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

SECTION 1. 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) in note 1, by striking ``subheading 
                3501.10.10'' and inserting ``subheadings 3501.10.05, 
                3501.10.15, and 3501.10.20''; and
                    (B) 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 54,051,000 kilograms. Articles the product of Mexico 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, inclusive, and 
        inserting the following new subheadings with 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     0.37 cents/kg   Free (A*, CA, E, IL, J,  12 cents/kg
                                     general note                     MX)
                                     15 of the
                                     tariff
                                     schedule and
                                     entered
                                     pursuant to
                                     its provisions
           3501.10.15               Described in     0.37 cents/kg   Free (A*, CA, E, IL, J)  12 cents/kg
                                     additional
                                     U.S. note 2 to
                                     this chapter
                                     and entered
                                     according to
                                     its provisions
           3501.10.20               Other..........  $2.16/kg        Free (MX)                $2.81/kg
           .................       Other:
           3501.10.55               For industrial   Free            Free (A*, CA, E, IL, J,  Free
                                     uses other                       MX)
                                     than the
                                     manufacture of
                                     food for
                                     humans or
                                     other animals
                                     or as
                                     ingredients in
                                     such food.....
           .................        Other:
           3501.10.60                Described in    Free            Free (A*, CA, E, IL, J,  12 cents/kg
                                      general note                    MX)
                                      15 of the
                                      tariff
                                      schedule and
                                      entered
                                      pursuant to
                                      its
                                      provisions...
           3501.10.65                Described in    0.37 cents/kg   Free (A*, CA, E, IL, J)  12 cents/kg
                                      additional
                                      U.S. note 2
                                      to this
                                      chapter and
                                      entered
                                      according to
                                      its
                                      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, E, IL, J,  30%
                                                                      MX)
           .................       Other:
           3501.90.30               For industrial   6%              Free (A*, CA, E, IL, J,  30%
                                     uses other                       MX)
                                     than the
                                     manufacture of
                                     food for
                                     humans or
                                     other animals
                                     or as
                                     ingredients in
                                     such food.....
           .................        Other:
           3501.90.55                Described in    0.37 cents/kg   Free (A*, CA, E, IL, J,  12.1 cents/kg
                                      general note                    MX)
                                      15 of the
                                      tariff
                                      schedule and
                                      entered
                                      pursuant to
                                      its
                                      provisions...
           3501.90.65                Described in    0.37 cents/kg   Free (A*, CA, E, IL, J)  12.1 cents/kg
                                      additional
                                      U.S. note 2
                                      to this
                                      chapter and
                                      entered
                                      according to
                                      its
                                      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 
15,818,000 kilograms. Articles the product of Mexico 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 subheading 0404.90 through 0404.90.10, 
        inclusive, 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 
        0405.10 and the article description 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     0.37 cents/kg   Free (A*, CA, E, IL, J,  12 cents/kg
                                     general note                     MX)
                                     15 of the
                                     tariff
                                     schedule and
                                     entered
                                     pursuant to
                                     its provisions
           0404.90.15               Described in     0.37 cents/kg   Free (A*, CA, E, IL, J)  12 cents/kg
                                     additional
                                     U.S. note 27
                                     to this
                                     chapter and
                                     entered
                                     pursuant to
                                     its provisions
           0404.90.20               Other..........  $1.56/kg        Free (MX)                $2.02/kg
                                                                                                              ''

    (c) Effective Date.--The amendments made by this section apply to 
goods entered, or withdrawn from warehouse for consumption, on or after 
the first day of the first month after the date that is 15 days after 
the date of enactment of this Act.

SEC. 2. COMPENSATION AUTHORITY.

    (a) In General.--If the provisions of section 1 require, the 
President--
            (1) may enter into a 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 
        existing duty, or such continuance of existing duty-free or 
        excise treatment, 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 rate of duty to a rate which is 
        less than 70 percent of the existing rate of duty.
            (2) Special rule for certain duty reductions.--If the rate 
        of duty in effect at any time is an intermediate stage under 
        section 1102(a) of the Omnibus Trade and Competitiveness Act of 
        1988, the proclamation made pursuant to subsection (a) may 
        provide for the reduction of each rate of duty at each such 
        stage proclaimed under section 1102(a) by not more than 30 
        percent of such rate of duty, and may provide for a final rate 
        of duty which is not less than the 70 percent of the rate of 
        duty proclaimed as the final stage under section 1102(a).
            (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 one percent ad valorem.

Summary: Amends the Harmonized Tariff Schedule of the United States to impose tariff-rate quotas and provide various duty rates on certain casein, caseinates, milk protein concentrate, and other casein derivatives and glues imported into the United States . Authorizes the President to: (1) enter into a 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. Sets forth certain limits on the reduction of duties on such products.