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[House Report 105-85]
[From the U.S. Government Publishing Office]

105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-85
_______________________________________________________________________

 
                     TRADE AGENCIES AUTHORIZATIONS

                                _______
                                

  May 1, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________

    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1463]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 1463) to authorize appropriations for fiscal years 
1998 and 1999 for the Customs Service, the Office of the United 
States Trade Representative, and the International Trade 
Commission, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. CUSTOMS AND TRADE AGENCY AUTHORIZATIONS FOR FISCAL YEARS 
                    1998 AND 1999.

  (a) United States Customs Service.--
          (1) Authorization of appropriations.--Section 301(b) of the 
        Customs Procedural Reform and Simplification Act of 1978 (19 
        U.S.C. 2075(b)) is amended to read as follows:
  ``(b) Authorization of Appropriations.--
          ``(1) For noncommercial operations.--There are authorized to 
        be appropriated for the salaries and expenses of the Customs 
        Service that are incurred in noncommercial operations not to 
        exceed the following:
                  ``(A) $668,397,000 for fiscal year 1998.
                  ``(B) $684,018,000 for fiscal year 1999.
          ``(2) For commercial operations.--(A) There are authorized to 
        be appropriated for the salaries and expenses of the Customs 
        Service that are incurred in commercial operations not less 
        than the following:
                  ``(i) $901,441,000 for fiscal year 1998.
                  ``(ii) $930,447,000 for fiscal year 1999.
          ``(B) The monies authorized to be appropriated under 
        subparagraph (A) for any fiscal year, except for such sums as 
        may be necessary for the salaries and expenses of the Customs 
        Service that are incurred in connection with the processing of 
        merchandise that is exempt from the fees imposed under section 
        13031(a) (9) and (10) of the Consolidated Omnibus Budget 
        Reconciliation Act of 1985, shall be appropriated from the 
        Customs User Fee Account.
          ``(3) For air and marine interdiction.--There are authorized 
        to be appropriated for the operation (including salaries and 
        expenses) and maintenance of the air and marine interdiction 
        programs of the Customs Service not to exceed the following:
                  ``(A) $95,258,000 for fiscal year 1998.
                  ``(B) $98,226,000 for fiscal year 1999.''.
          (2) Submission of out-year budget projections.--Section 
        301(a) of the Customs Procedural Reform and Simplification Act 
        of 1978 (19 U.S.C. 2075(a)) is amended by adding at the end the 
        following:
  ``(3) By no later than the date on which the President submits to the 
Congress the budget of the United States Government for a fiscal year, 
the Commissioner of Customs shall submit to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate the projected amount of funds for the succeeding fiscal year 
that will be necessary for the operations of the Customs Service as 
provided for in subsection (b).''.
  (b) office of the United States Trade Representative.--
          (1) Authorization of appropriations.--Section 141(g)(1) of 
        the Trade Act of 1974 (19 U.S.C. 2171(g)(1)) is amended to read 
        as follows:
  ``(g)(1)(A) There are authorized to be appropriated to the Office for 
the purposes of carrying out its functions not to exceed the following:
          ``(i) $22,092,000 for fiscal year 1998.
          ``(ii) $24,300,000 for fiscal year 1999.
  ``(B) Of the amounts authorized to be appropriated under subparagraph 
(A) for any fiscal year--
          ``(i) not to exceed $98,000 may be used for entertainment and 
        representation expenses of the Office; and
          ``(ii) not to exceed $2,500,000 shall remain available until 
        expended.''.
          (2) Submission of out-year budget projections.--Section 
        141(g) of the Trade Act of 1974 is amended by adding at the end 
        the following:
  ``(3) By no later than the date on which the President submits to the 
Congress the budget of the United States Government for a fiscal year, 
the United States Trade Representative shall submit to the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate the projected amount of funds for the succeeding 
fiscal year that will be necessary for the Office to carry out its 
functions.''.
  (c) United States International Trade Commission.--
          (1) Authorization of appropriations.--Section 330(e)(2) of 
        the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended to 
        read as follows:
  ``(2)(A) There are authorized to be appropriated to the Commission 
for necessary expenses (including the rental of conference rooms in the 
District of Columbia and elsewhere) not to exceed the following:
          ``(i) $41,980,000 for fiscal year 1998.
          ``(ii) $46,125,400 for fiscal year 1999.
  ``(B) Not to exceed $2,500 of the amount authorized to be 
appropriated for any fiscal year under subparagraph (A) may be used, 
subject to the approval of the Chairman of the Commission, for 
reception and entertainment expenses.
  ``(C) No part of any sum that is appropriated under the authority of 
subparagraph (A) may be used by the Commission in the making of any 
special study, investigation, or report that is requested by any agency 
of the executive branch unless that agency reimburses the Commission 
for the cost thereof.''.
          (2) Submission of out-year budget projections.--Section 
        330(e) of the Tariff Act of 1930 is amended by adding at the 
        end the following:
  ``(4) By no later than the date on which the President submits to the 
Congress the budget of the United States Government for a fiscal year, 
the Commission shall submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the Senate the 
projected amount of funds for the succeeding fiscal year that will be 
necessary for the Commission to carry out its functions.''.

