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[Senate Report 114-43]
[From the U.S. Government Publishing Office]

                                                        Calendar No. 74
114th Congress     }                                     {       Report
                                 SENATE
 1st Session       }                                     {       114-43

======================================================================

 
AN ORIGINAL BILL TO EXTEND THE AFRICAN GROWTH AND OPPORTUNITY ACT, THE 
  GENERALIZED SYSTEM OF PREFERENCES, THE PREFERENTIAL DUTY TREATMENT 
               PROGRAM FOR HAITI, AND FOR OTHER PURPOSES

                                _______
                                

                  May 12, 2015.--Ordered to be printed

                                _______
                                

   Mr. Hatch, from the Committee on Finance, submitted the following

                              R E P O R T

                         [To accompany S. 1267]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Finance, having considered an original 
bill to amend the African Growth and Opportunity Act, the 
Generalized System of Preferences, the preferential duty 
treatment program for Haiti, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
 I. REPORT AND OTHER MATERIALS OF THE COMMITTEE.......................2
        A. Report of the Committee on Finance....................     2
        B. Summary of Congressional Consideration of the Bill....     2
            1. Background........................................     2
            2. Committee Consideration...........................     2
        C. Trade Relations with Preference Program Beneficiaries.     2
            1. United States-Sub-Saharan Africa Trade............     2
            2. Generalized System of Preferences.................     3
            3. Haiti Preference Programs.........................     4
        D. GENERAL DESCRIPTION OF THE BILL.......................     5
            TITLE I: EXTENSION OF AFRICAN GROWTH AND OPPORTUNITY 
                ACT..............................................     5
            TITLE II: EXTENSION OF GENERALIZED SYSTEM OF 
                PREFERENCES......................................    10
            TITLE III: EXTENSION OF PREFERENTIAL DUTY TREATMENT 
                PROGRAM FOR HAITI................................    11
            TITLE IV: TARIFF CLASSIFICATIONS OF CERTAIN ARTICLES.    11
            TITLE V: MISCELLANEOUS PROVISIONS....................    12
            TITLE VI: OFFSETS....................................    12
II. BUDGETARY IMPACT OF THE BILL.....................................13
III.VOTES OF THE COMMITTEE...........................................21

        A. Motion to Report the Bill.............................    21
        B. Votes on Amendments...................................    21
IV. REGULATORY IMPACT OF THE BILL....................................22
 V. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............22

             I. REPORT AND OTHER MATERIALS OF THE COMMITTEE

                 A. Report of the Committee on Finance

    The Committee on Finance, having considered an original 
bill to amend the African Growth and Opportunity Act (AGOA), to 
renew the Generalized System of Preferences (GSP), and the 
preferential duty treatment program for Haiti, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

         B. Summary of Congressional Consideration of the Bill

1. Background

    On April 20, 2015 Chairman Hatch introduced S. 1009, on 
which this bill is based, on behalf of himself and Senator 
Wyden.

2. Committee Consideration

    The Senate Committee on Finance met in open executive 
session on April 22, 2015 to consider the Chairman's Mark to 
extend the AGOA preference and amend provisions of the program, 
to extend and retroactively apply benefits under the GSP 
program, and to extend preferential duty treatment for Haiti. 
The bill the Committee considered was based upon S. 1009 of the 
114th Congress. During the Committee's consideration of the 
bill, a number of amendments were offered and two were 
accepted. The Committee approved the bill by voice vote.

        C. Trade Relations With Preference Program Beneficiaries

1. United States-Sub-Saharan Africa Trade

    In 2000, Congress created a trade preference program called 
the African Growth and Opportunity Act (AGOA) with the goals of 
reducing trade barriers, encouraging increased trade and 
investment between the United States and sub-Saharan Africa, 
supporting regional integration, and incentivizing progress 
towards reciprocal trade agreements. To meet these goals, the 
AGOA program offered trade preferences and other economic 
benefits to sub-Saharan African countries that met certain 
criteria, including progress towards a market economy, respect 
for the rule of law, elimination of barriers to U.S. trade and 
investment, and protection of human and worker rights. AGOA 
built on existing U.S. trade programs by including additional 
products eligible for duty-free treatment beyond those 
previously available under the Generalized System of 
Preferences (GSP).
    The ``third-country fabric'' provision in AGOA allows duty-
free treatment of apparel assembled in one or more lesser-
developed AGOA beneficiary countries regardless of the country 
of origin of the fabric, subject to a cap of 3.5 percent (by 
quantity) of all U.S. apparel imports. Lesser-developed 
countries are defined in AGOA as those with a per-capita gross 
national product of less than $1,500 as measured by the World 
Bank. In subsequent amendments of AGOA, Botswana, Namibia, and 
Mauritius were also added to the list of lesser-developed 
countries. At present, 27 AGOA-eligible countries qualify for 
the third-country fabric provision.
    AGOA has been amended several times since its initial 
enactment. In 2002, Congress amended AGOA to further increase 
market access for products from sub-Saharan Africa. In 2004, 
Congress further amended AGOA, extending its benefits beyond 
the original deadline and clarifying certain provisions. This 
legislation also included directives to the President on 
investment initiatives and technical assistance. Congress 
passed legislation in 2006 that further amended AGOA and 
extended third country fabric provisions. Those provisions were 
again extended in 2012 to match the expiration date, September 
30, 2015, of the underlying AGOA program.
    Between 2001 and 2013, imports under the AGOA program 
increased approximately 10 percent each year from $7.6 billion 
to $24.8 billion. In 2013, U.S. imports under AGOA totaled 
$26.8 billion, more than four times the amount in 2001. Major 
U.S. imports from AGOA countries include crude oil, 
transportation equipment, minerals and metals, textiles and 
apparel products, agricultural products, and chemicals.

