To impose tariff-rate quotas on certain casein and milk protein concentrates.

Summary: Milk Import Tariff Equity Act - Amends the Harmonized Tariff Schedule of the United States to impose tariff-rate quotas (quantitative import limits) and provide various duty rates on certain casein, caseinates, milk protein concentrate, and other casein derivatives and glues imported into the United States (except imports from a country which has entered into a free trade agreement with the United States).

Authorizes the President to: (1) enter into a trade agreement, or enter into negotiations pursuant to an existing trade agreement, with a foreign country to grant new concessions as compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and (2) proclaim any necessary modification or continuance of any existing duty, or continuance of existing duty-free or excise treatment, or any quantitative limitation. Sets forth certain limits on the reduction of duties on such products.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Milk Import Tariff Equity Act''.

SEC. 2. IMPOSITION OF TARIFF-RATE QUOTAS ON CERTAIN CASEIN AND MILK 
              CONCENTRATES.

    (a) Casein and Casein Products.--
            (1) In general.--The Additional U.S. notes to chapter 35 of 
        the Harmonized Tariff Schedule of the United States are 
        amended--
                    (A) by striking ``Additional U.S. Note'' and 
                inserting ``Additional U.S. Notes'';
                    (B) in note 1, by striking ``subheading 
                3501.10.10'' and inserting ``subheadings 3501.10.05, 
                3501.10.15, and 3501.10.20''; and
                    (C) by adding at the end the following new note:
    ``2. The aggregate quantity of casein, caseinates, milk protein 
concentrate, and other casein derivatives entered under subheadings 
3501.10.15, 3501.10.65, and 3501.90.65 in any calendar year shall not 
exceed 110 percent of the average quantity of such articles imported 
into the United States during the preceding 3 calendar years, as 
determined by the Secretary of Agriculture. Articles originating in a 
country with which the United States has a free trade agreement in 
force shall not be permitted or included under this quantitative 
limitation and no such article shall be classifiable therein.''.
            (2) Rates for certain caseins, caseinates, and other 
        derivatives and glues.--Chapter 35 of the Harmonized Tariff 
        Schedule of the United States is amended by striking 
        subheadings 3501.10 through 3501.90.60 and inserting the 
        following new subheadings, with the article descriptions for 
        subheadings 3501.10 and 3501.90 having the same degree of 
        indentation as the article description for subheading 
        3502.20.00:


      ``3501.10       Casein:                                        ............................
                       Milk protein concentrate:                     ............................
     3501.10.05         Described in general note 15 to   0.37 cent  Free (A*, CA, CL, E, IL, J,   12 cents/
                         the tariff schedule and entered      s/kg    JO, MX, SG)            0.2         kg
                         pursuant to its provisions.....              cents/kg (AU)
     3501.10.15         Described in additional U.S.      0.37 cent  Free (A*, CA, CL, E, IL, J,   12 cents/
                         note 2 to this chapter and           s/kg    JO, SG)            0.2             kg
                         entered according to its                     cents/kg (AU)
                         provisions.....................
     3501.10.20         Other...........................  $2.16/kg   Free (MX)                     $2.81/kg
                       Other:                                        ............................
     3501.10.55         Suitable only for industrial          Free   ............................      Free
                         uses other than the manufacture
                         of food for humans or other
                         animals or as ingredients in
                         such food......................
                        Other:                                       ............................
     3501.10.60          Described in general note 15 to  0.37 cent  Free (A*, CA, CL, E, IL, J,   12 cents/
                          the tariff schedule and             s/kg    JO, MX, SG)            0.2         kg
                          entered pursuant to its                     cents/kg (AU)
                          provisions....................
     3501.10.65          Described in additional U.S.     0.37 cent  Free (A*, CA, CL, E, IL, J,   12 cents/
                          note 2 to this chapter and          s/kg    JO, SG)            0.2             kg
                          entered according to its                    cents/kg (AU)
                          provisions....................
     3501.10.70          Other..........................  $2.16/kg   Free (MX)                     $2.81/kg
        3501.90       Other:                                         ............................
     3501.90.05        Casein glues.....................        6%   Free (A*, CA, CL, E, IL, J,        30%
                                                                      JO, MX)            3% (SG)
                                                                               4.5% (AU)
                       Other:                                        ............................
     3501.90.30         Suitable only for industrial            6%   Free (A*, CA, CL, E, IL, J,        30%
                         uses other than the manufacture              JO, MX, SG)            0.2
                         of food for humans or other                  cents/kg (AU)
                         animals or as ingredients in
                         such food......................
                        Other:..........................             ............................
     3501.90.55          Described in general note 15 to  0.37 cent  Free (A*, CA, CL, E, IL, J,   12.1 cent
                          the tariff schedule and             s/kg    JO, MX, SG)            0.2       s/kg
                          entered pursuant to its                     cents/kg (AU)
                          provisions....................
     3501.90.65          Described in additional U.S.     0.37 cent  Free (A*, CA, CL, E, IL, J,   12.1 cent
                          note 2 to this chapter and          s/kg    JO, SG)            0.2           s/kg
                          entered according to its                    cents/kg (AU)
                          provisions....................
     3501.90.70          Other..........................  $2.16/kg   Free (MX)                     $2.81/kg   ''
                                                                                                               .