                            I. INTRODUCTION

                         A. Purpose and Summary

    H.R. 1463 would authorize appropriations for fiscal years 
(FY) 1998 and 1999 for the U.S. Customs Service (Customs), the 
Office of the U.S. Trade Representative (USTR), and the U.S. 
International Trade Commission (ITC). H.R. 1463 would also 
require out-year budget projections such that, no later than 
the date on which the President submits the budget to the 
Congress for a fiscal year, Customs, USTR, and the ITC would be 
required to submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the 
Senate projected amounts of funds necessary for the succeeding 
fiscal year.

                 B. Background and Need for Legislation

    H.R. 1463 would provide a two-year authorization of 
appropriations for Customs, USTR, and the ITC. The statutory 
basis for the authorizations of appropriations for each of the 
three trade agencies is as follows: Customs, section 301(b) of 
the Customs Procedural Reform and Simplification Act of 1978 
(19 U.S.C. 2075(b)); USTR, section 141(g)(1) of the Trade Act 
of 1974 (19 U.S.C. 2171(g)(1)); and the ITC, section 330 of the 
Tariff Act of 1930, as amended (19 U.S.C. 1330(e)(2)). The most 
recent authorizations of appropriations for Customs, USTR, and 
the ITC were included in the Customs and Trade Act of 1990 
[P.L. 101-382]. These authorizations expired at the end of FY 
1992. Legislation is necessary to authorize subsequent 
appropriations to fund the operations of these agencies for FY 
1998 and FY 1999.
    The Committee on Ways and Means has adopted a two-year 
authorization process to provide Customs, USTR, and the ITC 
with predictable guidance as they plan their budgets, as well 
as guidance from the Committees for the appropriations process. 
In preparation for consideration of H.R. 1463, the Committee 
considered the President's budget for FY 1998 and requested 
projected budget summaries from each of the agencies for FY 
1999. The Committee was advised by Customs and USTR that, 
pursuant to the policies of the Office of Management and Budget 
(OMB), these two agencies could not provide an official 
proposal for FY 1999. As the ITC's budget is not reviewed by 
OMB, the Commission was able to provide a projected budget. In 
the end, both Customs and USTR were able to provide the 
Committee with unofficial projections for FY 1999, reflecting 
the funding levels which these agencies anticipate submitting 
to OMB.
    To assist Customs, USTR, and the ITC in the future in 
providing the Committee on Ways and Means with budget 
projections, the Committee considered the need for legislation 
to require these agencies to submit to the Committee on Ways 
and Means and the Committee on Finance of the Senate budget 
projections for the succeeding fiscal year on or before the 
date on which the President submits the budget for a current 
fiscal year.

                         C. Legislative History

Committee bill

    On March 13, 1997 the Subcommittee on Trade of the 
Committee on Ways and Means met to consider a draft bill 
identical to H.R. 1463, as introduced, and ordered the draft 
bill to be favorably reported by voice vote, without amendment, 
with a quorum present.
    H.R. 1463 was introduced by Mr. Crane of Illinois, Chairman 
of the Subcommittee on Trade, Committee on Ways and Means, on 
April 28, 1997, and was subsequently referred to the Committee 
on Ways and Means.
    The Committee on Ways and Means met to consider H.R. 1463 
on April 30, 1997, and approved by voice vote one amendment 
offered by Mr. Shaw of Florida to reallocate funds within 
section 1(a) of the bill concerning the authorization of 
appropriations for Customs. The Committee ordered favorably 
reported H.R. 1463, as amended, by voice vote, with a quorum 
present.

Legislative hearing

    The Subcommittee on Trade of the Committee on Ways and 
Means held a public hearing on March 11, 1997 on the budget 
authorizations for FY 1998 and FY 1999 for Customs, USTR, and 
the ITC. Representatives of each of these agencies testified as 
well as private sector witnesses.