2. Generalized System of Preferences

    The Generalized System of Preferences (GSP) program 
provides unilateral, nonreciprocal preferential tariff 
treatment to certain products imported from designated 
beneficiary developing countries. The U.S. program, established 
by Title V of the Trade Act of 1974, is subject to periodic 
renewal by Congress, and was last extended through July 31, 
2013.
    The President may designate countries as beneficiaries 
under the program provided those countries meet the prescribed 
eligibility criteria including: restrictions on countries that 
provide beneficial access to their market that has a 
significant negative impact on U.S. commerce; countries that 
nationalize, expropriate or otherwise infringe the property 
rights of U.S. citizens including patents, trademarks, or 
copyrights; and countries that have failed to act in good faith 
in recognizing as binding or in enforcing arbitral awards; as 
well as requirements that beneficiaries have taken or are 
taking steps to grant internationally recognized worker rights 
and eliminate worst forms of child labor. The statute includes 
discretionary criteria the President may take into account in 
determining eligibility including: the level of economic 
development; commitments to provide reasonable and equitable 
market access; efforts to limit unreasonable export practices 
and reduce trade-distorting investment policies and practices; 
and steps taken to grant internationally recognized worker 
rights.
    The President may withdraw, suspend, or limit a 
beneficiary's GSP status. Graduation from the program may 
follow the President's determination that the country is 
sufficiently developed. Mandatory country graduation occurs 
when the beneficiary is determined to be a ``high income 
country'' as defined by official World Bank statistics. If the 
President finds that a beneficiary is not making substantial 
progress toward any of the eligibility requirements, he may 
take steps to limit or remove the country's benefits. The 
President is required to notify Congress of changes to 
beneficiary status.
    More than 3,500 products are currently eligible for duty-
free treatment, as well as about 1,500 additional articles 
originating in Least Developed Beneficiary Countries. The 
program authorizes the President to designate certain imports 
as eligible for duty-free treatment under the GSP after 
receiving advice from the United States International Trade 
Commission (USITC). Several products designated as ``import 
sensitive'' are specifically excluded from preferential 
treatment including most textiles and apparel goods; watches; 
footwear and other accessories; most electronics, steel, and 
glass products; and certain agricultural products that are 
subject to tariff-rate quotas.
    Leading imports under GSP in 2012, the last full year of 
implementation, included petroleum and other oils; rubber 
tires; aluminum alloy plates, sheets, and strips; certain 
chemical and silver jewelry.

3. Haiti Preference Programs

    In 1983, Congress created the Caribbean Basin Economic 
Recovery Act (CBERA) in response to deteriorating economic and 
political conditions in the region. The United States' first 
regionally-targeted preference program, CBERA provided limited 
duty-free entry of select Caribbean exports. CBERA was made 
permanent with a few modest additions of eligible products in 
the Caribbean Basin Economic Expansion Act of 1990.
    On March 1, 2006, the Dominican Republic-Central America-
United States Free Trade Agreement (CAFTA-DR) was implemented, 
a reciprocal trade agreement that provides partner countries 
with more liberal access to the U.S. market. Haiti was the only 
major apparel-producing country in the region that was not 
included in CAFTA-DR. As the Haitian economy continued to 
struggle, Congress passed legislation creating flexible 
unilateral preferences for Haiti's apparel sector by amending 
CBERA to include the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2006 (HOPE I). These 
preferences were enhanced and extended by the HOPE II Act of 
2008 (HOPE II) and the Economic Lift Program (HELP) Act of 
2010.
    The HOPE I, HOPE II and HELP programs include special rules 
for the duty-free treatment of select apparel imports from 
Haiti made from third-country yarns and fabrics and provide 
duty-free treatment to apparel articles wholly assembled or 
knit-to-shape in Haiti. Access is provided through tariff 
preference levels for knit and woven articles; unlimited duty 
free treatment for certain products including selected women's 
and girls' sleepwear, luggage, and handbags; and an earned 
import allowance program. Eligible articles imported under the 
program are capped at 1.25% of total U.S. apparel imports. The 
programs collectively expire in September 2020.
    In 2013, U.S goods imports from Haiti totaled $847 million. 
Preferential access made knit and woven apparel the largest 
import groups from Haiti totaling $612 million and $191 million 
respectively.

                   D. General Description of the Bill

        TITLE I: EXTENSION OF AFRICAN GROWTH AND OPPORTUNITY ACT

Section 101--Short title

    Section 101 entitles the bill the ``Trade Preferences 
Extension Act of 2015.''

Section 102--Findings

    In Section 102, Congress finds that the AGOA program is the 
center of the United States' economic relationship with sub-
Saharan Africa enhancing trade, investment, job creation, 
democratic institutions, development and poverty reduction 
through trade and investment. Trade supporting these objectives 
has more than tripled since the program was enacted in 2000. 
Congress also finds that it is in the United States' long-term 
economic interest to increase trade with emerging markets and 
enhance economic and political ties with the fastest-growing 
economies in the world. Further integration of sub-Saharan 
African countries into the global economy stimulates these 
goals and, to that end, the bill includes Congressional 
findings that the implementation of the Agreement on Trade 
Facilitation of the World Trade Organization will strengthen 
integration and economic growth in the region. The Committee is 
increasingly concerned with market-access and investment 
barriers in many sub-Saharan countries, most notably South 
Africa. Thus the bill includes Congressional findings that the 
elimination of trade barriers in sub-Saharan Africa, including 
high tariffs, forced localization requirements, restrictions on 
investment, and customs barriers, will create opportunities for 
workers, businesses, farmers, and ranchers in the United States 
and sub-Saharan African countries, increase utilization of the 
AGOA program, promote growth and enhance the trade relationship 
between the United States and sub-Saharan Africa.

Section 103--Extension of the African Growth and Opportunity Act

    Section 103 extends AGOA and the special rule of origin on 
third country fabric from September 30, 2015 to September 30, 
2025.

Section 104--Promoting greater regional integration

    The Committee believes that further regional integration in 
sub-Saharan Africa will spur greater economic development. 
Therefore, the Committee included new provisions in Section 
104(a) that allow for accumulation of the direct costs of 
processing operations performed in one or more beneficiary sub-
Saharan African countries or former beneficiary sub-Saharan 
African countries in achieving the required minimum 35 percent 
local value content. The Committee believes that this provision 
will increase program utilization by deepening regional 
integration.
    Section 104(b) clarifies that rules of origin for certain 
articles described in section 503(a)(1) of the Trade Act of 
1974 will apply to articles that are the growth, product, and 
manufacture of a sub-Saharan beneficiary. The general rule of 
origin governing duty-free treatment under the GSP program 
would continue to apply to imports from beneficiary sub-Saharan 
African countries of any item.
    Section 104(c) authorizes the President to amend the 
Harmonized Tariff Schedules of the United States to make clear 
that articles designated in section 503(a)(1) of the Trade Act 
of 1974 are also eligible for beneficial tariff treatment if 
they are the growth, product, and manufacture of a sub-Saharan 
beneficiary. This section seeks to ease designation of articles 
entering the United States under the AGOA Program.
    Section 104(d) makes the amendments in paragraphs (a) and 
(b) effective 30 days after the implementation of this Act.

