108TH CONGRESS REPT. 108–225 " HOUSE OF REPRESENTATIVES ! 1st Session Part 2

UNITED STATES-SINGAPORE FREE TRADE AGREEMENT 

IMPLEMENTATION ACT

JULY 22, 2003.—Ordered to be printed 

Mr. SENSENBRENNER, from the Committee on the Judiciary, 

submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 2739] 

[Including cost estimate of the Congressional Budget Office]

The Committee on the Judiciary, to whom was referred the bill 

(H.R. 2739) to implement the United States-Singapore Free Trade 

Agreement, having considered the same, reports favorably thereon 

without amendment and recommends that the bill do pass.

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2

Background and Need for the Legislation ............................................................. 2

Hearings ................................................................................................................... 11

Committee Consideration ........................................................................................ 11

Vote of the Committee ............................................................................................. 11

Committee Oversight Findings ............................................................................... 11

New Budget Authority and Tax Expenditures ...................................................... 11

Congressional Budget Office Cost Estimate .......................................................... 11

Performance Goals and Objectives ......................................................................... 15

Constitutional Authority Statement ...................................................................... 15

Section-by-Section Analysis and Discussion .......................................................... 15

Changes in Existing Law Made by the Bill, as Reported ..................................... 16

Agency Correspondence ........................................................................................... 19

Markup Transcript .................................................................................................. 24

Mock Markup Transcript ........................................................................................ 87

Minority Views ......................................................................................................... 93

2

1Full text of the U.S.-Singapore Free Trade Agreement available at: <http://www.ustr.gov/new/

fta/Singapore/final/textpercent20final.PDF>. 2 19 U.S.C. § 3805 et. seq. (2002). 3 19 U.S.C. § 2191 et. seq. (2003). 4The full text of the U.S.-Singapore FTA is available at: <http://www.ustr.gov/new/fta/Singapore. htm>. 5See generally, Dick K. Nanto, CRS Report for Congress, The U.S.-Singapore Free Trade 

Agreement, June 26, 2003. 

PURPOSE AND SUMMARY

On May 6, 2003, United States and Singapore entered into a bilateral Free Trade Agreement (‘‘FTA’’), concluding a negotiation 

process that began in December 2000.1 H.R. 2739 approves the 

U.S.-Singapore FTA submitted to Congress on July 15, 2003 and 

makes changes to United States law necessary to ensure compliance with the agreement. The legislation contains four titles: Title 

I, ‘‘Approval of, and General Provisions to, Relating the Agreement;’’ Title II, ‘‘Customs Provisions;’’ Title III, ‘‘Relief from Imports;’’ and Title IV, ‘‘Temporary Entry of Business Persons.’’ The 

Committee’s consideration of H.R. 2739 was limited to title IV of 

the legislation. Title IV establishes 5,400 annual professional worker visas for Singaporean citizens to enter the United States on a 

temporary basis. 

H.R. 2739 was considered pursuant to the Bipartisan Trade Promotion Authority Act of 2002 2 and the Trade Act of 1974.3 As a 

result, the legislation was considered on an expedited basis which 

did not permit committees of jurisdiction to amend the legislation 

after its formal introduction. However, the Committee made several changes to draft implementing legislation transmitted to the 

Committee for a pre-introduction ′′mock markup’’ on July 10, 2003. 

These changes were substantially reflected in H.R. 2739. 

BACKGROUND AND NEED FOR THE LEGISLATION

U.S.-SINGAPORE FREE TRADE AGREEMENT

Background 

On May 6, 2003, the United States and Singapore entered into 

a bilateral FTA, concluding a 14-round negotiation process that 

began in December 2000.4 Singapore is America’s largest trading partner in Southeast Asia with bilateral trade of $31.0 billion and 

a U.S. bilateral merchandise trade surplus in 2002 of $1.4 billion. 

Singapore is the 11th largest export market for the United States 

with $16.2 billion in merchandise exports in 2002. It is the 16th 

largest source for goods imported into the United States with $14.8 

billion in 2002. The United States is Singapore’s second largest 

trading partner. The United States runs surpluses with Singapore 

in aircraft; electrical machinery; plastic; mineral fuel; instruments; 

miscellaneous chemical products; aluminum; dyes, paints, putty; 

and iron and steel products. The U.S. incurs deficits with Singapore in machinery; organic chemicals; knit apparel; fish and seafood; woven apparel; and books and newspapers.5

Last month, the U.S. International Trade Commission (ITC) released the results of its investigation into the probable economic effects of a U.S.-Singapore FTA. The ITC Report concluded that the 

economy-wide effects on U.S. trade, production, and economic welfare of the FTA tariff reductions are likely to be negligible to very 

3

small. The report explained that this is not an unexpected finding 

given the current open trade relationship between the U.S. and 

Singapore, the relatively small trade and bilateral investment flows 

relative to U.S. trade and investment worldwide, and Singapore’s 

small economy relative to that of the United States. At the sectoral 

level, the report concluded that some sectors of the U.S. economy 

likely would experience increased import competition from Singapore, while other sectors likely would experience increased export 

opportunities in Singapore. 

Summary of U.S.-Singapore FTA Provisions Pertaining to the Jurisdiction of the Committee on the Judiciary 

Although the Committee’s formal legislative consideration of 

H.R. 2739 was limited to title IV of the legislation, which implemented changes to United States immigration law, the U.S.-Singapore FTA also contained intellectual property and competition 

chapters that fall within the jurisdiction of the Committee. 

Intellectual Property Rights (IPR) 

Chapter 16 of the U.S.-Singapore FTA contains several provisions which enhance protections for IPR. The FTA requires Singapore to more aggressively enforce laws prohibiting piracy of intellectual property and establishes that non-discrimination obligations 

apply for all types of intellectual property. The FTA ensures government involvement in resolving disputes between trademarks 

and Internet domain names (important to prevent ‘‘cyber-squatting’’ of trademarked domain names). It also applies the principle 

of ‘‘first-in-time, first-in-right’’ to trademarks and geographical indicators (place-names) applied to products. 

The Agreement streamlines the trademark filing process by allowing applicants to use their own national patent/trademark offices for filing trademark applications. The FTA ensures that only 

authors, composers, and other copyright owners have the right the 

make their works available online. Copyright owners maintain 

rights to temporary copies of their works on computers. (This was 

aimed at protecting music, videos, software, or text from widespread unauthorized sharing via the Internet). Copyrighted works 

and phonograms are protected for extended terms, consistent with 

U.S. standards and international trends. The FTA also contains 

anti-circumvention provisions aimed at preventing the tampering 

with technologies (such as embedded codes on discs) that are designed to prevent piracy and unauthorized distribution over the 

Internet. It also ensures that governments use only legitimate computer software (in order to set a positive example for private users). 

Singapore is to prohibit the production of optical discs (CDs, DVDs 

or software) without a source identification code unless authorized 

by the copyright holder in writing. 

Under the FTA, protection for encrypted program-carrying satellite signals extends to the signals themselves as well as the programming. This is designed to prevent piracy of satellite television 

programming. Both sides agreed to criminalize unauthorized reception and re-distribution of satellite signals. The Agreement also 

contains limited liability for Internet Service Providers (ISPs)—reflecting the balance struck in the U.S. Digital Millennium Copyright Act between legitimate ISP activity and the infringement of 

4

6See Id. 

copyrights. In essence, both sides are to provide immunity to Internet service providers for complying with notification and take-down 

procedures when material suspected to be infringing on copyright 

is hosted on their servers. The FTA provides for a patent term to 

be extended to compensate for up-front administrative or regulatory delays in granting the original patent, consistent with U.S. 

practice. The grounds for revoking a patent are limited to the same 

grounds required to originally refuse a patent. 

In addition, the Agreement requires the government of Singapore 

to establish criminal penalties for pirated copies from legitimate 

products. The Singaporean government guarantees that it has authority to seize, forfeit, and destroy counterfeit and pirated goods 

and the equipment used to produce them. IPR laws are to be enforced against traded goods, including transshipments, to deter violators from using U.S. or Singaporean ports or free-trade zones to 

traffic in pirated products. The FTA mandates both statutory and 

actual damages under Singaporean law for IPR violations (as a deterrent to piracy) and provides that monetary damages be awarded 

even if actual economic harm (retail value, plus the profits made 

by violators) cannot be determined. Singapore is to cooperate in 

preventing pirated and counterfeit goods from being imported into 

the United States. The FTA sharply restricts Singapore from using 

compulsory licenses to copy patented drugs and establishes barriers 

to the import of patented drugs sold at lower prices in third countries.6

Competition Policy/Antitrust 

Chapter 12 of the U.S.-Singapore FTA commits Singapore to 

enact a law regulating anti-competitive business conduct and to 

create a competition commission by January 2005. Specific conduct 

guarantees are imposed to ensure that commercial enterprises in 

which the Singapore government has effective influence will operate on the basis of commercial considerations and that such enterprises will not discriminate in their treatment of U.S. firms. Singapore thus commits to maintain its existing policy of not interfering 

with the commercial decisions of Government Linked Companies 

(GLCs) and to provide annual information on GLCs with substantial revenues or assets. This requirement is particularly important 

because GLCs comprise a relatively large part (nearly 40 percent) 

of Singapore’s economy. A summary of provisions related to competition and antitrust contained in the U.S.-Singapore FTA is set 

forth below. 

Chapter 12 of the Agreement helps ensure that the opportunities 

created by trade liberalization are supported by healthy competitive domestic markets, allowing the firms of each country to compete freely and unhampered by anticompetitive business conduct in 

either country’s territory. Firms that are subject to antitrust enforcement action will be guaranteed basic procedural safeguards. 

Since these protections already exist in the United States, no 

changes to United States law are necessary. While state monopolies and state enterprises do not account for a significant portion 

of either country’s economy, the provisions governing these entities 

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will help eliminate the potential for either party to favor domestic 

firms in the sale or purchase of goods and services. 

Specifically, Chapter 12 ensures that both countries:

• Enforce domestic antitrust law that prohibits anticompetitive 

business conduct;

• Cooperate in the enforcement of antitrust law;

• Ensure that any private or public monopolies designated by 

either country, and any state enterprises, be subject to disciplinary action for abusing their status or otherwise discriminating in a manner that harms the interests of the 

other country.

• Explicitly recognize that anticompetitive conduct threatens 

the free flow of bilateral trade and investment, and seeks to 

secure the benefits of the FTA by prohibiting such conduct, 

encouraging economically sound competition policies, and 

furthering transparency and cooperation;

• Expand previous competition provisions by affirming that 

antitrust laws be enforced in a neutral manner that does discriminate on the basis of nationality;

• Ensure basic procedural rights for firms that are subject to 

antitrust enforcement actions: each country will provide a 

right to be heard and to present evidence before imposing a 

sanction or remedy;

• Provide for consultations and further transparency by allowing either country to request from the other specific public 

information regarding antitrust enforcement activity, official 

monopolies and state enterprises, and any exemptions from 

their antitrust laws.

Finally, it is important to note that the provisions regarding 

antitrust law and enforcement are not subject to dispute settlement 

under the Agreement. 

Temporary Entry 

Title IV of the U.S.-Singapore Free Trade Agreement draft implementing legislation forwarded to the Committee by the Administration for its July 10, 2003 ‘‘mock markup’’ reflected U.S. commitments under Chapter 14 of the U.S.-Singapore FTA pertaining to 

the temporary entry of business persons. However, this draft legislation was considerably amended during the Committee’s ‘‘mock 

markup’’ on July 10, 2003. These Committee recommendations 

were subsequently incorporated into the introduced version of H.R. 

2739. These changes are highlighted in the ‘Pre-Introduction ‘Mock 

Markup’ of U.S.-Singapore FTA Implementing Legislation and 

Committee Amendments Incorporated Into H.R. 2739’’ section of 

this report. 

In general, Chapter 14 is consistent with existing provisions of 

the Immigration and Nationality Act (‘‘INA’’). The four categories 

of persons eligible for admission under the Agreement’s expedited 

procedures correspond to existing INA nonimmigrant and related 

classifications. 

To provide for the admission of the first two categories, business 

visitors and intra-company transferees, no changes in U.S. statutes 

are required. Limited technical changes are needed to provide for 

6

the admission of traders and investors and professionals. Legislation is also required to implement article 14.3(2) of the Agreement 

regarding labor disputes. 

Traders and Investors 

Under Section B of Annex 14.3 of the Agreement, citizens of 

Singapore are eligible for temporary entry as traders and investors. 

This category provides for admission under requirements identical 

to those governing admission under INA § 101(a)(15)(E) (8 U.S.C. 

§ 1101(a)(15)(E)), which permits entry for persons to carry on substantial trade in goods or services or to develop and direct investment operations. 

Section 101(a)(15)(E) currently conditions admission into the 

United States upon authorization pursuant to a treaty of commerce 

and navigation. Since the Agreement is not a treaty of commerce 

and navigation, and no such treaty exists between the United 

States and Singapore, legislation is necessary to accord treaty trader and investor status to Singaporean citizens qualifying for entry 

under Section B. 

Section 401 of the draft legislation would not have amended section 101(a)(15)(E). Instead, it relied on a mechanism similar to that 

provided in § 341(a) of the North American Free Trade Agreement 

Implementation Act, which in turn was based upon the Act of June 

18, 1954 (68 Stat. 264, 8 U.S.C. § 1184(a)). The Act of June 18, 

1954 conferred treaty trader and investor status upon nationals of 

the Philippines on a reciprocal basis secured by an agreement entered into by the President of the United States and the President 

of the Philippines. 

Professionals 

Section 402(a) of the draft bill would have amended § 101(a)(15) 

of the INA (8 U.S.C. § 1101(a)(15)), which defines categories of persons entitled to enter the United States as nonimmigrants. Section 

402(a) of the draft bill would have inserted a new subparagraph 

(W) at the end of INA § 101(a)(15). Subparagraph (W) would have 

established a new category of aliens entitled to enter the United 

States temporarily as nonimmigrants. These aliens would have 

been citizens of countries with which the United States has entered 

into free trade agreements and who sought to come to the United 

States temporarily to engage in business activities at the professional level. Entry into the United States under subparagraph (W) 

would have been subject to regulations issued by the Secretary of 

Homeland Security implementing numerical limitations provided 

for in the applicable agreement, as set forth in new paragraph (8) 

of INA § 214(g), as added by the bill. The Department of Labor 

would have issued regulations governing temporary entry of professionals under this proposed provision of law. This amendment to 

the INA would have implemented Section D of Annex 14.3 of the 

Agreement. 

New INA § 101(a)(15)(W) also would have provided for the entry 

of spouses and children accompanying or following to join business 

persons entering under this category. The purpose of this provision 

was to grant express authorization for current Immigration and 

Naturalization Service practice, which is to admit such persons, but 

7

not allow them to be employed in the United States unless they 

independently met all applicable INA requirements. 

Persons seeking temporary entry into the United States under 

§ 101(a)(15)(W) would have been:

• considered to be seeking nonimmigrant status;

• subject to general requirements relating to admission of nonimmigrants, including those pertaining to the issuance of 

entry documents and the presumption set out in INA 

§ 214(b) (8 U.S.C. § 1184(b)); and

• accorded nonimmigrant status on admission.