                      II. EXPLANATION OF THE BILL

 1. United States Customs Service Authorization for Fiscal Years 1998 
                    and 1999 (Sec. 1(A) of the Bill)

Present law

    The Customs Procedural Reform and Simplification Act of 
1978 [P.L. 95-110] provides for a two-year authorization of 
appropriations for the U.S. Customs Service. That law, as 
amended by section 8102 of the Omnibus Budget Reconciliation 
Act of 1986 [P.L. 99-509], first outlined separate amounts for 
commercial and noncommercial operations for the salaries and 
expenses portion of the Customs authorizations.
    The most recent authorization for Customs (under section 
101 of the Customs and Trade Act of 1990 [P.L. 101-382]) 
provided $1,247,884,000 for salaries and expenses, and 
$150,199,000 for operations and maintenance of the air 
interdiction program. Appropriations for operations and 
maintenance of the marine interdiction program were added to 
this account by the Treasury Appropriations Act for Fiscal Year 
1992 [P.L. 102-141]. The Act authorized $542,091,000 for 
noncommercial operations in FY 1992 and $705,793,000 for 
commercial operations in FY 1992.
    Appropriations for Customs for FY 1997 were included in 
P.L. 104-208, making omnibus consolidated appropriations for 
the fiscal year ending September 30, 1997. The total 
appropriation for FY 1997 was $1,638,354,000, including 
$1,549,585,000 for salaries and expenses and $83,363,000 for 
operations and maintenance of the air and marine interdiction 
programs.
    Separate minimum and maximum amounts for commercial and 
noncommercial operations for the salaries and expenses portion 
of Customs authorizations, and maximum amounts for the air and 
marine interdiction programs are intended to provide guidance 
to Customs in the allocation of resources.

Explanation of provision

    Section 1(a) of H.R. 1463, as amended, would amend section 
301(b) of the Customs Procedural Reform and Simplification Act 
of 1978 to authorize appropriations for Customs not to exceed 
$668,397,000 in FY 1998 and $684,018,000 in FY 1999 for 
salaries and expenses incurred in noncommercial operations, and 
not less than $901,441,000 in FY 1998 and $930,447,000 in FY 
1999 for salaries and expenses incurred in commercial 
operations. H.R. 1463 would require that any money appropriated 
for commercial operations shall come from the Customs User Fee 
Account, except any sums necessary for salaries and expenses in 
connection with merchandise processing fees. For operations and 
maintenance of the air and marine interdiction programs, H.R. 
1463 would authorize appropriations not to exceed $95,258,000 
in FY 1998 and $98,226,000 in FY 1999.
    Section 1(a) would also require out-year budget projections 
such that, no later than the date on which the President 
submits the budget to the Congress for a fiscal year, Customs 
would be required to submit to the Committee on Ways and Means 
of the House of Representatives and the Committee on Finance of 
the Senate projected amounts of funds necessary for the 
succeeding fiscal year. In addition, Customs would be required 
to provide projections for minimum amounts to be authorized for 
commercial operations under the salaries and expenses account; 
maximum amounts to be authorized for noncommercial operations 
under the salaries and expenses account; and, maximum amounts 
to be appropriated for the operation of Customs air and marine 
interdiction programs.