Section 105--Monitoring and review of eligibility

    Section 105(a) requires the President to provide at least 
60 days' notification and provide an explanation to Congress 
and the sub-Saharan African country in question of his 
intention to terminate the designation of such country as a 
beneficiary sub-Saharan African country. This section ensures 
greater accountability to Congress in the administration of the 
AGOA program and provides Congress with adequate time to 
comment on eligibility decisions.
    Section 105(b) allows the President to withdraw, suspend, 
or limit duty-free treatment for certain articles if he 
determines that such treatment would be more effective in 
promoting compliance with eligibility requirements than 
terminating benefits. The President is required to notify 
Congress and the country in question at least 60 days in 
advance of any action, along with the reasons for such action. 
This section provides the President with greater flexibility in 
administering the program in order to promote compliance with 
one or more of the eligibility criteria.
    Under the current statute, the President's only option is 
to terminate the program, effective January 1 of the following 
year. However, in some cases, termination of all benefits is 
not necessarily the most effective way to address the 
underlying problem. For example, if a beneficiary's actions and 
policies with regards to a specific sector of their economy 
violate the eligibility criteria, then the most effective 
action to address the violation may be to limit AGOA benefits 
with respect to that sector, rather than for all products. 
Similarly, if there is an event that contravenes the 
eligibility criteria that may be temporary in nature, then 
suspension of benefits for a limited period of time may be a 
more effective way to address the issue than termination of 
benefits altogether. Finally, if an event occurs that is so 
egregious that the Administration determines benefits should be 
removed before January 1 of the following year, this language 
gives the President the authority to withdraw those benefits 
within 60 days, with termination to follow on January 1 of the 
following year. The Committee expects that the Administration 
will, in appropriate circumstances, make full use of the 
additional flexibility provided in this section to address 
situations where beneficiary countries have taken steps which 
violate eligibility criteria and which may limit or exclude 
international trade and investment.
    While this provision provides additional flexibility, the 
default for a breach of the criteria remains termination of 
benefits on January 1 of the following year because AGOA 
provides benefits above and beyond GSP and includes additional 
eligibility criteria. As such, before invoking the 
flexibilities set out in the bill, the President must determine 
that withdrawing, suspending, or limiting benefits under the 
bill is more effective in promoting compliance with the 
criteria than terminating benefits and shall notify Congress of 
the rationale for this determination.
    The Committee is concerned that, under prior iterations of 
the AGOA program, there was no formal mechanism for 
stakeholders to voice their concerns about whether a particular 
country was meeting its eligibility criteria. Therefore, the 
Committee included new provisions in Section 105(c) that 
require the President to seek public comment, including a 
public hearing, and create a petition process for interested 
parties to file petitions at any time with the United States 
Trade Representative regarding compliance of a beneficiary 
country. These petitions shall be taken into account in 
conducting annual monitoring and review of beneficiary 
countries eligibility and as the President completes reports 
required under the act. This provision seeks to increase public 
engagement in the eligibility review process. It is in the 
interest of U.S. firms, businesses, and other entities 
exporting to, investing in or other otherwise engaged in sub-
Saharan Africa to formally notify the President of trade 
practices that limit access and investment in beneficiary 
markets, or violate eligibility criteria.
    Section 105(c) authorizes the President to conduct out-of-
cycle reviews of any beneficiary country to determine whether 
it is making continual progress in meeting the eligibility 
criteria. If the President determines that a beneficiary 
country is not adequately meeting the eligibility criteria, the 
President shall terminate the eligibility of that beneficiary 
country or withdraw, suspend, or limit application of duty-free 
treatment with respect to articles from that country and report 
the findings of the review to the Senate Committee on Finance 
and the House of Representatives Committee on Ways and Means. 
In executive session, the Committee adopted an amendment 
requiring the President to conduct an out-of-cycle review of 
South Africa, the most developed beneficiary under the AGOA 
program, to review that country's compliance with the 
eligibility criteria. The provision highlights the Committee's 
commitment to providing benefits only to those countries making 
progress towards compliance with all eligibility criteria.
    The Committee is aware that U.S. exporters are subject to 
market access barriers and other issues for several products, 
which should be taken into account when reviewing country 
eligibility. For example, officials in Republic of South Africa 
recently indicated they will attempt to renegotiate commitments 
made under the GATS to require foreign owned companies to 
relinquish 51% ownership and control to South Africans. Though 
South Africa has increased its enforcement efforts, 
counterfeiting and piracy are rampant and it also serves as a 
transit point for counterfeit goods destined for neighboring 
countries. South Africa developed a draft intellectual property 
policy that proposed changes to intellectual property rights 
(IPR) laws, which, as described in the 2015 National Trade 
Estimate Report, contained significant shortcomings, including 
inadequate protections for patents, trademarks and copyrights. 
Additionally, countries that impose barriers or limitations to 
cross-border data flows or otherwise limit digital trade are 
cause for concern.
    The Committee is concerned that the Republic of South 
Africa effectively closed its market to U.S. poultry in 2001 
when it imposed antidumping duties using a questionable 
methodology, which has been successfully challenged at the WTO. 
The Committee is aware that these issues have been discussed on 
numerous occasions between the two governments, but no 
successful resolution has been reached. U.S. exports of beef, 
pork and poultry continue to face problematic sanitary 
measures, and the European Union-Southern African Development 
Community Economic Partnership Agreement provisions related to 
geographical indications potentially erect additional barriers 
to U.S. agricultural exports. The Committee is very concerned 
that South Africa has been denying market access for U.S. 
poultry for fifteen years while its exports have benefitted 
from preferential access to the U.S. market. Section 
104(a)(1)(C) of AGOA provides that, in order to be eligible for 
preferential duty benefits, the President must determine that 
an eligible country has established, or is making continual 
progress toward establishing, ``the elimination of barriers to 
United States trade and investment, including by . . . the 
resolution of bilateral trade and investment disputes.'' The 
Committee considers South Africa's denial of market access to 
U.S. agricultural products an unresolved bilateral trade 
dispute and strongly urges that the President and the 
government of the Republic of South Africa will take immediate 
and effective steps toward elimination of these barriers to 
international trade.
    All the above examples highlight the type of economic 
concerns the President should take into account when conducting 
annual or out-of-cycle reviews of AGOA eligible countries.

