, or agreements;
(III) the President has not met with the Congressional Oversight
Group pursuant to a request made under section 2107(c) with respect to
the negotiations, agreement, or agreements; or
(IV) the agreement or agreements fail to make progress in achieving
the purposes, policies, priorities, and objectives of this
title.
(2) PROCEDURES FOR CONSIDERING RESOLUTIONS- (A) Procedural disapproval
resolutions--
(i) in the House of Representatives--
(I) may be introduced by any Member of the House;
(II) shall be referred to the Committee on Ways and Means and, in
addition, to the Committee on Rules; and
(III) may not be amended by either Committee; and
(I) may be introduced by any Member of the Senate;
(II) shall be referred to the Committee on Finance; and
(III) may not be amended.
(B) The provisions of section 152(d) and (e) of the Trade Act of 1974
(19 U.S.C. 2192(d) and (e)) (relating to the floor consideration of certain
resolutions in the House and Senate) apply to a procedural disapproval
resolution introduced with respect to a trade agreement if no other
procedural disapproval resolution with respect to that trade agreement has
previously been reported in that House of Congress by the Committee on Ways
and Means or the Committee on Finance, as the case may be, and if no
resolution described in section 2104(d)(3)(C)(ii) with respect to that trade
agreement has been reported in that House of Congress by the Committee on
Ways and Means or the Committee on Finance, as the case may be, pursuant to
the procedures set forth in clauses (iii) through (vi) of such section
2104(d)(3)(C).
(C) It is not in order for the House of Representatives to consider any
procedural disapproval resolution not reported by the Committee on Ways and
Means and, in addition, by the Committee on Rules.
(D) It is not in order for the Senate to consider any procedural
disapproval resolution not reported by the Committee on Finance.
(3) FOR FAILURE TO MEET OTHER REQUIREMENTS- Not later than December 31,
2002, the Secretary of Commerce, in consultation with the Secretary of
State, the Secretary of the Treasury, the Attorney General, and the United
States Trade Representative, shall transmit to the Congress a report setting
forth the strategy of the executive branch to address concerns of the
Congress regarding whether dispute settlement panels and the Appellate Body
of the WTO have added to obligations, or diminished rights, of the United
States, as described in section 2101(b)(3). Trade authorities procedures
shall not apply to any implementing bill with respect to an agreement
negotiated under the auspices of the WTO unless the Secretary of Commerce
has issued such report in a timely manner.
(c) RULES OF HOUSE OF REPRESENTATIVES AND SENATE- Subsection (b) of this
section, section 2103(c), aand section 2104(d)(3)(C) are enacted by the
Congress--
(1) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and as such are deemed a part
of the rules of each House, respectively, and such procedures supersede
other rules only to the extent that they are inconsistent with such other
rules; and
(2) with the full recognition of the constitutional right of either
House to change the rules (so far as relating to the procedures of that
House) at any time, in the same manner, and to the same extent as any other
rule of that House.
SEC. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH NEGOTIATIONS HAVE
ALREADY BEGUN.
(a) CERTAIN AGREEMENTS- Notwithstanding the prenegotiation notification
and consultation requirement described in section 2104(a), if an agreement to
which section 2103(b) applies--
(1) is entered into under the auspices of the World Trade
Organization,
(2) is entered into with Chile,
(3) is entered into with Singapore, or
(4) establishes a Free Trade Area for the Americas,
and results from negotiations that were commenced before the date of the
enactment of this Act, subsection (b) shall apply.
(b) TREATMENT OF AGREEMENTS- In the case of any agreement to which
subsection (a) applies--
(1) the applicability of the trade authorities procedures to
implementing bills shall be determined without regard to the requirements of
section 2104(a) (relating only to 90 days notice prior to initiating
negotiations), and any procedural disapproval resolution under section
2105(b)(1)(B) shall not be in order on the basis of a failure or refusal to
comply with the provisions of section 2104(a); and
(2) the President shall, as soon as feasible after the enactment of this
Act--
(A) notify the Congress of the negotiations described in subsection
(a), the specific United States objectives in the negotiations, and
whether the President is seeking a new agreement or changes to an existing
agreement; and
(B) before and after submission of the notice, consult regarding the
negotiations with the committees referred to in section 2104(a)(2) and the
Congressional Oversight Group convened under section 2107.
SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP.
(a) MEMBERS AND FUNCTIONS-
(1) IN GENERAL- By not later than 60 days after the date of the
enactment of this Act, and not later than 30 days after the convening of
each Congress, the chairman of the Committee on Ways and Means of the House
of Representatives and the chairman of the Committee on Finance of the
Senate shall convene the Congressional Oversight Group.
(2) MEMBERSHIP FROM THE HOUSE- In each Congress, the Congressional
Oversight Group shall be comprised of the following Members of the House of
Representatives:
(A) The chairman and ranking member of the Committee on Ways and
Means, and 3 additional members of such Committee (not more than 2 of whom
are members of the same political party).
(B) The chairman and ranking member, or their designees, of the
committees of the House of Representatives which would have, under the
Rules of the House of Representatives, jurisdiction over provisions of law
affected by a trade agreement negotiations for which are conducted at any
time during that Congress and to which this title would apply.
(3) MEMBERSHIP FROM THE SENATE- In each Congress, the Congressional
Oversight Group shall also be comprised of the following members of the
Senate:
(A) The chairman and ranking member of the Committee on Finance and 3
additional members of such Committee (not more than 2 of whom are members
of the same political party).
(B) The chairman and ranking member, or their designees, of the
committees of the Senate which would have, under the Rules of the Senate,
jurisdiction over provisions of law affected by a trade agreement
negotiations for which are conducted at any time during that Congress and
to which this title would apply.
(4) ACCREDITATION- Each member of the Congressional Oversight Group
described in paragraph (2)(A) and (3)(A) shall be accredited by the United
States Trade Representative on behalf of the President as an official
adviser to the United States delegation in negotiations for any trade
agreement to which this title applies. Each member of the Congressional
Oversight Group described in paragraph (2)(B) and (3)(B) shall be accredited
by the United States Trade Representative on behalf of the President as an
official adviser to the United States delegation in the negotiations by
reason of which the member is in the Congressional Oversight Group. The
Congressional Oversight Group shall consult with and provide advice to the
Trade Representative regarding the formulation of specific objectives,
negotiating strategies and positions, the development of the applicable
trade agreement, and compliance and enforcement of the negotiated
commitments under the trade agreement.
(5) CHAIR- The Congressional Oversight Group shall be chaired by the
Chairman of the Committee on Ways and Means of the House of Representatives
and the Chairman of the Committee on Finance of the Senate.
(1) PURPOSE AND REVISION- The United States Trade Representative, in
consultation with the chairmen and ranking minority members of the Committee
on Ways and Means of the House of Representatives and the Committee on
Finance of the Senate--
(A) shall, within 120 days after the date of the enactment of this
Act, develop written guidelines to facilitate the useful and timely
exchange of information between the Trade Representative and the
Congressional Oversight Group convened under this section; and
(B) may make such revisions to the guidelines as may be necessary from
time to time.
(2) CONTENT- The guidelines developed under paragraph (1) shall provide
for, among other things--
(A) regular, detailed briefings of the Congressional Oversight Group
regarding negotiating objectives, including the promotion of certain
priorities referred to in section 2102(c), and positions and the status of
the applicable negotiations, beginning as soon as practicable after the
Congressional Oversight Group is convened, with more frequent briefings as
trade negotiations enter the final stage;
(B) access by members of the Congressional Oversight Group, and staff
with proper security clearances, to pertinent documents relating to the
negotiations, including classified materials;
(C) the closest practicable coordination between the Trade
Representative and the Congressional Oversight Group at all critical
periods during the negotiations, including at negotiation sites;
(D) after the applicable trade agreement is concluded, consultation
regarding ongoing compliance and enforcement of negotiated commitments
under the trade agreement; and
(E) the time frame for submitting the report required under section
2102(c)(8).
(c) REQUEST FOR MEETING- Upon the request of a majority of the
Congressional Oversight Group, the President shall meet with the Congressional
Oversight Group before initiating negotiations with respect to a trade
agreement, or at any other time concerning the negotiations.
SEC. 2108. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT REQUIREMENTS.
(a) IN GENERAL- At the time the President submits to the Congress the
final text of an agreement pursuant to section 2105(a)(1)(C), the President
shall also submit a plan for implementing and enforcing the agreement. The
implementation and enforcement plan shall include the following:
(1) BORDER PERSONNEL REQUIREMENTS- A description of additional personnel
required at border entry points, including a list of additional customs and
agricultural inspectors.
(2) AGENCY STAFFING REQUIREMENTS- A description of additional personnel
required by Federal agencies responsible for monitoring and implementing the
trade agreement, including personnel required by the Office of the United
States Trade Representative, the Department of Commerce, the Department of
Agriculture (including additional personnel required to implement sanitary
and phytosanitary measures in order to obtain market access for United
States exports), the Department of the Treasury, and such other agencies as
may be necessary.
(3) CUSTOMS INFRASTRUCTURE REQUIREMENTS- A description of the additional
equipment and facilities needed by the United States Customs Service.
(4) IMPACT ON STATE AND LOCAL GOVERNMENTS- A description of the impact
the trade agreement will have on State and local governments as a result of
increases in trade.
(5) COST ANALYSIS- An analysis of the costs associated with each of the
items listed in paragraphs (1) through (4).
(b) BUDGET SUBMISSION- The President shall include a request for the
resources necessary to support the plan described in subsection (a) in the
first budget that the President submits to the Congress after the submission
of the plan.
SEC. 2109. COMMITTEE STAFF.