Reasons for change

    The Committee recognizes the efforts of the U.S. Customs 
Service in reorganizing and modernizing its operations. The 
significant changes in culture and process underway at Customs 
promise to improve the delivery of services to the trade 
community and benefit American taxpayers in cost savings. The 
Committee supports Customs' reorganization and modernization 
efforts and will continue to follow these plans closely as they 
unfold.
    The Committee is concerned about the decline in the number 
of Marine Enforcement Officers, Special Agents, and equipment 
for the Customs marine interdiction program, particularly in 
the South Florida area. Following the successful model of 
Operation Hardline on the Southwest Border and Operation 
Gateway in Puerto Rico, the President's budget request for FY 
1998 recognizes the need to respond to the shift in the drug-
smuggling threat to the South Florida area. Therefore, the 
Committee has identified the need for Customs to dedicate 
additional resources to foster law enforcement activities such 
as rebuilding the marine interdiction program in South Florida, 
including platform, interceptor, and utility boats, Marine 
Enforcement Officers, Special Agents, and Intelligence Research 
Specialists.
    In addition, the Committee is concerned about the need for 
Customs to increase the overall level of Special Agents 
dedicated to counter-narcotics and anti-money laundering 
activities, including the need to relocate Special Agents to 
high-threat drug zones. For example, the efforts of Customs 
Special Agents in initiating the Treasury Department's 
Geographical Targeting Order in the New York metropolitan area 
has led to a notable decline in money laundering activities.
    To achieve these goals, the Committee amended the 
allocation of funds authorized within the Customs portion of 
H.R. 1463, as introduced. Specifically, for each of FY 1998 and 
FY 1999, the Committee has decreased by $5 million the minimum 
amount which can be appropriated to Customs for commercial 
activities; increased by $2.5 million the maximum amount which 
may be appropriated to Customs for noncommercial activities; 
and increased by $2.5 million the maximum amount which may be 
appropriated to Customs for the air and marine interdiction 
programs. It is the view of the Committee that these additional 
funds could be used to bolster Customs' law enforcement 
efforts, not only in marine interdiction, but also 
investigations by Special Agents of anti-narcotics and anti-
money laundering activities in general.
    Overall, H.R. 1463, as amended, would meet Customs' total 
budget request for FY 1998 of $1,690,602,000 and 17,193 full-
time equivalent (FTE) positions. This request represents an 
increase of $52,248,000 and 201 FTEs from the FY 1997 operating 
level of $1,638,354,000. Customs' budget request also includes 
$20,100,000 from the Crime Bill Trust Fund, $2,406,000 from the 
Small Airports Fee, and $3,000,000 from the Harbor Maintenance 
Trust Fund, which do not require Committee authorization.
    The allocation for noncommercial operations authorized by 
H.R. 1463 would include Customs' budget request of $5,512,000 
for construction of an airplane hangar in Corpus Christi, 
Texas.
    The operations and maintenance account funds Customs air 
and marine programs, the objectives of which are to detect, 
sort, track, and apprehend aircraft and vessels involved in 
smuggling, and to provide assistance to other Customs law-
enforcement efforts. As indicated above, H.R. 1463, as amended, 
would increase by $2.5 million Customs' budget request of 
$92,758,000 for operations and maintenance of the air and 
marine interdiction programs for fiscal year 1998. This would 
not require any additional FTEs. H.R. 1463, as amended, would 
also increase by $2.5 million Customs' budget request of 
$95,726,000 for operations and maintenance of the air and 
marine interdiction programs for fiscal year 1999.
    H.R. 1463 would also meet Customs' overall budget request 
of $1,720,400,000 for salaries and expenses for FY 1999 for 
combined noncommercial and commercial operations.
    To assist Customs in the future in providing the Committee 
with budget projections for succeeding fiscal years, H.R. 1463 
would require Customs to submit to the Committee on Ways and 
Means of the House of Representatives and the Committee on 
Finance of the Senate, no later than the date on which the 
President submits the budget for a fiscal year, projected 
amounts of funds necessary for the succeeding fiscal year. To 
ensure that sufficient funds are allocated to commercial 
facilitation, Customs would also be required to provide 
projections for minimum amounts to be appropriated for 
commercial operations; maximum amounts to be appropriated for 
noncommercial operations; and maximum amounts to be 
appropriated for the operation of Customs air and marine 
interdiction programs.

Effective date

    The provision would be effective upon enactment.

 2. Office of the United States Trade Representative Authorization for 
           Fiscal Years 1998 and 1999 (Sec. 1(B) of the Bill)

Present law

    Section 141(g) of the Trade Act of 1974, as amended, 
provides for a two-year authorization of appropriations for 
USTR. The most recent authorization (under section 103 of the 
Customs and Trade Act of 1990 [P.L. 101-382]) was $23,250,000 
for FY 1991 and $21,077,000 for FY 1992.
    Appropriations for USTR for FY 1997 were included in P.L. 
104-208, making omnibus consolidated appropriations for the 
fiscal year ending September 30, 1997. The total appropriation 
for FY 1997 was $21,449,000. Of these amounts, not more than 
$98,000 may be used for entertainment and representation 
expenses, and not more than $2,500,000 shall remain available 
until expended.

Explanation of provision

    Section 1(b) of H.R. 1463 would amend section 141(g)(1) of 
the Trade Act of 1974 to provide a two-year authorization of 
appropriations to USTR totaling $22,092,000 for FY 1998 and 
$24,300,000 for FY 1999. Of these amounts, not more than 
$98,000 may be used for entertainment and representation 
expenses, and not more than $2,500,000 shall remain available 
until expended.
    The provision would also require USTR to submit to the 
Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate, no later than the date 
on which the President submits the budget to the Congress for a 
fiscal year, projected amounts of funds necessary for the 
succeeding fiscal year.

