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George W. Bush Presidential Library
Collection: Executive Clerk, Office of the
Series: Saunders, G. Timothy (Tim) - Bill Files
Folder Title: 08/06/2002 [H.R. 3009] [771371] [2]
Withdrawn/Redacted Material
The George W. Bush Library
DOCUMENT FORM
SUBJECT/TITLE
PAGES
DATE
RESTRICTION(S)
NO.
001
Memorandum
Trade Act of 2002 - To: POTUS - From: Mitchell E.
7
08/05/2002
P5;
Daniels, Jr.
COLLECTION TITLE:
Executive Clerk, Office Of the
SERIES:
Saunders, G. Timothy (Tim) - Bill Files
FOLDER TITLE:
08/06/2002 [H.R. 3009] [771371] [2]
FRC ID:
6360
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRA]
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRA]
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advise between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(8) Release would disclose information concerning the regulation of
2201(3).
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
Deed of Gift Restrictions
concerning wells [(b)(9) of the FOIA]
A. Closed by Executive Order 13526 governing access to national
security information.
B. Closed by statute or by the agency which originated the document.
C. Closed in accordance with restrictions contained in donor's deed
of gift.
Page 1 of 1
This document was prepared on Monday, October 21, 2013
Withdrawal Marker
The George W. Bush Library
FORM
SUBJECT/TITLE
PAGES
DATE
RESTRICTION(S)
Memorandum
Trade Act of 2002 - To: POTUS - From: Mitchell E. Daniels, Jr.
7
08/05/2002
P5;
This marker identifies the original location of the withdrawn item listed above.
For a complete list of items withdrawn from this folder, see the
Withdrawal/Redaction Sheet at the front of the folder.
COLLECTION:
Executive Clerk, Office Of the
SERIES:
Saunders, G. Timothy (Tim) - Bill Files
FOLDER TITLE:
08/06/2002 [H.R. 3009] [771371] [2]
FRC ID:
6360
OA Num.:
9467
NARA Num.:
9358
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRA]
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRA]
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advise between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(8) Release would disclose information concerning the regulation of
2201(3).
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
Deed of Gift Restrictions
concerning wells [(b)(9) of the FOIA]
A. Closed by Executive Order 13526 governing access to national
security information.
B. Closed by statute or by the agency which originated the document.
C. Closed in accordance with restrictions contained in donor's deed
of gift.
This Document was withdrawn on 10/21/2013 by TDF
Attachment
Other Significant Provisions of H.R. 3009
Trade Promotion Authority (TPA)
Negotiating Objectives. The enrolled bill stipulates nine "overall" U.S. trade negotiating
objectives for trade agreements. These objectives are generally similar to the objectives of the
Omnibus Trade and Competitiveness Act of 1988, with additional objectives regarding economic
growth, worker rights, and environmental protection. H.R. 3009 also includes seventeen
"principal" U.S. negotiating objectives regarding trade barriers and other trade distortions, trade
remedy laws, trade in services, foreign investment, intellectual property, transparency, anti-
corruption, border tax, improvement of the World Trade Organization (WTO) and other
multilateral and bilateral trade agreements, foreign regulatory practices, electronic commerce,
trade in agriculture and textiles and apparel, dispute settlement and enforcement of trade
agreements, WTO extended negotiations, and enforcement of labor and environmental laws. The
enrolled bill also requires the President to promote certain priorities, including (1) greater
cooperation with the International Labor Organization (ILO), and (2) establishing consultative
mechanisms to promote respect for core labor standards, to prohibit the worst forms of child
labor, and to develop and implement standards for protecting the environment and human health
based on sound science. The bill includes requirements for reviews and reports related to
environment, labor, and employment issues.
Congressional Consultation and Notification Requirements. H.R. 3009 establishes a
number of requirements that the President consult with Congress. Specifically, it would require
the President to provide written notice at least 90 calendar days before entering into negotiations
and to consult with the relevant committees and a new Congressional Oversight Group
(described below) before and after providing notice. This is separate from the 180-day notice
required for any negotiating proposal that may alter U.S. trade remedy laws (discussed in the
Memorandum). The bill would establish special consultation requirements for negotiations
concerning tariff reductions for agriculture products and several additional requirements,
including advice from the U.S. International Trade Commission (USITC), on negotiations
relating to import sensitive agricultural products and on trade remedy provisions on seasonal and
perishable agricultural products. Additional consultation requirements also apply to textiles and
apparel, and fish and shellfish products.
Before entering into any trade agreement, the President would be required to consult with
the relevant Committees and the Oversight Group concerning: (1) the nature of the agreement,
(2) how and to what extent the agreement would achieve the applicable purposes, policies, and
objectives set forth in H.R. 3009; and (3) matters relating to implementation, including the
general effect of the agreement on U.S. laws. In addition, at least 90 days before entering into a
trade agreement, the President would be required to ask the USITC to assess the agreement,
including the likely impact of the agreement on the U.S. economy as a whole, specific industry
sectors, and U.S. consumers. That report would be due 90 days after the President enters into the
agreement.
At least 60 days before signing an agreement, the bill requires the President to submit to
Congress a preliminary list of existing laws that would have to be amended in order to bring the
United States into compliance with agreement.
H.R. 3009 exempts from the requirement to consult prior to initiating negotiations,
agreements that: (1) are entered into under the auspices of the WTO; (2) are entered into with
Chile or Singapore; or (3) establish a Free Trade Area for the Americas. The President is
required to provide notification of these ongoing negotiations as soon as feasible after enactment
of this bill and to consult before and after providing these notifications.
Expedited Procedures. In order to invoke the expedited trade authority legislative
procedures, the President is required to submit the final text of the agreement, the implementing
legislation, a statement of administrative action, and certain supporting information to Congress.
The procedures of section 151 of the Trade Act of 1974 (explained as follows) would then apply.
Specifically, on the same day as the President formally submits the legislation, the bill would be
introduced (by request) by the Majority Leaders of the House and the Senate. After formal
introduction of the legislation, the House Committees would have 45 legislative days to report
the bill. The House would be required to vote on the bill within 15 legislative days after the
measure was reported or discharged from the Committees. Fifteen additional days would be
provided for Senate Committee consideration (assuming the implementing bill was a revenue
bill), and Senate floor action would be required within 15 additional days. Accordingly, the
maximum period for Congressional consideration of the implementing bill from the date of
introduction would be 90 legislative days. Once the bill has been formally introduced, no
amendments would be permitted either in Committee or floor action, and a straight "up or down"
vote would be required.
H.R. 3009 includes procedures for the President to request an extension of the time that
TPA procedures are available until June 1, 2007, for use in implementing agreements entered
into before that date. These requirements include a written request and report to Congress by
March 1, 2005, and several other reports, including a report from the USITC to Congress by
May 1, 2005, analyzing the economic impact on the United States of all trade agreements
implemented between enactment and the extension request. An extension until June 1, 2007,
would be authorized unless either the House or Senate passed by June 1, 2005, a disapproval
resolution. (This resolution would also be subject to the discretionary action of the House Ways
and Means or Senate Finance Committees to report it out of committee.)
