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[108th Congress Public Law 286]
[From the U.S. Government Printing Office]

[DOCID: f:publ286.108]

[[Page 118 STAT. 919]]

Public Law 108-286
108th Congress

                                 An Act

 
          To implement the United States-Australia Free Trade 
            Agreement. <<NOTE: Aug. 3, 2004 -  [H.R. 4759]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: United States-
Australia Free Trade Agreement Implementation Act. 19 USC 3805 note.>> 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States-
Australia Free Trade Agreement Implementation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
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. Implementing actions in anticipation of entry into force and 
           initial regulations. 
Sec. 104. Consultation and layover provisions for, and effective date 
           of, proclaimed actions. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Effective dates; effect of termination. 

                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications. 
Sec. 202. Additional duties on certain agricultural goods. 
Sec. 203. Rules of origin.
Sec. 204. Customs user fees. 
Sec. 205. Disclosure of incorrect information. 
Sec. 206. Enforcement relating to trade in textile and apparel goods. 
Sec. 207. 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. 

[[Page 118 STAT. 920]]

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 Australia. 

                          TITLE IV--PROCUREMENT

Sec. 401. Eligible products. 

SEC. 2. PURPOSES. <<NOTE: 19 USC 3805 note.>> 

    The purposes of this Act are--
            (1) to approve and implement the Free Trade Agreement 
        between the United States and Australia, entered into under the 
        authority of section 2103(b) of the Bipartisan Trade Promotion 
        Authority Act of 2002 (19 U.S.C. 3803(b));
            (2) to strengthen and develop economic relations between the 
        United States and Australia for their mutual benefit;
            (3) to establish free trade between the 2 nations through 
        the reduction and elimination of barriers to trade in goods and 
        services and to investment; and
            (4) to lay the foundation for further cooperation to expand 
        and enhance the benefits of such Agreement.

SEC. 3. DEFINITIONS. <<NOTE: 19 USC 3805 note.>> 

    In this Act:
            (1) Agreement.--The term ``Agreement'' means the United 
        States-Australia Free Trade Agreement approved by Congress under 
        section 101(a)(1).
            (2) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.
            (3) Textile or apparel good.--The term ``textile or apparel 
        good'' means a good listed in the Annex to the Agreement on 
        Textiles and Clothing referred to in section 101(d)(4) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).

 TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

SEC. 101. <<NOTE: 19 USC 3805 note.>> APPROVAL AND ENTRY INTO FORCE OF 
            THE AGREEMENT.

    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority Act 
of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 (19 
U.S.C. 2191), Congress approves--
            (1) the United States-Australia Free Trade Agreement entered 
        into on May 18, 2004, with the Government of Australia and 
        submitted to Congress on July 6, 2004; and
            (2) the statement of administrative action proposed to 
        implement the Agreement that was submitted to Congress on July 
        6, 2004.

    (b) <<NOTE: President.>> Conditions for Entry Into Force of the 
Agreement.--At such time as the President determines that Australia has 
taken measures necessary to bring it into compliance with those 
provisions of the Agreement that are to take effect on the date on which 
the Agreement enters into force, the President is authorized to exchange 
notes with the Government of Australia providing for

[[Page 118 STAT. 921]]

the entry into force, on or after January 1, 2005, of the Agreement with 
respect to the United States.

SEC. 102. <<NOTE: 19 USC 3805 note.>> RELATIONSHIP OF THE AGREEMENT TO 
            UNITED STATES AND STATE LAW.

    (a) Relationship of Agreement to United States Law.--
            (1) United states law to prevail in conflict.--No provision 
        of the Agreement, nor the application of any such provision to 
        any person or circumstance, which is inconsistent with any law 
        of the United States shall have effect.
            (2) Construction.--Nothing in this Act shall be construed--
                    (A) to amend or modify any law of the United States, 
                or
                    (B) to limit any authority conferred under any law 
                of the United States,
        unless specifically provided for in this Act.

    (b) Relationship of Agreement to State Law.--
            (1) Legal challenge.--No State law, or the application 
        thereof, may be declared invalid as to any person or 
        circumstance on the ground that the provision or application is 
        inconsistent with the Agreement, except in an action brought by 
        the United States for the purpose of declaring such law or 
        application invalid.
            (2) Definition of state law.--For purposes of this 
        subsection, the term ``State law'' includes--
                    (A) any law of a political subdivision of a State; 
                and
                    (B) any State law regulating or taxing the business 
                of insurance.

    (c) Effect of Agreement With Respect to Private Remedies.--No person 
other than the United States--
            (1) shall have any cause of action or defense under the 
        Agreement or by virtue of congressional approval thereof; or
            (2) may challenge, in any action brought under any provision 
        of law, any action or inaction by any department, agency, or 
        other instrumentality of the United States, any State, or any 
        political subdivision of a State, on the ground that such action 
        or inaction is inconsistent with the Agreement.

SEC. 103. <<NOTE: 19 USC 3805 note.>> IMPLEMENTING ACTIONS IN 
            ANTICIPATION OF ENTRY INTO FORCE AND INITIAL REGULATIONS.

    (a) Implementing Actions.--
            (1) Proclamation authority.--After the date of the enactment 
        of this Act--
                    (A) the President may proclaim such actions, and
                    (B) other appropriate officers of the United States 
                Government may issue such regulations,
        as may be necessary to ensure that any provision of this Act, or 
        amendment made by this Act, that takes effect on the date the 
        Agreement enters into force is appropriately implemented on such 
        date, but no such proclamation or regulation may have an 
        effective date earlier than the date on which the Agreement 
        enters into force.
            (2) Effective date of certain proclaimed actions.--Any 
        action proclaimed by the President under the authority of this 
        Act that is not subject to the consultation and layover 
        provisions under section 104, may not take effect before the

[[Page 118 STAT. 922]]

        15th day after the date on which the text of the proclamation is 
        published in the Federal Register.
            (3) Waiver of 15-day restriction.--The 15-day restriction in 
        paragraph (2) on the taking effect of proclaimed actions is 
        waived to the extent that the application of such restriction 
        would prevent the taking effect on the date the Agreement enters 
        into force of any action proclaimed under this section.