Reason for change

    H.R. 1463 would reflect USTR's proposed FY 1998 budget 
request of $22,092,000, a $643,000 increase in budget authority 
from FY 1997. The FY 1998 budget would maintain the current 
level of 164 FTEs. The increase in USTR's budget request for FY 
1998 primarily covers a pay increase of 2.8 percent for USTR 
employees and enables funding for the full level of 164 FTEs. 
This is a modest request from an agency with primary 
responsibility for developing, coordinating, and articulating 
U.S. international trade policy; advising the President and the 
Congress on trade policy; and conducting international trade 
negotiations. The request is justified by the agency's 
statutory functions and the full agenda of international trade 
policy issues and negotiations.
    H.R. 1463 also would reflect USTR's projected budget 
proposal for FY 1999 of $24,300,000, a $2.2 million increase in 
budget authority from FY 1998.
    To assist USTR in the future in providing the Committee 
with budget projections for succeeding fiscal years, H.R. 1463 
would require USTR to submit to the Committee on Ways and Means 
of the House of Representatives and the Committee on Finance of 
the Senate, no later than the date on which the President 
submits the budget to the Congress for a fiscal year, projected 
amounts of funds necessary for the succeeding fiscal year.

Effective date

    The provision would be effective upon enactment.

   3. United States International Trade Commission Authorization for 
           Fiscal Years 1998 and 1999 (Sec. 1(C) of the Bill)

Present law

    Section 330(e)(2) of the Tariff Act of 1930 provides for a 
two-year authorization of appropriations for the ITC. The most 
recent authorization (under section 101 of Public Law 101-382, 
the Customs and Trade Act of 1990 [P.L. 101-382]) was 
$41,170,000 for FY 1991 and $44,052,000 for FY 1992 for the 
ITC.
    Appropriations for the ITC for FY 1997 were included in 
P.L. 104-208, making omnibus consolidated appropriations for 
the fiscal year ending September 30, 1997. The total 
appropriation for FY 1997 was $40,850,000, of which not more 
than $2,500 is authorized to be used for reception and 
entertainment expenses, subject to the approval of the Chairman 
of the Commission.

Explanation of provision

    Section 1(c) of H.R. 1463 would amend section 330(e)(2) of 
the Tariff Act of 1930 toprovide a two-year authorization of 
appropriations to the ITC of $41,980,000 for FY 1998 and $46,125,000 
for FY 1999. Of the amounts authorized, not more than $ 2,500 may be 
used for reception and entertainment expenses, subject to the approval 
of the Chairman of the Commission.
    The provision would also require the ITC to submit to the 
Committee on Ways and Means and the Committee on Finance of the 
Senate, no later than the date on which the President submits 
the budget for a fiscal year, projected amounts of funds 
necessary for the succeeding fiscal year.

Reasons for change

    H.R. 1463 would reflect the ITC's budget request for FY 
1998 of $41,980,000. This represents a 2.8 percent increase 
over the FY 1997 funding level of $40,850,000, and maintains 
the Commission's staffing level at 378 FTEs. The requested 
increase primarily covers the President's proposed increase in 
salaries and benefits for personnel. H.R. 1463 also would 
reflect the ITC request of $46,125,400 for FY 1999, a 9.9 
percent increase in funding over FY 1998 to cover the costs of 
statutorily mandated reviews of outstanding antidumping and 
countervailing duty orders.
    The Committee commends the efforts of the ITC in 
streamlining its operations. Since FY 1992, the Commission has 
reduced its staffing by over 20 percent from 472 FTEs, 
consolidated offices, and procured needed equipment to boost 
the productivity of remaining staff.
     The Uruguay Round Agreements Act [P.L. 103-465] poses a 
daunting new challenge to the Commission. Beginning in the 
summer of 1998, the Commission will begin reviewing 315 
outstanding antidumping and countervailing duty orders to 
determine whether terminating them would lead to a continuation 
or recurrence of material injury. This new class of cases--
``sunset'' reviews--is estimated to double the agency's docket 
under the antidumping and countervailing duty laws and triple 
its litigation caseload. The Commission projects that it will 
need to allocate an additional 59 work-years in response to 
this increased caseload. It is estimated that 19 of these work-
years will be absorbed through the allocation of existing 
staff.
    The Committee urges the Department of Commerce to cooperate 
with the Commission in the timely scheduling and initiation of 
these sunset reviews to ensure the most efficient utilization 
of the Commission's resources.
    The Committee believes that it is important that the United 
States provide the necessary resources to ensure the full 
implementation of its obligations under the Uruguay Round 
Agreements Act with respect to sunset reviews. In addition, the 
Committee is concerned that the Commission should not deplete 
its resources in these efforts such that it will have 
difficulty fulfilling its other statutory functions, especially 
those under the global and bilateral safeguard laws and section 
337 of the Tariff Act of 1930. The Committee also is concerned 
that the Commission continue to be able to provide the 
statistical studies, fact-finding reports, and technical 
assistance on tariff and trade matters that Congress and the 
President may require in considering new free-trade initiatives 
with the Asia Pacific Economic Cooperation group and with Latin 
American trading partners, as well as other trade negotiation 
initiatives. The Commission is urged to consult with the 
Committee should its increased work load become too great a 
strain on its resources.
    To assist the ITC in the future in providing the Committee 
with budget projections for succeeding fiscal years, H.R. 1463 
would require the ITC to submit to the Committee on Ways and 
Means of the House of Representatives and the Committee on 
Finance of the Senate, no later than the date on which the 
President submits the budget for a fiscal year, projected 
amounts of funds necessary for the succeeding fiscal year.