It should be noted that while there are many similarities in the 

way professionals would have been treated under § 101(a)(15)(W) of 

the INA, as proposed by the draft bill and the way H-IB professionals are treated, a determination of admissibility under subparagraph (W) would have neither foreclosed nor established eligibility for entry as an H-1B professional. Further, § 101(a)(15)(W) 

would not have authorized a professional to establish a business or 

practice in the United States in which the professional will be selfemployed. 

Numerical Limitations 

Paragraph six of Section D of Annex 14.3 of the Agreement permits the United States to establish an annual numerical limit on 

temporary entries under the Agreement of Singaporean professionals. Under the proposed new paragraph (8) of INA § 214(g), 

that would have been added by § 402(a) of the bill, the Secretary 

of Homeland Security will issue regulations establishing an annual 

limit of up to 5,400 new temporary entry applications from Singaporean professionals, as provided in Appendix 14.3(D)(6) of the 

Agreement. 

Labor Attestations 

Under § (D)(5) of Annex 14.3 of the Agreement, the United States 

may require that an attestation of compliance with labor and immigration laws be made a condition for the temporary entry of Singaporean professionals. This provision allows U.S. labor and immigration officials to ensure that U.S. employers are not hiring Singaporean professionals as a way to put pressure on U.S. employees to 

accept lower wages or less favorable terms and conditions of employment. 

Section 402(b) of the draft legislation would have implemented 

the attestation requirement under the Agreement. Section 402(b) of 

the draft bill would have amended § 212 of the INA (8 U.S.C. 

§ 1182) by adding a new subsection (s) to the end of that section. 

INA § 212(s)(1), which would have been added by § 402(b) of the 

bill, required a U.S. employer seeking a temporary entry visa for 

a Singaporean professional to file an attestation with the Secretary 

of Labor. The attestation would have consisted of four core elements similar to those required for attestations under the ‘‘H-1B’’

visa program. See 8 U.S.C. § 1182(n)(1)(A)–(C). Thus, an employer 

would have attested that:

• It would pay the employee the higher of: (a) the actual wage 

paid to all other individuals with similar experience and 

8

qualifications for the specific employment in question, or (b) 

the prevailing wage level for the occupational classification 

in the area of employment;

• It would provide working conditions for the employee that 

would not adversely affect the working conditions of workers 

similarly employed;

• There was no strike or lockout in the course of a labor dispute in the occupational classification at the place of employment;

• The employer had provided notice of its attestation to its employees’ bargaining representative in the occupational classification in the area for which the employee was sought or, 

absent such a representative, has otherwise notified its employees.

The remainder of the proposed new INA § 212(s) contained provisions for enforcing the labor attestation requirement. Like the contents of the attestation itself, the enforcement requirements were 

based on requirements under the ‘‘H-1B’’ visa program. INA 

§ 212(s)(2)(A) required an employer to make copies of labor attestations (and such accompanying documents as are necessary) available for public examination at the employer’s principal place of 

business or worksite. INA § 212(s)(2)(B) required the Secretary of 

Labor to compile a list of all labor attestations filed including, with 

respect to each attestation, the wage rate, number of alien professionals sought for employment, period of intended employment, and 

date of need. INA § 212(s)(2)(C) provided that the Secretary of 

Labor would accept a labor attestation within 7 days of filing and 

issue the certification necessary for an alien to enter the United 

States as a nonimmigrant under INA § 101(a)(15)(W), unless the 

attestation was incomplete or obviously inaccurate. 

INA § 212(s)(3)(A) required the Secretary of Labor to establish a 

process for the receipt, investigation, and disposition of complaints 

respecting an employer’s failure to meet a condition specified in a 

labor attestation or an employer’s misrepresentation of material 

facts in such an attestation. Section 212(s)(3) also set forth penalties that may be imposed for violation of the labor attestation requirements, including monetary fines and denial of applications for 

visas under INA section 101(a)(15)(W) for specified periods. INA 

§ 212(s)(4) defined certain terms used in INA § 212(s). 

Labor Disputes 

Article 14.3(2) of the Agreement establishes an important safeguard for the domestic labor forces of the United States and Singapore, respectively. It permits either government to refuse to issue 

an immigration document authorizing employment where the temporary entry of a business person might affect adversely the settlement of a labor dispute or the employment of a person involved in 

such dispute. Article 14.3(2) thus allows the United States to deny 

temporary entry to a Singaporean business person whose activities 

in the United States require employment authorization if admission might interfere with an ongoing labor dispute. If the United 

States invokes article 14.3(2), it must inform the business person 

in writing of the reasons for its action and notify Singapore. 

9

Section 403 of the draft bill implemented article 14.3(2) of the 

Agreement by amending INA § 214(j) (8 U.S.C. § 1184(j)), designating current subsection (j) as paragraph (1) and inserting a new 

paragraph (2). New paragraph (2) of INA § 214(j) provided authority to refuse nonimmigrant classification under specified circumstances to a Singaporean business person seeking to enter the 

United States pursuant to the Agreement. In particular, nonimmigrant would have been refused if there was a strike or lockout 

affecting the relevant occupational classification at the Singaporean 

business person’s place of employment or intended place of employment in the United States, unless that person established, pursuant to regulations issued by the Secretary of Homeland Security 

after consultations with the Secretary of Labor, that the business 

person’s entry would not have adversely affected the settlement of 

the strike or lockout or the employment of any person involved in 

the strike or lockout. 

New paragraph (2) also required the provision of notice to the affected Singaporean business persons and to Singapore of a determination to deny nonimmigrant classification, as required under 

article 14.3(3) of the Agreement. INA § 214(j)(2) as inserted by the 

draft legislation applies only to requests for temporary entry by 

traders and investors, intra-company transferees, and professionals—i.e., the categories of nonimmigrants that require employment authorization under U.S. law (corresponding to Sections B, C, 

and D of Annex 14.3 of the Agreement). Employment in the U.S. 

labor market would not have been permitted for business visitors, 

as defined in INA § 101(a)(15)(B) (8 U.S.C. 1101(a)(15)(B)) (corresponding to Section A of Annex 14.3 of the Agreement); violations 

of status under that provision that involve labor disputes are fully 

redressable under existing law. 

Section 214(j)(2) would have been similar to existing INA provisions that prohibit admission in certain circumstances where interference with a labor dispute may result. For example, under INA 

§ 212(n)(1)(B) (8 U.S.C. § 1182(n)(1)(B)), the U.S. employer sponsoring an alien for admission must certify that there is no strike 

or lockout in the occupational classification at the place of employment. Additionally, § 214(j)(2) would have supplemented INA 

§ 237(a)(1)(C) (8 U.S.C. 1227(a)(1)(C)) and related INA provisions 

that now authorize deportation of an alien admitted under a particular nonimmigrant category if the alien ceased to perform the 

type of work permitted under that category or misrepresented the 

nature of the work at the time of admission. The Department of 

Labor would have provided strike certifications to the Department 

of Homeland Security, as it has provided them to the Immigration 

and Naturalization Service under existing provisions, pursuant to 

8 C.F.R. 214.2(h)(17). 

Administrative Action 

Singapore would have been added to the list of countries, maintained by the Department of State, whose citizens are eligible for 

treaty trader and treaty investor status under INA § 101(a)(15)(E). 

With respect to professionals provided for under Section D of 

Annex 14.3 of the Agreement, in all cases where a state license is 

required to engage in a particular activity in the United States, 

such professionals would have been required to obtain the approVerDate Jan 31 2003 19:42 Jul 22, 2003 Jkt 088456 PO 00000 Frm 00009 Fmt 6659 Sfmt 6601 E:\HR\OC\HR225P2.XXX HR225P2
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priate state license. Pursuant to INA § 101(a)(15)(W) as proposed 

by section 402(a) of the draft bill, the Secretary of Homeland Security would have issued regulations implementing the numerical 

limits set forth in Appendix 14.3(D)(6) of the Agreement. The Secretary of Labor would have issued regulations implementing the 

labor attestation provisions in new subsection (s) of INA § 212. The 

administrative agencies responsible for administering the other 

amendments to the INA described above would have promulgated 

regulations to implement those amendments. 

Pre-Introduction ‘‘Mock Markup’’ of U.S.-Singapore FTA Implementing Legislation and Committee Amendments Incorporated 

Into H.R. 2739

On July 10, 2003, the Committee held a pre-introduction ‘‘mock 

markup’’ of draft implementing legislation submitted by the Administration to the Committee. The Committee’s consideration of 

this draft legislation was limited to title IV of the draft implementing legislation. During this meeting, Chairman Sensenbrenner, Ranking Member Conyers, and several Members of the 

Committee made it clear that they opposed the inclusion of immigration provisions in H.R. 2739 and that they would not support 

any future FTA that included substantive changes to United States 

immigration law. 

Judiciary Committee Amendments to Draft Implementing 

Legislation 

The Committee reported several amendments to the immigration 

provisions by voice vote. The amendments were reflected in H.R. 

2739. 

First, the Committee reported an amendment by Representative 

King to transfer the new ‘‘W’’ professional worker visa category for 

citizens of Singapore to section 101(a)(15)(H)(i)(b)(1) of the Immigration and Nationality Act, rather than 101(a)(15)(W) as provided 

for in the draft implementing legislation. Representative King’s 

amendment also ensured that in future years, the national H-1B 

visa cap will be reduced in two situations. First, the number of H1B visas available in a fiscal year will be reduced by the number 

of Singaporean citizens granted extensions of H-1B1 status in that 

fiscal year after having previously been granted five or more consecutive prior extensions. Second, the number of H-1B visas available in a fiscal year will be reduced by the number of H-1B1 visas 

allocated (5,400 for citizens of Singapore). However, if at the end 

of a fiscal year, the 6,800 slots reserved for citizens of Singapore 

have not been exhausted, the number of H-1B visas available for 

that fiscal year will be adjusted upwards by the number of unused 

Singapore visas. These newly available H-1B visas may be issued 

within the first 45 days of the next fiscal year to aliens who had 

applied for such visas during the fiscal year for which the adjustment was made. 

The Committee also reported an amendment offered by Representatives Berman and Conyers requiring that an application for 

every second extension for an H-1B1 visa be accompanied by a new 

employer attestation. This will have the effect of requiring the employer to update the prevailing wage determination at such time. 

The amendment also requires that an employer pay a fee when HVerDate Jan 31 2003 19:42 Jul 22, 2003 Jkt 088456 PO 00000 Frm 00010 Fmt 6659 Sfmt 6601 E:\HR\OC\HR225P2.XXX HR225P2
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1B1 status is initially granted and after every second extension of 

that status. The fee shall be the same as the fee an employer must 

pay when petitioning for an H-1B visa. However, if no fee is being 

assessed under the H-1B program, no fee shall be imposed under 

the H-1B1 program. 

Finally, the implementing legislation now clarifies that an employer generally cannot sponsor an alien for an E, L, or H-1B1 visa 

if there is any labor dispute occurring in the occupational classification at the place of employment, regardless of whether the labor 

dispute is classified as a strike or lockout. In this regard, worker 

protections in H.R. 2739 are broader than those contained in the 

H-1B visa category. 

HEARINGS

No hearings were held on H.R. 2739 before the Committee on the 

Judiciary. 

COMMITTEE CONSIDERATION

On July 16, 2003, the Committee met in open session and ordered favorably reported the bill H.R. 2739 without amendment by 

voice vote, a quorum being present. 

VOTE OF THE COMMITTEE

In compliance with clause 3(b) of Rule XIII of the Rules of the 

House of Representatives, the Committee notes that there were no 

recorded votes during the committee consideration of H.R. 2739. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of Rule XIII of the Rules of the 

House of Representatives, the Committee reports that the findings 

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of Rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of Rule XIII of the Rules of the House of Representatives is inapplicable because this legislation does not provide new budgetary authority or increased tax expenditures. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of Rule XIII of the Rules of the 

House of Representatives, the Committee sets forth, with respect to 

the bill, H.R. 2739, the following estimate and comparison prepared 

by the Director of the Congressional Budget Office under section 

402 of the Congressional Budget Act of 1974:

12

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, July 21, 2003. 

Hon. F. JAMES SENSENBRENNER, Jr., Chairman, 

Committee on the Judiciary, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2739, a bill to implement 

the United States-Singapore Free Trade Agreement. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Annabelle Bartsch, who 

can be reached at 226–2680. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN.

Enclosure

cc: Honorable John Conyers, Jr. 

Ranking Member 

H.R. 2739—A bill to implement the United States-Singapore Free 

Trade Agreement. 

SUMMARY

H.R. 2739 would approve the free trade agreement (FTA) between the government of the United States and the government of 

Singapore that was entered into on May 6, 2003. It would provide 

for tariff reductions and other changes in law related to implementation of the agreement, such as provisions dealing with dispute 

settlement, rules of origin, and safeguard measures for textile and 

apparel industries. The bill also would allow the temporary entry 

of certain business persons into the United States. 

The Congressional Budget Office estimates that enacting the bill would reduce revenues by $55 million in 2004, by $410 million over 

the 2004–2008 period, and by about $1 billion over the 2004–2013 

period, net of income and payroll tax offsets. The bill would not 

have a significant effect on direct spending or spending subject to 

appropriation. CBO has determined that H.R. 2739 contains no 

intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would not affect the 

budgets of State, local, or tribal governments. 

ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of H.R. 2739 is shown in the following table.


CBO2A.eps
13

BASIS OF ESTIMATE

Revenues 

Under the United States-Singapore agreement, all tariffs on U.S. 

imports from Singapore would be phased out over time. The tariffs 

would be phased out for individual products at varying rates according to one of several different timetables ranging from immediate elimination to partial elimination over 10 years. According to 

the U.S. International Trade Commission, the U.S. collected $88 

million in customs duties in 2002 on about $14.1 billion of imports 

from Singapore. Of the imports, only $1.3 billion faced non-zero 

tariff rates. These dutiable imports from Singapore consist mostly 

of certain electrical machinery, knitted or crocheted apparel, mineral fuels and oils, surgical and precision instruments, and certain 

nuclear reactor components. Based on these data, CBO estimates 

that phasing out tariff rates as outlined in the U.S.-Singapore 

agreement would reduce revenues by $55 million in 2004, by $410 

million over the 2004–2008 period, and by about $1 billion over the 

2004–2013 period, net of income and payroll tax offsets. 

This estimate includes the effects of increased imports from 

Singapore that would result from the reduced prices of imported 

products in the United States, reflecting the lower tariff rates. It 

is likely that some of the increase in U.S. imports from Singapore 

would displace imports from other countries. In the absence of specific data on the extent of this substitution effect, CBO assumes 

that an amount equal to one-half of the increase in U.S. imports 

from Singapore would displace imports from other countries. 

Based on current law, H.R. 2739 would not provide for the assessment of civil monetary penalties on employers for violations of 

the labor attestation process with respect to certain workers from 

Singapore. However, if H.R. 2738, a bill to implement the United 

States-Chile FTA, were to be enacted prior to this bill, H.R. 2739 

would allow the Secretary of Labor to assess such penalties. CBO 

expects that any additional revenues collected as a result would 

amount to less than $500,000 in any year. 

Direct Spending 

Title IV of H.R. 2739 would permit certain traders and investors 

from Singapore, and their spouses and children, to enter the 

United States as nonimmigrants. The Bureau of Citizenship and 

Immigration Services (BCIS) would charge fees of about $100 to 

provide nonimmigrant visas, so CBO estimates that the agency 

could collect several million dollars annually in offsetting receipts 

(a credit against direct spending). The agency is authorized to 

spend such fees without further appropriation, so the net impact on 

BCIS spending would not be significant. 