The grant of trade promotion authority under this title is likely to
increase the activities of the primary committees of jurisdiction in the area
of international trade. In addition, the creation of the Congressional
Oversight Group under section 2107 will increase the participation of a
broader number of Members of Congress in the formulation of United States
trade policy and oversight of the international trade agenda for the United
States. The primary committees of jurisdiction should have adequate staff to
accommodate these increases in activities.
SEC. 2110. CONFORMING AMENDMENTS.
(a) IN GENERAL- Title I of the Trade Act of 1974 (19 U.S.C. 2111 et seq.)
is amended as follows:
(A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is amended by striking
`section 1103(a)(1) of the Omnibus Trade and Competitiveness Act of 1988,
or section 282 of the Uruguay Round Agreements Act' and inserting `section
282 of the Uruguay Round Agreements Act, or section 2105(a)(1) of the
Bipartisan Trade Promotion Authority Act of 2002'.
(B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is amended by striking
`or section 282 of the Uruguay Round Agreements Act' and inserting `,
section 282 of the Uruguay Round Agreements Act, or section 2105(a)(1) of
the Bipartisan Trade Promotion Authority Act of 2002'.
(2) ADVICE FROM INTERNATIONAL TRADE COMMISSION- Section 131 (19 U.S.C.
2151) is amended--
(i) in paragraph (1), by striking `section 123 of this Act or
section 1102 (a) or (c) of the Omnibus Trade and Competitiveness Act of
1988,' and inserting `section 123 of this Act or section 2103(a) or (b)
of the Bipartisan Trade Promotion Authority Act of 2002,';
and
(ii) in paragraph (2), by striking `section 1102 (b) or (c) of the
Omnibus Trade and Competitiveness Act of 1988' and inserting `section
2103(b) of the Bipartisan Trade Promotion Authority Act of
2002';
(B) in subsection (b), by striking `section 1102(a)(3)(A)' and
inserting `section 2103(a)(3)(A) of the Bipartisan Trade Promotion
Authority Act of 2002'; and
(C) in subsection (c), by striking `section 1102 of the Omnibus Trade
and Competitiveness Act of 1988,' and inserting `section 2103 of the
Bipartisan Trade Promotion Authority Act of 2002,'.
(3) HEARINGS AND ADVICE- Sections 132, 133(a), and 134(a) (19 U.S.C.
2152, 2153(a), and 2154(a)) are each amended by striking `section 1102 of
the Omnibus Trade and Competitiveness Act of 1988,' each place it appears
and inserting `section 2103 of the Bipartisan Trade Promotion Authority Act
of 2002,'.
(4) PREREQUISITES FOR OFFERS- Section 134(b) (19 U.S.C. 2154(b)) is
amended by striking `section 1102 of the Omnibus Trade and Competitiveness
Act of 1988' and inserting `section 2103 of the Bipartisan Trade Promotion
Authority Act of 2002'.
(5) ADVICE FROM PRIVATE AND PUBLIC SECTORS- Section 135 (19 U.S.C. 2155)
is amended--
(A) in subsection (a)(1)(A), by striking `section 1102 of the Omnibus
Trade and Competitiveness Act of 1988' and inserting `section 2103 of the
Bipartisan Trade Promotion Authority Act of 2002';
(B) in subsection (e)(1)--
(i) by striking `section 1102 of the Omnibus Trade and
Competitiveness Act of 1988' each place it appears and inserting
`section 2103 of the Bipartisan Trade Promotion Authority Act of 2002';
and
(ii) by striking `section 1103(a)(1)(A) of such Act of 1988' and
inserting `section 2105(a)(1)(A) of the Bipartisan Trade Promotion
Authority Act of 2002'; and
(C) in subsection (e)(2), by striking `section 1101 of the Omnibus
Trade and Competitiveness Act of 1988' and inserting `section 2102 of the
Bipartisan Trade Promotion Authority Act of 2002'.
(6) TRANSMISSION OF AGREEMENTS TO CONGRESS- Section 162(a) (19 U.S.C.
2212(a)) is amended by striking `or under section 1102 of the Omnibus Trade
and Competitiveness Act of 1988' and inserting `or under section 2103 of the
Bipartisan Trade Promotion Authority Act of 2002'.
(b) APPLICATION OF CERTAIN PROVISIONS- For purposes of applying sections
125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 2136(a), and
2137)--
(1) any trade agreement entered into under section 2103 shall be treated
as an agreement entered into under section 101 or 102, as appropriate, of
the Trade Act of 1974 (19 U.S.C. 2111 or 2112); and
(2) any proclamation or Executive order issued pursuant to a trade
agreement entered into under section 2103 shall be treated as a proclamation
or Executive order issued pursuant to a trade agreement entered into under
section 102 of the Trade Act of 1974.
SEC. 2111. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY.
(a) IN GENERAL- Not later than 1 year after the date of enactment of this
Act, the International Trade Commission shall report to the Committee on
Finance of the Senate and the Committee on Ways and Means of the House of
Representatives regarding the economic impact on the United States of the
trade agreements described in subsection (b).
(b) AGREEMENTS- The trade agreements described in this subsection are the
following:
(1) The United States-Israel Free Trade Agreement.
(2) The United States-Canada Free Trade Agreement.
(3) The North American Free Trade Agreement.
(4) The Uruguay Round Agreements.
(5) The Tokyo Round of Multilateral Trade Negotiations.
SEC. 2112. INTERESTS OF SMALL BUSINESS.
The Assistant United States Trade Representative for Industry and
Telecommunications shall be responsible for ensuring that the interests of
small business are considered in all trade negotiations in accordance with the
objective described in section 2102(a)(8). It is the sense of the Congress
that the small business functions should be reflected in the title of the
Assistant United States Trade Representative assigned the responsibility for
small business.
SEC. 2113. DEFINITIONS.
(1) AGREEMENT ON AGRICULTURE- The term `Agreement on Agriculture' means
the agreement referred to in section 101(d)(2) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(2)).
(2) AGREEMENT ON SAFEGUARDS- The term `Agreement on Safeguards means the
agreement referred to in section 101(d)(12) of the Uruguay Round Agreements
Act (19 U.S.C. 3511(d)(12)).
(2) AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES- The term
`Agreement on Subsidies and Countervailing Measures' means the agreement
referred to in section 101(d)(13) of the Uruguay Round Agreements Act (19
U.S.C. 3511(d)(13)).
(4) ANTIDUMPING AGREEMENT- The term `Antidumping Agreement` means the
Agreement on Implementation of Article VI of the General Agreement on
Tariffs and Trade 1994 referred to in section 101(d)(7) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(7)).
(5) APPELLATE BODY- The term `Appellate Body' means the Appellate Body
established under Article 17.1 of the Dispute Settlement
Understanding.
(6) CORE LABOR STANDARDS- The term `core labor standards' means--
(A) the right of association;
(B) the right to organize and bargain collectively;
(C) a prohibition on the use of any form of forced or compulsory
labor;
(D) a minimum age for the employment of children; and
(E) acceptable conditions of work with respect to minimum wages, hours
of work, and occupational safety and health.
(7) DISPUTE SETTLEMENT UNDERSTANDING- The term `Dispute Settlement
Understanding' means the Understanding on Rules and Procedures Governing the
Settlement of Disputes referred to in section 101(d)(16) of the Uruguay
Round Agreements Act.
(8) GATT 1994- The term `GATT 1994' has the meaning given that term in
section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501).
(9) ILO- The term `ILO' means the International Labor
Organization.
(10) IMPORT SENSITIVE AGRICULTURAL PRODUCT- The term `import sensitive
agricultural product' means an agricultural product--
(A) with respect to which, as a result of the Uruguay Round Agreements
the rate of duty was the subject of tariff reductions by the United States
and, pursuant to such Agreements, was reduced on January 1, 1995, to a
rate that was not less than 97.5 percent of the rate of duty that applied
to such article on December 31, 1994; or
(B) which was subject to a tariff-rate quota on the date of the
enactment of this Act.
(11) UNITED STATES PERSON- The term `United States person' means--
(A) a United States citizen;
(B) a partnership, corporation, or other legal entity organized under
the laws of the United States; and
(C) a partnership, corporation, or other legal entity that is
organized under the laws of a foreign country and is controlled by
entities described in subparagraph (B) or United States citizens, or
both.
(12) URUGUAY ROUND AGREEMENTS- The term `Uruguay Round Agreements' has
the meaning given that term in section 2(7) of the Uruguay Round Agreements
Act (19 U.S.C. 3501(7)).
(13) WORLD TRADE ORGANIZATION; WTO- The terms `World Trade Organization'
and `WTO' mean the organization established pursuant to the WTO
Agreement.
(14) WTO AGREEMENT- The term `WTO Agreement' means the Agreement
Establishing the World Trade Organization entered into on April 15,
1994.
(15) WTO MEMBER- The term `WTO member' has the meaning given that term
in section 2(10) of the Uruguay Round Agreements Act (19 U.S.C.
3501(10)).
DIVISION C--ANDEAN TRADE PREFERENCE ACT
TITLE XXXI--ANDEAN TRADE PREFERENCE
SEC. 3101. SHORT TITLE.
This title may be cited as the `Andean Trade Promotion and Drug
Eradication Act'.
SEC. 3102. FINDINGS.
Congress makes the following findings:
(1) Since the Andean Trade Preference Act was enacted in 1991, it has
had a positive impact on United States trade with Bolivia, Colombia,
Ecuador, and Peru. Two-way trade has doubled, with the United States serving
as the leading source of imports and leading export market for each of the
Andean beneficiary countries. This has resulted in increased jobs and
expanded export opportunities in both the United States and the Andean
region.