Section 106--Promotion of the role of women in social and economic 
        development in Sub-Saharan Africa

    Section 106, adopted by the Committee in Executive Session, 
establishes it is the policy of the United States to promote 
the role of women in social, political and economic development 
through the AGOA program and clarifies the eligibility criteria 
under the program applies to both men and women.

Section 107--Biennial AGOA Utilization Strategies

    Section 107(a) expresses a Sense of Congress that eligible 
sub-Saharan African countries should develop biennial AGOA 
Utilization Strategies to more effectively and strategically 
utilize benefits available under AGOA and that the United State 
trade capacity building agencies should work with and provide 
appropriate resources in developing and implementing these 
strategies. This provision also encourages USTR to consider 
requesting strategies from Regional Economic Communities, as 
appropriate. The provision encourages U.S. agencies providing 
trade capacity building assistance in the region to assist 
beneficiaries in developing and implementing these strategies. 
The Committee notes that some of the beneficiaries who have 
taken fullest advantage of the AGOA program to date include 
those who have developed such a strategy. The Committee 
believes these strategies increase awareness of the AGOA 
program and the breadth of benefits provided.
    Section 107(b) emphasizes that AGOA Utilization Strategies 
should identify strategic needs and priorities to bolster AGOA 
utilization, including by: reviewing potential exports and 
identifying obstacles to increased regional integration, trade, 
investment and poverty reduction; developing a plan to address 
identified obstacles, including through full implementation of 
the Agreement on Trade Facilitation of the World Trade 
Organization; and developing a strategy to promote small 
businesses and entrepreneurship.
    Section 107(c) requires any such report produced pursuant 
to Section 107(a) be published on an appropriate Internet 
website.

Section 108--Deepening and expanding trade and investment ties between 
        Sub-Saharan Africa and the United States

    Section 108 establishes it is the policy of the United 
States to deepen and expand trade and investment ties between 
sub-Saharan Africa and the United States.
    Section 108 establishes that the United States should 
continue to seek all opportunities to deepen and expand ties 
between sub-Saharan Africa countries and the United States 
through accession by sub-Saharan African countries to the World 
Trade Organization and negotiation of Trade and Investment 
Framework Agreements, Bilateral Investment Treaties, and Free 
Trade Agreements with individual countries and regional 
economic communities. The Committee notes that as preference 
programs are successful in stimulating economic growth through 
trade and investment, expanding the rule of law, and improving 
work conditions in beneficiary countries, the United States 
should consider further developing our economic relationship 
with beneficiaries. Negotiation of Trade and Investment 
Framework Agreements and Bilateral Investment Treaties, and 
building toward Free Trade Agreements, should be the goal of 
further engagement in the region. These agreements not only 
ensure permanent access for current beneficiaries, but also 
ensure and protect U.S. opportunities to these growing markets. 
While economic development continues to be a factor for 
selecting partners to negotiate these agreements, demonstration 
of substantial progress toward all eligibility criteria under 
the AGOA program should be taken into considerable account for 
selecting future Trade and Investment, Bilateral Investment and 
Trade Agreement partners.
    Section 108 establishes that the United States should 
promote in sub-Saharan Africa the implementation of all 
commitments made under the World Trade Organization agreement 
and negotiation of trade agreements that cover substantially 
all trade. The Committee recognizes that continued progress 
toward implementation of such commitments will further increase 
utilization of the AGOA program, enhance economic growth in the 
region, improve the rule of law and improve work conditions in 
sub-Saharan Africa. To ensure that sub-Saharan African 
countries continue progress towards becoming full, competitive 
partners in the international economic community, these 
countries should seek to negotiate agreements that cover 
substantially all trade, which remains the standard of the 
international economic community.

Section 109--Agricultural Trade Technical Assistance for Sub-Saharan 
        Africa

    Section 109 expands provisions under the AGOA program that 
provide agricultural technical assistance to beneficiary 
countries. This section increases the number of beneficiaries 
who may receive assistance beyond the current cap and broadens 
the type of technical assistance available to include food 
safety standards and sanitary and phytosanitary rules. The 
section prioritizes agricultural trade technical assistance for 
businesses and sectors that engage women. This section directs 
the President to coordinate agencies engaged in providing 
agricultural technical assistance when identifying which 
beneficiaries should receive assistance and providing 
assistance.

Section 110--Reports

    Section 110(a) requires the President to submit a biennial 
comprehensive report to Congress on the trade and investment 
relationship between the United States and sub-Saharan Africa. 
The first such report must be submitted not later than one year 
after the date of enactment.
    Section 110(b) requires the United States Trade 
Representative to submit to Congress every five years a report 
that evaluates each AGOA eligible country's path toward 
becoming a trade agreement partner, identifies sub-Saharan 
countries that have expressed an interest in entering into a 
free trade agreement with the United States, and establishes a 
plan for negotiating and concluding such agreements. The first 
such report must be submitted not later than one year after the 
date of enactment.
    Section 110(c) sunsets these reports consistent with the 
duration of this Act.

Section 111--Technical amendments

    Section 111 deletes section 104(b) of the African Growth 
and Opportunity Act, which is duplicative. Beyond those 
explicitly changed in the act, the Committee expects no change 
in compliance procedures as carried out under section 
506A(a)(3) to result from deleting section 104(b).

Section 112--Definitions

    Section 112 restates the definition of ``Beneficiary sub-
Saharan African Country'' as described in subsection (e) of 
section 506A of the Trade Act of 1974 and as redesignated by 
this Act. And the section defines ``sub-Saharan African 
Country'' as defined in section 107 of the African Growth and 
Opportunity Act.