However, if H.R. 2738 (a bill to implement the United StatesChile FTA) were to be enacted prior to this bill, title IV would establish a new nonimmigrant category for certain professional workers from Singapore. The legislation would limit the number of annual entries under this category to 5,400, plus spouses and children. The BCIS would charge fees of about $100 to provide nonimmigrant visas, so CBO estimates that the agency would collect 

less than $3 million annually in offsetting receipts. Again, the 

14

agency is authorized to spend such fees without further appropriation, so the net impact on BCIS spending would not be significant. Under current law, the Department of State also collects $100 

application fee for nonimmigrant visas. These collections are spent 

on border security and consular functions. CBO estimates that the 

net budgetary impact would be less than $500,000 a year. 

Spending Subject to Appropriation 

Title I of H.R. 2739 would authorize the appropriation the necessary funds for the Department of Commerce to pay the United 

States’ share of the costs of the dispute settlement procedures established by the agreement. Based on information from the agency, 

CBO estimates that implementing this provision would cost 

$100,000 in 2004, and $250,000 in each of the following years, subject to the availability of appropriated funds. 

Title III would require the International Trade Commission (ITC) 

to investigate claims of injury to domestic industries as a result of 

the FTA. The ITC would have 120 days to determine whether a domestic industry has been injured, and if so, would recommend the 

necessary amount of import relief. The ITC would also submit a report on its determination to the President. According to the ITC, 

similar FTAs have resulted in only a handful of cases each year, 

at an average cost of about $200,000 per investigation. Based on 

this information, CBO estimates the bill would have no significant 

effect on spending subject to appropriation. 

SUMMARY OF EFFECT ON REVENUES AND DIRECT SPENDING

The overall effects of H.R. 2739 on revenues and direct spending 

are shown in the following table.

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

The bill contains no intergovernmental or private-sector mandates as defined in UMRA and would not affect the budgets of 

State, local, or tribal governments. 

ESTIMATE PREPARED BY: 

Federal Revenues: Annabelle Bartsch (226–2680) 

Federal Spending: 

Dispute Settlements—Melissa Zimmerman (226–2860) 

Immigration—Mark Grabowicz (226–2860), Christi HawleySadoti (226–2820), and Sunita D’Monte (226–2840) 

Impact on State, Local, and Tribal Governments: Melissa Merrell 

(225–3220) 


CBO2B.eps
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Impact on the Private Sector: Paige Piper/Bach (226–0207) 

ESTIMATE APPROVED BY: 

G. Thomas Woodward 

Assistant Director for Tax Analysis 

Peter H. Fontaine 

Deputy Assistant Director for Budget Analysis 

PERFORMANCE GOALS AND OBJECTIVES

H.R. 2739 does not authorize funding. Therefore, clause 3(c)(4) of 

Rule XIII of the Rules of the House of Representatives is inapplicable. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of Rule XIII of the Rules of the House 

of Representatives, the Committee finds the authority for this legislation in article I, section 8 of the Constitution. 

SECTION-BY-SECTION ANALYSIS AND DISCUSSION

The following section-by-section analysis describes the sections of 

H.R. 2739 within the rule X jurisdiction of the Committee on the 

Judiciary. 

TITLE IV. TEMPORARY ENTRY FOR BUSINESS PERSONS

It should be emphasized that all grounds of inadmissibility found 

at section 212(a) of the Immigration and Nationality Act (INA), as 

the section currently exists or as it may be modified in the future, 

shall apply to any applicant for admission pursuant to title IV. 

Sec. 401. Nonimmigrant Traders and Investors. 

‘‘E’’ nonimmigrant visas are available for treaty traders and investors. A visa is available to an alien who:

is entitled to enter the United States under and in pursuance 

of the provisions of a treaty of commerce and navigation between the United States and the foreign state of which he is 

a national, and the spouse and children of any such alien if accompanying or following to join him: i) solely to carry on substantial trade, including trade in services or trade in technology, principally between the United States and the foreign 

state of which he is a national, or ii) solely to develop and direct the operations of an enterprise in which he has invested 

. . . a substantial amount of capital[.] 

INA section 101(a)(15)(E). 

Section 401 of the bill provides that nationals of Singapore (along 

with spouses and children, if accompanying or following to join), 

may, if otherwise eligible for a visa and admissible into the U.S., 

be considered to be classifiable as ‘‘E’’ nonimmigrants if entering 

solely for a purpose specified in clause (i) or (ii) of INA section 

101(a)(15)(E). H.R. 2739 contains a similar provision for nationals 

of Singapore. 

16

Sec. 402. Nonimmigrant Professionals. 

Section 402 of the bill makes nationals of Singapore eligible for 

the the ‘‘H-1B1 nonimmigrant visa program created by H.R. 2738 

to implement the U.S.-Chile Free Trade Agreement. The total number of approvals of initial applications for admission by Singaporeans is 5,400 in any fiscal year. 

For a description of the H-1B1 visa program, see the accompanying Judiciary Committee Report for H.R. 2738. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of Rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, 

existing law in which no change is proposed is shown in roman):

SECTION 13031 OF THE CONSOLIDATED OMNIBUS 

BUDGET RECONCILIATION ACT OF 1985

SEC. 13031. FEES FOR CERTAIN CUSTOMS SERVICES. 

(a) * * *

(b) LIMITATIONS ON FEES.—(1) * * *

* * * * * * *

(13) No fee may be charged under subsection (a) (9) or (10) 

with respect to goods that qualify as originating goods under 

section 202 of the United States-Singapore Free Trade Agreement Implementation Act. Any service for which an exemption 

from such fee is provided by reason of this paragraph may not 

be funded with money contained in the Customs User Fee Account.

* * * * * * *

SECTION 592 OF THE TARIFF ACT OF 1930

SEC. 592. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEGLIGENCE. 

(a) * * *

* * * * * * *

(c) MAXIMUM PENALTIES.—

(1) * * *

* * * * * * *

(7) PRIOR DISCLOSURE REGARDING CLAIMS UNDER THE

UNITED STATES-SINGAPORE FREE TRADE AGREEMENT.—

(A) An importer shall not be subject to penalties under 

subsection (a) for making an incorrect claim that a good 

qualifies as an originating good under section 202 of the 

United States-Singapore Free Trade Agreement Implementation Act if the importer, in accordance with regulations 

issued by the Secretary of the Treasury, voluntarily and 

17

promptly makes a corrected declaration and pays any duties owing. 

(B) In the regulations referred to in subparagraph (A), 

the Secretary of the Treasury is authorized to prescribe time 

periods for making a corrected declaration and paying duties owing under subparagraph (A), if such periods are not 

shorter than 1 year following the date on which the importer makes the incorrect claim that a good qualifies as an 

originating good.

* * * * * * *

SECTION 202 OF THE TRADE ACT OF 1974

SEC. 202. INVESTIGATIONS, DETERMINATIONS, AND RECOMMENDATIONS BY COMMISSION. 

(a) PETITIONS AND ADJUSTMENT PLANS.—

(1) * * *

* * * * * * *

(8) The procedures concerning the release of confidential 

business information set forth in section 332(g) of the Tariff 

Act of 1930 shall apply with respect to information received by 

the Commission in the course of investigations conducted 

under this chapter, part 1 of title III of the North American 

Free Trade Agreement Implementation Act, øand¿ title II of 

the United States-Jordan Free Trade Area Implementation 

Act, and title III of the United States-Singapore Free Trade 

Agreement Implementation Act. The Commission may request 

that parties providing confidential business information furnish nonconfidential summaries thereof or, if such parties indicate that the information in the submission cannot be summarized, the reasons why a summary cannot be provided. If the 

Commission finds that a request for confidentiality is not warranted and if the party concerned is either unwilling to make 

the information public or to authorize its disclosure in generalized or summarized form, the Commission may disregard the 

submission. 

* * * * * * *

SECTION 214 OF THE IMMIGRATION AND NATIONALITY 

ACT

ADMISSION OF NONIMMIGRANTS

SEC. 214. (a)***

(g)(1)***

* * * * * * *

18

[The purported changes made to paragraph (8) of section 214(g) by this bill 

are shown below. Section 402(a)(2)(B) of H.R. 2738 inserts at the end of 

subsection (g) a new paragraph (8), which is presumed to take effect 

prior to the execution of these amendments.]

ø(8)(A) The agreement referred to in section 

101(a)(15)(H)(i)(b1) is the United States-Chile Free Trade Agreement.¿

(8)(A) The agreements referred to in section 101(a)(15)(H)(i)(b1) 

are—

(i) the United States-Chile Free Trade Agreement; and 

(ii) the United States-Singapore Free Trade Agreement.

(B)(i)***

ø(ii) The annual numerical limitations described in clause (i) 

shall not exceed 1,400 for nationals of Chile for any fiscal year. For 

purposes of this clause, the term ‘‘national’’ has the meaning given 

such term in article 14.9 of the United States-Chile Free Trade 

Agreement.¿

(ii) The annual numerical limitations described in clause (i) 

shall not exceed—

(I) 1,400 for nationals of Chile (as defined in article 14.9 

of the United States-Chile Free Trade Agreement) for any fiscal 

year; and 

(II) 5,400 for nationals of Singapore (as defined in Annex 

1A of the United States-Singapore Free Trade Agreement) for 

any fiscal year.

* * * * * * *

19

AGENCY CORRESPONDENCE


Letter2A.eps
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Letter2B.eps
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Letter2C.eps
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Letter2D.eps
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Letter2E.eps
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MARKUP TRANSCRIPT

BUSINESS MEETING 

WEDNESDAY, JULY 16, 2003

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON THE JUDICIARY, 

Washington, DC. 

The Committee met, pursuant to notice, at 10:04 a.m., in Room 

2141, Rayburn House Office Building, Hon. F. James Sensenbrenner, Jr., [Chairman of the Committee] presiding. 

[Intervening business.] 

Chairman SENSENBRENNER. Pursuant to notice, I now call up 

H.R. 2739, the implementing legislation for the U.S.-Singapore 

Free Trade Agreement and move its favorable recommendation to 

the House. 

The same explanation that I have previously given with respect 

to the Chile legislation applies to the Singapore legislation, and 

again only the immigration provisions of the agreement require implementing legislation. 

Without objection, H.R. 2739 will be considered as read. 

[The bill, H.R. 2739, follows:]

25

1

I

108TH CONGRESS

1ST SESSION H. R. 2739

To implement the United States-Singapore Free Trade Agreement.

IN THE HOUSE OF REPRESENTATIVES

JULY 15, 2003

Mr. DELAY (for himself and Mr. RANGEL) (both by request) introduced the

following bill; which was referred to the Committee on Ways and Means,

and in addition to the Committee on the Judiciary, for a period to be

subsequently determined by the Speaker, in each case for consideration

of such provisions as fall within the jurisdiction of the committee

concerned

A BILL

To implement the United States-Singapore Free Trade

Agreement.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘United States-Singapore Free Trade Agreement Imple6 mentation Act’’.

7 (b) TABLE OF CONTENTS.—The table of contents for

8 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Purposes.


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Sec. 3. Definitions.

TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING

TO, THE AGREEMENT

Sec. 101. Approval and entry into force of the agreement.

Sec. 102. Relationship of the agreement to United States and State law.

Sec. 103. Consultation and layover provisions for, and effective date of, proclaimed actions.

Sec. 104. Implementing actions in anticipation of entry into force and initial

regulations.

Sec. 105. Administration of dispute settlement proceedings.

Sec. 106. Arbitration of certain claims.

Sec. 107. Effective dates; effect of termination.

TITLE II—CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.

Sec. 202. Rules of origin.

Sec. 203. Customs user fees.

Sec. 204. Disclosure of incorrect information.

Sec. 205. Enforcement relating to trade in textile and apparel goods.

Sec. 206. Regulations.

TITLE III—RELIEF FROM IMPORTS

Sec. 301. Definitions.

Subtitle A—Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief.

Sec. 312. Commission action on petition.

Sec. 313. Provision of relief.

Sec. 314. Termination of relief authority.

Sec. 315. Compensation authority.

Sec. 316. Confidential business information.

Subtitle B—Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.

Sec. 322. Determination and provision of relief.

Sec. 323. Period of relief.

Sec. 324. Articles exempt from relief.

Sec. 325. Rate after termination of import relief.

Sec. 326. Termination of relief authority.

Sec. 327. Compensation authority.

Sec. 328. Business confidential information.

Subtitle C—Cases Under Title II of the Trade Act of 1974

Sec. 331. Findings and action on goods from Singapore.

TITLE IV—TEMPORARY ENTRY OF BUSINESS PERSONS

Sec. 401. Nonimmigrant traders and investors.

Sec. 402. Nonimmigrant professionals.


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•HR 2739 IH

1 SEC. 2. PURPOSES.

2 The purposes of this Act are—

3 (1) to approve and implement the Free Trade

4 Agreement between the United States and the Re5 public of Singapore entered into under the authority

6 of section 2103(b) of the Bipartisan Trade Pro7 motion Authority Act of 2002;

8 (2) to strengthen and develop economic rela9 tions between the United States and Singapore for

10 their mutual benefit;

11 (3) to establish free trade between the 2 nations

12 through the reduction and elimination of barriers to

13 trade in goods and services and to investment; and

14 (4) to lay the foundation for further coopera15 tion to expand and enhance the benefits of such

16 Agreement.

17 SEC. 3. DEFINITIONS.

18 In this Act:

19 (1) AGREEMENT.—The term ‘‘Agreement’’

20 means the United States-Singapore Free Trade

21 Agreement approved by Congress under section

22 101(a).

23 (2) HTS.—The term ‘‘HTS’’ means the Har24 monized Tariff Schedule of the United States.


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1 TITLE I—APPROVAL OF, AND

2 GENERAL PROVISIONS RE3 LATING TO, THE AGREEMENT

4 SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE

5 AGREEMENT.

6 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

7 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of

8 the Bipartisan Trade Promotion Authority Act of 2002

9 (19 U.S.C. 3805) and section 151 of the Trade Act of

10 1974 (19 U.S.C. 2191), Congress approves—

11 (1) the United States-Singapore Free Trade

12 Agreement entered into on May 6, 2003, with the

13 Government of Singapore and submitted to Congress

14 on July 15, 2003; and

15 (2) the statement of administrative action pro16 posed to implement the Agreement that was sub17 mitted to Congress on July 15, 2003.

18 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

19 AGREEMENT.—At such time as the President determines

20 that Singapore has taken measures necessary to bring it

21 into compliance with those provisions of the Agreement

22 that take effect on the date on which the Agreement enters

23 into force, the President is authorized to exchange notes

24 with the Government of Singapore providing for the entry


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•HR 2739 IH

1 into force, on or after January 1, 2004, of the Agreement

2 for the United States.

3 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED

4 STATES AND STATE LAW.

5 (a) RELATIONSHIP OF AGREEMENT TO UNITED

6 STATES LAW.—

7 (1) UNITED STATES LAW TO PREVAIL IN CON8 FLICT.—No provision of the Agreement, nor the ap9 plication of any such provision to any person or cir10 cumstance, which is inconsistent with any law of the

11 United States shall have effect.

12 (2) CONSTRUCTION.—Nothing in this Act shall

13 be construed—

14 (A) to amend or modify any law of the

15 United States, or

16 (B) to limit any authority conferred under

17 any law of the United States,

18 unless specifically provided for in this Act.