(2) The Andean Trade Preference Act has been a key element in the United
States counternarcotics strategy in the Andean region, promoting export
diversification and broad-based economic development that provides
sustainable economic alternatives to drug-crop production, strengthening the
legitimate economies of Andean countries and creating viable alternatives to
illicit trade in coca.
(3) Notwithstanding the success of the Andean Trade Preference Act, the
Andean region remains threatened by political and economic instability and
fragility, vulnerable to the consequences of the drug war and fierce global
competition for its legitimate trade.
(4) The continuing instability in the Andean region poses a threat to
the security interests of the United States and the world. This problem has
been partially addressed through foreign aid, such as Plan Colombia, enacted
by Congress in 2000. However, foreign aid alone is not sufficient.
Enhancement of legitimate trade with the United States provides an
alternative means for reviving and stabilizing the economies in the Andean
region.
(5) The Andean Trade Preference Act constitutes a tangible commitment by
the United States to the promotion of prosperity, stability, and democracy
in the beneficiary countries.
(6) Renewal and enhancement of the Andean Trade Preference Act will
bolster the confidence of domestic private enterprise and foreign investors
in the economic prospects of the region, ensuring that legitimate private
enterprise can be the engine of economic development and political stability
in the region.
(7) Each of the Andean beneficiary countries is committed to conclude
negotiation of a Free Trade Area of the Americas by the year 2005, as a
means of enhancing the economic security of the region.
(8) Temporarily enhancing trade benefits for Andean beneficiary
countries will promote the growth of free enterprise and economic
opportunity in these countries and serve the security interests of the
United States, the region, and the world.
SEC. 3103. ARTICLES ELIGIBLE FOR PREFERENTIAL TREATMENT.
(a) ELIGIBILITY OF CERTAIN ARTICLES- Section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203) is amended--
(1) by striking subsection (c) and redesignating subsections (d) through
(g) as subsections (c) through (f), respectively; and
(2) by amending subsection (b) to read as follows:
`(b) EXCEPTIONS AND SPECIAL RULES-
`(1) CERTAIN ARTICLES THAT ARE NOT IMPORT-SENSITIVE- The President may
proclaim duty-free treatment under this title for any article described in
subparagraph (A), (B), (C), or (D) that is the growth, product, or
manufacture of an ATPDEA beneficiary country, that is imported directly into
the customs territory of the United States from an ATPDEA beneficiary
country, and that meets the requirements of this section, if the President
determines that such article is not import-sensitive in the context of
imports from ATPDEA beneficiary countries:
`(A) Footwear not designated at the time of the effective date of this
title as eligible for purposes of the generalized system of preferences
under title V of the Trade Act of 1974.
`(B) Petroleum, or any product derived from petroleum, provided for in
headings 2709 and 2710 of the HTS.
`(C) 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.
`(D) Handbags, luggage, flat goods, work gloves, and leather wearing
apparel that were not designated on August 5, 1983, as eligible articles
for purposes of the generalized system of preferences under title V of the
Trade Act of 1974.
`(2) EXCLUSIONS- Subject to paragraph (3), duty-free treatment under
this title may not be extended to--
`(A) textiles 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) rum and tafia classified in subheading 2208.40 of the
HTS;
`(C) sugars, syrups, and sugar-containing products subject to
over-quota duty rates under applicable tariff-rate quotas; or
`(D) tuna prepared or preserved in any manner in airtight containers,
except as provided in paragraph (4).
`(3) APPAREL ARTICLES AND CERTAIN TEXTILE ARTICLES-
`(A) IN GENERAL- Apparel articles that are imported directly into the
customs territory of the United States from an ATPDEA beneficiary country
shall enter the United States free of duty and free of any quantitative
restrictions, limitations, or consultation levels, but only if such
articles are described in subparagraph (B).
`(B) COVERED ARTICLES- The apparel articles referred to in
subparagraph (A) are the following:
`(i) APPAREL ARTICLES ASSEMBLED FROM PRODUCTS OF THE UNITED STATES
OR ATPDEA BENEFICIARY COUNTRIES OR PRODUCTS NOT AVAILABLE IN COMMERCIAL
QUANTITIES- Apparel articles sewn or otherwise assembled in 1 or more
ATPDEA beneficiary countries, or the United States, or both, exclusively
from any one or any combination of the following:
`(I) Fabrics or fabric components wholly formed, or components
knit-to-shape, in the United States, from yarns wholly formed in the
United States or 1 or more ATPDEA beneficiary countries (including
fabrics not formed from yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the HTS and are formed in the United States).
Apparel articles shall qualify under this subclause only if all
dyeing, printing, and finishing of the fabrics from which the articles
are assembled, if the fabrics are knit fabrics, is carried out in the
United States. Apparel articles shall qualify under this subclause
only if all dyeing, printing, and finishing of the fabrics from which
the articles are assembled, if the fabrics are woven fabrics, is
carried out in the United States.
`(II) Fabrics or fabric components formed or components
knit-to-shape, in 1 or more ATPDEA beneficiary countries, from yarns
wholly formed in 1 or more ATPDEA beneficiary countries, if such
fabrics (including fabrics not formed from yarns, if such fabrics are
classifiable under heading 5602 or 5603 of the HTS and are formed in 1
or more ATPDEA beneficiary countries) or components are in chief value
of llama, alpaca, or vicun.AE6a.
`(III) Fabrics or yarns, to the extent that apparel articles of
such fabrics or yarns would be eligible for preferential treatment,
without regard to the source of the fabrics or yarns, under Annex 401
of the NAFTA.
`(ii) ADDITIONAL FABRICS- At the request of any interested party,
the President is authorized to proclaim additional fabrics and yarns as
eligible for preferential treatment under clause (i)(III)
if--
`(I) the President determines that such fabrics or yarns cannot be
supplied by the domestic industry in commercial quantities in a timely
manner;
`(II) the President has obtained advice regarding the proposed
action from the appropriate advisory committee established under
section 135 of the Trade Act of 1974 (19 U.S.C. 2155) and the United
States International Trade Commission;
`(III) within 60 days after the request, the President has
submitted a report to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate that sets
forth the action proposed to be proclaimed and the reasons for such
action, and the advice obtained under subclause (II);
`(IV) a period of 60 calendar days, beginning with the first day
on which the President has met the requirements of subclause (III),
has expired; and
`(V) the President has consulted with such committees regarding
the proposed action during the period referred to in subclause
(III).
`(iii) APPAREL ARTICLES ASSEMBLED IN 1 OR MORE ATPDEA BENEFICIARY
COUNTRIES FROM REGIONAL FABRICS OR REGIONAL COMPONENTS- (I) Subject to
the limitation set forth in subclause (II), apparel articles sewn or
otherwise assembled in 1 or more ATPDEA beneficiary countries from
fabrics or from fabric components formed or from components
knit-to-shape, in 1 or more ATPDEA beneficiary countries, from yarns
wholly formed in the United States or 1 or more ATPDEA beneficiary
countries (including fabrics not formed from yarns, if such fabrics are
classifiable under heading 5602 or 5603 of the HTS and are formed in 1
or more ATPDEA beneficiary countries), whether or not the apparel
articles are also made from any of the fabrics, fabric components
formed, or components knit-to-shape described in clause (i) (unless the
apparel articles are made exclusively from any of the fabrics, fabric
components formed, or components knit-to-shape described in clause
(i)).
`(II) The preferential treatment referred to in subclause (I) shall
be extended in the 1-year period beginning October 1, 2002, and in each
of the 4 succeeding 1-year periods, to imports of apparel articles in an
amount not to exceed the applicable percentage of the aggregate square
meter equivalents of all apparel articles imported into the United
States in the preceding 12-month period for which data are
available.
`(III) For purposes of subclause (II), the term `applicable
percentage' means 2 percent for the 1-year period beginning October 1,
2002, increased in each of the 4 succeeding 1-year periods by equal
increments, so that for the period beginning October 1, 2006, the
applicable percentage does not exceed 5 percent.
`(iv) HANDLOOMED, HANDMADE, AND FOLKLORE ARTICLES- A handloomed,
handmade, or folklore article of an ATPDEA beneficiary country
identified under subparagraph (C) that is certified as such by the
competent authority of such beneficiary country.
`(v) CERTAIN OTHER APPAREL ARTICLES-
`(I) GENERAL RULE- Any apparel article classifiable under
subheading 6212.10 of the HTS, except for articles entered under
clause (i), (ii), (iii), or (iv), if the article is both cut and sewn
or otherwise assembled in the United States, or one or more ATPDEA
beneficiary countries, or both.
`(II) LIMITATION- During the 1-year period beginning on October 1,
2003, and during each of the 3 succeeding 1-year periods, apparel
articles described in subclause (I) of a producer or an entity
controlling production shall be eligible for preferential treatment
under this paragraph only if the aggregate cost of fabrics (exclusive
of all findings and trimmings) formed in the United States that are
used in the production of all such articles of that producer or entity
that are entered and eligible under this clause during the preceding
1-year period is at least 75 percent of the aggregate declared customs
value of the fabric (exclusive of all findings and trimmings)
contained in all such articles of that producer or entity that are
entered and eligible under this clause during the preceding 1-year
period.
`(III) DEVELOPMENT OF PROCEDURE TO ENSURE COMPLIANCE- The United
States Customs Service shall develop and implement methods and
procedures to ensure ongoing compliance with the requirement set forth
in subclause (II). If the Customs Service finds that a producer or an
entity controlling production has not satisfied such requirement in a
1-year period, then apparel articles described in subclause (I) of
that producer or entity shall be ineligible for preferential treatment
under this paragraph during any succeeding 1-year period until the
aggregate cost of fabrics (exclusive of all findings and trimmings)
formed in the United States that are used in the production of such
articles of that producer or entity entered during the preceding
1-year period is at least 85 percent of the aggregate declared customs
value of the fabric (exclusive of all findings and trimmings)
contained in all such articles of that producer or entity that are
entered and eligible under this clause during the preceding 1-year
period.