        TITLE II: EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES

Section 201--Extension of Generalized System of Preferences

    Section 201 extends the Generalized System of Preferences 
until December 31, 2017. This section retroactively applies 
benefits to articles imported on or after July 31, 2013 that 
would have been eligible for duty-free treatment under the GSP 
program as of the date of enactment of this Act.

Section 202--Authority to designate certain cotton articles as eligible 
        articles only for least-developed beneficiary developing 
        countries under Generalized System of Preferences

    Section 202 authorizes the President to designate certain 
cotton articles, classifiable under subheadings 5201.00.18, 
5201.00.28, 5201.00.38, 5202.99.30, and 5203.00.30 of the 
Harmonized Tariff Schedules of the United States, as eligible 
articles for countries designated as least-developed 
beneficiary developing countries under the GSP program. This 
section implements commitments made at the World Trade 
Organization to provide duty-free, quota-free treatment for 
certain cotton products originating from least-developed 
countries.

Section 203--Application of competitive need limitation and waiver 
        under Generalized System of Preferences with respect to 
        articles of beneficiary developing countries exported to the 
        United States during calendar year 2014

    Section 203 allows the Administration to complete the 
competitive need limitation review and make waiver 
determinations by October 1, 2015 for products entered in 2014. 
This section provides the Administration adequate time to 
review competitive need limitation petitions for products 
entered in 2014 while the program was lapsed.

Section 204--Elimination of the statutory exclusion for travel goods

    Section 204 amends section 503(b)(1)(e) of the Trade Act of 
1974 by removing the statutory exclusion for travel goods from 
the Generalized System of Preferences program. Removing travel 
goods from the list of statutorily excluded products allows 
producers of such goods to apply for duty-free treatment after 
undergoing the review process required under the Generalized 
System of Preferences program, including analysis from the 
International Trade Commission and opportunity for public 
comment.

 TITLE III: EXTENSION OF PREFERENTIAL DUTY TREATMENT PROGRAM FOR HAITI

Section 301--Extension of Preferential Duty Treatment Program for Haiti

    Section 301 extends preferential access provided under the 
HOPE and HELP programs through September 30, 2025.

          TITLE IV: TARIFF CLASSIFICATIONS OF CERTAIN ARTICLES

Section 401--Tariff classification of recreational performance 
        outerwear

    Section 401 amends the Additional U.S. notes to Chapter 62 
of the Harmonized Tariff Schedule of the United States to 
create new tariff lines for ``recreational performance 
outerwear.''

Section 402--Modification of definition of certain footwear in the 
        harmonized tariff schedule of the United States

    Section 402 amends the definition of athletic footwear in 
the Harmonized Tariff Schedule of the United States. This 
section clarifies that footwear for outdoor athletic purposes 
that contains protective elements, such as water proofing, 
should be classified as ``athletic'' rather than 
``protective.'' Athletic footwear with features that protect 
against the elements is presently classified in the HTS as 
footwear that is protective in nature, subject to a higher 
tariff than general athletic footwear.

Section 403--Effective date

    Section 403 indicates the changes in Title IV shall take 
place 15 days after enactment.

                   TITLE V: MISCELLANEOUS PROVISIONS

Section 501--Report on contribution of trade preference programs to 
        reducing poverty and eliminating hunger

    Section 501 requires the President to submit a report to 
Congress on U.S. preference program's contributions to the 
reduction of poverty in beneficiary countries.

                           TITLE VI: OFFSETS

Section 601--Customs user fees

    Section 601(a) amends Section 13031(j)(3)(A) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 to 
extend the period that the Secretary of the Treasury may charge 
for certain customs services for imported goods from September 
30, 2024 to July 7, 2025.
    Section 601(b) extends the ad valorem rate for the 
Merchandise Processing Fee collected by Customs and Border 
Protection that offsets the costs incurred in processing and 
inspecting imports, from June 30, 2021 to September 30, 2025.

Section 602--Time for payment of corporate estimated taxes

    Section 602 provides that for corporations with at least 
one billion dollars in assets, the corporate estimated tax due 
in 2020 will be increased by 5.25 percent, with the subsequent 
installment being reduced to reflect the prior increase.

Section 603--Improved information reporting on unreported and 
        underreported financial accounts

                              PRESENT LAW

    The Code requires that every person who makes a payment of 
reportable interest (as defined) of $10 or more to any other 
person during any calendar year report the aggregate amount of 
the payment and information identifying the recipient on an 
information return (Form 1099-INT) to the IRS. This report is 
not required to be filed for payments to exempt recipients and 
certain non-U.S. persons. The Code also requires that the payor 
furnish the corresponding information statements to payees 
named on the information returns showing the information that 
is reported to the IRS.

                           REASONS FOR CHANGE

    A number of people have been earning income, not paying tax 
on that income, and using non-interest bearing financial 
accounts, such as non-interest bearing bank accounts, to hide 
this money from the IRS. In addition, a number of people, when 
they have earned interest of less than $10 from one payor, have 
not been reporting that interest income even though they are 
legally required to do so, because they are not receiving a 
Form 1099-INT with respect to that interest income. This 
provision addresses both of these issues.

                        EXPLANATION OF PROVISION

    The provision revises the reporting requirement to 
eliminate the minimum interest threshold of $10 and applies 
information reporting requirements and penalties for banks and 
other persons that hold non-interest bearing deposits.

                             EFFECTIVE DATE

    The provision applies to returns filed after December 31, 
2015.