19 (b) RELATIONSHIP OF AGREEMENT TO STATE

20 LAW.—

21 (1) LEGAL CHALLENGE.—No State law, or the

22 application thereof, may be declared invalid as to

23 any person or circumstance on the ground that the

24 provision or application is inconsistent with the

25 Agreement, except in an action brought by the


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•HR 2739 IH

1 United States for the purpose of declaring such law

2 or application invalid.

3 (2) DEFINITION OF STATE LAW.—For purposes

4 of this subsection, the term ‘‘State law’’ includes—

5 (A) any law of a political subdivision of a

6 State; and

7 (B) any State law regulating or taxing the

8 business of insurance.

9 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI10 VATE REMEDIES.—No person other than the United

11 States—

12 (1) shall have any cause of action or defense

13 under the Agreement or by virtue of congressional

14 approval thereof; or

15 (2) may challenge, in any action brought under

16 any provision of law, any action or inaction by any

17 department, agency, or other instrumentality of the

18 United States, any State, or any political subdivision

19 of a State on the ground that such action or inaction

20 is inconsistent with the Agreement.

21 SEC. 103. CONSULTATION AND LAYOVER PROVISIONS FOR,

22 AND EFFECTIVE DATE OF, PROCLAIMED AC23 TIONS.

24 (a) CONSULTATION AND LAYOVER REQUIRE25 MENTS.—If a provision of this Act provides that the impleVerDate Jan 31 2003 19:42 Jul 22, 2003 Jkt 088456 PO 00000 Frm 00030 Fmt 6659 Sfmt 6601 E:\HR\OC\HR225P2.XXX HR225P2

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1 mentation of an action by the President by proclamation

2 is subject to the consultation and layover requirements of

3 this section, such action may be proclaimed only if—

4 (1) the President has obtained advice regarding

5 the proposed action from—

6 (A) the appropriate advisory committees

7 established under section 135 of the Trade Act

8 of 1974; and

9 (B) the United States International Trade

10 Commission;

11 (2) the President has submitted a report to the

12 Committee on Finance of the Senate and the Com13 mittee on Ways and Means of the House of Rep14 resentatives that sets forth—

15 (A) the action proposed to be proclaimed

16 and the reasons therefor; and

17 (B) the advice obtained under paragraph

18 (1);

19 (3) a period of 60 calendar days beginning on

20 the first day on which the requirements of para21 graphs (1) and (2) have been met has expired; and

22 (4) the President has consulted with such Com23 mittees regarding the proposed action during the pe24 riod referred to in paragraph (3).


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•HR 2739 IH

1 (b) EFFECTIVE DATE OF CERTAIN PROCLAIMED AC2 TIONS.—Any action proclaimed by the President under the

3 authority of this Act that is not subject to the consultation

4 and layover provisions under subsection (a) may not take

5 effect before the 15th day after the date on which the text

6 of the proclamation is published in the Federal Register.

7 SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF

8 ENTRY INTO FORCE AND INITIAL REGULA9 TIONS.

10 (a) IMPLEMENTING ACTIONS.—

11 (1) PROCLAMATION AUTHORITY.—After the

12 date of enactment of this Act—

13 (A) the President may proclaim such ac14 tions, and

15 (B) other appropriate officers of the

16 United States Government may issue such reg17 ulations,

18 as may be necessary to ensure that any provision of

19 this Act, or amendment made by this Act, that takes

20 effect on the date the Agreement enters into force

21 is appropriately implemented on such date, but no

22 such proclamation or regulation may have an effec23 tive date earlier than the date of entry into force.

24 (2) WAIVER OF 15-DAY RESTRICTION.—The 15-

25 day restriction in section 103(b) on the taking effect


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•HR 2739 IH

1 of proclaimed actions is waived to the extent that

2 the application of such restriction would prevent the

3 taking effect on the date the Agreement enters into

4 force of any action proclaimed under this section.

5 (b) INITIAL REGULATIONS.—Initial regulations nec6 essary or appropriate to carry out the actions required by

7 or authorized under this Act or proposed in the statement

8 of administrative action submitted under section

9 101(a)(2) to implement the Agreement shall, to the max10 imum extent feasible, be issued within 1 year after the

11 date of entry into force of the Agreement. In the case of

12 any implementing action that takes effect on a date after

13 the date of entry into force of the Agreement, initial regu14 lations to carry out that action shall, to the maximum ex15 tent feasible, be issued within 1 year after such effective

16 date.

17 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO18 CEEDINGS.

19 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—

20 The President is authorized to establish or designate with21 in the Department of Commerce an office that shall be

22 responsible for providing administrative assistance to pan23 els established under chapter 20 of the Agreement. Such

24 office may not be considered to be an agency for purposes

25 of section 552 of title 5, United States Code.


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•HR 2739 IH

1 (b) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated for each fiscal year after

3 fiscal year 2003 to the Department of Commerce such

4 sums as may be necessary for the establishment and oper5 ations of the office under subsection (a) and for the pay6 ment of the United States share of the expenses of panels

7 established under chapter 20 of the Agreement.

8 SEC. 106. ARBITRATION OF CERTAIN CLAIMS.

9 (a) SUBMISSION OF CERTAIN CLAIMS.—The United

10 States is authorized to resolve any claim against the

11 United States covered by article 15.15.1(a)(i)(C) or article

12 15.15.1(b)(i)(C) of the Agreement, pursuant to the Inves13 tor-State Dispute Settlement procedures set forth in sec14 tion C of chapter 15 of the Agreement.

15 (b) CONTRACT CLAUSES.—All contracts executed by

16 any agency of the United States on or after the date of

17 entry into force of the Agreement shall contain a clause

18 specifying the law that will apply to resolve any breach

19 of contract claim.

20 SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

21 (a) EFFECTIVE DATES.—Except as provided in sub22 section (b), the provisions of this Act and the amendments

23 made by this Act take effect on the date the Agreement

24 enters into force.

25 (b) EXCEPTIONS.—


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1 (1) Sections 1 through 3 and this title take ef2 fect on the date of enactment of this Act.

3 (2) Section 205 takes effect on the date on

4 which the textile and apparel provisions of the

5 Agreement take effect pursuant to article 5.10 of

6 the Agreement.

7 (c) TERMINATION OF THE AGREEMENT.—On the

8 date on which the Agreement ceases to be in force, the

9 provisions of this Act (other than this subsection) and the

10 amendments made by this Act shall cease to be effective.

11 TITLE II—CUSTOMS PROVISIONS

12 SEC. 201. TARIFF MODIFICATIONS.

13 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

14 AGREEMENT.—The President may proclaim—

15 (1) such modifications or continuation of any

16 duty,

17 (2) such continuation of duty-free or excise

18 treatment, or

19 (3) such additional duties,

20 as the President determines to be necessary or appropriate

21 to carry out or apply articles 2.2, 2.5, 2.6, and 2.12 and

22 Annex 2B of the Agreement.

23 (b) OTHER TARIFF MODIFICATIONS.—Subject to the

24 consultation and layover provisions of section 103(a), the

25 President may proclaim—


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1 (1) such modifications or continuation of any

2 duty,

3 (2) such modifications as the United States

4 may agree to with Singapore regarding the staging

5 of any duty treatment set forth in Annex 2B of the

6 Agreement,

7 (3) such continuation of duty-free or excise

8 treatment, or

9 (4) such additional duties,

10 as the President determines to be necessary or appropriate

11 to maintain the general level of reciprocal and mutually

12 advantageous concessions with respect to Singapore pro13 vided for by the Agreement.

14 (c) CONVERSION TO AD VALOREM RATES.—For pur15 poses of subsections (a) and (b), with respect to any good

16 for which the base rate in the Schedule of the United

17 States set forth in Annex 2B of the Agreement is a spe18 cific or compound rate of duty, the President may sub19 stitute for the base rate an ad valorem rate that the Presi20 dent determines to be equivalent to the base rate.

21 SEC. 202. RULES OF ORIGIN.

22 (a) ORIGINATING GOODS.—For purposes of this Act

23 and for purposes of implementing the tariff treatment pro24 vided for under the Agreement, except as otherwise pro25 vided in this section, a good is an originating good if—


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1 (1) the good is wholly obtained or produced en2 tirely in the territory of Singapore, the United

3 States, or both;

4 (2) each nonoriginating material used in the

5 production of the good—

6 (A) undergoes an applicable change in tar7 iff classification set out in Annex 3A of the

8 Agreement as a result of production occurring

9 entirely in the territory of Singapore, the

10 United States, or both; or

11 (B) if no change in tariff classification is

12 required, the good otherwise satisfies the appli13 cable requirements of such Annex; or

14 (3) the good itself, as imported, is listed in

15 Annex 3B of the Agreement and is imported into the

16 territory of the United States from the territory of

17 Singapore.

18 (b) DE MINIMIS AMOUNTS OF NONORIGINATING MA19 TERIALS.—

20 (1) IN GENERAL.—Except as provided for in

21 paragraphs (2) and (3), a good shall be considered

22 to be an originating good if—

23 (A) the value of all nonoriginating mate24 rials used in the production of the good that do

25 not undergo the required change in tariff classiVerDate Jan 31 2003 19:42 Jul 22, 2003 Jkt 088456 PO 00000 Frm 00037 Fmt 6659 Sfmt 6601 E:\HR\OC\HR225P2.XXX HR225P2

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1 fication under Annex 3A of the Agreement does

2 not exceed 10 percent of the adjusted value of

3 the good;

4 (B) if the good is subject to a regional

5 value-content requirement, the value of such

6 nonoriginating materials is taken into account

7 in calculating the regional value-content of the

8 good; and

9 (C) the good satisfies all other applicable

10 requirements of this section.

11 (2) EXCEPTIONS.—Paragraph (1) does not

12 apply to the following:

13 (A) A nonoriginating material provided for

14 in chapter 4 of the HTS or in subheading

15 1901.90 of the HTS that is used in the produc16 tion of a good provided for in chapter 4 of the

17 HTS.

18 (B) A nonoriginating material provided for

19 in chapter 4 of the HTS or in subheading

20 1901.90 of the HTS that is used in the produc21 tion of a good provided for in heading 2105 or

22 in any of subheadings 1901.10, 1901.20,

23 1901.90, 2106.90, 2202.90, and 2309.90 of the

24 HTS.


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•HR 2739 IH

1 (C) A nonoriginating material provided for

2 in heading 0805, or any of subheadings

3 2009.11.00 through 2009.39, of the HTS, that

4 is used in the production of a good provided for

5 in any of subheadings 2009.11.00 through

6 2009.39 or in subheading 2106.90 or 2202.90

7 of the HTS.

8 (D) A nonoriginating material provided for

9 in chapter 15 of the HTS that is used in the

10 production of a good provided for in any of

11 headings 1501.00.00 through 1508, 1512,

12 1514, and 1515 of the HTS.

13 (E) A nonoriginating material provided for

14 in heading 1701 of the HTS that is used in the

15 production of a good provided for in any of

16 headings 1701 through 1703 of the HTS.

17 (F) A nonoriginating material provided for

18 in chapter 17 of the HTS or heading

19 1805.00.00 of the HTS that is used in the pro20 duction of a good provided for in subheading

21 1806.10 of the HTS.

22 (G) A nonoriginating material provided for

23 in any of headings 2203 through 2208 of the

24 HTS that is used in the production of a good


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•HR 2739 IH

1 provided for in heading 2207 or 2208 of the

2 HTS.

3 (H) A nonoriginating material used in the

4 production of a good provided for in any of

5 chapters 1 through 21 of the HTS, unless the

6 nonoriginating material is provided for in a dif7 ferent subheading than the good for which ori8 gin is being determined under this section.

9 (3) GOODS PROVIDED FOR IN CHAPTERS 50

10 THROUGH 63 OF THE HTS.—

11 (A) IN GENERAL.—Except as provided in

12 subparagraph (B), a good provided for in any

13 of chapters 50 through 63 of the HTS that is

14 not an originating good because certain fibers

15 or yarns used in the production of the compo16 nent of the good that determines the tariff clas17 sification of the good do not undergo an appli18 cable change in tariff classification set out in

19 Annex 3A of the Agreement shall be considered

20 to be an originating good if the total weight of

21 all such fibers or yarns in that component is

22 not more than 7 percent of the total weight of

23 that component.

24 (B) CERTAIN TEXTILE OR APPAREL

25 GOODS.—


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•HR 2739 IH

1 (i) TREATMENT AS ORIGINATING

2 GOOD.—A textile or apparel good con3 taining elastomeric yarns in the component

4 of the good that determines the tariff clas5 sification of the good shall be considered to

6 be an originating good only if such yarns

7 are wholly formed in the territory of Singa8 pore or the United States.

9 (ii) DEFINITION OF TEXTILE OR AP10 PAREL GOOD.—For purposes of this sub11 paragraph, the term ‘‘textile or apparel

12 good’’ means a product listed in the Annex

13 to the Agreement on Textiles and Clothing

14 referred to in section 101(d)(4) of the

15 Uruguay Round Agreements Act (19

16 U.S.C. 3511(d)(4)).

17 (c) ACCUMULATION.—

18 (1) ORIGINATING GOODS INCORPORATED IN

19 GOODS OF OTHER COUNTRY.—Originating materials

20 from the territory of either Singapore or the United

21 States that are used in the production of a good in

22 the territory of the other country shall be considered

23 to originate in the territory of the other country.

24 (2) MULTIPLE PROCEDURES.—A good that is

25 produced in the territory of Singapore, the United


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•HR 2739 IH

1 States, or both, by 1 or more producers is an origi2 nating good if the good satisfies the requirements of

3 subsection (a) and all other applicable requirements

4 of this section.

5 (d) REGIONAL VALUE-CONTENT.—

6 (1) IN GENERAL.—For purposes of subsection

7 (a)(2), the regional value-content of a good referred

8 to in Annex 3A of the Agreement shall be calculated,

9 at the choice of the person claiming preferential tar10 iff treatment for the good, on the basis of the build11 down method described in paragraph (2) or the

12 build-up method described in paragraph (3), unless

13 otherwise provided in Annex 3A of the Agreement.

14 (2) BUILD-DOWN METHOD.—

15 (A) IN GENERAL.—The regional value-con16 tent of a good may be calculated on the basis

17 of the following build-down method:

AV–VNM RVC = ———— × 100 AV

18 (B) DEFINITIONS.—For purposes of sub19 paragraph (A):

20 (i) The term ‘‘RVC’’ means the re21 gional value-content, expressed as a per22 centage.


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•HR 2739 IH

1 (ii) The term ‘‘AV’’ means the ad2 justed value.

3 (iii) The term ‘‘VNM’’ means the

4 value of nonoriginating materials that are

5 acquired and used by the producer in the

6 production of the good.

7 (3) BUILD-UP METHOD.—

8 (A) IN GENERAL.—The regional value-con9 tent of a good may be calculated on the basis

10 of the following build-up method:

VOM RVC = ———— × 100 AV

11 (B) DEFINITIONS.—For purposes of sub12 paragraph (A):

13 (i) The term ‘‘RVC’’ means the re14 gional value-content, expressed as a per15 centage.