Congressional Oversight Group. The enrolled bill establishes a Congressional Oversight
Group, comprised of the chairmen and ranking members of the Ways & Means and Finance
Committees, together with three additional members of those Committees, and the chairmen and
ranking members of committees with jurisdiction over laws affected by specific trade
agreements. The members of the Oversight Group are to be accredited as official advisers to the
U.S. delegations negotiating agreements.
-2-
H.R. 3009 requires USTR to develop written guidelines to facilitate the exchange of
information between USTR and the Oversight Group. The guidelines are to provide for: regular
detailed briefings; access to documents concerning the negotiations; closest practicable
coordination including at negotiation sites; and consultations regarding compliance and
enforcement after an agreement is concluded.
Additional Implementation and Enforcement Requirements. H.R. 3009 requires the
President to submit to Congress a plan for implementing and enforcing any trade agreement
negotiated under the bill's authority. The plan, which is to be submitted simultaneously with the
text of the agreement, is to include a description of Executive Branch personnel to enforce the
agreement; Customs Service infrastructure requirements; the impact on State and local
governments; and the costs associated with these requirements. The bill would also require that
the President include a request for these resources in the first budget submitted after this plan is
submitted.
Proclamation Authority. H.R. 3009 authorizes the President to proclaim, without
Congressional approval, duty modifications subject to certain limitations. These limitations
generally relate to the percentage of the duty reduction and phase-in period and are not applicable
to reciprocal agreements to eliminate or harmonize duties negotiated under WTO auspices, such
as so-called "zero-for-zero" negotiations. This authority could not be used for import-sensitive
agriculture products.
Customs Service Provisions
Appropriations Authorization. H.R. 3009 would authorize for the Customs Service $3.0
billion in FY 2003 and $3.1 billion in FY 2004, including $308 million in each year for
development of the Automated Commercial Environment, the upgrade to the current import
processing system, and $171 million in FY 2003 and $175 million in FY 2004 for air and marine
interdiction operations. The enrolled bill would require that, of the FY 2003 and FY 2004
appropriations, $28 million be available until expended to hire 285 new Customs staff for the
U.S.-Canada border, $90 million in FY 2003 for border inspection and detection equipment, and
$9 million in FY 2004 for maintenance of that equipment.
The enrolled bill would also authorize appropriations of: $10 million in FY 2003 to
combat on-line child sex predators; $9.5 million in FY 2003 to combat textile transshipment,
including the hiring of new staff; $1.3 million to implement the African Growth and Opportunity
Act; and such sums as may be necessary to reestablish Customs Service operations formerly
located at the World Trade Center in New York.
-3-
Warrantless Mail Search Authority. The enrolled bill would allow Customs officers to
open, but not read, all outbound mail, including the one class that is currently sealed from
inspection, based on "reasonable cause" and without a search warrant, if the mail weighs in
excess of one pound, if there is reasonable cause to suspect that the mail contains weapons,
unreported monetary instruments, or other contraband. In order for this provision to go into
effect, the Secretary of State would have to determine that the practice conforms with
international law and treaty obligations.
Electronic Manifests. H.R. 3009 would require the Secretary of the Treasury, within a year
of the enrolled bill's enactment, to promulgate regulations requiring air, land, and sea commercial
carriers to provide advance electronic manifests of passengers and cargo before entering or
leaving the country.
Customs Officer Searches. H.R. 3009 would give Customs officers immunity from
lawsuits stemming from personal searches of people entering the country as long as the searches
were reasonable and done in good faith. Customs' policy and procedures prohibiting "profiling"
of passengers must be conspicuously posted at each Customs border facility.
Fees. The enrolled bill would require the General Accounting Office to study and report to
the House Ways and Means and Senate Finance Committees on whether current user fees are
appropriately set at a level commensurate with the service provided for the fee. H.R. 3009 would
establish a per item fee of 66 cents to cover Customs expenses incurred by Customs inspections
at courier facilities and authorize the Secretary of the Treasury to adjust the fee within a certain
range.
Pay Provisions. H.R. 3009 would authorize appropriations as may be necessary to increase
the annual pay of GS-9 journeyman Customs inspectors and Canine Enforcement Officers, who
have completed at least one year of service, to GS-11 and the annual pay of associated support
staff "at the appropriate level." The enrolled bill would also eliminate some of the caps on
overtime pay for Customs staff.
Personal Duty Exemption. The enrolled bill also increases the personal exemption
allowances for merchandise purchased abroad by returning residents from $400 to $800.
Miscellaneous Provisions
H.R. 3009 requires the Secretary of Agriculture and the Commissioner of Customs to
monitor imports of sugar and sugar-containing products (such as "stuffed molasses") for potential
circumvention, and provide a report to Congress and the President every six months that will
include import data and discuss whether the imports or articles not subject to the tariff-rate
quotas are being used for commercial extraction of sugar in the United States.
-4-
The enrolled bill amends the African Growth and Opportunity Act to: increase the current
cap for apparel made of regional fabric; increase benefits for Botswana and Namibia by
permitting them to use non-U.S. or AGOA fabric for a limited period of time; and allow benefits
for merino wool sweaters.
In addition, H.R. 3009 would extend preferential treatment to apparel articles formed from
components knit-to-shape imported from beneficiary countries under the Caribbean Basin
Economic Recovery Act.
H.R. 3009 includes authorization of appropriations for USTR and the USITC. For USTR,
the bill authorizes $32 million for FY 2003 and $33 million for FY 2004; for ITC, $54 million
for FY 2003 and $57 million for FY 2004 are authorized. The enrolled bill also establishes and
authorizes appropriations of $50 million for a WTO Dispute Settlement Fund.
-5-
R. 3009
One Hundred Sebenth 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.-Miscelaneous Provisions.
(b) TABLE OF CONTENTS.-The table of contents for this Act
is as follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
DIVISION A-TRADE ADJUSTMENT ASSISTANCE
Sec. 101. Short title.
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.
H.R. 3009-2
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 readjust-
ment allowance or a benefit from the Pension Benefit Guaranty Cor-
poration.
Sec. 202. Advance payment of credit for health insurance costs of eligible individ-
uals.
Sec. 203. Health insurance assistance for eligible individuals.
TITLE III-CUSTOMS REAUTHORIZATION
Sec. 301. Short title.
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 cus-
toms 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 op-
erations.
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.
H.R. 3009-3
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 al-
ready 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.
Sec. 2113. Definitions.
DIVISION C-ANDEAN TRADE PREFERENCE ACT
TITLE XXXI-ANDEAN TRADE PREFERENCE
Sec. 3101. Short title.
Sec. 3102. Findings.