`(I) EXCEPTION FOR FINDINGS AND TRIMMINGS- An article otherwise
eligible for preferential treatment under this paragraph shall not be
ineligible for such treatment because the article contains findings or
trimmings of foreign origin, if such findings and trimmings do not
exceed 25 percent of the cost of the components of the assembled
product. Examples of findings and trimmings are sewing thread, hooks
and eyes, snaps, buttons, `bow buds', decorative lace, trim, elastic
strips, zippers, including zipper tapes and labels, and other similar
products.
`(II) CERTAIN INTERLINING- (aa) An article otherwise eligible for
preferential treatment under this paragraph shall not be ineligible
for such treatment because the article contains certain interlinings
of foreign origin, if the value of such interlinings (and any findings
and trimmings) does not exceed 25 percent of the cost of the
components of the assembled article.
`(bb) Interlinings eligible for the treatment described in
division (aa) include only a chest type plate, `hymo' piece, or
`sleeve header', of woven or weft-inserted warp knit construction and
of coarse animal hair or man-made filaments.
`(cc) The treatment described in this subclause shall terminate if
the President makes a determination that United States manufacturers
are producing such interlinings in the United States in commercial
quantities.
`(III) DE MINIMIS RULE- An article that would otherwise be
ineligible for preferential treatment under this subparagraph because
the article contains yarns not wholly formed in the United States or
in one or more ATPDEA beneficiary countries shall not be ineligible
for such treatment if the total weight of all such yarns is not more
than 7 percent of the total weight of the good.
`(IV) SPECIAL ORIGIN RULE- An article otherwise eligible for
preferential treatment under clause (i) or (iii) shall not be
ineligible for such treatment because the article contains nylon
filament yarn (other than elastomeric yarn) that is classifiable under
subheading 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30,
5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 of the
HTS from a country that is a party to an agreement with the United
States establishing a free trade area, which entered into force before
January 1, 1995.
`(vii) TEXTILE LUGGAGE- Textile luggage--
`(I) assembled in an ATPDEA beneficiary country from fabric wholly
formed and cut in the United States, from yarns wholly formed in the
United States, that is entered under subheading 9802.00.80 of the HTS;
or
`(II) assembled from fabric cut in an ATPDEA beneficiary country
from fabric wholly formed in the United States from yarns wholly
formed in the United States.
`(C) HANDLOOMED, HANDMADE, AND FOLKLORE ARTICLES- For purposes of
subparagraph (B)(iv), the President shall consult with representatives of
the ATPDEA beneficiary countries concerned for the purpose of identifying
particular textile and apparel goods that are mutually agreed upon as
being handloomed, handmade, or folklore goods of a kind described in
section 2.3(a), (b), or (c) of the Annex or Appendix 3.1.B.11 of the
Annex.
`(D) PENALTIES FOR TRANSSHIPMENT-
`(i) PENALTIES FOR EXPORTERS- If the President determines, based on
sufficient evidence, that an exporter has engaged in transshipment with
respect to apparel articles from an ATPDEA 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 ATPDEA 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 apparel articles that may be imported
into the United States from such country by the quantity of the
transshipped articles multiplied by 3, to the extent consistent with the
obligations of the United States under the WTO.
`(iii) TRANSSHIPMENT DESCRIBED- Transshipment within the meaning of
this subparagraph has occurred when preferential treatment under
subparagraph (A) has been claimed for an apparel article 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 (A).
`(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 an ATPDEA beneficiary country if the
application of tariff treatment under subparagraph (A) 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
mean the period ending December 31, 2006; 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 ATPDEA beneficiary country in question and the
country does not agree to consult within the time period specified
under section 4 of the Annex.
`(A) GENERAL RULE- Tuna that is harvested by United States vessels or
ATPDEA beneficiary country vessels, that is prepared or preserved in any
manner, in an ATPDEA beneficiary country, in foil or other flexible
airtight containers weighing with their contents not more than 6.8
kilograms each, and that is imported directly into the customs territory
of the United States from an ATPDEA beneficiary country, shall enter the
United States free of duty and free of any quantitative
restrictions.
`(B) DEFINITIONS- In this paragraph--
`(i) UNITED STATES VESSEL- A `United States vessel' is a vessel
having a certificate of documentation with a fishery endorsement under
chapter 121 of title 46, United States Code.
`(ii) ATPDEA VESSEL- An `ATPDEA vessel' is a vessel--
`(I) which is registered or recorded in an ATPDEA beneficiary
country;
`(II) which sails under the flag of an ATPDEA beneficiary
country;
`(III) which is at least 75 percent owned by nationals of an
ATPDEA beneficiary country or by a company having its principal place
of business in an ATPDEA beneficiary country, of which the manager or
managers, chairman of the board of directors or of the supervisory
board, and the majority of the members of such boards are nationals of
an ATPDEA beneficiary country and of which, in the case of a company,
at least 50 percent of the capital is owned by an ATPDEA beneficiary
country or by public bodies or nationals of an ATPDEA beneficiary
country;
`(IV) of which the master and officers are nationals of an ATPDEA
beneficiary country; and
`(V) of which at least 75 percent of the crew are nationals of an
ATPDEA beneficiary country.
`(i) REGULATIONS- Any importer that claims preferential treatment
under paragraph (1), (3), or (4) 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.
`(I) IN GENERAL- In order to qualify for the preferential
treatment under paragraph (1), (3), or (4) 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 an ATPDEA 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
under paragraph (1), (3), or (4).
`(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 (1), (3),
or (4) 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.
`(C) REPORT ON COOPERATION OF ATPDEA COUNTRIES CONCERNING
CIRCUMVENTION- The United States Commissioner of Customs shall conduct a
study analyzing the extent to which each ATPDEA beneficiary
country--
`(i) has cooperated fully with the United States, consistent with
its domestic laws and procedures, in instances of circumvention or
alleged circumvention of existing quotas on imports of textile and
apparel goods, to establish necessary relevant facts in the places of
import, export, and, where applicable, transshipment, including
investigation of circumvention practices, exchanges of documents,
correspondence, reports, and other relevant information, to the extent
such information is available;
`(ii) has taken appropriate measures, consistent with its domestic
laws and procedures, against exporters and importers involved in
instances of false declaration concerning quantities, description,
classification, or origin of textile and apparel goods; and
`(iii) has penalized the individuals and entities involved in any
such circumvention, consistent with its domestic laws and procedures,
and has worked closely to seek the cooperation of any third country to
prevent such circumvention from taking place in that third
country.
The Commissioner of Customs shall submit to the Congress, not later
than October 1, 2003, a report on the study conducted under this
subparagraph.
`(6) DEFINITIONS- In this subsection--
`(A) ANNEX- The term `the Annex' means Annex 300-B of the
NAFTA.
`(B) ATPDEA BENEFICIARY COUNTRY- The term `ATPDEA beneficiary country'
means any `beneficiary country', as defined in section 203(a)(1) of this
title, which the President designates as an ATPDEA beneficiary country,
taking into account the criteria contained in subsections (c) and (d) of
section 203 and other appropriate criteria, including the
following:
`(i) Whether the beneficiary country has demonstrated a commitment
to--
`(I) undertake its obligations under the WTO, including those
agreements listed in section 101(d) of the Uruguay Round Agreements
Act, on or ahead of schedule; and
`(II) participate in negotiations toward the completion of the
FTAA or another free trade agreement.
`(ii) The extent to which the country provides protection of
intellectual property rights consistent with or greater than the
protection afforded under the Agreement on Trade-Related Aspects of
Intellectual Property Rights described in section 101(d)(15) of the
Uruguay Round Agreements Act.
`(iii) The extent to which the country provides internationally
recognized worker rights, including--
`(I) the right of association;
`(II) the right to organize and bargain
collectively;
`(III) a prohibition on the use of any form of forced or
compulsory labor;
`(IV) a minimum age for the employment of children;
and
`(V) acceptable conditions of work with respect to minimum wages,
hours of work, and occupational safety and health.
`(iv) Whether the country has implemented its commitments to
eliminate the worst forms of child labor, as defined in section 507(6)
of the Trade Act of 1974.
`(v) The extent to which the country has met the counternarcotics
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.
`(vi) The extent to which the country has taken steps to become a
party to and implements the Inter-American Convention Against
Corruption.
`(vii) The extent to which the country--
`(I) applies transparent, nondiscriminatory, and competitive
procedures in government procurement equivalent to those contained in
the Agreement on Government Procurement described in section
101(d)(17) of the Uruguay Round Agreements Act; and
`(II) contributes to efforts in international fora to develop and
implement international rules in transparency in government
procurement.
`(viii) The extent to which the country has taken steps to support
the efforts of the United States to combat terrorism.
`(C) NAFTA- The term `NAFTA' means the North American Free Trade
Agreement entered into between the United States, Mexico, and Canada on
December 17, 1992.
`(D) WTO- The term `WTO' has the meaning given that term in section 2
of the Uruguay Round Agreements Act (19 U.S.C. 3501).
`(E) ATPDEA- The term `ATPDEA' means the Andean Trade Promotion and
Drug Eradication Act.
`(F) FTAA- The term `FTAA' means the Free Trade Area for the
Americas.'.