    (b) Milk Protein Concentrates.--
            (1) In general.--The Additional U.S. notes to chapter 4 of 
        the Harmonized Tariff Schedule of the United States are 
        amended--
                    (A) in note 13, by striking ``subheading 
                0404.90.10'' and inserting ``subheadings 0404.90.05, 
                0404.90.15, and 0404.90.20''; and
                    (B) by adding at the end the following new note:
    ``27. The aggregate quantity of milk protein concentrates entered 
under subheading 0404.90.15 in any calendar year shall not exceed 110 
percent of the average quantity of such articles imported into the 
United States during the preceding 3 calendar years, as determined by 
the Secretary of Agriculture. Articles originating in a country with 
which the United States has a free trade agreement in force shall not 
be permitted or included under this quantitative limitation and no such 
article shall be classifiable therein.''.
            (2) Rates for certain milk protein concentrates.--Chapter 4 
        of the Harmonized Tariff Schedule of the United States is 
        amended by striking subheadings 0404.90 through 0404.90.10 and 
        inserting the following new subheadings, with the article 
        description for subheading 0404.90 having the same degree of 
        indentation as the article description for subheading 0404.10 
        and with the article descriptions for subheadings 0404.90.05, 
        0404.90.15, and 0404.90.20 having the same degree of 
        indentation as the article description for subheading 
        0405.20.40:


      ``0404.90       Other:                                         ............................
                       Milk protein concentrates:                    ............................
     0404.90.05         Described in general note 15 to   0.37 cent  Free (A*, CA, CL, E, IL, J,   12 cents/
                         the tariff schedule and entered      s/kg    JO, MX, SG) 0.2 cents/kg           kg
                         pursuant to its provisions.....              (AU)
     0404.90.15         Described in additional U.S.      0.37 cent  Free (A*, CA, CL, E, IL, J,   12 cents/
                         note 27 to this chapter and          s/kg    JO, SG)            0.2             kg
                         entered pursuant to its                      cents/kg (AU)
                         provisions.....................
     0404.90.20            Other........................  $1.56/kg   Free (MX)                     $2.02/kg   ''
                                                                                                               .

    (c) Effective Date.--
            (1) In general.--The amendments made by this section apply 
        to--
                    (A) goods entered, or withdrawn from warehouse for 
                consumption, on or after the first day of the first 
                month after the date that is 90 days after the date of 
                the enactment of this Act; or
                    (B) if the President notifies Congress that the 
                international obligations of the United States require 
                the President to enter into negotiations pursuant to an 
                existing trade agreement under section 3(a)(1), goods 
                entered, or withdrawn from warehouse for consumption, 
                on or after the first day of the first month after the 
                date that is 150 days after the date of the enactment 
                of this Act.
            (2) Transitional provisions.--
                    (A) Chapter 35.--Notwithstanding Additional U.S. 
                note 2 to chapter 35 of the Harmonized Tariff Schedule 
                of the United States (as added by subsection (a)(1)(C) 
                of this section), in the case of any calendar year that 
                includes the effective date described in paragraph (1), 
                the aggregate amount of casein, caseinates, milk 
                protein concentrate, and other casein derivatives 
                entered under subheadings 3501.10.15, 3501.10.65, and 
                3501.90.65 shall not exceed an amount equal to--
                            (i) 110 percent of the average quantity of 
                        such articles imported into the United States 
                        during the preceding 3 calendar years, as 
                        determined by the Secretary of Agriculture; 
                        multiplied by
                            (ii) the quotient of--
                                    (I) the number of calendar days 
                                remaining in such calendar year 
                                beginning with such effective date; 
                                divided by
                                    (II) 365 days.
                    (B) Chapter 4.--Notwithstanding Additional U.S. 
                note 27 to chapter 4 of the Harmonized Tariff Schedule 
                of the United States (as added by subsection (b)(1)(B) 
                of this section), in the case of any calendar year that 
                includes the effective date described in paragraph (1), 
                the aggregate amount of milk protein concentrates 
                entered under subheading 0404.90.15 shall not exceed an 
                amount equal to--
                            (i) 110 percent of the average quantity of 
                        such articles imported into the United States 
                        during the preceding 3 calendar years, as 
                        determined by the Secretary of Agriculture; 
                        multiplied by
                            (ii) the quotient of--
                                    (I) the number of calendar days 
                                remaining in such calendar year 
                                beginning with such effective date; 
                                divided by
                                    (II) 365 days.

SEC. 3. COMPENSATION AUTHORITY.

    (a) In General.--If the provisions of section 2 require, the 
President--
            (1) may enter into a trade agreement, or enter into 
        negotiations pursuant to an existing trade agreement, with any 
        foreign country or instrumentality for the purpose of granting 
        new concessions as compensation in order to maintain the 
        general level of reciprocal and mutually advantageous 
        concessions; and
            (2) may proclaim such modification or continuance of any 
        general rate of duty, or such continuance of duty-free or 
        excise treatment, or any quantitative limitation, as the 
        President determines to be required or appropriate to carry out 
        any such agreement.
    (b) Limitations.--
            (1) In general.--No proclamation shall be made pursuant to 
        subsection (a) decreasing any general rate of duty to a rate 
        which is less than 70 percent of the existing general rate of 
        duty.
            (2) Special rule for certain duty reductions.--If the 
        general rate of duty in effect is an intermediate stage under 
        an agreement in effect before August 6, 2002, under section 
        1102(a) of the Omnibus Trade and Competitiveness Act of 1988 or 
        under an agreement entered into under section 2103 (a) or (b) 
        of the Bipartisan Trade Promotion Authority Act of 2002, the 
        proclamation made pursuant to subsection (a) may provide for 
        the reduction of each general rate of duty at each such stage 
        by not more than 30 percent of such general rate of duty, and 
        may provide for a final general rate of duty which is not less 
        than 70 percent of the general rate of duty proclaimed as the 
        final stage under such agreement.
            (3) Rounding.--If the President determines that such action 
        will simplify the computation of the amount of duty computed 
        with respect to an article, the President may exceed the 
        limitations provided in paragraphs (1) and (2) by not more than 
        the lesser of--
                    (A) the difference between such limitation and the 
                next lower whole number, or
                    (B) one-half of 1 percent ad valorem.