Sec. 3103. Articles eligible for preferential treatment.
Sec. 3104. Termination.
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 facili-
ties.
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".
H.R. 3009-4
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.
"(b) OTHER ASSISTANCE.-
"(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 Sep-
tember 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.".
H.R. 3009-5
SEC. 112. FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE
ASSISTANCE; EXPEDITED REVIEW OF PETITIONS BY SEC-
RETARY 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 Gov-
ernor 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 agricul-
tural firm or subdivision of any agricultural firm).
"(B) The certified or recognized union or other duly author-
ized representative of such workers.
"(C) Employers of such workers, one-stop operators or one-
stop partners (as defined in section 101 of the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2801)), including State employment
security agencies, or the State dislocated worker unit estab-
lished 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)) author-
ized 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 threat-
ened 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
H. 3009-6
"(iii) the increase in imports described in clause (ii) contrib-
uted importantly to such workers' separation or threat of sepa-
ration 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 subdivi-
sion.";
(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
"(3) either-
"(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 separa-
tion 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 "sub-
section (a)(3)" and inserting "this section"; and
(2) by adding at the end the following:
"(3) DOWNSTREAM PRODUCER.-The term 'downstream pro-
ducer' 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
H.R. 3009-7
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 pro-
duces and supplies directly to another firm (or subdivision)
component parts for articles that were the basis for a certifi-
cation 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 para-
graphs (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 termi-
nation 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 separa-
tion 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 accord-
ance with guidelines issued by the Secretary) and there
H.R. 3009-8
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 com-
pensation 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 revoca-
tion.
"(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 state-
ments 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".
H.R. 3009-9
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, pay-
ments 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.".
H.R. 3009-10
SEC. 119. COORDINATION WITH TITLE I OF THE WORKFORCE INVEST-
MENT 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 allow-
ance 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 Sec-
retary 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 later of-
"(I) the 365th day after the date of the certifi-
cation 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
H.R. 3009-11
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 allow-
ance, 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 Sec-
retary 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 sepa-
rated 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 employ-
ment.
"(E). APPLICATION.-The worker filed an application
with the Secretary before-
"(i) the later of-
"(I) the 425th day after the date of the certifi-
cation 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-
H.R. 3009-12
"(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 conclu-
sion 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)".
(c) EFFECTIVE DATE.-
(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.
"(a) IN GENERAL.-
"(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).
"(2) BENEFITS.
"(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
H. R. 3009-13
"(ii) the wages received by the worker at the time
of separation.
"(B) HEALTH INSURANCE.-A worker described in para-
graph (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.
"(3) ELIGIBILITY.-
"(A) FIRM ELIGIBILITY.-
"(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 sec-
tion 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 alter-
native 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 pursu-
ant to the program established under paragraph (1), the worker
shall not be eligible to receive any other benefits under this
title.
"(b) TERMINATION.-
H.R. 3009-14
"(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 sub-
section (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 assist-
ance 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 peti-
tion and application procedures (including appropriate filing dates)
for such allowances, training, and services, under the trade adjust-
ment 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:
H. R. 3009-15
"CHAPTER 6--ADJUSTMENT ASSISTANCE FOR FARMERS
"SEC. 291. DEFINITIONS.
"In this chapter:
"(1) AGRICULTURAL COMMODITY.-The term 'agricultural
commodity' means any agricultural commodity (including live-
stock) in its raw or natural state.
"(2) AGRICULTURAL COMMODITY PRODUCER.-The term 'agri-
cultural 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 mar-
keting 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 Sec-
retary 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 com-
modity, 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
H.R. 3009-16
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 com-
modity, 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 CoMMopiTy.-
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 agricul-
tural 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 pro-
ducers 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 condi-
tions 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.
H.R. 3009-17
"SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN INTER-
NATIONAL TRADE COMMISSION BEGINS INVESTIGATION.
"(a) IN GENERAL.-Whenever the International Trade Commis-
sion (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 pro-
ducing 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 deter-
mines 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 appro-
priate 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.
"(b) NOTICE OF BENEFITS.-
"(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 COM-
MODITY PRODUCERS.
"(a) IN GENERAL.-
"(1) REQUIREMENTS:-Payment of a trade adjustment allow-
ance shall be made to an adversely affected agricultural com-
modity 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
H.R. 3009-18
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 com-
modity 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 assist-
ance that will assist the producer in adjusting to import
competition with respect to the adversely affected agricul-
tural commodity, including-
"(i) information regarding the feasibility and desir-
ability of substituting 1 or more alternative commod-
ities 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.
"(2) LIMITATIONS.-
"(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 limita-
tion under subparagraph (A), an individual or entity
shall provide to the Secretary-
"(I) a certification by a certified public account-
ant 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:
H. R. 3009-19
"(i) ADJUSTED GROSS INCOME.-The term 'adjusted
gross income' means adjusted gross income of an agri-
cultural commodity producer-
"(I) as defined in section 62 of the Internal
Revenue Code of 1986 and implemented in accord-
ance 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 com-
modity covered by the application described in sub-
section (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 pro-
duced 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 deter-
mined 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 para-
graph (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 com-
modity 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.
H. 3009-20
"SEC. 297. FRAUD AND RECOVERY OF OVERPAYMENTS.
"(a) IN GENERAL.-
"(1) REPAYMENT.-If the Secretary, or a court of competent
jurisdiction, determines that any person has received any pay-
ment under this chapter to which the person was not entitled,
such person shall be liable to repay such amount to the Sec-
retary, except that the Secretary may waive such repayment
if the Secretary determines, in accordance with guidelines pre-
scribed 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 pay-
ments 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 mate-
rial 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 require-
ments for adjustment assistance payable under this chapter, the
amount of assistance payable under this chapter shall be reduced
proportionately.".
H.R. 3009-21
(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.
(a) JUDICIAL REVIEW.-
(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 Sec-
retary 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. 291. Definitions.
"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 pro-
gram 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
H.R. 3009-22
(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 Sep-
tember 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 INSUR-
ANCE COSTS OF ELIGIBLE INDIVID-
UALS
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 refund-
able 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
H.R. 3009-23
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 require-
ments.
"(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 alter-
native TAA recipient during the first month that such indi-
vidual 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 Corpora-
tion under title IV of the Employee Retirement Income
Security Act of 1974.
H.R. 3009-24
"(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 speci-
fied coverage.
"(2) SPECIAL DEPENDENCY TEST IN CASE OF DIVORCED PAR-
ENTS, 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 pro-
gram 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
"(iv) an employer.
"(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 avail-
able 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-
H.R. 3009-25
"(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 insur-
ance' does not include any coverage described in subpara-
graphs (B) through (H) of paragraph (1) unless the State
involved has elected to have such coverage treated as quali-
fied health insurance under this section and such coverage
meets the following requirements:
"(i) GUARANTEED ISSUE.-Each qualifying indi-
vidual 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 sub-
sidies) with respect to a qualifying individual may
not be greater than the total premium (as SO deter-
mined) 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 bene-
fits 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 para-
graph (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).