Effective date

    The provision would be effective upon enactment.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 2(l)(2)(B) of the Rules of the 
House of Representatives, the following statements are made 
concerning the votes of the Committee in its consideration of 
the bill H.R. 1463.

Motion to report the bill

    The bill, H.R. 1463 was ordered favorably reported, as 
amended, by voice vote, on April 30, 1997, with a quorum 
present.

                           IV. BUDGET EFFECTS

               A. Committee Estimate on Budgetary Effects

    In compliance with clause 7(a) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of H.R. 1463, as reported: 
The Committee agrees with the estimate prepared by the 
Congressional Budget Office, which is attached.

    B. Statement Regarding New Budget Authority and Tax Expenditures

    In compliance with subdivision (B) of clause 2(l)(3) of 
rule XI of the Rules of the House of Representatives, the 
Committee states that the provisions of H.R. 1463 do not 
involve any new budget authority, or any increase or decrease 
in revenues or tax expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with subdivision (C) of clause 2(l)(3) of 
rule XI of the Rules of the House of Representatives, requiring 
a cost estimate prepared by the Congressional Budget Office, 
the following report prepared by CBO is provided.
                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 30, 1997.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1463, a bill to 
authorize appropriations for fiscal years 1998 and 1999 for the 
Customs Service, the Office of the United States Trade 
Representative, and the International Trade Commission.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 1463--A bill to authorize appropriations for fiscal years 1998 and 
        1999 for the Customs Service, the Office of the United States 
        Trade Representative, and the International Trade Commission

                                Summary

    H.R. 1463 would authorize appropriations for 1998 and 1999 
for the Customs Service, the Office of the United States Trade 
Representative (OUSTR), and the International Trade Commission 
(ITC). For the Customs Service, the amounts authorized would 
total about $1.6 billion for salaries and expenses and about 
$95 million for operations and maintenance for each of fiscal 
years 1998 and 1999. Also, for 1998 and 1999, the bill would 
authorize annual appropriations of about $25 million for the 
OUSTR and about $45 million for the ITC.
    Assuming appropriation of the authorized amounts, CBO 
estimates that enacting H.R. 1463 would result in additional 
discretionary spending of about $3.5 billion over the 1998-2002 
period. The bill would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply. H.R. 1463 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act of 1995 (UMRA) and 
would impose no costs on state, local, or tribal governments.

                Estimated Cost to the Federal Government

    The estimated budgetary impact of H.R. 1463 is shown in the 
table on the following page. For the purposes of this estimate, 
CBO assumes that all amounts authorized in H.R. 1463 will be 
appropriated by the start of each fiscal year and that outlays 
will follow the historical spending patterns of the agencies 
funded.

                                    [By fiscal years in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
Spending under current law:                                                                                     
    Budget authority\1\...................................    1,718        0        0        0        0        0
    Estimated outlays.....................................    1,687      187        0        0        0        0
Proposed changes:                                                                                               
    Authorization level...................................        0    1,729    1,783        0        0        0
    Estimated outlays.....................................        0    1,537    1,776      197        0        0
Spending under H.R. 1463:                                                                                       
    Authorization level\1\................................    1,718    1,729    1,783        0        0        0
    Estimated outlays.....................................    1,687    1,724    1,776      197        0        0
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 level is the amount appropriated for the Customs Service, the OUSTR, and the ITC in that year.     

