A bill to achieve balance in the foreign trade of the United States, through a market-based system of tradable certificates, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Balanced Trade Restoration Act of 
2006''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Since the 1990s, the United States has experienced 
        record trade deficits that has made the United States the 
        largest debtor country in the world.
            (2) In 2005, the merchandise trade deficit of the United 
        States was a record $767,000,000,000, and in 2006, the 
        merchandise trade deficit of the United States is projected to 
        surpass the record set in 2005.
            (3) The surging trade deficits could soon create a balance 
        of payments crisis for the United States, which could wreak 
        havoc with the economy of the United States.
            (4) Article XII of the General Agreement on Tariff and 
        Trade (GATT 1994), annexed to the Agreement Establishing the 
        World Trade Organization entered into on April 15, 1994, 
        permits any member country to restrict the quantity or value of 
        imports in order to safeguard the external financial position 
        and the balance of payments of the member country.
            (5) In accordance with Article XII of the GATT 1994, the 
        United States should take steps to restore balance to its 
        merchandise trade, and safeguard its external financial 
        position and its balance of payments.
            (6) The imposition of import restrictions should be phased 
        in to allow the economy of the United States to absorb the 
        impact of import restrictions with minimal disruption.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Balanced trade certificate; certificate.--The terms 
        ``Balanced Trade Certificate'' and ``Certificate'' mean a 
        certificate issued pursuant to section 4 that provides the 
        holder of the certificate with a license to import into the 
        United States a good with an appraised value that is equal to 
        or less than the face value of the certificate.
            (2) Department.--The term ``Department'' means the 
        Department of Commerce.
            (3) Oil or gas.--The term ``oil or gas'' means any good 
        classifiable under--
                    (A) heading 2709 of the Harmonized Tariff Schedule 
                of the United States (relating to petroleum oils and 
                oils obtained from bituminous minerals, crude);
                    (B) heading 2710 of the Harmonized Tariff Schedule 
                of the United States (relating to petroleum oils and 
                oils obtained from bituminous minerals, other than 
                crude); and
                    (C) heading 2711 of the Harmonized Tariff Schedule 
                of the United States (relating to light oils and 
                preparations).
            (4) Program.--The term ``Program'' means the Balanced Trade 
        Certificate Program established under section 4.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.

SEC. 4. ESTABLISHMENT OF BALANCED TRADE PROGRAM.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall, in cooperation with the 
Secretary of Homeland Security, establish a Balanced Trade Certificate 
Program within the International Trade Administration of the 
Department. The purpose of the Program is to create gradually balance 
between the dollar value of goods imported into the United States and 
goods exported from the United States.
    (b) Regulatory Authority.--The Secretary, in cooperation with the 
Secretary of Homeland Security, shall promulgate regulations in 
accordance with section 5 that provide for--
            (1) issuing Certificates to exporters;
            (2) collecting Certificates from importers;
            (3) valuing the Certificates issued and collected; and
            (4) trading Certificates.

SEC. 5. OPERATION OF THE PROGRAM.

    (a) Exporters.--
            (1) Issuance of certificates.--The Program established 
        under section 4 shall provide for the issuance of a Certificate 
        to any person who exports a good from the United States with a 
        face value equivalent to a multiple of the appraised value of 
        the good determined pursuant to paragraph (2).
            (2) Value of balanced trade certificates.--
                    (A) Determination of value.--The Secretary shall 
                establish a system for the valuation of Certificates. 
                To the extent practicable, the value of a Certificate 
                shall be based upon the appraised value declared on the 
                shipper's export declaration (SED), in accordance with 
                subparagraph (B);
                    (B) System of valuation.--The value of a 
                Certificate shall be determined in accordance with the 
                following table:


 
 
 
If a Certificate is issued:                        The face value of the Certificate is an amount equal to:
  During the first year the Program is in          140% of the appraised value of the good exported.
   operation
  During the second year the Program is in         130% of the appraised value of the good exported.
   operation
  During the third year the Program is in          120% of the appraised value of the good exported.
   operation
  During the fourth year the Program is in         110% of the appraised value of the good exported.
   operation
  After the fourth year the Program is in          100% of the appraised value of the good exported
   operation

    (b) Importers.--
            (1) Submission requirement.--Except as described in 
        paragraph (5), any person who imports a good into the United 
        States shall submit to the Secretary of Homeland Security, not 
        later than 90 days after the date on which the good enters the 
        United States, a Certificate with an aggregate face value equal 
        to or greater than the appraised value of the good imported 
        pursuant to paragraph (2).
            (2) Valuation of imported goods.--The Secretary shall 
        establish a method for the valuation of goods imported into the 
        United States. The method may include the use of the declared 
        dollar value of the goods on the Entry Summary (United States 
        Customs and Border Protection Form 7501).
            (3) Collection of certificates.--The Secretary shall 
        establish a system for the collection of Certificates submitted 
        by importers to the Secretary of Homeland Security.
            (4) Penalty for failure to supply certificates.--If a 
        person imports a good into the United States and fails to 
        submit a Certificate with an aggregate face value equal to, or 
        greater than, the value of the good imported as required by 
        paragraph (1), the Secretary of Homeland Security shall--
                    (A) suspend the person from importing any good 
                until such time as a Certificate required by paragraph 
                (1) is submitted; and
                    (B) impose a penalty equal to 3 times the appraised 
                value of the good imported.
            (5) Exception for oil or gas.--
                    (A) Adjustment period.--During the period that 
                begins on the date of the enactment of this Act and 
                ends 5 years after such date, paragraph (1) shall not 
                apply to a person who imports oil or gas into the 
                United States.
                    (B) Gradual valuation.--At the end of the period 
                described in subparagraph (A), any person who imports 
                oil or gas into the United States shall submit to the 
                Secretary of Homeland Security, not later than 90 days 
                after the date on which the oil or gas enters the 
                United States, a Certificate with an aggregate face 
                value equal to, or greater than, the appraised value of 
                the oil or gas imported pursuant to paragraph (2), 
                adjusted in accordance with the following table:


 
 
 
If the oil or gas is imported:                     The aggregate face value of the Certificate required to
                                                    import the oil or gas is:
  During the sixth year the Program is in          60% of the appraised value of the oil or gas imported.
   operation
  During the seventh year the Program is in        70% of the appraised value of the oil or gas imported.
   operation
  During the eighth year the Program is in         80% of the appraised value of the oil or gas imported.
   operation
  During the ninth year the Program is in          90% of the appraised value of the oil or gas imported.
   operation
  After the ninth year the Program is in           100% of the appraised value of the oil or gas imported.
   operation

    (c) Management of Certificates.--
            (1) Certificates removed from circulation.--Upon the 
        receipt of a Certificate from a person importing a good, the 
        Secretary of Homeland Security, in cooperation with the 
        Secretary, shall permanently remove the Certificate from 
        circulation.
            (2) Transferability and limitation on validity of 
        certificates.--A Certificate issued pursuant to this Act shall 
        be--
                    (A) fully transferable; and
                    (B) valid for 365 days from the date the 
                Certificate is issued.

Summary: Balanced Trade Restoration Act of 2006 - Directs the Secretary of Commerce to establish a Balanced Trade Certificate Program within the International Trade Administration of the Department of Commerce. Provides under such Program for the issuance of certificates to measure and control US imports and exports to achieve a balance in the foreign trade of the United States. Exempts importers of oil or gas during the first five years of the program.