H.R. 3009-26
"(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 insur-
ance 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 indi-
vidual is either-
"(i) eligible for coverage under any qualified health
insurance (other than insurance described in subpara-
graph (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 insur-
ance 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.
"(g) SPECIAL RULES.-
"(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 sec-
tion 162(1) or 213.
H. R. 3009-27
"(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 appro-
priate 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 estab-
lished a qualified high risk pool that-
H. R. 3009-28
"(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 oper-
ation 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 sub-
section (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.".
(d) EFFECTIVE DATE.-
(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:
H.R. 3009-29
"SEC. 7527. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE
COSTS OF ELIGIBLE INDIVIDUALS.
"(a) GENERAL RULE.-Not later than August 1, 2003, the Sec-
retary 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 writ-
ten 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 Ben-
efit 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 (1) 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 DISCLO-
SURES.-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 (1)(16)" each place
it appears.
(3) UNAUTHORIZED INSPECTION OF RETURNS OR RETURN
INFORMATION.-Section 7213A(a)(1)(B) of such Code is amended
H.R. 3009-30
by striking "section 6103(n)" and inserting "subsection (1)(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 enti-
tled 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 sub-
section (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
"(2) contains—
"(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 pre-
scribe.
"(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 individ-
uals),"
(B) Paragraph (2) of section 6724(d) of such Code is
amended by striking "or" at the end of subparagraph (Z),
H.R. 3009-31
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).".
(d) CLERICAL AMENDMENTS.-
(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 sub-
part 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 INDIVID-
UALS.
(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 avail-
able 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;
H.R. 3009-32
"(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 insur-
ance' means any of the following:
"(i) Coverage under a COBRA continuation provi-
sion (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 cov-
erage.
"(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 insur-
ance program that is comparable to the health insur-
ance 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
"(IV) an employer.
"(vii) Coverage offered through a State arrange-
ment with a private sector health care coverage pur-
chasing pool.
"(viii) Coverage under a State-operated health plan
that does not receive any Federal financial participa-
tion.
"(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 employ-
ment 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
H.R. 3009-33
"(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 cov-
erage.
"(B) REQUIREMENTS FOR STATE-BASED COVERAGE.-
"(i) IN GENERAL.-The term 'qualified health insur-
ance' 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 indi-
vidual 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 indi-
vidual.
"(III) NONDISCRIMINATORY PREMIUM.-The
total premium (as determined without regard to
any subsidies) with respect to a qualifying indi-
vidual may not be greater than the total premium
(as SO determined) for a similarly situated indi-
vidual who is not a qualifying individual.
"(IV) SAME BENEFITS.-Benefits under the cov-
erage 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 cov-
erage is of excepted benefits described in section 733(c)
H.R. 3009-34
of the Employee Retirement Income Security Act of
1974.
"(3) AVAILABILITY OF FUNDS.-
"(A) EXPEDITED PROCEDURES.-With respect to applica-
tions 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, pro-
vide 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 applica-
tions.
"(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 deduc-
tion 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 custo-
dial parent (within the meaning of section 152(e)(1) of
such Code) and not with respect to the noncustodial parent.
H. R. 3009-35
"(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 sub-
section, 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 tax-
payer or the taxpayer's spouse.
"(iii) TREATMENT OF CAFETERIA PLANS.-For pur-
poses 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 ASSIST-
ANCE.-
H. R. 3009-36
"(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 assist-
ance 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 deter-
mining the amount of non-Federal contributions required
under any program.
"(4) AVAILABILITY OF FUNDS.-
"(A) EXPEDITED PROCEDURES.-With respect to applica-
tions 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 applica-
tions.
"(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
H.R. 3009-37
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.-Secti 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 pur-
poses 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
H.R. 3009-38
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 indi-
vidual 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 para-
graph (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 bene-
fits 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 pur-
poses 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.
H. R. 3009-39
"(3) PREEXISTING CONDITIONS.-With respect to an indi-
vidual 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 para-
graph (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 bene-
fits 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 pursu-
ant to clause (i), the period-
H.R. 3009-40
"(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 sub-
section:
"(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 continu-
ation 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".
H.R. 3009-41
Subtitle A-United States Customs Service
CHAPTER 1-DRUG ENFORCEMENT AND OTHER
NONCOMMERCIAL AND COMMERCIAL OPERATIONS
SEC. 311. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMER-
CIAL OPERATIONS, COMMERCIAL OPERATIONS, AND AIR
AND MARINE INTERDICTION.
(a) NONCOMMERCIAL OPERATIONS.-Section 301(b)(1) of the Cus-
toms Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(1)) is amended—
(1) by striking subparagraph (A), and inserting the fol-
lowing:
"(A) $1,365,456,000 for fiscal year 2003."; and
(2) by striking subparagraph (B), and inserting the fol-
lowing:
"(B) $1,399,592,400 for fiscal year 2004.".
(b) COMMERCIAL OPERATIONS.-
(1) IN GENERAL.-Section 301(b)(2)(A) of the Customs Proce-
dural 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 Proce-
dural 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 Auto-
mated 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 fol-
lowing:
"(A) $170,829,000 for fiscal year 2003."; and
(2) by striking subparagraph (B), and inserting the fol-
lowing:
"(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:
H. R. 3009-42
"(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 Com-
mittee 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 EQUIP-
MENT 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 Proce-
dural 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 trans-
mission 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 inspec-
tion 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.
H. R. 3009-43
(M) $180,000 for 36 AM traffic information radio sta-
tions, 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 tran-
sponders 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 tar-
geting 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 trans-
mission 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 detec-
tors 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 trans-
mission 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 Proce-
dural 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
H. R. 3009-44
301(b)(1)(A) of the Customs Procedural Reform and Simplifica-
tion Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by sec-
tion 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 provi-
sion of this section, the Commissioner of Customs may reallo-
cate 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 EXPLOI-
TATION.
(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.
H.R. 3009-45
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 para-
graphs (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 Representa-
tives and the Committee on Finance of the Senate a report con-
taining 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 Representa-
tives and the Committee on Finance of the Senate a report con-
taining 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.
H.R. 3009-46
(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 identi-
fication of expenses based on any other appropriate classifica-
tion 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 PROSPEC-
TIVE 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 enact-
ment 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 Rec-
onciliation 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 Omni-
bus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is
amended as follows:
(1) In subparagraph (A)—
H. R. 3009-47
(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, docu-
ments, 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 Sec-
retary 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 subpara-
graph 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 car-
rier facilities or centralized hub facilities. Amounts depos-
ited in accordance with the preceding sentence shall be
available until expended for the provision of customs serv-
ices 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 pay-
ments received under subparagraph (A)(ii) and clause (ii)
of this subparagraph shall be paid to the Secretary of
H.R. 3009-48
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 fol-
lowing: "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 sepa-
rately 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 posi-
tions 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 state-
ment of the policy relating to the prohibition on the conduct of
profiling of passengers based on gender, race, color, religion, or
ethnic background.