16 (ii) The term ‘‘AV’’ means the ad17 justed value.

18 (iii) The term ‘‘VOM’’ means the

19 value of originating materials that are ac20 quired or self-produced and are used by

21 the producer in the production of the good.

22 (e) VALUE OF MATERIALS.—


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1 (1) IN GENERAL.—For purposes of calculating

2 the regional value-content of a good under sub3 section (d), and for purposes of applying the de

4 minimis rules under subsection (b), the value of a

5 material is—

6 (A) in the case of a material imported by

7 the producer of the good, the adjusted value of

8 the material;

9 (B) in the case of a material acquired in

10 the territory in which the good is produced, ex11 cept for a material to which subparagraph (C)

12 applies, the adjusted value of the material; or

13 (C) in the case of a material that is self14 produced, or in a case in which the relationship

15 between the producer of the good and the seller

16 of the material influenced the price actually

17 paid or payable for the material, including a

18 material obtained without charge, the sum of—

19 (i) all expenses incurred in the pro20 duction of the material, including general

21 expenses; and

22 (ii) an amount for profit.

23 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

24 MATERIALS.—


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•HR 2739 IH

1 (A) ORIGINATING MATERIALS.—The fol2 lowing expenses, if not included in the value of

3 an originating material calculated under para4 graph (1), may be added to the value of the

5 originating material:

6 (i) The costs of freight, insurance,

7 packing, and all other costs incurred in

8 transporting the material to the location of

9 the producer.

10 (ii) Duties, taxes, and customs broker11 age fees on the material paid in the terri12 tory of Singapore, the United States, or

13 both, other than duties and taxes that are

14 waived, refunded, refundable, or otherwise

15 recoverable, including credit against duty

16 or tax paid or payable.

17 (iii) The cost of waste and spoilage re18 sulting from the use of the material in the

19 production of the good, less the value of

20 renewable scrap or by-product.

21 (B) NONORIGINATING MATERIALS.—The

22 following expenses, if included in the value of a

23 nonoriginating material calculated under para24 graph (1), may be deducted from the value of

25 the nonoriginating material:


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•HR 2739 IH

1 (i) The costs of freight, insurance,

2 packing, and all other costs incurred in

3 transporting the material to the location of

4 the producer.

5 (ii) Duties, taxes, and customs broker6 age fees on the material paid in the terri7 tory of Singapore, the United States, or

8 both, other than duties and taxes that are

9 waived, refunded, refundable, or otherwise

10 recoverable, including credit against duty

11 or tax paid or payable.

12 (iii) The cost of waste and spoilage re13 sulting from the use of the material in the

14 production of the good, less the value of

15 renewable scrap or by-product.

16 (iv) The cost of processing incurred in

17 the territory of Singapore or the United

18 States in the production of the nonorigi19 nating material.

20 (v) The cost of originating materials

21 used in the production of the nonorigi22 nating material in the territory of Singa23 pore or the United States.

24 (f) ACCESSORIES, SPARE PARTS, OR TOOLS.—


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•HR 2739 IH

1 (1) IN GENERAL.—Subject to paragraph (2),

2 accessories, spare parts, or tools delivered with the

3 good that form part of the good’s standard acces4 sories, spare parts, or tools shall—

5 (A) be treated as originating goods if the

6 good is an originating good; and

7 (B) be disregarded in determining whether

8 all the nonoriginating materials used in the pro9 duction of the good undergo an applicable

10 change in tariff classification set out in Annex

11 3A of the Agreement.

12 (2) CONDITIONS.—Paragraph (1) shall apply

13 only if—

14 (A) the accessories, spare parts, or tools

15 are not invoiced separately from the good;

16 (B) the quantities and value of the acces17 sories, spare parts, or tools are customary for

18 the good; and

19 (C) if the good is subject to a regional

20 value-content requirement, the value of the ac21 cessories, spare parts, or tools is taken into ac22 count as originating or nonoriginating mate23 rials, as the case may be, in calculating the re24 gional value-content of the good.

25 (g) FUNGIBLE GOODS AND MATERIALS.—


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•HR 2739 IH

1 (1) IN GENERAL.—

2 (A) CLAIM FOR PREFERENTIAL TREAT3 MENT.—A person claiming preferential tariff

4 treatment for a good may claim that a fungible

5 good or material is originating either based on

6 the physical segregation of each fungible good

7 or material or by using an inventory manage8 ment method.

9 (B) INVENTORY MANAGEMENT METHOD.—

10 In this subsection, the term ‘‘inventory manage11 ment method’’ means—

12 (i) averaging;

13 (ii) ‘‘last-in, first-out’’;

14 (iii) ‘‘first-in, first-out’’; or

15 (iv) any other method—

16 (I) recognized in the generally

17 accepted accounting principles of the

18 country in which the production is

19 performed (whether Singapore or the

20 United States); or

21 (II) otherwise accepted by that

22 country.

23 (2) ELECTION OF INVENTORY METHOD.—A

24 person selecting an inventory management method

25 under paragraph (1) for particular fungible goods or


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•HR 2739 IH

1 materials shall continue to use that method for those

2 fungible goods or materials throughout the fiscal

3 year of that person.

4 (h) PACKAGING MATERIALS AND CONTAINERS FOR

5 RETAIL SALE.—Packaging materials and containers in

6 which a good is packaged for retail sale, if classified with

7 the good, shall be disregarded in determining whether all

8 the nonoriginating materials used in the production of the

9 good undergo the applicable change in tariff classification

10 set out in Annex 3A of the Agreement and, if the good

11 is subject to a regional value-content requirement, the

12 value of such packaging materials and containers shall be

13 taken into account as originating or nonoriginating mate14 rials, as the case may be, in calculating the regional value15 content of the good.

16 (i) PACKING MATERIALS AND CONTAINERS FOR

17 SHIPMENT.—Packing materials and containers in which

18 a good is packed for shipment shall be disregarded in de19 termining whether—

20 (1) the nonoriginating materials used in the

21 production of a good undergo an applicable change

22 in tariff classification set out in Annex 3A of the

23 Agreement; and

24 (2) the good satisfies a regional value-content

25 requirement.


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•HR 2739 IH

1 (j) INDIRECT MATERIALS.—An indirect material

2 shall be considered to be an originating material without

3 regard to where it is produced, and its value shall be the

4 cost registered in the accounting records of the producer

5 of the good.

6 (k) THIRD COUNTRY OPERATIONS.—A good shall not

7 be considered to be an originating good by reason of hav8 ing undergone production that satisfies the requirements

9 of subsection (a) if, subsequent to that production, the

10 good undergoes further production or any other operation

11 outside the territories of Singapore and the United States,

12 other than unloading, reloading, or any other operation

13 necessary to preserve it in good condition or to transport

14 the good to the territory of Singapore or the United

15 States.

16 (l) SPECIAL RULE FOR APPAREL GOODS LISTED IN

17 CHAPTER 61 OR 62 OF THE HTS.—

18 (1) IN GENERAL.—An apparel good listed in

19 chapter 61 or 62 of the HTS shall be considered to

20 be an originating good if it is both cut (or knit to

21 shape) and sewn or otherwise assembled in the terri22 tory of Singapore, the United States, or both, from

23 fabric or yarn, regardless of origin, designated in the

24 manner described in paragraph (2) as fabric or yarn


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•HR 2739 IH

1 not available in commercial quantities in a timely

2 manner in the United States.

3 (2) DESIGNATION OF CERTAIN FABRIC AND

4 YARN.—The designation referred to in paragraph

5 (1) means a designation made in a notice published

6 in the Federal Register on or before November 15,

7 2002, identifying apparel goods made from fabric or

8 yarn eligible for entry into the United States under

9 subheading 9819.11.24 or 9820.11.27 of the HTS.

10 For purposes of this subsection, a reference in the

11 notice to fabric or yarn formed in the United States

12 is deemed to include fabric or yarn formed in Singa13 pore.

14 (m) APPLICATION AND INTERPRETATION.—In this

15 section:

16 (1) The basis for any tariff classification is the

17 HTS.

18 (2) Any cost or value referred to in this section

19 shall be recorded and maintained in accordance with

20 the generally accepted accounting principles applica21 ble in the territory of the country in which the good

22 is produced (whether Singapore or the United

23 States).

24 (n) DEFINITIONS.—In this section:


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•HR 2739 IH

1 (1) ADJUSTED VALUE.—The term ‘‘adjusted

2 value’’ means the value of a good determined under

3 articles 1 through 8, article 15, and the cor4 responding interpretative notes of the Agreement on

5 Implementation of Article VII of the General Agree6 ment on Tariffs and Trade 1994 referred to in sec7 tion 101(d)(8) of the Uruguay Round Agreements

8 Act, except that such value may be adjusted to ex9 clude any costs, charges, or expenses incurred for

10 transportation, insurance, and related services inci11 dent to the international shipment of the good from

12 the country of exportation to the place of importa13 tion.

14 (2) FUNGIBLE GOODS AND FUNGIBLE MATE15 RIALS.—The terms ‘‘fungible goods’’ and ‘‘fungible

16 materials’’ mean goods or materials, as the case may

17 be, that are interchangeable for commercial purposes

18 and the properties of which are essentially identical.

19 (3) GENERALLY ACCEPTED ACCOUNTING PRIN20 CIPLES.—The term ‘‘generally accepted accounting

21 principles’’ means the recognized consensus or sub22 stantial authoritative support in the territory of

23 Singapore or the United States, as the case may be,

24 with respect to the recording of revenues, expenses,

25 costs, and assets and liabilities, the disclosure of inVerDate Jan 31 2003 19:42 Jul 22, 2003 Jkt 088456 PO 00000 Frm 00052 Fmt 6659 Sfmt 6601 E:\HR\OC\HR225P2.XXX HR225P2

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1 formation, and the preparation of financial state2 ments. The standards may encompass broad guide3 lines of general application as well as detailed stand4 ards, practices, and procedures.

5 (4) GOODS WHOLLY OBTAINED OR PRODUCED

6 ENTIRELY IN THE TERRITORY OF SINGAPORE, THE

7 UNITED STATES, OR BOTH.—The term ‘‘goods whol8 ly obtained or produced entirely in the territory of

9 Singapore, the United States, or both’’ means—

10 (A) mineral goods extracted in the terri11 tory of Singapore, the United States, or both;

12 (B) vegetable goods, as such goods are de13 fined in the Harmonized System, harvested in

14 the territory of Singapore, the United States, or

15 both;

16 (C) live animals born and raised in the ter17 ritory of Singapore, the United States, or both;

18 (D) goods obtained from hunting, trap19 ping, fishing, or aquaculture conducted in the

20 territory of Singapore, the United States, or

21 both;

22 (E) goods (fish, shellfish, and other marine

23 life) taken from the sea by vessels registered or

24 recorded with Singapore or the United States

25 and flying the flag of that country;


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•HR 2739 IH

1 (F) goods produced exclusively from prod2 ucts referred to in subparagraph (E) on board

3 factory ships registered or recorded with Singa4 pore or the United States and flying the flag of

5 that country;

6 (G) goods taken by Singapore or the

7 United States, or a person of Singapore or the

8 United States, from the seabed or beneath the

9 seabed outside territorial waters, if Singapore

10 or the United States has rights to exploit such

11 seabed;

12 (H) goods taken from outer space, if the

13 goods are obtained by Singapore or the United

14 States or a person of Singapore or the United

15 States and not processed in the territory of a

16 country other than Singapore or the United

17 States;

18 (I) waste and scrap derived from—

19 (i) production in the territory of

20 Singapore, the United States, or both; or

21 (ii) used goods collected in the terri22 tory of Singapore, the United States, or

23 both, if such goods are fit only for the re24 covery of raw materials;


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•HR 2739 IH

1 (J) recovered goods derived in the territory

2 of Singapore, the United States, or both, from

3 used goods; or

4 (K) goods produced in the territory of

5 Singapore, the United States, or both,

6 exclusively—

7 (i) from goods referred to in any of

8 subparagraphs (A) through (I); or

9 (ii) from the derivatives of goods re10 ferred to in clause (i).

11 (5) HARMONIZED SYSTEM.—The term ‘‘Har12 monized System’’ means the Harmonized Com13 modity Description and Coding System.

14 (6) INDIRECT MATERIAL.—The term ‘‘indirect

15 material’’ means a good used in the production, test16 ing, or inspection of a good but not physically incor17 porated into the good, or a good used in the mainte18 nance of buildings or the operation of equipment as19 sociated with the production of a good, including—

20 (A) fuel and energy;

21 (B) tools, dies, and molds;

22 (C) spare parts and materials used in the

23 maintenance of equipment or buildings;


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•HR 2739 IH

1 (D) lubricants, greases, compounding ma2 terials, and other materials used in production

3 or used to operate equipment or buildings;

4 (E) gloves, glasses, footwear, clothing,

5 safety equipment, and supplies;

6 (F) equipment, devices, and supplies used

7 for testing or inspecting the good;

8 (G) catalysts and solvents; and

9 (H) any other goods that are not incor10 porated into the good but the use of which in

11 the production of the good can reasonably be

12 demonstrated to be a part of that production.

13 (7) MATERIAL.—The term ‘‘material’’ means a

14 good that is used in the production of another good.

15 (8) MATERIAL THAT IS SELF-PRODUCED.—The

16 term ‘‘material that is self-produced’’ means a mate17 rial, such as a part or ingredient, produced by a pro18 ducer of a good and used by the producer in the pro19 duction of another good.

20 (9) NONORIGINATING MATERIAL.—The term

21 ‘‘nonoriginating material’’ means a material that

22 does not qualify as an originating good under the

23 rules set out in this section.

24 (10) PREFERENTIAL TARIFF TREATMENT.—

25 The term ‘‘preferential tariff treatment’’ means the


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•HR 2739 IH

1 customs duty rate that is applicable to an origi2 nating good pursuant to chapter 2 of the Agree3 ment.

4 (11) PRODUCER.—The term ‘‘producer’’ means

5 a person who grows, raises, mines, harvests, fishes,

6 traps, hunts, manufactures, processes, assembles, or

7 disassembles a good.

8 (12) PRODUCTION.—The term ‘‘production’’

9 means growing, mining, harvesting, fishing, raising,

10 trapping, hunting, manufacturing, processing, as11 sembling, or disassembling a good.

12 (13) RECOVERED GOODS.—

13 (A) IN GENERAL.—The term ‘‘recovered

14 goods’’ means materials in the form of indi15 vidual parts that are the result of—

16 (i) the complete disassembly of used

17 goods into individual parts; and

18 (ii) the cleaning, inspecting, testing,

19 or other processing of those parts as nec20 essary for improvement to sound working

21 condition by one or more of the processes

22 described in subparagraph (B), in order

23 for such parts to be assembled with other

24 parts, including other parts that have un25 dergone the processes described in this


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•HR 2739 IH

1 paragraph, in the production of a remanu2 factured good described in Annex 3C of

3 the Agreement.

4 (B) PROCESSES.—The processes referred

5 to in subparagraph (A)(ii) are welding, flame

6 spraying, surface machining, knurling, plating,

7 sleeving, and rewinding.

8 (14) REMANUFACTURED GOOD.—The term ‘‘re9 manufactured good’’ means an industrial good as10 sembled in the territory of Singapore or the United

11 States, that is listed in Annex 3C of the Agreement,

12 and—

13 (A) is entirely or partially comprised of re14 covered goods;

15 (B) has the same life expectancy and

16 meets the same performance standards as a

17 new good; and

18 (C) enjoys the same factory warranty as

19 such a new good.