    The costs of this legislation fall within budget functions 
150 (international affairs), 750 (administration of justice), 
and 800 (general government).
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 1463 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Mark Grabowicz.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    With respect to subdivision (A) of clause 2(l)(3) of rule 
XI of the rules of the House of Representatives (relating to 
oversight findings), the Committee advises that it was as a 
result of the Committee's oversight activities concerning the 
budget authorizations for Customs, USTR, and the ITC that the 
Committee concluded that it is appropriate to enact the 
provisions contained in the bill.

    B. Summary of Findings and Recommendations of the Committee on 
                    Government Reform and Oversight

    With respect to subdivision (D) of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives (relating to 
oversight findings), the Committee advises that no oversight 
findings or recommendations have been submitted to this 
Committee by the Committee on Government Reform and Oversight 
with respect to the provisions contained in this bill.

                 C. Constitutional Authority Statement

    With respect to clause 2(l)(4) of rule XI of the Rules of 
the House of Representatives, relating to Constitutional 
Authority, the Committee states that the Committee's action in 
reporting the bill is derived from Article I of the 
Constitution, Section 8 (``The Congress shall have power to lay 
and collect taxes, duties, imposts and excises, to pay the 
debts and to provide for * * * the general Welfare of the 
United States * * *'').

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

  In compliance with clause 3 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 301 OF THE CUSTOMS PROCEDURAL REFORM AND SIMPLIFICATION ACT OF 
                                  1978

        TITLE III--CUSTOMS SERVICE APPROPRIATIONS AUTHORIZATION

  Sec. 301. (a)(1) For the fiscal year beginning October 1, 
1979, and each fiscal year thereafter, there are authorized to 
be appropriated to the Department of the Treasury for the 
United States Customs Service only such sums as may hereafter 
be authorized by law.
          * * * * * * *
  (3) By no later than the date on which the President submits 
to the Congress the budget of the United States Government for 
a fiscal year, the Commissioner of Customs shall submit to the 
Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate the projected amount of 
funds for the succeeding fiscal year that will be necessary for 
the operations of the Customs Service as provided for in 
subsection (b).
  [(b) Authorization of Appropriations.--
          [(1) For noncommercial operations.--There are 
        authorized to be appropriated for the salaries and 
        expenses of the Customs Service that are incurred in 
        noncommercial operations not to exceed the following:
                  [(A) $516,217,000 for fiscal year 1991.
                  [(B) $542,091,000 for fiscal year 1992.
          [(2) For commercial operations.--(A) There are 
        authorized to be appropriated for the salaries and 
        expenses of the Customs Service that are incurred in 
        commercial operations not less than the following:
                  [(i) $672,021,000 for fiscal year 1991.
                  [(ii) $705,793,000 for fiscal year 1992.
          [(B) The monies authorized to be appropriated under 
        subparagraph (A) for any fiscal year, except for such 
        sums as may be necessary for the salaries and expenses 
        of the Customs Service that are incurred in connection 
        with the processing of merchandise that is exempt from 
        the fees imposed under section 13031(a) (9) and (10) of 
        the Consolidated Omnibus Budget Reconciliation Act of 
        1985, shall be appropriated from the Customs User Fee 
        Account.
          [(3) For air interdiction.--There are authorized to 
        be appropriated for the operation (including salaries 
        and expenses) and maintenance of the air interdiction 
        program of the Customs Service not to exceed the 
        following:
                  [(A) $143,047,000 for fiscal year 1991.
                  [(B) $150,199,000 for fiscal year 1992.]
  (b) Authorization of Appropriations.--
          (1) For noncommercial operations.--There are 
        authorized to be appropriated for the salaries and 
        expenses of the Customs Service that are incurred in 
        noncommercial operations not to exceed the following:
                  (A) $668,397,000 for fiscal year 1998.
                  (B) $684,018,000 for fiscal year 1999.
          (2) For commercial operations.--(A) There are 
        authorized to be appropriated for the salaries and 
        expenses of the Customs Service that are incurred in 
        commercial operations not less than the following:
                  (i) $901,441,000 for fiscal year 1998.
                  (ii) $930,447,000 for fiscal year 1999.
          (B) The monies authorized to be appropriated under 
        subparagraph (A) for any fiscal year, except for such 
        sums as may be necessary for the salaries and expenses 
        of the Customs Service that are incurred in connection 
        with the processing of merchandise that is exempt from 
        the fees imposed under section 13031(a) (9) and (10) of 
        the Consolidated Omnibus Budget Reconciliation Act of 
        1985, shall be appropriated from the Customs User Fee 
        Account.
  (3) For air and marine interdiction.--There are authorized to 
be appropriated for the operation (including salaries and 
expenses) and maintenance of the air and marine interdiction 
programs of the Customs Service not to exceed the following:
                  (A) $95,258,000 for fiscal year 1998.
                  (B) $98,226,000 for fiscal year 1999.
                              ----------                              