H.R. 3009-49
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 Sec-
retary 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 Commis-
sioner of Customs, when necessary to respond to a specific threat
to human life or national interests, is authorized to close tempo-
rarily 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.
(a) CARGO INFORMATION.-
(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 expor-
tation.
(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 informa-
tion 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.
H.R. 3009-50
(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 require-
ment 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 car-
riers of cargo, they shall take into account differences
among different modes of transportation, including dif-
ferences in commercial practices, operational characteris-
tics, 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 Sec-
retary 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 require-
ments appropriate for the technology that is available at
the time of promulgation.
(F) The information collected pursuant to the regula-
tions shall be used exclusively for ensuring aviation, mari-
time, 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 busi-
ness proprietary and any other confidential information
provided to the Customs Service. However, this parameter
does not repeal, amend, or otherwise modify other provi-
sions 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 transpor-
tation, 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.
H.R. 3009-51
(J) The Secretary shall determine whether it is appro-
priate to provide transition periods between promulgation
of the regulations and the effective date of the regulations
and shall prescribe such transition periods in the regula-
tions, 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 secu-
rity;
(iii) an explanation of how the Secretary expects
the proposed regulations to affect the commercial prac-
tices 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 sub-
ject 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 sub-
section.
"(2) For the purposes of this subsection, cargo shall be consid-
ered 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
H.R. 3009-52
System, the complete bill of lading, and the master or equiva-
lent 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 state-
ment 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 docu-
mented in accordance with this section.
"(2) When cargo is booked by 1 vessel carrier to be trans-
ported 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
H.R. 3009-53
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 "Sec-
retary" means the Secretary of the Treasury. If, at the time the
regulations required by subsection (a)(1) are promulgated, the Cus-
toms 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 appro-
priate. 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 inter-
national 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 inter-
national intermodal transport movements.
(c) RECOGNITION OF CERTIFIED SYSTEMS.-
(1) SECRETARY OF THE TREASURY.-The Secretary of the
Treasury shall recognize certified systems of intermodal trans-
port 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 trans-
port 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 proce-
dure, system, or technology evaluated as part of the program
offers a higher level of security than under existing procedures;
H.R. 3009-54
(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.
"(a) EXAMINATION.--
"(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 sub-
stances) (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.
H.R. 3009-55
"(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 regula-
tions 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 cer-
tifies to Congress that the application of such section 583 is con-
sistent with international law and any international obligation of
the United States.
(c) EFFECTIVE DATE.-
(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, pursu-
ant to subsection (b), that the application of such section 583
H. R. 3009-56
is consistent with international law and any international
obligation of the United States.
SEC. 345. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISH-
MENT 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 enforce-
ment 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 enact-
ment 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 moni-
toring 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 TRANS-
SHIPMENT ENFORCEMENT OPERATIONS.
(a) AUTHORIZATION OF APPROPRIATIONS.-
(1) IN GENERAL-There is authorized to be appropriated
for transshipment (as described in section 351(c)) enforcement
H.R. 3009-57
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 author-
ized to remain available until expended.
(b) USE OF FUNDS.-Of the amount appropriated pursuant to
the authorization of appropriations under subsection (a), the fol-
lowing amounts are authorized to be made available for the fol-
lowing 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 head-
quarters 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 smug-
gling, 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 Cus-
toms 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 head-
quarters 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 Cus-
toms attaché office in Central America to address trade
enforcement issues for that region.
(B) 2 permanent positions to be assigned to the Cus-
toms attaché office in South Africa to address trade enforce-
ment issues pursuant to the African Growth and Oppor-
tunity Act (title I of Public Law 106-200).
(C) 4 permanent positions to be assigned to the Cus-
toms attaché office in Mexico to address the threat of
illegal textile transshipment through Mexico and other
related issues under the North American Free Trade Agree-
ment Act.
(D) 2 permanent positions to be assigned to the Cus-
toms attaché office in Seoul, South Korea, to address the
trade issues in the geographic region.
(E) 2 permanent positions to be assigned to the pro-
posed Customs attaché office in New Delhi, India, to
H.R. 3009-58
address the threat of illegal textile transshipment and other
trade enforcement issues.
(F) 2 permanent positions to be assigned to the Cus-
toms attaché office in Rome, Italy, to address trade enforce-
ment 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-Saha-
ran Africa.
(10) TRAINING.-(A) $75,000 for training of Customs per-
sonnel.
(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 OPPOR-
TUNITY 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-trans-
shipment 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-trans-
shipment 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.
H.R. 3009-59
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 Representa-
tives 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 author-
ized 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
H.R. 3009-60
Ways and Means of the House of Representatives and the Com-
mittee on Finance of the Senate the projected amount of funds
for the succeeding fiscal year that will be necessary for the Commis-
sion 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 Cus-
toms 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 merchan-
dise. 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.".
H.R. 3009-61
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 inter-
national 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 tech-
nology, telecommunications and other leading technologies,
basic industries, capital equipment, medical equipment, serv-
ices, 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 agree-
ments not add to or diminish the rights and obligations provided
in such agreements. Therefore-
(A) the recent pattern of decisions by dispute settle-
ment 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 Sub-
sidies 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 provi-
sions 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.
H.R. 3009-62
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 environ-
mental 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 dispropor-
tionately 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 nego-
tiating 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.
H. R. 3009-63
(3) FOREIGN INVESTMENT.-Recognizing that United States
law on the whole provides a high level of protection for invest-
ment, 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 invest-
ment, 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 invest-
ments;
(C) reducing or eliminating performance requirements,
forced technology transfers, and other unreasonable bar-
riers 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;
(ii) ensuring that-
(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 intellec-
tual property are-
(A) to further promote adequate and effective protec-
tion of intellectual property rights, including through-
H.R. 3009-64
(i)(I) ensuring accelerated and full implementation
of the Agreement on Trade-Related Aspects of Intellec-
tual 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 transmit-
ting and distributing products embodying intellectual
property;
(iii) preventing or eliminating discrimination with
respect to matters affecting the availability, acquisi-
tion, scope, maintenance, use, and enforcement of
intellectual property rights;
(iv) ensuring that standards of protection and
enforcement keep pace with technological develop-
ments, 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, expedi-
tious, 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 Organiza-
tion 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 informa-
tion regarding trade issues and the activities of inter-
national trade institutions;
(B) increased openness at the WTO and other inter-
national trade fora by increasing public access to appro-
priate 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-
H. R. 3009-65
(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 inter-
national 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 multi-
lateral and bilateral trade agreements are-
(A) to achieve full implementation and extend the cov-
erage of the World Trade Organization and such agree-
ments to products, sectors, and conditions of trade not
adequately covered; and
(B) to expand country participation in and enhance-
ment 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 com-
merce are-
(A) to ensure that current obligations, rules, dis-
ciplines, and commitments under the World Trade
Organization apply to electronic commerce;
(B) to ensure that-
(i) electronically delivered goods and services
receive no less favorable treatment under trade rules
and commitments than like products delivered in phys-
ical form; and
(ii) the classification of such goods and services
ensures the most liberal trade treatment possible;
(C) to ensure that governments refrain from imple-
menting trade-related measures that impede electronic
commerce;
(D) where legitimate policy objectives require domestic
regulations that affect electronic commerce, to obtain
H.R. 3009-66
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 agri-
culture is to obtain competitive opportunities for United States
exports of agricultural commodities in foreign markets substan-
tially equivalent to the competitive opportunities afforded for-
eign 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 con-
sultation 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 pro-
grams, 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 mecha-
nisms, 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 tech-
nologies, including biotechnology;
(III) unjustified sanitary or phytosanitary restric-
tions, including those not based on scientific principles
in contravention of the Uruguay Round Agreements;
H. R. 3009-67
(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 perish-
able 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 negotia-
tions 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 sub-
ject to tariff-rate quotas).