20 (15) TERRITORY.—The term ‘‘territory’’ has

21 the meaning given that term in Annex 1A of the

22 Agreement.

23 (16) USED.—The term ‘‘used’’ means used or

24 consumed in the production of goods.

25 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.—


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•HR 2739 IH

1 (1) IN GENERAL.—The President is authorized

2 to proclaim, as part of the HTS—

3 (A) the provisions set out in Annexes 3A,

4 3B, and 3C of the Agreement; and

5 (B) any additional subordinate category

6 necessary to carry out this title consistent with

7 the Agreement.

8 (2) MODIFICATIONS.—

9 (A) IN GENERAL.—Subject to the consulta10 tion and layover provisions of section 103(a),

11 the President may proclaim modifications to the

12 provisions proclaimed under the authority of

13 paragraph (1)(A), other than—

14 (i) the provisions of Annex 3B of the

15 Agreement; and

16 (ii) provisions of chapters 50 through

17 63 of the HTS, as included in Annex 3A

18 of the Agreement.

19 (B) ADDITIONAL PROCLAMATIONS.—Not20 withstanding subparagraph (A), and subject to

21 the consultation and layover provisions of sec22 tion 103(a), the President may proclaim—

23 (i) modifications to the provisions pro24 claimed under the authority of paragraph

25 (1)(A) that are necessary to implement an


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•HR 2739 IH

1 agreement with Singapore pursuant to ar2 ticle 3.18.4(c) of the Agreement; and

3 (ii) before the 1st anniversary of the

4 date of enactment of this Act, modifica5 tions to correct any typographical, clerical,

6 or other nonsubstantive technical error re7 garding the provisions of chapters 50

8 through 63 of the HTS, as included in

9 Annex 3A of the Agreement.

10 SEC. 203. CUSTOMS USER FEES.

11 Section 13031(b) of the Consolidated Omnibus Budg12 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is

13 amended by inserting after paragraph (12) the following:

14 ‘‘(13) No fee may be charged under subsection

15 (a) (9) or (10) with respect to goods that qualify as

16 originating goods under section 202 of the United

17 States-Singapore Free Trade Agreement Implemen18 tation Act. Any service for which an exemption from

19 such fee is provided by reason of this paragraph may

20 not be funded with money contained in the Customs

21 User Fee Account.’’.

22 SEC. 204. DISCLOSURE OF INCORRECT INFORMATION.

23 Section 592(c) of the Tariff Act of 1930 (19 U.S.C.

24 1592(c)) is amended—


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•HR 2739 IH

1 (1) by redesignating paragraph (7) as para2 graph (8); and

3 (2) by inserting after paragraph (6) the fol4 lowing new paragraph:

5 ‘‘(7) PRIOR DISCLOSURE REGARDING CLAIMS

6 UNDER THE UNITED STATES-SINGAPORE FREE

7 TRADE AGREEMENT.—

8 ‘‘(A) An importer shall not be subject to

9 penalties under subsection (a) for making an

10 incorrect claim that a good qualifies as an origi11 nating good under section 202 of the United

12 States-Singapore Free Trade Agreement Imple13 mentation Act if the importer, in accordance

14 with regulations issued by the Secretary of the

15 Treasury, voluntarily and promptly makes a

16 corrected declaration and pays any duties

17 owing.

18 ‘‘(B) In the regulations referred to in sub19 paragraph (A), the Secretary of the Treasury is

20 authorized to prescribe time periods for making

21 a corrected declaration and paying duties owing

22 under subparagraph (A), if such periods are not

23 shorter than 1 year following the date on which

24 the importer makes the incorrect claim that a

25 good qualifies as an originating good.’’.


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1 SEC. 205. ENFORCEMENT RELATING TO TRADE IN TEXTILE

2 AND APPAREL GOODS.

3 (a) DENIAL OF PERMISSION TO CONDUCT SITE VIS4 ITS.—

5 (1) IN GENERAL.—Subject to paragraph (2), if

6 the Secretary of the Treasury proposes to conduct a

7 site visit at an enterprise registered under article 5.3

8 of the Agreement, and responsible officials of the en9 terprise do not consent to the proposed visit, the

10 President may exclude from the customs territory of

11 the United States textile and apparel goods pro12 duced or exported by that enterprise.

13 (2) TERMINATION OF EXCLUSION.—An exclu14 sion of textile and apparel goods produced or ex15 ported by an enterprise under paragraph (1) shall

16 terminate when the President determines that the

17 enterprise’s production of, and capability to produce,

18 the goods are consistent with statements by the en19 terprise that textile or apparel goods the enterprise

20 produces or has produced are originating goods or

21 products of Singapore, as the case may be.

22 (b) KNOWING OR WILLFUL CIRCUMVENTION.—

23 (1) IN GENERAL.—If the President finds that

24 an enterprise of Singapore has knowingly or willfully

25 engaged in circumvention, the President may exclude

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1 tile and apparel goods produced or exported by the

2 enterprise. An exclusion under this paragraph may

3 be imposed on the date beginning on the date a find4 ing of knowing or willful circumvention is made and

5 shall be in effect for a period not longer than the ap6 plicable period described in paragraph (2).

7 (2) TIME PERIODS.—

8 (A) FIRST FINDING.—With respect to a

9 first finding under paragraph (1), the applica10 ble period is 6 months.

11 (B) SECOND FINDING.—With respect to a

12 second finding under paragraph (1), the appli13 cable period is 2 years.

14 (C) THIRD AND SUBSEQUENT FINDING.—

15 With respect to a third or subsequent finding

16 under paragraph (1), the applicable period is 2

17 years. If, at the time of a third or subsequent

18 finding, an exclusion is in effect as a result of

19 a previous finding, the 2-year period applicable

20 to the third or subsequent finding shall begin

21 on the day after the day on which the previous

22 exclusion terminates.

23 (c) CERTAIN OTHER INSTANCES OF CIRCUMVEN24 TION.—If the President consults with Singapore pursuant

25 to article 5.8 of the Agreement, the consultations fail to


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1 result in a mutually satisfactory solution to the matters

2 at issue, and the President presents to Singapore clear

3 evidence of circumvention under the Agreement, the Presi4 dent may—

5 (1) deny preferential tariff treatment to the

6 goods involved in the circumvention; and

7 (2) deny preferential tariff treatment, for a pe8 riod not to exceed 4 years from the date on which

9 consultations pursuant to article 5.8 of the Agree10 ment conclude, to—

11 (A) textile and apparel goods produced by

12 the enterprise found to have engaged in the cir13 cumvention, including any successor of such en14 terprise; and

15 (B) textile and apparel goods produced by

16 any other entity owned or operated by a prin17 cipal of the enterprise, if the principal also is a

18 principal of the other entity.

19 (d) DEFINITIONS.—In this section:

20 (1) GENERAL DEFINITIONS.—The terms ‘‘cir21 cumvention’’, ‘‘preferential tariff treatment’’, ‘‘prin22 cipal’’, and ‘‘textile and apparel goods’’ have the

23 meanings given such terms in chapter 5 of the

24 Agreement.


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1 (2) ENTERPRISE.—The term ‘‘enterprise’’ has

2 the meaning given that term in article 1.2.3 of the

3 Agreement.

4 SEC. 206. REGULATIONS.

5 The Secretary of the Treasury shall prescribe such

6 regulations as may be necessary to carry out—

7 (1) subsections (a) through (n) of section 202,

8 and section 203;

9 (2) amendments made by the sections referred

10 to in paragraph (1); and

11 (3) proclamations issued under section 202(o).

12 TITLE III—RELIEF FROM

13 IMPORTS

14 SEC. 301. DEFINITIONS.

15 In this title:

16 (1) COMMISSION.—The term ‘‘Commission’’

17 means the United States International Trade Com18 mission.

19 (2) SINGAPOREAN ARTICLE.—The term ‘‘Singa20 porean article’’ means an article that qualifies as an

21 originating good under section 202(a) of this Act.

22 (3) SINGAPOREAN TEXTILE OR APPAREL ARTI23 CLE.—The term ‘‘Singaporean textile or apparel ar24 ticle’’ means an article—


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1 (A) that is listed in the Annex to the

2 Agreement on Textiles and Clothing referred to

3 in section 101(d)(4) of the Uruguay Round

4 Agreements Act (19 U.S.C. 3511(d)(4)); and

5 (B) that is a Singaporean article.

6 Subtitle A—Relief From Imports

7 Benefiting From the Agreement

8 SEC. 311. COMMENCING OF ACTION FOR RELIEF.

9 (a) FILING OF PETITION.—

10 (1) IN GENERAL.—A petition requesting action

11 under this subtitle for the purpose of adjusting to

12 the obligations of the United States under the

13 Agreement may be filed with the Commission by an

14 entity, including a trade association, firm, certified

15 or recognized union, or group of workers, that is

16 representative of an industry. The Commission shall

17 transmit a copy of any petition filed under this sub18 section to the United States Trade Representative.

19 (2) PROVISIONAL RELIEF.—An entity filing a

20 petition under this subsection may request that pro21 visional relief be provided as if the petition had been

22 filed under section 202(a) of the Trade Act of 1974

23 (19 U.S.C. 2252(a)).


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1 (3) CRITICAL CIRCUMSTANCES.—Any allegation

2 that critical circumstances exist shall be included in

3 the petition.

4 (b) INVESTIGATION AND DETERMINATION.—Upon

5 the filing of a petition under subsection (a), the Commis6 sion, unless subsection (d) applies, shall promptly initiate

7 an investigation to determine whether, as a result of the

8 reduction or elimination of a duty provided for under the

9 Agreement, a Singaporean article is being imported into

10 the United States in such increased quantities, in absolute

11 terms or relative to domestic production, and under such

12 conditions that imports of the Singaporean article con13 stitute a substantial cause of serious injury or threat

14 thereof to the domestic industry producing an article that

15 is like, or directly competitive with, the imported article.

16 (c) APPLICABLE PROVISIONS.—The following provi17 sions of section 202 of the Trade Act of 1974 (19 U.S.C.

18 2252) apply with respect to any investigation initiated

19 under subsection (b):

20 (1) Paragraphs (1)(B) and (3) of subsection

21 (b).

22 (2) Subsection (c).

23 (3) Subsection (d).

24 (4) Subsection (i).


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1 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No

2 investigation may be initiated under this section with re3 spect to any Singaporean article if, after the date that the

4 Agreement enters into force, import relief has been pro5 vided with respect to that Singaporean article under—

6 (1) this subtitle;

7 (2) subtitle B;

8 (3) chapter 1 of title II of the Trade Act of

9 1974;

10 (4) article 6 of the Agreement on Textiles and

11 Clothing referred to in section 101(d)(4) of the Uru12 guay Round Agreements Act (19 U.S.C.

13 3511(d)(4)); or

14 (5) article 5 of the Agreement on Agriculture

15 referred to in section 101(d)(2) of the Uruguay

16 Round Agreements Act (19 U.S.C. 3511(d)(2)).

17 SEC. 312. COMMISSION ACTION ON PETITION.

18 (a) DETERMINATION.—Not later than 120 days (180

19 days if critical circumstances have been alleged) after the

20 date on which an investigation is initiated under section

21 311(b) with respect to a petition, the Commission shall

22 make the determination required under that section.

23 (b) APPLICABLE PROVISIONS.—For purposes of this

24 subtitle, the provisions of paragraphs (1), (2), and (3) of

25 section 330(d) of the Tariff Act of 1930 (19 U.S.C.


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1 1330(d) (1), (2), and (3)) shall be applied with respect

2 to determinations and findings made under this section

3 as if such determinations and findings were made under

4 section 202 of the Trade Act of 1974 (19 U.S.C. 2252).

5 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

6 DETERMINATION AFFIRMATIVE.—If the determination

7 made by the Commission under subsection (a) with respect

8 to imports of an article is affirmative, or if the President

9 may consider a determination of the Commission to be an

10 affirmative determination as provided for under paragraph

11 (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C.

12 1330(d)), the Commission shall find, and recommend to

13 the President in the report required under subsection (d),

14 the amount of import relief that is necessary to remedy

15 or prevent the injury found by the Commission in the de16 termination and to facilitate the efforts of the domestic

17 industry to make a positive adjustment to import competi18 tion. The import relief recommended by the Commission

19 under this subsection shall be limited to the relief de20 scribed in section 313(c). Only those members of the Com21 mission who voted in the affirmative under subsection (a)

22 are eligible to vote on the proposed action to remedy or

23 prevent the injury found by the Commission. Members of

24 the Commission who did not vote in the affirmative may

25 submit, in the report required under subsection (d), sepaVerDate Jan 31 2003 19:42 Jul 22, 2003 Jkt 088456 PO 00000 Frm 00069 Fmt 6659 Sfmt 6601 E:\HR\OC\HR225P2.XXX HR225P2

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1 rate views regarding what action, if any, should be taken

2 to remedy or prevent the injury.

3 (d) REPORT TO PRESIDENT.—Not later than the

4 date that is 30 days after the date on which a determina5 tion is made under subsection (a) with respect to an inves6 tigation, the Commission shall submit to the President a

7 report that includes—

8 (1) the determination made under subsection

9 (a) and an explanation of the basis for the deter10 mination;

11 (2) if the determination under subsection (a) is

12 affirmative, any findings and recommendations for

13 import relief made under subsection (c) and an ex14 planation of the basis for each recommendation; and

15 (3) any dissenting or separate views by mem16 bers of the Commission regarding the determination

17 and recommendation referred to in paragraphs (1)

18 and (2).

19 (e) PUBLIC NOTICE.—Upon submitting a report to

20 the President under subsection (d), the Commission shall

21 promptly make public such report (with the exception of

22 information which the Commission determines to be con23 fidential) and shall cause a summary thereof to be pub24 lished in the Federal Register.


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1 SEC. 313. PROVISION OF RELIEF.

2 (a) IN GENERAL.—Not later than the date that is

3 30 days after the date on which the President receives the

4 report of the Commission in which the Commission’s de5 termination under section 312(a) is affirmative, or which

6 contains a determination under section 312(a) that the

7 President considers to be affirmative under paragraph (1)

8 of section 330(d) of the Tariff Act of 1930 (19 U.S.C.

9 1330(d)(1)), the President, subject to subsection (b), shall

10 provide relief from imports of the article that is the subject

11 of such determination to the extent that the President de12 termines necessary to remedy or prevent the injury found

13 by the Commission and to facilitate the efforts of the do14 mestic industry to make a positive adjustment to import

15 competition.

16 (b) EXCEPTION.—The President is not required to

17 provide import relief under this section if the President

18 determines that the provision of the import relief will not

19 provide greater economic and social benefits than costs.

20 (c) NATURE OF RELIEF.—

21 (1) IN GENERAL.—The import relief (including

22 provisional relief) that the President is authorized to

23 provide under this section with respect to imports of

24 an article is as follows:


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1 (A) The suspension of any further reduc2 tion provided for under Annex 2B of the Agree3 ment in the duty imposed on such article.