(b) DETERMINATION REGARDING RETENTION OF DESIGNATION- Section 203(e)(1) of
the Andean Trade Preference Act (19 U.S.C. 3202(e)(1)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii),
respectively;
(2) by inserting `(A)' after `(1)'; and
(3) by adding at the end the following:
`(B) The President may, after the requirements of paragraph (2) have been
met--
`(i) withdraw or suspend the designation of any country as an ATPDEA
beneficiary country, or
`(ii) withdraw, suspend, or limit the application of preferential
treatment under section 204(b)(1), (3), or (4) 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 204(b)(6)(B).'.
(c) CONFORMING AMENDMENTS- (1) Section 202 of the Andean Trade Preference
Act (19 U.S.C. 3201) is amended by inserting `(or other preferential
treatment)' after `treatment'.
(2) Section 204(a) of the Andean Trade Preference Act (19 U.S.C. 3203(a))
is amended--
(i) by inserting `(or otherwise provided for)' after `eligibility';
and
(ii) by inserting `(or preferential treatment)' after `duty-free
treatment'; and
(B) in paragraph (2), by striking `subsection (a)' and inserting
`paragraph (1)'.
(d) PETITIONS FOR REVIEW-
(1) IN GENERAL- Not later than 180 days after the date of the enactment
of this Act, the President shall promulgate regulations regarding the review
of eligibility of articles and countries under the Andean Trade Preference
Act, consistent with section 203(e) of such Act, as amended by this
title.
(2) CONTENT OF REGULATIONS- The regulations shall be similar to the
regulations regarding eligibility under the generalized system of
preferences under title V of the Trade Act of 1974 with respect to the
timetable for reviews and content, and shall include procedures for
requesting withdrawal, suspension, or limitations of preferential duty
treatment under the Andean Trade Preference Act, conducting reviews of such
requests, and implementing the results of the reviews.
(e) REPORTING REQUIREMENTS- Section 203(f) of the Andean Trade Preference
Act (19 U.S.C. 3202(f)) is amended to read as follows:
`(f) REPORTING REQUIREMENTS-
`(1) IN GENERAL- Not later than April 30, 2003, and every 2 years
thereafter during the period this title is in effect, the United States
Trade Representative shall submit to the Congress a report regarding the
operation of this title, including--
`(A) with respect to subsections (c) and (d), 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 ATPEA beneficiary
country, as the case may be, under the criteria set forth in section
204(b)(6)(B).
`(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 204(b)(6)(B).'.
SEC. 3104. TERMINATION.
(a) IN GENERAL- Section 208 of the Andean Trade Preference Act (19 U.S.C.
3206) is amended to read as follows:
`SEC. 208. TERMINATION OF PREFERENTIAL TREATMENT.
`No duty-free treatment or other preferential treatment extended to
beneficiary countries under this title shall remain in effect after December
31, 2006.'.
(b) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND
RELIQUIDATIONS-
(1) IN GENERAL- Notwithstanding section 514 of the Tariff Act of 1930 or
any other provision of law, and subject to paragraph (3), the entry--
(A) of any article to which duty-free treatment (or preferential
treatment) under the Andean Trade Preference Act (19 U.S.C. 3201 et seq.)
would have applied if the entry had been made on December 4, 2001,
and
(B) that was made after December 4, 2001, and before the date of the
enactment of this Act,
shall be liquidated or reliquidated as if such duty-free treatment (or
preferential treatment) applied, and the Secretary of the Treasury shall
refund any duty paid with respect to such entry.
(2) ENTRY- As used in this subsection, the term `entry' includes a
withdrawal from warehouse for consumption.
(3) REQUESTS- Liquidation or reliquidation may be made under paragraph
(1) with respect to an entry only if a request therefor is filed with the
Customs Service, within 180 days after the date of the enactment of this
Act, that contains sufficient information to enable the Customs
Service--
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be located.
SEC. 3105. REPORT ON FREE TRADE AGREEMENT WITH ISRAEL.
(a) REPORT TO CONGRESS- The United States Trade Representative shall
review the implementation of the United States-Israel Free Trade Agreement and
shall submit to the Speaker of the House of Representatives, the President of
the Senate, the Committee on Ways and Means of the House of Representatives,
and the Committee on Finance of the Senate a report on the results of such
review.
(b) CONTENTS OF REPORT- The report under subsection (a) shall include the
following:
(1) A review of the terms of the United States-Israel Free Trade
Agreement, particularly the terms with respect to market access
commitments.
(2) A review of subsequent agreements which may have been reached
between the parties to the Agreement and of unilateral concessions of
additional benefits received by each party from the other.
(3) A review of any current negotiations between the parties to the
Agreement with respect to implementation of the Agreement and other
pertinent matters.
(4) An assessment of the degree of fulfillment of obligations under the
Agreement by the United States and Israel.
(5) An assessment of improvements in structuring future trade agreements
that should be considered based on the experience of the United States under
the Agreement.
(c) TIMING OF REPORT- The United States Trade Representative shall submit
the report under subsection (a) not later than 6 months after the date of the
enactment of this Act.
(d) DEFINITION- In this section, the terms `United States-Israel Free
Trade Agreement' and `Agreement' means the Agreement on the Establishment of a
Free Trade Area between the Government of the United States of America and the
Government of Israel entered into on April 22, 1985.
SEC. 3106. MODIFICATION OF DUTY TREATMENT FOR TUNA.
Subheading 1604.14.20 of the Harmonized Tariff Schedule of the United
States is amended--
(1) in the article description, by striking `20 percent of the United
States pack of canned tuna' and inserting `4.8 percent of apparent United
States consumption of tuna in airtight containers'; and
(2) by redesignating such subheading as subheading 1604.14.22.
SEC. 3107. TRADE BENEFITS UNDER THE CARIBBEAN BASIN ECONOMIC RECOVERY
ACT.
(a) IN GENERAL- Section 213(b)(2)(A) of the Carribean Basin Economic
Recovery Act (19 U.S.C. 2703(b)(2)(A)) is amended as follows:
(1) Clause (i) is amended--
(A) by striking the matter preceding subclause (I) and inserting the
following:
`(i) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE CBTPA BENEFICIARY
COUNTRIES- Apparel articles sewn or otherwise assembled in one or more
CBTPA beneficiary countries from fabrics wholly formed and cut, or from
components knit-to-shape, in the United States from yarns wholly formed
in the United States, (including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603 of the HTS and are
wholly formed and cut in the United States) that are--'; and
(B) by adding at the end the following:
`Apparel articles entered on or after September 1, 2002, shall
qualify under the preceding sentence only if all dyeing, printing, and
finishing of the fabrics from which the articles are assembled, if the
fabrics are knit fabrics, is carried out in the United States. Apparel
articles entered on or after September 1, 2002, shall qualify under the
first sentence of this clause only if all dyeing, printing, and
finishing of the fabrics from which the articles are assembled, if the
fabrics are woven fabrics, is carried out in the United
States.'.
(2) Clause (ii) is amended to read as follows:
`(ii) OTHER APPAREL ARTICLES ASSEMBLED IN ONE OR MORE CBTPA
BENEFICIARY COUNTRIES- Apparel articles sewn or otherwise assembled in
one or more CBTPA beneficiary countries with thread formed in the United
States from fabrics wholly formed in the United States and cut in one or
more CBTPA beneficiary countries from yarns wholly formed in the United
States, or from components knit-to-shape in the United States from yarns
wholly formed in the United States, or both (including fabrics not
formed from yarns, if such fabrics are classifiable under heading 5602
or 5603 of the HTS and are wholly formed in the United States). Apparel
articles entered on or after September 1, 2002, shall qualify under the
preceding sentence only if all dyeing, printing, and finishing of the
fabrics from which the articles are assembled, if the fabrics are knit
fabrics, is carried out in the United States. Apparel articles entered
on or after September 1, 2002, shall qualify under the first sentence of
this clause only if all dyeing, printing, and finishing of the fabrics
from which the articles are assembled, if the fabrics are woven fabrics,
is carried out in the United States.'.
(3) Clause (iii)(II) is amended to read as follows:
`(II) The amount referred to in subclause (I) is as
follows:
`(aa) 500,000,000 square meter equivalents during the 1-year
period beginning on October 1, 2002.
`(bb) 850,000,000 square meter equivalents during the 1-year
period beginning on October 1, 2003.
`(cc) 970,000,000 square meter equivalents in each succeeding
1-year period through September 30, 2008.'.
(4) Clause (iii)(IV) is amended to read as follows:
`(IV) The amount referred to in subclause (III) is as
follows:
`(aa) 4,872,000 dozen during the 1-year period beginning on
October 1, 2001.
`(bb) 9,000,000 dozen during the 1-year period beginning on
October 1, 2002.
`(cc) 10,000,000 dozen during the 1-year period beginning on
October 1, 2003.
`(dd) 12,000,000 dozen in each succeeding 1-year period through
September 30, 2008.'.
(5) Clause (iv) is amended to read as follows:
`(iv) CERTAIN OTHER APPAREL ARTICLES-
`(I) GENERAL RULE- Subject to subclause (II), any apparel article
classifiable under subheading 6212.10 of the HTS, except for articles
entered under clause (i), (ii), (iii), (v), or (vi), if the article is
both cut and sewn or otherwise assembled in the United States, or one
or more CBTPA beneficiary countries, or both.
`(II) LIMITATION- During the 1-year period beginning on October 1,
2001, and during each of the 6 succeeding 1-year periods, apparel
articles described in subclause (I) of a producer or an entity
controlling production shall be eligible for preferential treatment
under subparagraph (B) only if the aggregate cost of fabrics
(exclusive of all findings and trimmings) formed in the United States
that are used in the production of all such articles of that producer
or entity that are entered and eligible under this clause during the
preceding 1-year period is at least 75 percent of the aggregate
declared customs value of the fabric (exclusive of all findings and
trimmings) contained in all such articles of that producer or entity
that are entered and eligible under this clause during the preceding
1-year period.