(B)(i) Before commencing negotiations with respect to agri-
culture, 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 inter-
national 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 Measure-
ment 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)
H. R. 3009-68
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 negoti-
ating 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 recur-
ring 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 inves-
tigatory, 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 recog-
nize 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 environ-
mental technologies, goods, and services; and
(G) to ensure that labor, environmental, health, or
safety policies and practices of the parties to trade agree-
ments 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 prin-
cipal 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, equi-
table, 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;
H.R. 3009-69
(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 Uru-
guay Round Agreement involved in the dispute, including
greater deference, where appropriate, to the fact-finding
and technical expertise of national investigating authori-
ties;
(D) to seek provisions encouraging the early identifica-
tion 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 prin-
cipal 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 negoti-
ating 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 objec-
tives 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 anti-
dumping, 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 pro-
ducers, 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 disadvan-
tage to countries relying primarily on direct taxes for revenue
rather than indirect taxes.
H.R. 3009-70
(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 opportuni-
ties 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 negoti-
ating 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 par-
ties to trade agreements to strengthen the capacity of United
States trading partners to promote respect for core labor stand-
ards (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 par-
ties 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 Rep-
resentatives 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;
H. R. 3009-71
(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 effective-
ness of the penalty or remedy applied under United States
law in enforcing United States rights under the trade agree-
ment; and
(12) seek to establish consultative mechanisms among par-
ties 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 advan-
tage 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.
(d) CONSULTATIONS.-
(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 Rep-
resentatives, the Committee on Finance of the Senate, and
the Congressional Oversight Group convened under section
2107; and
H.R. 3009-72
(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 negotia-
tions, the Committee on Agriculture of the House of Rep-
resentatives 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 acceler-
ated 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 coun-
tries before-
(i) June 1, 2005; or
(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 sen-
sitive 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-
H.R. 3009-73
(i) a reduction of 3 percent ad valorem or a reduc-
tion 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 para-
graph (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 para-
graphs (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 BAR-
RIERS.-
(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).
H.R. 3009-74
(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-
(i) June 1, 2005; or
(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 PROCE-
DURES.-(A) The provisions of section 151 of the Trade Act
of 1974 (in this title referred to as "trade authorities proce-
dures") apply to a bill of either House of Congress which con-
tains 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 here-
after 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 imple-
menting 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 agree-
ments 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 exten-
sion disapproval resolution under paragraph (5) before
June 1, 2005.
(2) REPORT TO CONGRESS BY THE PRESIDENT.-If the Presi-
dent is of the opinion that the trade authorities procedures
should be extended to implementing bills described in para-
graph (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-
H.R. 3009-75
(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 Presi-
dent 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 dis-
approved.
(B) REPORT BY ITC.-The President shall promptly
inform the International Trade Commission of the Presi-
dent'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 deter-
mines appropriate.
(5) EXTENSION DISAPPROVAL RESOLUTIONS.-(A) For pur-
poses of paragraph (1), the term "extension disapproval resolu-
tion" means a resolution of either House of the Congress, the
sole matter after the resolving clause of which is as follows:
"That the
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 Con-
gress.
(B) Extension disapproval resolutions—
(i) may be introduced in either House of the Congress
by any member of such House; and
H.R. 3009-76
(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 exten-
sion 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 exten-
sion 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 par-
ties 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, environ-
mental 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 negotia-
tions the subject matter of which is directly related to the
subject matter under section 2102(b)(10)(A)(i) with any country,
H.R. 3009-77
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 Com-
mittee 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 conclu-
sions reached in the assessment, and how all applicable negoti-
ating objectives will be met.
(2) SPECIAL CONSULTATIONS ON IMPORT SENSITIVE PROD-
UCTS.-(A) Before initiating negotiations with regard to agri-
culture, 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 prac-
ticable 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 Agree-
ments, 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 Rep-
resentatives and the Committee on Finance and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate
concerning-
(I) whether any further tariff reductions on the
products identified under clause (i) should be appro-
priate, taking into account the impact of any such
tariff reduction on the United States industry pro-
ducing the product concerned;
(II) whether the products SO identified face unjusti-
fied 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 pro-
grams, 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
H.R. 3009-78
(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 Representa-
tive 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 subpara-
graph (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 Com-
merce, 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 Agree-
ments are lower than the tariffs bound by that country and whether
the negotiation provides an opportunity to address any such dis-
parity. 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 assess-
ment, and how all applicable negotiating objectives will be met.
(d) CONSULTATION WITH CONGRESS BEFORE AGREEMENTS
ENTERED INTO.-
(1) CONSULTATION.-Before entering into any trade agree-
ment 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 juris-
diction 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-
H.R. 3009-79
(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 negotia-
tions with respect to that agreement, that may be
in the final agreement, and that could require amend-
ments 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 trans-
mission of the report under subparagraph (A), if a resolu-
tion 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 Com-
mittee on Finance, as the case may be, pursuant to
those procedures; and
(II) no procedural disapproval resolution under sec-
tion 2105(b) introduced with respect to a trade agree-
ment 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 Com-
mittee on Finance, as the case may be.
(ii) For purposes of this subparagraph, the term "reso-
lution" means only a resolution of either House of Congress,
the matter after the resolving clause of which is as follows:
"That the
finds that the proposed changes to United
States trade remedy laws contained in the report of the
President transmitted to the Congress on
under sec-
tion 2104(d)(3) of the Bipartisan Trade Promotion Authority
Act of 2002 with respect to , 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
H.R. 3009-80
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 Com-
mittee on Ways and Means and, in addition, by the Com-
mittee 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.
(f) ITC ASSESSMENT.-
(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 Inter-
national 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 Commis-
sion 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.