                    II. BUDGETARY IMPACT OF THE BILL

    In compliance with sections 308 and 403 of the 
Congressional Budget Act of 1974, and paragraph 11(a) and (b) 
of rule XXVI of the Standing Rules of the Senate, the following 
letter has been received from the Congressional Budget Office 
on the budgetary impact of the legislation:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 11, 2015.
Hon. Orrin G. Hatch,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed revised cost estimate for a bill to 
extend the African Growth and Opportunity Act, the Generalized 
System of Preferences, the preferential duty treatment program 
for Haiti, and for other purposes as ordered reported by the 
Senate Committee on Finance on April 22, 2015. This estimate 
revises the cost estimate that CBO provided for the legislation 
on May 6, 2015, because it did not include the budgetary 
effects of subsequent technical and conforming amendments 
provided to CBO on May 8, 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark 
Grabowicz for federal spending and Ann Futrell and Susan Willie 
for federal revenues.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

S. 1267--A bill to extend the African Growth and Opportunity Act, the 
        Generalized System of Preferences, the preferential duty 
        treatment program for Haiti, and for other purposes

    Summary: The legislation would extend reduced tariff rates 
imposed on products imported under the African Growth and 
Opportunity Act (AGOA), the Generalized System of Preferences 
(GSP), and the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act. The bill also would shift some 
corporate income tax payments between fiscal years, expand the 
account information that financial institutions and others are 
required to report to the Internal Revenue Service (IRS), and 
increase the rate of certain fees collected by Customs and 
Border Protection (CBP) as well as extend the authority to 
collect those fees.
    CBO and the staff of the Joint Committee on Taxation (JCT) 
estimate that enacting the bill would reduce direct spending by 
$5.9 billion and reduce revenues by about $5.8 billion over the 
2015-2025 period--resulting in a decrease in deficits over the 
11-year period of $81 million. Pay-as-you-go procedures apply 
because enacting the legislation would affect direct spending 
and revenues. CBO estimates that the Congressional reports 
called for under the bill would cost $1 million over the 2015-
2020 period, assuming availability of appropriated funds.
    CBO has determined that the nontax provisions of the bill 
contain no intergovernmental mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would not affect the 
budgets of state, local, or tribal governments. JCT has 
determined that the tax provisions of the bill contain no 
intergovernmental mandates.
    CBO has determined that the nontax provisions of the 
legislation contain private-sector mandates on entities 
required to pay merchandise processing fees. CBO estimates the 
aggregate cost of the mandates would exceed the annual 
threshold established in UMRA for private-sector mandates ($154 
million in 2015, adjusted annually for inflation). JCT has 
determined that the tax provisions of the bill contain no 
private-sector mandates.
    Estimated cost to the Federal Government: The estimated 
budgetary effects of the bill are shown in the following table. 
The costs of this legislation fall within budget functions 750 
(administration of justice) and 370 (advancement of commerce).

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                2015      2016      2017      2018      2019      2020      2021      2022      2023      2024      2025    2015-2020  2015-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   CHANGES IN DIRECT SPENDING
 
Estimated Budget Authority..................................         0         0         0         0         0         0      -162      -873      -916      -962    -2,948          0     -5,861
Estimated Outlays...........................................         0         0         0         0         0         0      -162      -873      -916      -962    -2,948          0     -5,861
 
                                                                                       CHANGES IN REVENUES
 
Extension of African Growth and Opportunity Act.............         *      -121      -130      -238      -284      -298      -312      -329      -345      -365      -387     -1,071     -2,809
Extension of General System of Preferences..................    -1,051      -627      -665      -173         0         0         0         0         0         0         0     -2,516     -2,516
Extension of Preferential Duty Treatment for Haiti..........         0         0         0         0       -12       -17       -75       -97      -101      -106      -112        -29       -520
Duty-free Treatment for Certain Footwear....................         *        -2        -2        -2        -2        -2        -3        -3        -3        -3        -3        -10        -25
Shift in Payment of Corporate Estimated Tax.................         0         0         0         0         0     3,781    -3,781         0         0         0         0      3,781          0
Improved Information Reporting on Unreported and                     0         7         7         8         8         9         9        10        10        11        11         39         90
 Underreported Financial Accounts...........................
                                                             -----------------------------------------------------------------------------------------------------------------------------------
    Total Changes in Revenues...............................    -1,052      -743      -790      -405      -290     3,473    -4,162      -419      -439      -463      -491        194     -5,780
 
                                                    NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
 
Impact on Deficit...........................................     1,052       743       790       405       290    -3,473     4,000      -454      -477      -499    -2,457       -194        -81
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: Congressional Budget Office and the Staff of the Joint Committee on Taxation
Notes: This estimate assumes enactment of the bill by July 1, 2015; * = between -$500,000 and zero.
For direct spending, negative numbers indicate a decrease in outlays; for revenues, negative numbers indicate a reduction in revenues.
Components may not sum to totals because of rounding.
CBO estimates that implementing the bill would cost about $1 million over the 2015-2020 period, assuming availability of appropriated funds, to prepare Congressional reports.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted by July 1, 2015.

Direct Spending

    Under current law, the authority to charge merchandise 
processing fees collected by Customs and Border Protection will 
expire after September 30, 2024. The bill would extend the 
authority to collect those fees through July 7, 2025. The bill 
also would raise the rate of the merchandise processing fee 
from 0.21 percent to 0.3464 percent of the value of goods 
entering the U.S. for the period beginning July 1, 2021, and 
ending June 30, 2025. CBO estimates those actions would 
increase offsetting receipts (certain collections that are 
treated as reductions in direct spending) by about $5.9 billion 
over the 2021-2025 period. To project collections of 
merchandise processing fees, CBO assumes that the fees 
collected in future years will grow at the same rate seen in 
recent years--about 5 percent. In 2014 collections from the 
merchandise processing fee totaled $2.3 billion. By 2024 CBO 
estimates those collections will total about $2.7 billion under 
current law. CBO expects that the proposed increase in the fee 
rate would have a very minor effect on the value of goods 
entering the U.S.

