49–010 

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 


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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). 


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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 in- creased 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 PresiVerDate Sep 11 2014 03:38 May 19, 2015 Jkt 049010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR043.XXX SR043

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dent’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 AmericaUnited 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. 


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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 subSaharan 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-SaVerDate Sep 11 2014 03:38 May 19, 2015 Jkt 049010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR043.XXX SR043

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haran 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 subSaharan 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 


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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 


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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. 


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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. 


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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. 


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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, quotafree 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 


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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 


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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 


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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). 


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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 Underreported Financial 

Accounts .......................................................................................................... 0 7 7 8 8 9 9 10 10 11 11 39 90 

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. 


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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 


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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 


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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-asyou-go procedures are shown in the following table. 


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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 


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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 privatesector 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 dutyfree 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. 


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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-ofcycle 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 


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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). 

Æ 


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