H.R. 3009-81
(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 anal-
yses and conclusions, including those of the Commission
regarding the agreement.
SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.
(a) IN GENERAL.-
(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 agree-
ment, 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 pro-
posed to implement the trade agreement; and
(iii) the supporting information described in para-
graph (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
(B) a statement-
(i) asserting that the agreement makes progress
in achieving the applicable purposes, policies, prior-
ities, 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 pur-
poses, 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;
H.R. 3009-82
(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 pur-
poses, policies, and objectives referred to in section
2102(c) regarding the promotion of certain prior-
ities.
(3) RECIPROCAL BENEFITS.-In order to ensure that a for-
eign 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 imple-
menting 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 begin-
ning 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 proce-
dural disapproval resolution with respect to such trade
agreement or agreements.
(B) PROCEDURAL DISAPPROVAL RESOLUTION.-(i) For
purposes of this paragraph, the term "procedural dis-
approval 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 Bipar-
tisan Trade Promotion Authority Act of 2002 on negotia-
tions with respect to
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 agree-
ments with respect to which the President is considered
to have failed or refused to notify or consult.
H. R. 3009-83
(ii) For purposes of clause (i), the President has "failed
or refused to notify or consult in accordance with the Bipar-
tisan Trade Promotion Authority Act of 2002" on negotia-
tions 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 Congres-
sional 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
(ii) 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.
(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 proce-
dural disapproval resolution not reported by the Committee
on Finance.
H. R. 3009-84
(3) FOR FAILURE TO MEET OTHER REQUIREMENTS.-Not later
than December 31, 2002, the Secretary of Commerce, in con-
sultation 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 nego-
tiated 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.-Sub-
section (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 dis-
approval 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 enact-
ment 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
H.R. 3009-85
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 fol-
lowing Members of the House of Representatives:
(A) The chairman and ranking member of the Com-
mittee 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 des-
ignees, of the committees of the House of Representatives
which would have, under the Rules of the House of Rep-
resentatives, 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 Com-
mittee on Finance and 3 additional members of such Com-
mittee (not more than 2 of whom are members of the
same political party).
(B) The chairman and ranking member, or their des-
ignees, 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 Congres-
sional Oversight Group shall consult with and provide advice
to the Trade Representative regarding the formulation of spe-
cific 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
H.R. 3009-86
of the House of Representatives and the Chairman of the Com-
mittee on Finance of the Senate.
(b) GUIDELINES.-
(1) PURPOSE AND REVISION.-The United States Trade Rep-
resentative, 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 enact-
ment 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 fre-
quent briefings as trade negotiations enter the final stage;
(B) access by members of the Congressional Oversight
Group, and staff with proper security clearances, to perti-
nent 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 enforce-
ment of negotiated commitments under the trade agree-
ment; 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 negotia-
tions 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 imple-
menting 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,
H. R. 3009-87
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 descrip-
tion of the additional equipment and facilities needed by the
United States Customs Service.
(4) IMPACT ON STATE AND LOCAL GOVERNMENTS.-A descrip-
tion 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 sub-
section (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 jurisdic-
tion 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 Con-
gress 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 accommo-
date 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:
(1) IMPLEMENTING BILL.-
(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 Agree-
ments Act" and inserting ", section 282 of the Uruguay
Round Agreements Act, or section 2105(a)(1) of the Bipar-
tisan Trade Promotion Authority Act of 2002".
(2) ADVICE FROM INTERNATIONAL TRADE COMMISSION.-Sec-
tion 131 (19 U.S.C. 2151) is amended-
(A) in subsection (a)-
(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
H.R. 3009-88
Act of 1988" and inserting "section 2103(b) of the Bipar-
tisan 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 Competitive-
ness 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 Pro-
motion 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.
H.R. 3009-89
SEC. 2111. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY.
(a) IN GENERAL.-Not later than 1 year after the date of enact-
ment 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 sub-
section 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.
In this title:
(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 MEAS-
URES.-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 stand-
ards" 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
H.R. 3009-90
(E) acceptable conditions of work with respect to min-
imum wages, hours of work, and occupational safety and
health.
(7) DISPUTE SETTLEMENT UNDERSTANDING.-The term "Dis-
pute 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 Agree-
ments 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 per-
son" 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 estab-
lished pursuant to the WTO Agreement.
(14) WTO AGREEMENT.-The term "WTO Agreement"
means the Agreement Establishing the World Trade Organiza-
tion 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)).
H.R. 3009-91
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 ele-
ment 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 legiti-
mate economies of Andean countries and creating viable alter-
natives to illicit trade in coca.
(3) Notwithstanding the success of the Andean Trade Pref-
erence Act, the Andean region remains threatened by political
and economic instability and fragility, vulnerable to the con-
sequences 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 alter-
native 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 pros-
perity, stability, and democracy in the beneficiary countries.
(6) Renewal and enhancement of the Andean Trade Pref-
erence Act will bolster the confidence of domestic private enter-
prise 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 bene-
ficiary countries will promote the growth of free enterprise
H.R. 3009-92
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 bene-
ficiary countries:
"(A) Footwear not designated at the time of the effec-
tive date of this title as eligible for purposes of the general-
ized 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, brace-
lets 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 treat-
ment 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 sub-
ject 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).
H.R. 3009-93
"(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 COUN-
TRIES 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 compo-
nents are in chief value of llama, alpaca, or vicuña.
"(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 pro-
claim additional fabrics and yarns as eligible for pref-
erential 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 Commis-
sion;
"(III) within 60 days after the request, the
President has submitted a report to the Committee
on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate
H. R. 3009-94
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 FAB-
RICS 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 compo-
nents 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 sub-
clause (I) shall be extended in the 1-year period begin-
ning 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 arti-
cles 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.
H.R. 3009-95
"(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 pref-
erential 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 proce-
dures to ensure ongoing compliance with the
requirement set forth in subclause (II). If the Cus-
toms Service finds that a producer or an entity
controlling production has not satisfied such
requirement in a 1-year period, then apparel arti-
cles described in subclause (I) of that producer
or entity shall be ineligible for preferential treat-
ment 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 produc-
tion 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.
"(vi) SPECIAL RULES.-
"(I) EXCEPTION FOR FINDINGS AND TRIM-
MINGS.-An article otherwise eligible for pref-
erential 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 assem-
bled product. Examples of findings and trimmings
are sewing thread, hooks and eyes, snaps, buttons,
'bow buds', decorative lace, trim, elastic strips, zip-
pers, 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
H.R. 3009-96
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 deter-
mination 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 con-
tains 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 other-
wise eligible for preferential treatment under
clause (i) or (iii) shall not be ineligible for such
treatment because the article contains nylon fila-
ment 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 ARTI-
CLES.-For purposes of subparagraph (B)(iv), the President
shall consult with representatives of the ATPDEA bene-
ficiary 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
H.R. 3009-97
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 coun-
tries through whose territory the transshipment has
occurred take all necessary and appropriate actions
to prevent such transshipment. If the President deter-
mines 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 arti-
cles 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 sec-
tion 4 of the Annex (relating to providing com-
pensation) 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.