                  SECTION 141 OF THE TRADE ACT OF 1974

SEC. 141. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

  (a) * * *
          * * * * * * *
  [(g)(1)(A) There are authorized to be appropriated to the 
Office for the purposes of carrying out its functions not to 
exceed the following:
          [(i) $23,250,000 for fiscal year 1991.
          [(ii) $21,077,000 for fiscal year 1992.
  [(B) Of the amounts authorized to be appropriated under 
subparagraph (A) for any fiscal year--
          [(i) not to exceed $98,000 may be used for 
        entertainment and representation expenses of the 
        Office;
          [(ii) not to exceed $2,050,000 may be used to pay the 
        United States share of the expenses of binational 
        panels and extraordinary challenge committees convened 
        pursuant to chapter 19 of the United States-Canada 
        Free-Trade Agreement; and
          [(iii) not to exceed $1,000,000 shall remain 
        available until expended.]
    (g)(1)(A) There are authorized to be appropriated to the 
Office for the purposes of carrying out its functions not to 
exceed the following:
          (i) $22,092,000 for fiscal year 1998.
          (ii) $24,300,000 for fiscal year 1999.
  (B) Of the amounts authorized to be appropriated under 
subparagraph (A) for any fiscal year--
          (i) not to exceed $98,000 may be used for 
        entertainment and representation expenses of the 
        Office; and
          (ii) not to exceed $2,500,000 shall remain available 
        until expended.
          * * * * * * *
  (3) By no later than the date on which the President submits 
to the Congress the budget of the United States Government for 
a fiscal year, the United States Trade Representative shall 
submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate the 
projected amount of funds for the succeeding fiscal year that 
will be necessary for the Office to carry out its functions.
                              ----------                              

                 SECTION 330 OF THE TARIFF ACT OF 1930

SEC. 330. ORGANIZATION OF THE COMMISSION.

  (a) * * *
          * * * * * * *
  (e) Authorization of Appropriations.--(1) For the fiscal year 
beginning October 1, 1976, and each fiscal year thereafter, 
there are authorized to be appropriated to the Commission only 
such sums as may hereafter be provided by law.
  [(2)(A) There are authorized to be appropriated to the 
Commission for necessary expenses (including the rental of 
conference rooms in the District of Columbia and elsewhere) not 
to exceed the following:
          [(i) $41,170,000 for fiscal year 1991.
          [(ii) $44,052,000 for fiscal year 1992.
  [(B) Not to exceed $2,500 of the amount authorized to be 
appropriated for any fiscal year under subparagraph (A) may be 
used, subject to the approval of the Chairman of the 
Commission, for reception and entertainment expenses.
  [(C) No part of any sum that is appropriated under the 
authority of subparagraph (A) may be used by the Commission in 
the making of any special study, investigation, or report that 
is requested by any agency of the executive branch unless that 
agency reimburses the Commission for the cost thereof.]
  (2)(A) There are authorized to be appropriated to the 
Commission for necessary expenses (including the rental of 
conference rooms in the District of Columbia and elsewhere) not 
to exceed the following:
          (i) $41,980,000 for fiscal year 1998.
          (ii) $46,125,400 for fiscal year 1999.
  (B) Not to exceed $2,500 of the amount authorized to be 
appropriated for any fiscal year under subparagraph (A) may be 
used, subject to the approval of the Chairman of the 
Commission, for reception and entertainment expenses.
  (C) No part of any sum that is appropriated under the 
authority of subparagraph (A) may be used by the Commission in 
the making of any special study, investigation, or report that 
is requested by any agency of the executive branch unless that 
agency reimburses the Commission for the cost thereof.
          * * * * * * *
  (4) By no later than the date on which the President submits 
to the Congress the budget of the United States Government for 
a fiscal year, the Commission shall submit to the Committee on 
Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate the projected amount of 
funds for the succeeding fiscal year that will be necessary for 
the Commission to carry out its functions.
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