`(III) DEVELOPMENT OF PROCEDURE TO ENSURE COMPLIANCE- The United
States Customs Service shall develop and implement methods and
procedures to ensure ongoing compliance with the requirement set forth
in subclause (II). If the Customs Service finds that a producer or an
entity controlling production has not satisfied such requirement in a
1-year period, then apparel articles described in subclause (I) of
that producer or entity shall be ineligible for preferential treatment
under subparagraph (B) during any succeeding 1-year period until the
aggregate cost of fabrics (exclusive of all findings and trimmings)
formed in the United States that are used in the production of such
articles of that producer or entity entered during the preceding
1-year period is at least 85 percent of the aggregate declared customs
value of the fabric (exclusive of all findings and trimmings)
contained in all such articles of that producer or entity that are
entered and eligible under this clause during the preceding 1-year
period.'.
(6) Clause (vii) is amended by adding at the end the following new
subclause:
`(V) THREAD- An article otherwise eligible for preferential
treatment under this paragraph shall not be ineligible for such
treatment because the thread used to assemble the article is dyed,
printed, or finished in one or more CBTPA beneficiary
countries.'.
(7) Section 213(b)(2)(A) of such Act is further amended by adding at the
end the following new clause:
`(ix) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE CBTPA BENEFICIARY
COUNTRIES FROM UNITED STATES AND CBTPA BENEFICIARY COUNTRY COMPONENTS-
Apparel articles sewn or otherwise assembled in one or more CBTPA
beneficiary countries with thread formed in the United States from
components cut in the United States and in one or more CBTPA beneficiary
countries from fabric wholly formed in the United States from yarns
wholly formed in the United States, or from components knit-to-shape in
the United States and one or more CBTPA beneficiary countries from yarns
wholly formed in the United States, or both (including fabrics not
formed from yarns, if such fabrics are classifiable under heading 5602
or 5603 of the HTS). Apparel articles shall qualify under this clause
only if they meet the requirements of clause (i) or (ii) (as the case
may be) with respect to dyeing, printing, and finishing of knit and
woven fabrics from which the articles are assembled.'.
(b) EFFECTIVE DATE OF CERTAIN PROVISIONS- The amendment made by subsection
(a)(3) shall take effect on October 1, 2002.
SEC. 3108. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT.
(a) IN GENERAL- Section 112(b) of the African Growth and Opportunity Act
(19 U.S.C. 3721(b)) is amended as follows:
(1) Paragraph (1) is amended by amending the matter preceding
subparagraph (A) to read as follows:
`(1) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE BENEFICIARY SUB-SAHARAN
AFRICAN COUNTRIES- Apparel articles sewn or otherwise assembled in one or
more beneficiary sub-Saharan African countries from fabrics wholly formed
and cut, or from components knit-to-shape, in the United States from yarns
wholly formed in the United States, (including fabrics not formed from
yarns, if such fabrics are classifiable under heading 5602 or 5603 of the
Harmonized Tariff Schedule of the United States and are wholly formed and
cut in the United States) that are--'.
(2) Paragraph (2) is amended to read as follows:
`(2) OTHER APPAREL ARTICLES ASSEMBLED IN ONE OR MORE BENEFICIARY
SUB-SAHARAN AFRICAN COUNTRIES- Apparel articles sewn or otherwise assembled
in one or more beneficiary sub-Saharan African countries with thread formed
in the United States from fabrics wholly formed in the United States and cut
in one or more beneficiary sub-Saharan African countries from yarns wholly
formed in the United States, or from components knit-to-shape in the United
States from yarns wholly formed in the United States, or both (including
fabrics not formed from yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States
and are wholly formed in the United States).'.
(3) Paragraph (3) is amended--
(A) by amending the matter preceding subparagraph (A) to read as
follows:
`(3) APPAREL ARTICLES FROM REGIONAL FABRIC OR YARNS- Apparel articles
wholly assembled in one or more beneficiary sub-Saharan African countries
from fabric wholly formed in one or more beneficiary sub-Saharan African
countries from yarns originating either in the United States or one or more
beneficiary sub-Saharan African countries (including fabrics not formed from
yarns, if such fabrics are classified under heading 5602 or 5603 of the
Harmonized Tariff Schedule of the United States and are wholly formed in one
or more beneficiary sub-Saharan African countries), or from components
knit-to-shape in one or more beneficiary sub-Saharan African countries from
yarns originating either in the United States or one or more beneficiary
sub-Saharan African countries, or apparel articles wholly formed on seamless
knitting machines in a beneficiary sub-Saharan African country from yarns
originating either in the United States or one or more beneficiary
sub-Saharan African countries, subject to the following:'; and
(B) by amending subparagraph (B) to read as follows:
`(B) SPECIAL RULE FOR LESSER DEVELOPED COUNTRIES-
`(i) IN GENERAL- Subject to subparagraph (A), preferential treatment
under this paragraph shall be extended through September 30, 2004, for
apparel articles wholly assembled, or knit-to-shape and wholly
assembled, or both, in one or more lesser developed beneficiary
sub-Saharan African countries regardless of the country of origin of the
fabric or the yarn used to make such articles.
`(ii) LESSER DEVELOPED BENEFICIARY SUB-SAHARAN AFRICAN COUNTRY- For
purposes of clause (i), the term `lesser developed beneficiary
sub-Saharan African country' means--
`(I) a beneficiary sub-Saharan African country that had a per
capita gross national product of less than $1,500 in 1998, as measured
by the International Bank for Reconstruction and
Development;
(4) Paragraph (4)(B) is amended by striking `18.5' and inserting
`21.5'.
(5) Section 112(b) of such Act is further amended by adding at the end
the following new paragraph:
`(7) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE BENEFICIARY SUB-SAHARAN
AFRICAN COUNTRIES FROM UNITED STATES AND BENEFICIARY SUB-SAHARAN AFRICAN
COUNTRY COMPONENTS- Apparel articles sewn or otherwise assembled in one or
more beneficiary sub-Saharan African countries with thread formed in the
United States from components cut in the United States and one or more
beneficiary sub-Saharan African countries from fabric wholly formed in the
United States from yarns wholly formed in the United States, or from
components knit-to-shape in the United States and one or more beneficiary
sub-Saharan African countries from yarns wholly formed in the United States,
or both (including fabrics not formed from yarns, if such fabrics are
classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of
the United States).'.
(b) INCREASE IN LIMITATION ON CERTAIN BENEFITS- The applicable percentage
under clause (ii) of section 112(b)(3)(A) of the African Growth and
Opportunity Act (19 U.S.C. 3721(b)(3)(A)) shall be increased--
(1) by 2.17 percent for the 1-year period beginning on October 1, 2002,
and
(2) by equal increments in each succeeding 1-year period provided for in
such clause, so that for the 1-year period beginning October 1, 2007, the
applicable percentage is increased by 3.5 percent,
except that such increase shall not apply with respect to articles
eligible under subparagraph (B) of section 112(b)(3) of that Act.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE
TREATMENT
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
SEC. 4101. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES.
(a) EXTENSION OF DUTY-FREE TREATMENT UNDER SYSTEM- Section 505 of the
Trade Act of 1974 (19 U.S.C. 2465(a)) is amended by striking `September 30,
2001' and inserting `December 31, 2006'.
(b) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND
RELIQUIDATIONS-
(1) IN GENERAL- Notwithstanding section 514 of the Tariff Act of 1930 or
any other provision of law, and subject to paragraph (2), the entry--
(A) of any article to which duty-free treatment under title V of the
Trade Act of 1974 would have applied if the entry had been made on
September 30, 2001,
(B) that was made after September 30, 2001, and before the date of the
enactment of this Act, and
(C) to which duty-free treatment under title V of that Act did not
apply,
shall be liquidated or reliquidated as free of duty, and the Secretary
of the Treasury shall refund any duty paid with respect to such entry.
(2) REQUESTS- Liquidation or reliquidation may be made under paragraph
(1) with respect to an entry only if a request therefor is filed with the
Customs Service, within 180 days after the date of the enactment of this
Act, that contains sufficient information to enable the Customs
Service--
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be located.
(3) DEFINITION- As used in this subsection, the term `entry' includes a
withdrawal from warehouse for consumption.
SEC. 4102. AMENDMENTS TO GENERALIZED SYSTEM OF PREFERENCES.
(a) ELIGIBILITY FOR GENERALIZED SYSTEM OF PREFERENCES- Section
502(b)(2)(F) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)(F)) is amended by
striking the period at the end and inserting `or such country has not taken
steps to support the efforts of the United States to combat terrorism.'.
(b) DEFINITION OF INTERNATIONALLY RECOGNIZED WORKER RIGHTS- Section 507(4)
of the Trade Act of 1974 (19 U.S.C. 2467(4)) is amended by amending
subparagraph (D) to read as follows:
`(D) a minimum age for the employment of children, and a prohibition
on the worst forms of child labor, as defined in paragraph (6);
and'.
DIVISION E--MISCELLANEOUS PROVISIONS
TITLE L--MISCELLANEOUS TRADE BENEFITS
Subtitle A--Wool Provisions
SEC. 5101. WOOL PROVISIONS.
(a) SHORT TITLE- This section may be cited as the `Wool Manufacturer
Payment Clarification and Technical Corrections Act'.
(b) CLARIFICATION OF TEMPORARY DUTY SUSPENSION- Heading 9902.51.13 of the
Harmonized Tariff Schedule of the United States is amended by inserting
`average' before `diameters'.