"(4) TUNA.-
"(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
H.R. 3009-98
beneficiary country, in foil or other flexible airtight con-
tainers weighing with their contents not more than 6.8
kilograms each, and that is imported directly into the cus-
toms territory of the United States from an ATPDEA bene-
ficiary 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.
"(5) CUSTOMS PROCEDURES.-
"(A) IN GENERAL.-
"(i) REGULATIONS.-Any importer that claims pref-
erential 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.
"(ii) DETERMINATION.-
"(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 treat-
ment is claimed, there shall be in effect a deter-
mination 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 mate-
rial respects to the relevant procedures and
requirements under chapter 5 of the NAFTA.
H.R. 3009-99
"(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 produc-
tion 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 Commis-
sioner 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, trans-
shipment, 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, classi-
fication, 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 Con-
gress, 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 sub-
sections (c) and (d) of section 203 and other appropriate
criteria, including the following:
H.R. 3009-100
"(i) Whether the beneficiary country has dem-
onstrated 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 collec-
tively;
"(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 occupa-
tional 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 sec-
tion 490 of the Foreign Assistance Act of 1961 (22
U.S.C. 2291j) for eligibility for United States assist-
ance.
"(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 Agree-
ments 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.
H.R. 3009-101
"(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 pref-
erential 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-
(A) in paragraph (1)-
(i) by inserting "(or otherwise provided for)" after "eligi-
bility"; 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 with-
drawal, suspension, or limitations of preferential duty treat-
ment 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.-
H.R. 3009-102
"(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 Represent-
ative 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 Represent-
ative 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 Com-
mittee 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.
H.R. 3009-103
(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 Agree-
ment 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 experi-
ence of the United States under the Agreement.
(c) TIMING OF REPORT.-The United States Trade Representa-
tive 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 Agree-
ment 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 air-
tight 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 bene-
ficiary 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
H. R. 3009-104
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 arti-
cles 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 bene-
ficiary 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 car-
ried 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.-
H.R. 3009-105
"(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 bene-
ficiary 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 pref-
erential 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 proce-
dures to ensure ongoing compliance with the
requirement set forth in subclause (II). If the Cus-
toms Service finds that a producer or an entity
controlling production has not satisfied such
requirement in a 1-year period, then apparel arti-
cles described in subclause (I) of that producer
or entity shall be ineligible for preferential treat-
ment under subparagraph (B) during any suc-
ceeding 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 fol-
lowing 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 bene-
ficiary countries.".
(7) Section 213(b)(2)(A) of such Act is further amended
by adding at the end the following new clause:
H. R. 3009-106
"(ix) APPAREL ARTICLES ASSEMBLED IN ONE OR
MORE CBTPA BENEFICIARY COUNTRIES FROM UNITED
STATES AND CBTPA BENEFICIARY COUNTRY COMPO-
NENTS.-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
fabries 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 BENE-
FICIARY 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 arti-
cles 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 coun-
tries 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
H. R. 3009-107
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 bene-
ficiary 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 origi-
nating 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 COUN-
TRIES.-
"(i) IN GENERAL.-Subject to subparagraph (A),
preferential treatment under this paragraph shall be
extended through September 30, 2004, for apparel arti-
cles 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
Tesser 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;
"(II) Botswana; and
"(III) Namibia."
(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 BENE-
FICIARY SUB-SAHARAN AFRICAN COUNTRIES FROM UNITED STATES
AND BENEFICIARY SUB-SAHARAN AFRICAN COUNTRY COMPO-
NENTS.-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 coun-
tries 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
H.R. 3009-108
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 begin-
ning 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 GENERAL-
IZED 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.".
H.R. 3009-109
(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 PROD-
UCTS.-
(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 deter-
mined pursuant to subsection (d)(1).".
(B) Subsection (b) is amended to read as follows:
"(b) WOOL YARN.-
"(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 cal-
endar 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,
H.R. 3009-110
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 cal-
endar 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 sub-
section (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 attrib-
utable 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 manufactur-
ers 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 sub-
section (a), other than the manufacturers to which subpara-
graph (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 pay-
ment 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 attrib-
utable to the duties paid on eligible wool products
H.R. 3009-111
imported in calendar year 1999 by the importing manu-
facturer 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 sub-
section (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 attrib-
utable to the purchases of imported eligible wool prod-
ucts in calendar year 1999 by the nonimporting manu-
facturer 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 pay-
ment 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 attrib-
utable to the duties paid on eligible wool products
imported in calendar year 1999 by the importing manu-
facturer 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 sub-
section (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 attrib-
utable to the purchases of imported eligible wool prod-
ucts in calendar year 1999 by the nonimporting manu-
facturer making the claim, and
"(ii) the denominator of which is the amount attrib-
utable to the purchases of imported eligible wool prod-
ucts 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
H.R. 3009-112
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 eligi-
bility to be claimants are eligible to make a claim for a payment
under this section.
"(5) AMOUNT ATTRIBUTABLE TO PURCHASES BY NON-
IMPORTING MANUFACTURERS.-
"(A) AMOUNT ATTRIBUTABLE.-For purposes of para-
graphs (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 Cus-
toms Service, within 45 days after the date of enactment
of the Wool Manufacturer Payment Clarification and Tech-
nical 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 non-
importing 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 para-
graphs (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.
H. R. 3009-113
"(B) REALLOCATIONS:-In the event that a manufac-
turer that would have received payment under subpara-
graph (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 manufac-
turers under such subparagraph shall be increased on a
pro rata basis by the amount of the payment such manufac-
turer 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 para-
graph (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 sec-
tion, any amount otherwise payable under subsection (d) to a manu-
facturer 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 manufac-
turer 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 proc-
essed in the United States into wool yarn.
H.R. 3009-114
(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 Har-
monized 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 Har-
monized 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 Har-
monized 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 Har-
monized 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.
H.R. 3009-115
(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 appro-
priated and is hereby appropriated out of amounts in the gen-
eral fund of the Treasury not otherwise appropriated such
sums as are necessary to carry out the provisions of this sub-
section.
(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 aus-
pices 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 cer-
tifies 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)-
(1) $50,000,000; and
(2) amounts equivalent to amounts recovered by the United
States pursuant to the settlement of disputes pursuant to pro-
ceedings under the auspices of the World Trade Organization.
Amounts appropriated to the fund are authorized to remain avail-
able 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".
(b) EFFECTIVE DATE.-
(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.
H.R. 3009-116
(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 Agri-
culture and the Commissioner of Customs shall continuously mon-
itor 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.
H.R. 3009-117
(c) REPORTS AND RECOMMENDATIONS.-The Secretary and the
Commissioner shall report their findings to Congress and the Presi-
dent 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.