4 (B) An increase in the rate of duty im5 posed on such article to a level that does not

6 exceed the lesser of—

7 (i) the column 1 general rate of duty

8 imposed under the HTS on like articles at

9 the time the import relief is provided; or

10 (ii) the column 1 general rate of duty

11 imposed under the HTS on like articles on

12 the day before the date on which the

13 Agreement enters into force.

14 (C) In the case of a duty applied on a sea15 sonal basis to such article, an increase in the

16 rate of duty imposed on the article to a level

17 that does not exceed the lesser of—

18 (i) the column 1 general rate of duty

19 imposed under the HTS on like articles for

20 the immediately preceding corresponding

21 season; or

22 (ii) the column 1 general rate of duty

23 imposed under the HTS on like articles on

24 the day before the date on which the

25 Agreement enters into force.


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1 (2) PROGRESSIVE LIBERALIZATION.—If the pe2 riod for which import relief is provided under this

3 section is greater than 1 year, the President shall

4 provide for the progressive liberalization (described

5 in article 7.28 of the Agreement) of such relief at

6 regular intervals during the period of its application.

7 (d) PERIOD OF RELIEF.—

8 (1) IN GENERAL.—Subject to paragraph (2),

9 the import relief that the President is authorized to

10 provide under this section may not exceed 2 years.

11 (2) EXTENSION.—

12 (A) IN GENERAL.—Subject to subpara13 graph (C), the President, after receiving an af14 firmative determination from the Commission

15 under subparagraph (B), may extend the effec16 tive period of any import relief provided under

17 this section if the President determines that—

18 (i) the import relief continues to be

19 necessary to prevent or remedy serious in20 jury and to facilitate adjustment; and

21 (ii) there is evidence that the industry

22 is making a positive adjustment to import

23 competition.

24 (B) ACTION BY COMMISSION.—


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1 (i) Upon a petition on behalf of the

2 industry concerned, filed with the Commis3 sion not earlier than the date which is 9

4 months, and not later than the date which

5 is 6 months, before the date on which any

6 action taken under subsection (a) is to ter7 minate, the Commission shall conduct an

8 investigation to determine whether action

9 under this section continues to be nec10 essary to remedy or prevent serious injury

11 and whether there is evidence that the in12 dustry is making a positive adjustment to

13 import competition.

14 (ii) The Commission shall publish no15 tice of the commencement of any pro16 ceeding under this subparagraph in the

17 Federal Register and shall, within a rea18 sonable time thereafter, hold a public hear19 ing at which the Commission shall afford

20 interested parties and consumers an oppor21 tunity to be present, to present evidence,

22 and to respond to the presentations of

23 other parties and consumers, and other24 wise to be heard.


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1 (iii) The Commission shall transmit to

2 the President a report on its investigation

3 and determination under this subpara4 graph not later than 60 days before the ac5 tion under subsection (a) is to terminate,

6 unless the President specifies a different

7 date.

8 (C) PERIOD OF IMPORT RELIEF.—The ef9 fective period of any import relief imposed

10 under this section, including any extensions

11 thereof, may not, in the aggregate, exceed 4

12 years.

13 (e) RATE AFTER TERMINATION OF IMPORT RE14 LIEF.—When import relief under this section is termi15 nated with respect to an article, the rate of duty on that

16 article shall be the rate that would have been in effect,

17 but for the provision of such relief, on the date the relief

18 terminates.

19 (f) ARTICLES EXEMPT FROM RELIEF.—No import

20 relief may be provided under this section on any article

21 that has been subject to import relief, after the entry into

22 force of the Agreement, under—

23 (1) this subtitle;

24 (2) subtitle B;


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1 (3) chapter 1 of title II of the Trade Act of

2 1974;

3 (4) article 6 of the Agreement on Textiles and

4 Clothing referred to in section 101(d)(4) of the Uru5 guay Round Agreements Act (19 U.S.C.

6 3511(d)(4)); or

7 (5) article 5 of the Agreement on Agriculture

8 referred to in section 101(d)(2) of the Uruguay

9 Round Agreements Act (19 U.S.C. 3511(d)(2)).

10 SEC. 314. TERMINATION OF RELIEF AUTHORITY.

11 (a) GENERAL RULE.—No import relief may be pro12 vided under this subtitle after the date that is 10 years

13 after the date on which the Agreement enters into force.

14 (b) EXCEPTION.—Import relief may be provided

15 under this subtitle in the case of a Singaporean article

16 after the date on which such relief would, but for this sub17 section, terminate under subsection (a), if the President

18 determines that Singapore has consented to such relief.

19 SEC. 315. COMPENSATION AUTHORITY.

20 For purposes of section 123 of the Trade Act of 1974

21 (19 U.S.C. 2133), any import relief provided by the Presi22 dent under section 313 shall be treated as action taken

23 under chapter 1 of title II of such Act.


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1 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

2 Section 202(a)(8) of the Trade Act of 1974 (19

3 U.S.C. 2252(a)(8)) is amended in the first sentence—

4 (1) by striking ‘‘and’’; and

5 (2) by inserting before the period at the end ‘‘,

6 and title III of the United States-Singapore Free

7 Trade Agreement Implementation Act’’.

8 Subtitle B—Textile and Apparel

9 Safeguard Measures

10 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

11 (a) IN GENERAL.—A request under this subtitle for

12 the purpose of adjusting to the obligations of the United

13 States under the Agreement may be filed with the Presi14 dent by an interested party. Upon the filing of a request,

15 the President shall review the request to determine, from

16 information presented in the request, whether to com17 mence consideration of the request.

18 (b) PUBLICATION OF REQUEST.—If the President de19 termines that the request under subsection (a) provides

20 the information necessary for the request to be considered,

21 the President shall cause to be published in the Federal

22 Register a notice of commencement of consideration of the

23 request, and notice seeking public comments regarding the

24 request. The notice shall include the request and the dates

25 by which comments and rebuttals must be received.


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1 SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

2 (a) DETERMINATION.—

3 (1) IN GENERAL.—Pursuant to a request made

4 by an interested party, the President shall determine

5 whether, as a result of the reduction or elimination

6 of a duty under the Agreement, a Singaporean tex7 tile or apparel article is being imported into the

8 United States in such increased quantities, in abso9 lute terms or relative to the domestic market for

10 that article, and under such conditions that imports

11 of the article constitute a substantial cause of seri12 ous damage, or actual threat thereof, to a domestic

13 industry producing an article that is like, or directly

14 competitive with, the imported article.

15 (2) SERIOUS DAMAGE.—In making a deter16 mination under paragraph (1), the President—

17 (A) shall examine the effect of increased

18 imports on the domestic industry, as reflected

19 in changes in such relevant economic factors as

20 output, productivity, utilization of capacity, in21 ventories, market share, exports, wages, em22 ployment, domestic prices, profits, and invest23 ment, none of which is necessarily decisive; and

24 (B) shall not consider changes in tech25 nology or consumer preference as factors supVerDate Jan 31 2003 19:42 Jul 22, 2003 Jkt 088456 PO 00000 Frm 00078 Fmt 6659 Sfmt 6601 E:\HR\OC\HR225P2.XXX HR225P2

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1 porting a determination of serious damage or

2 actual threat thereof.

3 (3) SUBSTANTIAL CAUSE.—For purposes of this

4 subsection, the term ‘‘substantial cause’’ means a

5 cause that is important and not less than any other

6 cause.

7 (b) PROVISION OF RELIEF.—

8 (1) IN GENERAL.—If a determination under

9 subsection (a) is affirmative, the President may pro10 vide relief from imports of the article that is the

11 subject of such determination, as described in para12 graph (2), to the extent that the President deter13 mines necessary to remedy or prevent the serious

14 damage and to facilitate adjustment by the domestic

15 industry.

16 (2) NATURE OF RELIEF.—The relief that the

17 President is authorized to provide under this sub18 section with respect to imports of an article is—

19 (A) the suspension of any further reduc20 tion provided for under Annex 2B of the Agree21 ment in the duty imposed on the article; or

22 (B) an increase in the rate of duty im23 posed on the article to a level that does not ex24 ceed the lesser of—


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1 (i) the column 1 general rate of duty

2 imposed under the HTS on like articles at

3 the time the import relief is provided; or

4 (ii) the column 1 general rate of duty

5 imposed under the HTS on like articles on

6 the day before the date on which the

7 Agreement enters into force.

8 SEC. 323. PERIOD OF RELIEF.

9 (a) IN GENERAL.—Subject to subsection (b), the im10 port relief that the President is authorized to provide

11 under section 322 may not exceed 2 years.

12 (b) EXTENSION.—

13 (1) IN GENERAL.—Subject to paragraph (2),

14 the President may extend the effective period of any

15 import relief provided under this subtitle if the

16 President determines that—

17 (A) the import relief continues to be nec18 essary to remedy or prevent serious damage

19 and to facilitate adjustment; and

20 (B) there is evidence that the industry is

21 making a positive adjustment to import com22 petition.

23 (2) LIMITATION.—The effective period of any

24 action under this subtitle, including any extensions

25 thereof, may not, in the aggregate, exceed 4 years.


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1 SEC. 324. ARTICLES EXEMPT FROM RELIEF.

2 The President may not provide import relief under

3 this subtitle with respect to any article if import relief pre4 viously has been provided under this subtitle with respect

5 to that article.

6 SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

7 When import relief under this subtitle is terminated

8 with respect to an article, the rate of duty on that article

9 shall be the rate that would have been in effect, but for

10 the provision of such relief, on the date the relief termi11 nates.

12 SEC. 326. TERMINATION OF RELIEF AUTHORITY.

13 No import relief may be provided under this subtitle

14 with respect to an article after the date that is 10 years

15 after the date on which the provisions of the Agreement

16 relating to trade in textile and apparel goods take effect

17 pursuant to article 5.10 of the Agreement.

18 SEC. 327. COMPENSATION AUTHORITY.

19 For purposes of section 123 of the Trade Act of 1974

20 (19 U.S.C. 2133), any import relief provided by the Presi21 dent under this subtitle shall be treated as action taken

22 under chapter 1 of title II of such Act.

23 SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.

24 The President may not release information which the

25 President considers to be confidential business informa26 tion unless the party submitting the confidential business


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1 information had notice, at the time of submission, that

2 such information would be released by the President, or

3 such party subsequently consents to the release of the in4 formation. To the extent business confidential information

5 is provided, a nonconfidential version of the information

6 shall also be provided, in which the business confidential

7 information is summarized or, if necessary, deleted.

8 Subtitle C—Cases Under Title II of

9 the Trade Act of 1974

10 SEC. 331. FINDINGS AND ACTION ON GOODS FROM SINGA11 PORE.

12 (a) EFFECT OF IMPORTS.—If, in any investigation

13 initiated under chapter 1 of title II of the Trade Act of

14 1974, the Commission makes an affirmative determination

15 (or a determination which the President may treat as an

16 affirmative determination under such chapter by reason

17 of section 330(d) of the Tariff Act of 1930), the Commis18 sion shall also find (and report to the President at the

19 time such injury determination is submitted to the Presi20 dent) whether imports of the article from Singapore are

21 a substantial cause of serious injury or threat thereof.

22 (b) PRESIDENTIAL DETERMINATION REGARDING

23 SINGAPOREAN IMPORTS.—In determining the nature and

24 extent of action to be taken under chapter 1 of title II

25 of the Trade Act of 1974, the President shall determine


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1 whether imports from Singapore are a substantial cause

2 of the serious injury or threat thereof found by the Com3 mission and, if such determination is in the negative, may

4 exclude from such action imports from Singapore.

5 TITLE IV—TEMPORARY ENTRY

6 OF BUSINESS PERSONS.

7 SEC. 401. NONIMMIGRANT TRADERS AND INVESTORS.

8 Upon a basis of reciprocity secured by the Agree9 ment, an alien who is a national of Singapore (and any

10 spouse or child (as defined in section 101(b)(1) of the Im11 migration and Nationality Act (8 U.S.C. 1101(b)(1)) of

12 such alien, if accompanying or following to join the alien)

13 may, if otherwise eligible for a visa and if otherwise admis14 sible into the United States under the Immigration and

15 Nationality Act (8 U.S.C. 1101 et seq.), be considered to

16 be classifiable as a nonimmigrant under section

17 101(a)(15)(E) of such Act (8 U.S.C. 1101(a)(15)(E)) if

18 entering solely for a purpose specified in clause (i) or (ii)

19 of such section 101(a)(15)(E). For purposes of this sec20 tion, the term ‘‘national’’ has the meaning given such term

21 in Annex 1A of the Agreement.

22 SEC. 402. NONIMMIGRANT PROFESSIONALS.

23 Section 214(g)(8) of the Immigration and Nationality

24 Act (8 U.S.C. 1184(g)(8)) is amended—


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1 (1) by amending subparagraph (A) to read as

2 follows:

3 ‘‘(8)(A) The agreements referred to in section

4 101(a)(15)(H)(i)(b1) are—

5 ‘‘(i) the United States-Chile Free Trade Agree6 ment; and

7 ‘‘(ii) the United States-Singapore Free Trade

8 Agreement.’’; and

9 (2) by amending subparagraph (B)(ii) to read

10 as follows:

11 ‘‘(ii) The annual numerical limitations described in

12 clause (i) shall not exceed—

13 ‘‘(I) 1,400 for nationals of Chile (as defined in

14 article 14.9 of the United States-Chile Free Trade

15 Agreement) for any fiscal year; and

16 ‘‘(II) 5,400 for nationals of Singapore (as de17 fined in Annex 1A of the United States-Singapore

18 Free Trade Agreement) for any fiscal year.’’.

Æ


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Chairman SENSENBRENNER. Without objection, the transcript of 

the mock markup held on this legislation last week will be inserted 

into the record following opening statements. 

And I will not use any additional time to repeat myself. 

[The prepared statement of Mr. Sensenbrenner follows:]

PREPARED STATEMENT OF THE HONORABLE F. JAMES SENSENBRENNER, JR., A

REPRESENTATIVE IN CONGRESS FROM THE STATE OF WISCONSIN

H.R. 2738, the ‘‘U.S.-Chile Free Trade Agreement Implementation Act,’’ and H.R. 

2739, the ‘‘U.S.-Singapore Free Trade Agreement Implementation Act’’ were referred 

to the Judiciary Committee for consideration of provisions that fall within the Committee’s jurisdiction. 

As we were all reminded last week, Trade Promotion Authority (TPA) requires the 

Administration to actively consult with Congress when initiating, negotiating, and 

implementing trade agreements. TPA also provides that legislation to implement 

free trade agreements may not be amended by committees of jurisdiction and may 

only receive an up or down vote on the floor of the House. 

The U.S.-Chile and U.S.-Singapore Free Trade Agreements contain several issues 

within the purview of this Committee. Both agreements contain competition clauses 

that ensure antitrust laws are applied in a neutral, transparent, nondiscriminatory 

manner while safeguarding basic procedural rights. The agreements also contain robust intellectual property protections, requiring the governments of Chile and 

Singapore to take affirmative steps to eradicate the piracy of trademarks, patents, 

satellite television signals, and other forms of intellectual property. 

While the antitrust and intellectual property provisions within these agreements 

are critical, they do not require any substantive changes to U.S. law. As a result, 

our consideration of H.R. 2738 and H.R. 2739 must be confined to Title IV of each 

bill, which pertains to ‘‘Temporary Entry of Business Persons.’’