(c) PAYMENTS TO MANUFACTURERS OF CERTAIN WOOL PRODUCTS-
(1) PAYMENTS- Section 505 of the Trade and Development Act of 2000
(Public Law 106-200; 114 Stat. 303) is amended as follows:
(A) Subsection (a) is amended--
(i) by striking `In each of the calendar years' and inserting `For
each of the calendar years'; and
(ii) by striking `for a refund of duties' and all that follows
through the end of the subsection and inserting `for a payment equal to
an amount determined pursuant to subsection (d)(1).'.
(B) Subsection (b) is amended to read as follows:
`(1) IMPORTING MANUFACTURERS- For each of the calendar years 2000, 2001,
and 2002, a manufacturer of worsted wool fabrics who imports wool yarn of
the kind described in heading 5107.10 or 9902.51.13 of the Harmonized Tariff
Schedule of the United States shall be eligible for a payment equal to an
amount determined pursuant to subsection (d)(2).
`(2) NONIMPORTING MANUFACTURERS- For each of the calendar years 2001 and
2002, any other manufacturer of worsted wool fabrics of imported wool yarn
of the kind described in heading 5107.10 or 9902.51.13 of the Harmonized
Tariff Schedule of the United States shall be eligible for a payment equal
to an amount determined pursuant to subsection (d)(2).'.
(C) Subsection (c) is amended to read as follows:
`(c) WOOL FIBER AND WOOL TOP-
`(1) IMPORTING MANUFACTURERS- For each of the calendar years 2000, 2001,
and 2002, a manufacturer of wool yarn or wool fabric who imports wool fiber
or wool top of the kind described in heading 5101.11, 5101.19, 5101.21,
5101.29, 5101.30, 5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14
of the Harmonized Tariff Schedule of the United States shall be eligible for
a payment equal to an amount determined pursuant to subsection (d)(3).
`(2) NONIMPORTING MANUFACTURERS- For each of the calendar years 2001 and
2002, any other manufacturer of wool yarn or wool fabric of imported wool
fiber or wool top of the kind described in heading 5101.11, 5101.19,
5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or
9902.51.14 of the Harmonized Tariff Schedule of the United States shall be
eligible for a payment equal to an amount determined pursuant to subsection
(d)(3).'.
(D) Section 505 is further amended by striking subsection (d) and
inserting the following new subsections:
`(d) AMOUNT OF ANNUAL PAYMENTS TO MANUFACTURERS-
`(1) MANUFACTURERS OF MEN'S SUITS, ETC. OF IMPORTED WORSTED WOOL
FABRICS-
`(A) ELIGIBLE TO RECEIVE MORE THAN $5,000- Each annual payment to
manufacturers described in subsection (a) who, according to the records of
the Customs Service as of September 11, 2001, are eligible to receive more
than $5,000 for each of the calendar years 2000, 2001, and 2002, shall be
in an amount equal to one-third of the amount determined by multiplying
$30,124,000 by a fraction--
`(i) the numerator of which is the amount attributable to the duties
paid on eligible wool products imported in calendar year 1999 by the
manufacturer making the claim, and
`(ii) the denominator of which is the total amount attributable to
the duties paid on eligible wool products imported in calendar year 1999
by all the manufacturers described in subsection (a) who, according to
the records of the Customs Service as of September 11, 2001, are
eligible to receive more than $5,000 for each such calendar year under
this section as it was in effect on that date.
`(B) ELIGIBLE WOOL PRODUCTS- For purposes of subparagraph (A), the
term `eligible wool products' refers to imported worsted wool fabrics
described in subsection (a).
`(C) OTHERS- All manufacturers described in subsection (a), other than
the manufacturers to which subparagraph (A) applies, shall each receive an
annual payment in an amount equal to one-third of the amount determined by
dividing $1,665,000 by the number of all such other
manufacturers.
`(2) MANUFACTURERS OF WORSTED WOOL FABRICS OF IMPORTED WOOL YARN-
`(A) IMPORTING MANUFACTURERS- Each annual payment to an importing
manufacturer described in subsection (b)(1) shall be in an amount equal to
one-third of the amount determined by multiplying $2,202,000 by a
fraction--
`(i) the numerator of which is the amount attributable to the duties
paid on eligible wool products imported in calendar year 1999 by the
importing manufacturer making the claim, and
`(ii) the denominator of which is the total amount attributable to
the duties paid on eligible wool products imported in calendar year 1999
by all the importing manufacturers described in subsection
(b)(1).
`(B) ELIGIBLE WOOL PRODUCTS- For purposes of subparagraph (A), the
term `eligible wool products' refers to imported wool yarn described in
subsection (b)(1).
`(C) NONIMPORTING MANUFACTURERS- Each annual payment to a nonimporting
manufacturer described in subsection (b)(2) shall be in an amount equal to
one-half of the amount determined by multiplying $141,000 by a
fraction--
`(i) the numerator of which is the amount attributable to the
purchases of imported eligible wool products in calendar year 1999 by
the nonimporting manufacturer making the claim, and
`(ii) the denominator of which is the total amount attributable to
the purchases of imported eligible wool products in calendar year 1999
by all the nonimporting manufacturers described in subsection
(b)(2).
`(3) MANUFACTURERS OF WOOL YARN OR WOOL FABRIC OF IMPORTED WOOL FIBER OR
WOOL TOP-
`(A) IMPORTING MANUFACTURERS- Each annual payment to an importing
manufacturer described in subsection (c)(1) shall be in an amount equal to
one-third of the amount determined by multiplying $1,522,000 by a
fraction--
`(i) the numerator of which is the amount attributable to the duties
paid on eligible wool products imported in calendar year 1999 by the
importing manufacturer making the claim, and
`(ii) the denominator of which is the total amount attributable to
the duties paid on eligible wool products imported in calendar year 1999
by all the importing manufacturers described in subsection
(c)(1).
`(B) ELIGIBLE WOOL PRODUCTS- For purposes of subparagraph (A), the
term `eligible wool products' refers to imported wool fiber or wool top
described in subsection (c)(1).
`(C) NONIMPORTING MANUFACTURERS- Each annual payment to a nonimporting
manufacturer described in subsection (c)(2) shall be in an amount equal to
one-half of the amount determined by multiplying $597,000 by a
fraction--
`(i) the numerator of which is the amount attributable to the
purchases of imported eligible wool products in calendar year 1999 by
the nonimporting manufacturer making the claim, and
`(ii) the denominator of which is the amount attributable to the
purchases of imported eligible wool products in calendar year 1999 by
all the nonimporting manufacturers described in subsection
(c)(2).
`(4) LETTERS OF INTENT- Except for the nonimporting manufacturers
described in subsections (b)(2) and (c)(2) who may make claims under this
section by virtue of the enactment of the Wool Manufacturer Payment
Clarification and Technical Corrections Act, only manufacturers who,
according to the records of the Customs Service, filed with the Customs
Service before September 11, 2001, letters of intent to establish
eligibility to be claimants are eligible to make a claim for a payment under
this section.
`(5) AMOUNT ATTRIBUTABLE TO PURCHASES BY NONIMPORTING
MANUFACTURERS-
`(A) AMOUNT ATTRIBUTABLE- For purposes of paragraphs (2)(C) and
(3)(C), the amount attributable to the purchases of imported eligible wool
products in calendar year 1999 by a nonimporting manufacturer shall be the
amount the nonimporting manufacturer paid for eligible wool products in
calendar year 1999, as evidenced by invoices. The nonimporting
manufacturer shall make such calculation and submit the resulting amount
to the Customs Service, within 45 days after the date of enactment of the
Wool Manufacturer Payment Clarification and Technical Corrections Act, in
a signed affidavit that attests that the information contained therein is
true and accurate to the best of the affiant's belief and knowledge. The
nonimporting manufacturer shall retain the records upon which the
calculation is based for a period of five years beginning on the date the
affidavit is submitted to the Customs Service.
`(B) ELIGIBLE WOOL PRODUCT- For purposes of subparagraph
(A)--
`(i) the eligible wool product for nonimporting manufacturers of
worsted wool fabrics is wool yarn of the kind described in heading
5107.10 or 9902.51.13 of the Harmonized Tariff Schedule of the United
States purchased in calendar year 1999; and
`(ii) the eligible wool products for nonimporting manufacturers of
wool yarn or wool fabric are wool fiber or wool top of the kind
described in heading 5101.11, 5101.19, 5101.21, 5101.29, 5101.30,
5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14 of such
Schedule purchased in calendar year 1999.
`(6) AMOUNT ATTRIBUTABLE TO DUTIES PAID- For purposes of paragraphs (1),
(2)(A), and (3)(A), the amount attributable to the duties paid by a
manufacturer shall be the amount shown on the records of the Customs Service
as of September 11, 2001, under this section as then in effect.
`(7) SCHEDULE OF PAYMENTS; REALLOCATIONS-
`(A) SCHEDULE- Of the payments described in paragraphs (1), (2)(A),
and (3)(A), the Customs Service shall make the first and second
installments on or before the date that is 45 days after the date of
enactment of the Wool Manufacturer Payment Clarification and Technical
Corrections Act, and the third installment on or before April 15, 2003. Of
the payments described in paragraphs (2)(C) and (3)(C), the Customs
Service shall make the first installment on or before the date that is 120
days after the date of enactment of the Wool Manufacturer Payment
Clarification and Technical Corrections Act, and the second installment on
or before April 15, 2003.
`(B) REALLOCATIONS- In the event that a manufacturer that would have
received payment under subparagraph (A) or (C) of paragraph (1), (2), or
(3) ceases to be qualified for such payment as such a manufacturer, the
amounts otherwise payable to the remaining manufacturers under such
subparagraph shall be increased on a pro rata basis by the amount of the
payment such manufacturer would have received.