Revenues

    CBO's estimates of the revenue effects of proposals to 
lower tariff rates charged on imports from certain countries or 
on certain goods are based on historical data about the value 
and volume of those goods entering the United States. Using 
that historical data, CBO develops a baseline of future 
collections that accounts for expected growth in trade over the 
next ten years. To estimate tariff collections under the 
proposed legislation, CBO considers both general growth in 
trade as well as changes in demand that are likely to result 
from lower rates. The changes in revenues for each of the 
programs discussed below reflect the difference between the 
baseline estimate of collections for each program using 
effective tariff rates under current law and projected 
collections under each proposal using the proposed duty rate, 
net of payroll and income tax offsets. CBO assumes that the 
lower tariffs under the legislation would result in an increase 
in overall imports, as well as a diversion of imports from 
countries or import categories that would not be eligible for 
lower tariffs to those that would.
    Extension of African Growth and Opportunity Act. Under AGOA 
the U.S. provides nonreciprocal tariff reductions to roughly 40 
eligible sub-Saharan countries for certain goods that the U.S. 
imports. The bill would extend the authority for reduced 
tariffs under AGOA, which are set to expire at the end of 
September 30, 2015, through September 30, 2025. The bill also 
would extend the special rule that would apply to certain 
lesser-developed sub-Saharan countries under AGOA. The special 
rule also expires on September 30, 2015. Under this rule a 
lesser-developed country may export duty-free to the United 
States any apparel good that is assembled within the country, 
regardless of the origin of the fabric or yarn. In addition, 
the bill would revise the rules of origin for AGOA beneficiary 
countries under GSP to expand the value of products that would 
qualify for duty free treatment. CBO estimates that extending 
and amending AGOA would reduce revenues by $2.8 billion over 
the 2015-2025 period, net of payroll and income tax offsets. 
That estimate includes the revenue loss after December 31, 
2017, from imports that are eligible for duty free treatment 
under GSP (which the bill would extend through December 31, 
2017).
    Extension of General System of Preferences. Under the GSP 
the U.S. affords nonreciprocal tariff reductions to 
approximately 130 developing countries. Generally, duty-free 
treatment of imported goods from GSP-designated developing 
countries is extended to products that are predominately 
produced only in those countries. The bill would renew GSP, 
which expired on July 31, 2013, and continue its authority 
through December 31, 2017. Under the bill, importers or 
exporters that would have otherwise qualified for reduced 
tariffs under GSP could obtain refunds for tariffs paid after 
July 30, 2013, that would not have been payable had GSP been in 
effect. CBO estimates that renewing GSP would reduce revenues 
by $2.5 billion over the 2015-2025 period, net of payroll and 
income tax offsets. This estimate includes the cost, through 
December 31, 2017, of imports that are eligible for duty free 
treatment under the African Growth Opportunity Act (which would 
be extended through 2025 under this bill).
    Extension of Preferential Duty Treatment for Haiti. Under 
the Haitian Hemispheric Opportunity through Partnership 
Encouragement Act, certain textile and apparel goods imported 
to the U.S. from Haiti are eligible for duty-free treatment if 
restrictions regarding the source of the yarns and fabrics used 
in the imported goods are met. Portions of this program will 
begin to expire in 2016; the bill would extend this duty-free 
status through 2025. CBO estimates that enacting this provision 
would reduce revenues by $520 million over the 2015-2025 
period, net of payroll and income tax offsets.
    Duty Treatment for Certain Footwear. The bill would 
establish new categories in the Harmonized Tariff Schedule 
(HTS) for specialized athletic footwear that would enter the 
United States at a reduced duty rate. Footwear imports that 
meet the criteria for these new categories currently are 
charged a duty rate of 37.5 percent, the rate would fall to 20 
percent under the bill. In 2014, imports in the HTS categories 
that include, among other things, articles that would be 
eligible for duty-free treatment under the bill totaled about 
$33 million. Based on information from the International Trade 
Commission and industry sources familiar with the provisions of 
the bill, CBO expects that nearly 75 percent of that amount 
would be eligible for the lower duty treatment. That percentage 
includes products expected to be imported under current law 
that would qualify for the lower duty rate under the bill and 
other imports that would shift from other dutiable categories. 
The estimate of revenue losses is partially offset by customs 
duties from new trade that would be generated as a result of 
the lower duty status. CBO estimates that enacting this 
provision would reduce revenues by $25 million over the 2015-
2025 period, net of payroll and income tax offsets.
    Shift in Payment of Corporate Estimated Tax. The 
legislation would shift payments of corporate estimated taxes 
between fiscal years 2020 and 2021. For corporations with at 
least $1 billion in assets, the bill would increase the portion 
of corporate estimated payments due from July through September 
in 2020. The staff of the JCT estimates that those changes 
would increase revenues by $3.8 billion in 2020 and reduce 
revenues by the same amount in 2021.
    Improved Information Reporting on Unreported and 
Underreported Financial Accounts. The legislation would expand 
the account information that financial institutions and others 
are required to report to the IRS and the holder of specified 
accounts. In particular, this information would have to be 
provided for interest bearing accounts when the annual interest 
earnings are less than $10, the threshold for reporting under 
current law, and also would have to be provided for certain 
non-interest bearing accounts that are currently not subject to 
reporting requirements. The staff of the JCT estimates that 
enacting this provision would increase revenues by $90 million 
over the 2015-2025 period.
    Travel Goods. Under section 204, the President would have 
the discretion to eliminate import duties on travel goods 
brought to the U.S. from countries eligible for preferential 
tariff treatment under GSP. Another provision of the 
legislation would extend GSP authority through December 31, 
2017. Travel goods are a category of consumer goods that 
includes handbags and luggage. In 2014, about $60 million in 
duties were collected for travel goods imported to the U.S. 
from countries eligible for GSP.
    Based on information from the U.S. Trade Representative 
regarding past decisions made by the Administration to reduce 
duty rates, CBO expects that the likelihood of the President 
selecting any or all of the items in the travel goods category 
for this special treatment is quite small. Thus, CBO estimates 
this section would reduce revenues by less than $500,000 over 
the 2015-2025 period.

Spending subject to appropriation

    The bill would require the United States Trade 
Representative to prepare a series of reports on trade 
activities with sub-Saharan African countries and their 
interest in entering into free trade agreements with the United 
States. Based on the cost of similar reports, CBO estimates 
that the costs to prepare that series would be significantly 
less than $500,000 annually, and would total about $1 million 
over the 2015-2020 period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