I have long expressed concern about substantive changes to U.S. law contained 

in free trade agreements. Before passage of Trade Promotion Authority, immigration 

provisions were included in earlier free trade agreements such as NAFTA, without 

any consultation with this Committee. This practice unfortunately created precedent 

for subsequent trade agreements, such as those we consider today, and immigration 

provisions were included in the Chile and Singapore Free Trade Agreements before 

passage of TPA last year. 

At last week’s mock markup, Members of this Committee spoke with a united bipartisan voice that immigration provisions in future free trade agreements will not 

receive the support of this Committee. In addition, the implementing legislation we 

consider today contains a number of modifications recommended by the Committee 

at last week’s mock markup. 

While the draft implementing legislation created a separate visa category for 

skilled workers from Chile and Singapore, the bills we consider today amend the 

Immigration and Nationality Act to ensure that these visas—6,800 in total—are deducted from the national H-1B cap when they are issued or when a Chilean or 

Singaporean citizen is granted an extension after five or more consecutive prior extensions. 

In addition, the implementing legislation now provides that after every second extension of H-1B1 status for a citizen of Chile or Singapore, an application for a further extension must be accompanied by a new employer attestation. This will have 

the effect of requiring the employer to update the prevailing wage determination at 

such time. 

Moreover, the legislation provides that an employer will have to pay a fee in order 

for an alien to be initially granted H-1B1 status and after every second extension 

of that status. The fee shall be the same as the fee an employer must pay when 

petitioning for an H-1B visa. However, if no fee is being assessed under the H-1B 

program, no fee shall be imposed under the H-1B1 program. 

Finally, the legislation now clarifies that an employer generally cannot sponsor 

an alien for an E, L, or H-1B1 visa if there is any labor dispute occurring in the 

occupational classification at the place of employment, regardless of whether the 

labor dispute is classified as a strike or lockout. In this regard, the implementing 

language provides greater worker protections than those contained in the current 

H-1B program. 

The legislation we consider today is a considerable improvement over the draft 

implementing legislation we considered last week. The Committee’s bipartisan commitment to ensuring that our recommendations were incorporated into these bills 

reaffirms the constitutional prerogative of Congress and this Committee’s commitment to ensuring that future free trade agreements are not used to substantively 

86

alter United States immigration law. It is my hope and expectation that our actions 

over the last week will not go unnoticed by this and future Administrations. 

These implementing bills as the result of extensive negotiation and cooperation 

between the USTR and Members of this Committee, both majority and minority. 

They represent true bipartisan compromise. Several concerns of the minority were 

addressed and are represented in the legislation before us. In recognition of the diligent work by the Committee and the USTR to improve the implementing legislation, 

and in light of the fact that our limited jurisdictional referral requires the Committee to consider only provisions within our jurisdiction, I would urge all members 

who support our work on the immigration sections in Title IV of both bills to support reporting this legislation today. For members who do not support portions of 

the implementing legislation outside of this Committee’s jurisdiction or the underlying trade agreements themselves, I encourage you to vote to report the legislation 

and then submit supplemental views to the committee report outlining your position 

on the broader implementing legislation. 

I now recognize the Ranking Member for his remarks.

[The prepared statement of Ms. Jackson Lee follows:]

PREPARED STATEMENT OF THE HONORABLE SHEILA JACKSON LEE, A REPRESENTATIVE

IN CONGRESS FROM THE STATE OF TEXAS

I have serious reservations about the actions the U.S. Trade Representative 

(USTR) has taken with respect to the temporary entry provisions in the Chile and 

Singapore Free Trade Agreements. In my opinion, they have overstepped their 

bounds and usurped this Committee’s jurisdiction. The negotiating objectives that 

Congress laid out for USTR in the Trade Act of 2002 (TPA) do not include even one 

word on temporary entry. There is no specific authority in TPA to negotiate new 

visa categories or impose new requirements on our temporary entry system, yet that 

is exactly what USTR has done in the Chile and Singapore FTAs. 

The Singapore and Chile FTAs create a new visa classification for the temporary 

admission of nonimmigrant professionals that is similar in many respects to the existing H-1B nonimmigrant classification. The new nonimmigrant visa classification, 

however, would differ from the existing H-1B program in significant ways. 

Both agreements include caps on the number of professionals that can be granted 

entry each year (1,400 for Chile and 5,400 for Singapore). 

The provisions for the new nonimmigrant visa permit an unlimited number of extensions in 1-year increments. This makes it possible to transform a temporary 

entry program into a permanent program. In effect, employers would have the 

power to keep permanent workers in a temporary legal status. In contrast, under 

the H-1B program, workers are granted a three-year visa that can be renewed only 

once. 

The Labor Certification Attestation (LCA) is one of the few safeguards we have 

in our H-1B system for ensuring that employers do not abuse temporary workers 

to undermine the domestic labor market. The implementing legislation contains 

some, but not all, of the LCA requirements that apply in our H-1B programs. 

The implementing legislation completely omits the category of H-1B dependent 

employers and the additional LCA requirements that apply to them. H-1B dependent employers are required to attest that new entrants will not displace U.S. workers and demonstrate that they have tried to recruit U.S. workers. The implementing 

legislation should have a similar provision. 

In addition, the H-1B program authorizes the Secretary of Labor to initiate her 

own investigations and enforcement proceedings based on credible information that 

an employer is violating the rules of the H-1B program. No such authority is granted in the administration of the Chile and Singapore visa programs. 

The Singapore and Chile FTAs require permanent changes to our immigration 

system, but for now these changes are limited to two countries. Unfortunately, we 

may see these programs expanded to dozens of additional countries in future free 

trade agreements. The administration is currently negotiating additional FTAs with 

Australia, Morocco, five countries in Southern Africa, five countries in Central 

America, and the 34 countries of the Western Hemisphere. 

Immigration policy is a sensitive, political matter. Changes in immigration policy 

have traditionally been the result of intense, open negotiations between workers, 

employers, immigration advocates, and Members of Congress. These issues simply 

do not belong in fast-tracked trade agreements negotiated by executive agencies.

Chairman SENSENBRENNER. Are there further opening statements? 

87

If not, without objection, the previous question is ordered on reporting the bill because a reporting quorum is not present. 

[Intervening business.] 

A reporting quorum being present, the unfinished business is the 

question on the motion to report favorably the bill H.R. 2739, upon 

which the previous question was ordered. 

Those in favor will say aye. 

Opposed, no. 

The ayes appear to have it, the ayes have it, the motion to report 

favorably is agreed to and all Members will be given 2 days, as provided by House rules, in which to submit additional dissenting supplemental or minority views.

MOCK MARKUP TRANSCRIPT

BUSINESS MEETING 

THURSDAY, JULY 10, 2003

HOUSE OF REPRESENTATIVES, COMMITTEE ON THE JUDICIARY, Washington, DC. 

The Committee met, pursuant to notice, at 10:49 a.m., in Room 

2141, Rayburn House Office Building, Hon. F. James Sensenbrenner, Jr., [Chairman of the Committee] presiding. 

[Intervening business.] 

Chairman SENSENBRENNER. The next item on the agenda is the 

consideration of the draft implementing legislation for the U.S.-

Singapore Free Trade Agreement, and without objection, the draft 

implementing legislation will be considered as read and open for 

amendment at any point. 

[The legislation follows:]

88

1

Draft Implementing Legislation for the United States-Singapore

Free Trade Agreement

1 TITLE IV—TEMPORARY ENTRY

2 OF BUSINESS PERSONS.

3 SEC. 401. NONIMMIGRANT TRADERS AND INVESTORS.

4 Upon a basis of reciprocity secured by the Agree5 ment, an alien who is a national of Singapore (and any

6 spouse or child (as defined in section 101(b)(1) of the Im7 migration and Nationality Act (8 U.S.C. 1101(b)(1)) of

8 such alien, if accompanying or following to join the alien)

9 may, if otherwise eligible for a visa and if otherwise admis10 sible into the United States under the Immigration and

11 Nationality Act (8 U.S.C. 1101 et seq.), be considered to

12 be classifiable as a nonimmigrant under section

13 101(a)(15)(E) of such Act (8 U.S.C. 1101(a)(15)(E)) if

14 entering solely for a purpose specified in clause (i) or (ii)

15 of such section 101(a)(15)(E). For purposes of this sec16 tion, the term ‘‘national’’ has the meaning given such term

17 in Annex 1A of the Agreement.

18 SEC. 402. NONIMMIGRANT PROFESSIONALS.

19 Section 214(g)(8) of the Immigration and Nationality

20 Act (8 U.S.C. 1184(g)(8)) is amended by amending sub21 paragraphs (A) and (B) to read as follows:


D2739.AAB
89

2

1 ‘‘(8)(A) The agreements referred to in section

2 101(a)(15)(W)(i)(I) are—

3 ‘‘(i) the United States-Chile Free Trade Agree4 ment; and

5 ‘‘(ii) the United States-Singpore Free Trade

6 Agreement.

7 ‘‘(B) The Secretary of Homeland Security shall es8 tablish annual numerical limits on approvals of initial ap9 plications by aliens for admission under section

10 101(a)(15)(W)(i), which shall not exceed—

11 ‘‘(i) 1,400 for nationals of Chile (as defined in

12 article 14.9 of the United States-Chile Free Trade

13 Agreement); and

14 ‘‘(ii) 5,400 for nationals of Singapore (as de15 fined in Annex 1A of the United States-Singpore

16 Free Trade Agreement).’’.


D2739.AAC
90

Chairman SENSENBRENNER. The gentleman from Iowa, Mr. King, 

has to offer his amendment as amended by Mr. Conyers and Mr. 

Berman’s amendment as modified. Do you do so? 

Mr. KING. Mr. Chairman, I do so. I’m not aware that that 

amendment is printed and ready to be presented to the Committee. 

I could speak to the issue. 

Chairman SENSENBRENNER. It’s the same amendment. 

[The amendments follows:]


A2739A.eps
91

Chairman SENSENBRENNER. Without objection, the King amendment as amended by Berman-Conyers modified is agreed to. 

Are there further amendments? 

Mr. CONYERS. Mr. Chairman? 

Chairman SENSENBRENNER. The gentleman from Michigan. 

Mr. CONYERS. I ask unanimous consent—we just discovered—to 

make this——

Chairman SENSENBRENNER. Hold on. Are there further amendments? If not, the question is on agreeing to the draft implementing legislation as amended by the King amendment. Those in 

favor will say aye? Opposed, no? 

The ayes appear to have it. The ayes have it, and the draft implementing legislation as amended is agreed to. 

Without objection, the staff is permitted to make technical and 

conforming changes. 

The Chair would like to thank all Members for their cooperation 

on this. I believe we accomplished something that is in the public 

interest during today’s session, and the Committee is adjourned. 

[Whereupon, at 12:08 p.m., the Committee was adjourned.] 


A2739B.eps
(93)

1See: Kleindienst v. Mandel, 408 U.S. 753, 766 (1972) and Boutilier v. INS, 387 U.S. 118, 123 

(1967) 2Galvan v. Press, 347 U.S. 522,531(1954) 3 Although the amount of the fee was specified, the implementing legislation fails to include 

the requirement in INA section 212(n)(2)(C)(vi)(II) that forbids the employer from requiring the 

employee to pay the fee. 

MINORITY VIEWS

We write these views to explain that, as a general proposition we 

oppose efforts by the Administration to distort our immigration 

laws by offering new visa categories to specific nations as a bargaining chip in trade negotiations. This should not have been done 

as part of the North American Free Trade Agreement and it should 

not have been done as part of the Singapore Free Trade Agreement. 

We would note that Article I, section 8, clause 4 of the Constitution provides that Congress shall have the power to ‘‘establish an 

uniform Rule of Naturalization.’’ The Supreme Court has long 

found that this provision of the Constitution grants Congress plenary power over immigration policy.1 Moreover, the Court has 

found that ‘‘the formulation of policies [pertaining to the entry of 

aliens and their right to remain here] is entrusted exclusively to 

Congress has become firmly imbedded in the legislative and judicial tissues of our body politics as any aspect of our government.’’ 2

Nonetheless the Administration has negotiated a new visa program 

in the U.S.-Singapore FTA; usurping Congress’ clear constitutional 

role in creating immigration law. 

Having stated that, we do appreciate the efforts of the Majority 

to work with us in improving the implementing language with regard to immigration as best we could, given the unfortunate constraints of the underlying agreement. For example, the initial draft 

of the legislation we received contained several major loopholes and 

flaws. It would have created 5,400 new visas for persons to come 

into this country from Singapore. There was no requirement that 

employers pay any fees when such temporary workers were 

brought in. There was no requirement that employers certify that 

they were unable to find American workers before they hired these 

foreign workers. And there was no real limitation on the ability of 

these individuals to stay in this country indefinitely. 

Many of these problems were mitigated as a result of this Committee’s input in the process. We enacted language which would insure that several H-1b requirements apply to these new visas.3 We 

also enacted a requirement that the new visas not go beyond the 

current H-1b limits. 

We would note that we have a significant remaining concern that 

the Administration was unwilling to include in the text of the implementing legislation. First and foremost, the Singapore implementing bill provides no overall limitation on how many times professional visas can be renewed. While the implementing language 

94

4The implementing language also omits H-1b dependent requirement in 212(n)(2)(E) that the 

H-1b dependent employer not place the H-1b worker with a third employer that is displacing 

U.S. workers. 

included the Conyers/Berman language insuring that renewals beyond 6 years count against the overall H-1b cap, it does not include 

language present in the current H-1b provisions that limits authorized admission to 6 years. Thus, it is possible that employers could 

renew their employees’ visas each and every year under the Singapore agreement, with no limits, while also bringing in new entrants 

to fill up the annual numerical limit for new visas. This would rob 

the program of its supposedly temporary nature and harm American workers. 

In addition we are concerned that the implementing legislation 

does not contain all of the Labor Condition Application requirements that apply in the current H-1b programs. Most importantly, 

the implementing legislation completely omits the category of H-1b 

dependent employers present in existing law that requires employers to demonstrate that they have tried to recruit U.S. workers and 

attest that new entrants will not displace U.S. workers.4 In addition, the implementing legislation does not grant the authority 

given to Secretary of Labor in the H-1b to initiate her own investigations based on credible information that the employer is violating the rules of employment of the H-1b program. USTR has argued that these provisions expire in October 1, 2003 and that 

should Congress extend or modify provisions of the H-1b program, 

it may make corresponding modifications to the amendments to the 

INA made by the implementing bill. However, omission of these 

important worker protections sets a dangerous precedent for inclusion in future agreements. 

Finally, we strongly object to any notion that the U.S.-Singapore 

Free Trade Agreement will be used as a model for future FTAs. We 

have been informed by the Majority that the Administration will 

not seek immigration in future possible free trade agreements, 

such as the Central American Free Trade Agreement, and this is 

spelled out in the letter from Chairman Sensenbrenner and Ranking Member Conyers to Ambassador Zoellick. It is critical that the 

administration interpret the inherent problems in the new visa 

program not as a precedent for future agreements, but rather as 

a sign that immigration has no place in trade agreements.

JOHN CONYERS, JR. 

JERROLD NADLER. 

ROBERT C. SCOTT. 

SHEILA JACKSON LEE. 

MARTIN T. MEEHAN. 

WILLIAM D. DELAHUNT. 

TAMMY BALDWIN. 

LINDA T. SA ́ NCHEZ.

Æ