`(8) REFERENCE- For purposes of paragraphs (1)(A) and (6), the `records
of the Customs Service as of September 11, 2001' are the records of the Wool
Duty Unit of the Customs Service on September 11, 2001, as adjusted by the
Customs Service to the extent necessary to carry out this section. The
amounts so adjusted are not subject to administrative or judicial
review.
`(e) AFFIDAVITS BY MANUFACTURERS-
`(1) AFFIDAVIT REQUIRED- A manufacturer may not receive a payment under
this section for calendar year 2000, 2001, or 2002, as the case may be,
unless that manufacturer has submitted to the Customs Service for that
calendar year a signed affidavit that attests that, during that calendar
year, the affiant was a manufacturer in the United States described in
subsection (a), (b), or (c).
`(2) TIMING- An affidavit under paragraph (1) shall be valid--
`(A) in the case of a manufacturer described in paragraph (1), (2)(A),
or (3)(A) of subsection (d) filing a claim for a payment for calendar year
2000 or 2001, or both, only if the affidavit is postmarked no later than
15 days after the date of enactment of the Wool Manufacturer Payment
Clarification and Technical Corrections Act; and
`(B) in the case of a claim for a payment for calendar year 2002, only
if the affidavit is postmarked no later than March 1, 2003.
`(f) OFFSETS- Notwithstanding any other provision of this section, any
amount otherwise payable under subsection (d) to a manufacturer in calendar
year 2001 and, where applicable, in calendar years 2002 and 2003, shall be
reduced by the amount of any payment received by that manufacturer under this
section before the enactment of the Wool Manufacturer Payment Clarification
and Technical Corrections Act.
`(g) DEFINITION- For purposes of this section, the manufacturer is the
party that owns--
`(1) imported worsted wool fabric, of the kind described in heading
9902.51.11 or 9902.51.12 of the Harmonized Tariff Schedule of the United
States, at the time the fabric is cut and sewn in the United States into
men's or boys' suits, suit-type jackets, or trousers;
`(2) imported wool yarn, of the kind described in heading 5107.01 or
9902.51.13 of such Schedule, at the time the yarn is processed in the United
States into worsted wool fabric; or
`(3) imported wool fiber or wool top, of the kind described in heading
5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 5104.00,
5105.21, 5105.29, or 9902.51.14 of such Schedule, at the time the wool fiber
or wool top is processed in the United States into wool yarn.'.
(2) FUNDING- There is authorized to be appropriated and is hereby
appropriated, out of amounts in the General Fund of the Treasury not
otherwise appropriated, $36,251,000 to carry out the amendments made by
paragraph (1).
SEC. 5102. DUTY SUSPENSION ON WOOL.
(a) EXTENSION OF TEMPORARY DUTY REDUCTIONS-
(1) HEADING 9902.51.11- Heading 9902.51.11 of the Harmonized Tariff
Schedule of the United States is amended by striking `2003' and inserting
`2005'.
(2) HEADING 9902.51.12- Heading 9902.51.12 of the Harmonized Tariff
Schedule of the United States is amended--
(A) by striking `2003' and inserting `2005'; and
(B) by striking `6%' and inserting `Free'.
(3) HEADING 9902.51.13- Heading 9902.51.13 of the Harmonized Tariff
Schedule of the United States is amended by striking `2003' and inserting
`2005'.
(4) HEADING 9902.51.14- Heading 9902.51.14 of the Harmonized Tariff
Schedule of the United States is amended by striking `2003' and inserting
`2005'.
(b) LIMITATION ON QUANTITY OF IMPORTS-
(1) NOTE 15- U.S. Note 15 to subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States is amended--
(A) by striking `from January 1 to December 31 of each year,
inclusive'; and
(B) by striking `, or such other' and inserting the following: `in
calendar year 2001, 3,500,000 square meter equivalents in calendar year
2002, and 4,500,000 square meter equivalents in calendar year 2003 and
each calendar year thereafter, or such greater'.
(2) NOTE 16- U.S. Note 16 to subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States is amended--
(A) by striking `from January 1 to December 31 of each year,
inclusive'; and
(B) by striking `, or such other' and inserting the following: `in
calendar year 2001, 2,500,000 square meter equivalents in calendar year
2002, and 3,500,000 square meter equivalents in calendar year 2003 and
each calendar year thereafter, or such greater'.
(c) EXTENSION OF DUTY REFUNDS AND WOOL RESEARCH TRUST FUND-
(1) IN GENERAL- The United States Customs Service shall pay each
manufacturer that receives a payment under section 505 of the Trade and
Development Act of 2000 (Public Law 106-200) for calendar year 2002, and
that provides an affidavit that it remains a manufacturer in the United
States as of January 1 of the year of the payment, 2 additional payments,
each payment equal to the payment received for calendar year 2002 as
follows:
(A) The first payment to be made after January 1, 2004, but on or
before April 15, 2004.
(B) The second payment to be made after January 1, 2005, but on or
before April 15, 2005.
(2) CONFORMING AMENDMENT- Section 506(f) of the Trade and Development
Act of 2000 (Public Law 106-200) is amended by striking `2004' and inserting
`2006'.
(3) AUTHORIZATION- There is authorized to be appropriated and is hereby
appropriated out of amounts in the general fund of the Treasury not
otherwise appropriated such sums as are necessary to carry out the
provisions of this subsection.
(d) EFFECTIVE DATE- The amendment made by subsection (a)(2)(B) applies to
goods entered, or withdrawn from warehouse for consumption, on or after
January 1, 2002.
Subtitle B--Other Provisions
SEC. 5201. FUND FOR WTO DISPUTE SETTLEMENTS.
(a) ESTABLISHMENT OF FUND- There is established in the Treasury a fund for
the payment of settlements under this section.
(b) AUTHORITY OF USTR TO PAY SETTLEMENTS- Amounts in the fund established
under subsection (a) shall be available, as provided in appropriations Acts,
only for the payment by the United States Trade Representative of the amount
of the total or partial settlement of any dispute pursuant to proceedings
under the auspices of the World Trade Organization, if--
(1) in the case of a total or partial settlement in an amount of not
more than $10,000,000, the Trade Representative certifies to the Secretary
of the Treasury that the settlement is in the best interests of the United
States; and
(2) in the case of a total or partial settlement in an amount of more
than $10,000,000, the Trade Representative certifies to the Congress that
the settlement is in the best interests of the United States.
(c) APPROPRIATIONS- There are authorized to be appropriated to the fund
established under subsection (a)--
(2) amounts equivalent to amounts recovered by the United States
pursuant to the settlement of disputes pursuant to proceedings under the
auspices of the World Trade Organization.
Amounts appropriated to the fund are authorized to remain available until
expended.
(d) MANAGEMENT OF FUND- Sections 9601 and 9602(b) of the Internal Revenue
Code of 1986 shall apply to the fund established under subsection (a) to the
same extent as such provisions apply to trust funds established under
subchapter A of chapter 98 of such Code.
SEC. 5202. CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS USED IN NUCLEAR
FACILITIES.
(a) IN GENERAL- Subheading 9902.84.02 of the Harmonized Tariff Schedule of
the United States is amended--
(1) by striking `4.9%' and inserting `Free'; and
(2) by striking `12/31/2003' and inserting `12/31/2006'.
(1) IN GENERAL- The amendments made by subsection (a) shall apply to
goods entered, or withdrawn from warehouse for consumption, on or after
January 1, 2002.
(2) RETROACTIVE APPLICATION- Notwithstanding section 514 of the Tariff
Act of 1930 or any other provision of law, and subject to paragraph (4), the
entry of any article--
(A) that was made on or after January 1, 2002, and
(B) to which duty-free treatment would have applied if the amendment
made by this section had been in effect on the date of such
entry,
shall be liquidated or reliquidated as if such duty-free treatment
applied, and the Secretary of the Treasury shall refund any duty paid with
respect to such entry.
(3) ENTRY- As used in this subsection, the term `entry' includes a
withdrawal from warehouse for consumption.
(4) REQUESTS- Liquidation or reliquidation may be made under paragraph
(2) with respect to an entry only if a request therefor is filed with the
Customs Service, within 180 days after the date of the enactment of this
Act, that contains sufficient information to enable the Customs
Service--
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be located.
SEC. 5203. SUGAR TARIFF-RATE QUOTA CIRCUMVENTION.
(a) IN GENERAL- Chapter 17 of the Harmonized Tariff Schedule of the United
States is amended in the superior text to subheading 1702.90.05 by striking
`Containing' and all that follows through `solids:' and inserting the
following:
`Containing soluble non-sugar solids (excluding any foreign substances,
including but not limited to molasses, that may have been added to or
developed in the product) equal to 6 percent or less by weight of the total
soluble solids:'.
(b) MONITORING FOR CIRCUMVENTION- The Secretary of Agriculture and the
Commissioner of Customs shall continuously monitor imports of sugar and
sugar-containing products provided for in chapters 17, 18, 19, and 21 of the
Harmonized Tariff Schedule of the United States, other than molasses imported
for use in animal feed or the production of rum and articles prepared for
marketing to the ultimate consumer in the form and package in which imported,
for indications that an article is being used to circumvent a tariff-rate
quota provided for in those chapters. The Secretary and Commissioner shall
specifically examine imports of articles provided for in subheading 1703.10.30
of the Harmonized Tariff Schedule of the United States.
(c) REPORTS AND RECOMMENDATIONS- The Secretary and the Commissioner shall
report their findings to Congress and the President not later than 180 days
after the date of enactment of this Act and every 6 months thereafter. The
reports shall include data and a description of developments and trends in the
composition of trade of articles provided for in the chapters of the
Harmonized Tariff Schedule of the United States identified in subsection (b)
and any indications of circumvention that may exist. The reports shall also
include recommendations for ending such circumvention, including
recommendations for legislation.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
END