                              CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR AN ORIGINAL BILL, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FINANCE ON APRIL 22, 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                2015      2016      2017      2018      2019      2020      2021      2022      2023      2024      2025    2015-2020  2015-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NET INCREASE OR DECREASE (-) IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact..............................     1,052       743       790       405       290    -3,473     4,000      -454      -477      -499    -2,457       -194        -81
Memorandum:
    Changes in Outlays......................................         0         0         0         0         0         0      -162      -873      -916      -962    -2,948          0     -5,861
    Changes in Revenues.....................................    -1,052      -743      -790      -405      -290     3,473    -4,162      -419      -439      -463      -491        194     -5,780
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
CBO has determined that the nontax provisions of the bill 
contain no intergovernmental mandates as defined in UMRA and 
would not affect the budgets of state, local, or tribal 
governments. JCT has determined that the tax provisions of the 
bill contain no intergovernmental mandates.
    Estimated impact on the private sector: CBO has determined 
that the nontax provisions of the legislation would impose 
private-sector mandates, as defined in UMRA, on entities 
required to pay merchandise processing fees. The bill would 
extend those fees through July 7, 2025; the fee rates would 
increase beginning July 1, 2021, and ending June 30, 2025. Some 
of the entities that are required to pay merchandise processing 
fees may also accrue savings related to the preferential tariff 
treatment accorded to certain products that would be extended 
under the bill. However, CBO estimates that the aggregate cost 
of the mandates would exceed the annual threshold established 
in UMRA for private-sector mandates ($154 million in 2015, 
adjusted annually for inflation). JCT has determined that the 
tax provisions of the bill contain no private-sector mandates.
    Previous CBO estimate: On May 6, CBO transmitted a cost 
estimate for a bill to extend the African Growth and 
Opportunity Act, the Generalized System of Preferences, the 
preferential duty treatment program for Haiti, and for other 
purposes after the Senate Finance Committee ordered the 
legislation reported on April 22, 2015. That estimate did not 
include the effects of technical and conforming amendments 
subsequently provided to CBO by the Senate Finance Committee on 
May 8, 2015, that reduced the cost of the legislation by $156 
million over the 2015-2025 period. This cost estimate of the 
legislation as ordered reported revises the CBO cost estimate 
provided on May 6, 2015 to incorporate those effects.
    On April 29, 2015, CBO transmitted a cost estimate for H.R. 
1891, a bill to extend the African Growth and Opportunity Act, 
the Generalized System of Preferences, the preferential duty 
treatment program for Haiti, and for other purposes, as ordered 
reported by the House Ways and Means Committee on April 23, 
2015. The Senate committee bill contains a provision that would 
provide duty-free treatment for certain shoes, which would 
reduce revenues by $25 million over the 2015-2025 period that 
was not included in the House committee bill. The Senate 
committee's bill also includes a provision regarding 
information reporting on unreported and underreported financial 
accounts that was not included in the House committee bill. 
Otherwise, CBO's estimates of the budgetary effects of the 
Senate and House committee bills are the same.
    Estimate prepared by: Federal Costs: Mark Grabowicz; 
Federal Revenues: Ann Futrell, Susan Willie, Mark Booth, and 
staff of the Joint Committee on Taxation; Impact on state, 
local, and tribal governments: Jon Sperl; Impact on the private 
sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Assistant Director for 
Budget Analysis.
                                                      May 11, 2015.
Hon. Orrin G. Hatch,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed revised cost estimate for a bill to 
extend the African Growth and Opportunity Act, the Generalized 
System of Preferences, the preferential duty treatment program 
for Haiti, and for other purposes as ordered reported by the 
Senate Committee on Finance on April 22, 2015. This estimate 
revises the cost estimate that CBO provided for the legislation 
on May 6, 2015, because it did not include the budgetary 
effects of subsequent technical and conforming amendments 
provided to CBO on May 8, 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark 
Grabowicz for federal spending and Ann Futrell and Susan Willie 
for federal revenues.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

                      III. VOTES OF THE COMMITTEE

    In compliance with paragraph 7(c) of rule XXVI of the 
Standing Rules of the Senate, the following statements are made 
concerning the roll call votes in the Committee's consideration 
of the original bill to extend the African Growth and 
Opportunity Act, the Generalized System of Preferences, the 
preferential duty treatment program for Haiti, and for other 
purposes.

                      A. Motion To Report the Bill

    An original bill to extend the African Growth and 
Opportunity Act, the Generalized System of Preferences, the 
preferential duty treatment program for Haiti, and for other 
purposes, was ordered favorably reported by voice vote with a 
quorum present on April 22, 2015.

                         B. Votes on Amendments

    (1) An amendment to require the President to conduct an 
out-of-cycle review of South Africa was agreed to by voice 
vote.
    (2) An amendment to promote the role of women in social and 
economic development in sub-Saharan Africa was agreed to by 
voice vote.
    (3) An amendment sponsored by Senator Toomey to benefit 
American Citizens and strengthen the economies of America's 
most vulnerable trading partners. Defeated by roll call vote, 
10 ayes, 16 nays:
    Ayes--Isakson, Portman, Toomey, Coats, Heller, Scott 
(proxy), Menendez, Carper (proxy), Casey, Warner (proxy).
    Nays--Hatch, Grassley, Crapo, Roberts, Enzi, Cornyn 
(proxy), Thune, Burr, Wyden, Schumer, Stabenow, Cantwell, 
Nelson, Cardin, Brown (proxy), Bennet.
    (4) An amendment to extend the tariff preference level on 
certain imports of textiles from Bahrain under the United 
States-Bahrain Free Trade Agreement, with an offset. Defeated 
by roll call vote, 10 ayes, 16 nays:
    Ayes--Toomey, Wyden, Schumer, Stabenow, Cantwell, Nelson, 
Menendez, Cardin, Bennet, Warner (proxy).
    Nays--Hatch, Grassley, Crapo (proxy), Roberts, Enzi, Cornyn 
(proxy), Thune, Burr, Isakson, Portman, Coats, Heller, Scott, 
Carper (proxy), Brown, Casey.

                   IV. REGULATORY IMPACT OF THE BILL

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee states 
that the resolution will not significantly regulate any 
individuals or businesses, will not affect the personal privacy 
of individuals, and will result in no significant additional 
paperwork.
    The following information is provided in accordance with 
section 423 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
(Pub. L. No. 104--04). The Committee has reviewed the 
provisions of S. 3326 as approved by the Committee on July 18, 
2012. In accordance with the requirement of Pub. L. No. 104-04, 
the Committee has determined that the bill contains no 
intergovernmental mandates, as defined in the UMRA, and would 
not affect the budgets of state, local, or tribal governments.

             V. CHANGES IN EXISTING LAW MADE BY THE BILL, 
                              AS REPORTED

    In the opinion of the Committee, in order to expedite the 
business of the Senate, it is necessary to dispense with the 
requirements of paragraph 12 of rule XXVI of the Standing Rules 
of the Senate (relating to the showing of changes in existing 
law made by the bill as reported by the Committee).

                                  [all]
```