    (b) <<NOTE: Deadlines.>> Initial Regulations.--Initial regulations 
necessary or appropriate to carry out the actions required by or 
authorized under this Act or proposed in the statement of administrative 
action submitted under section 101(a)(2) to implement the Agreement 
shall, to the maximum extent feasible, be issued within 1 year after the 
date on which the Agreement enters into force. In the case of any 
implementing action that takes effect on a date after the date on which 
the Agreement enters into force, initial regulations to carry out that 
action shall, to the maximum extent feasible, be issued within 1 year 
after such effective date.

SEC. 104. <<NOTE: President. 19 USC 3805 note.>> CONSULTATION AND 
            LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE OF, PROCLAIMED 
            ACTIONS.

    If a provision of this Act provides that the implementation of an 
action by the President by proclamation is subject to the consultation 
and layover requirements of this section, such action may be proclaimed 
only if--
            (1) the President has obtained advice regarding the proposed 
        action from--
                    (A) the appropriate advisory committees established 
                under section 135 of the Trade Act of 1974 (19 U.S.C. 
                2155); and
                    (B) the United States International Trade 
                Commission;
            (2) <<NOTE: Reports.>> the President has submitted a report 
        to the Committee on Finance of the Senate and the Committee on 
        Ways and Means of the House of Representatives that sets forth--
                    (A) the action proposed to be proclaimed and the 
                reasons therefor; and
                    (B) the advice obtained under paragraph (1);
            (3) a period of 60 calendar days, beginning on the first day 
        on which the requirements set forth in paragraphs (1) and (2) 
        have been met has expired; and
            (4) the President has consulted with such Committees 
        regarding the proposed action during the period referred to in 
        paragraph (3).

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

    (a) <<NOTE: President. 19 USC 3805 note.>> Establishment or 
Designation of Office.--The President is authorized to establish or 
designate within the Department of Commerce an office that shall be 
responsible for providing administrative assistance to panels 
established under chapter 21 of the Agreement. The office may not be 
considered to be an agency for purposes of section 552 of title 5, 
United States Code.

    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year after fiscal year 2004 to the 
Department of Commerce such sums as may be necessary for the 
establishment and operations of the office under subsection (a) and for 
the payment of the United States share of the expenses of panels 
established under chapter 21 of the Agreement.

[[Page 118 STAT. 923]]

SEC. 106. EFFECTIVE DATES; EFFECT OF <<NOTE: 19 USC 3805 
            note.>> TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), the 
provisions of this Act and the amendments made by this Act take effect 
on the date on which the Agreement enters into force.
    (b) Exceptions.--Sections 1 through 3 and this title take effect on 
the date of the enactment of this Act.
    (c) Termination of the Agreement.--On the date on which the 
Agreement terminates, the provisions
of this Act (other than this subsection) and the amendments made by this 
Act shall cease to be effective.

                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF <<NOTE: 19 USC 3805 note.>> MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--The 
President may proclaim--
            (1) such modifications or continuation of any duty,
            (2) such continuation of duty-free or excise treatment, or
            (3) such additional duties,

as the President determines to be necessary or appropriate to carry out 
or apply articles 2.3, 2.5, and 2.6, and Annex 2-B of the Agreement.
    (b) Other Tariff Modifications.--Subject to the consultation and 
layover provisions of section 104, the President may proclaim--
            (1) such modifications or continuation of any duty,
            (2) such modifications as the United States may agree to 
        with Australia regarding the staging of any duty treatment set 
        forth in Annex 2-B of the Agreement,
            (3) such continuation of duty-free or excise treatment, or
            (4) such additional duties,

as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
with respect to Australia provided for by the Agreement.
    (c) Conversion to Ad Valorem Rates.--For purposes of subsections (a) 
and (b), with respect to any good for which the base rate in the 
Schedule of the United States to Annex 2-B of the Agreement is a 
specific or compound rate of duty, the President may substitute for the 
base rate an ad valorem rate that the President determines to be 
equivalent to the base rate.

SEC. 202. <<NOTE: 19 USC 3805 note.>> ADDITIONAL DUTIES ON CERTAIN 
            AGRICULTURAL GOODS.

    (a) General Provisions.--
            (1) Applicability of subsection.--This subsection applies to 
        additional duties assessed under subsections (b), (c), and (d).
            (2) Applicable ntr (mfn) rate of duty.--For purposes of 
        subsections (b), (c), and (d), the term ``applicable NTR (MFN) 
        rate of duty'' means, with respect to a safeguard good, a rate 
        of duty that is the lesser of--
                    (A) the column 1 general rate of duty that would 
                have been imposed under the HTS on the same safeguard 
                good entered, without a claim for preferential 
                treatment, at the time the additional duty is imposed 
                under subsection (b), (c), or (d), as the case may be; 
                or
                    (B) the column 1 general rate of duty that would 
                have been imposed under the HTS on the same safeguard 
                good

[[Page 118 STAT. 924]]

                entered, without a claim for preferential treatment, on 
                December 31, 2004.
            (3) Schedule rate of duty.--For purposes of subsections (b) 
        and (c), the term ``schedule rate of duty'' means, with respect 
        to a safeguard good, the rate of duty for that good set out in 
        the Schedule of the United States to Annex 2-B of the Agreement.
            (4) Safeguard good.--In this subsection, the term 
        ``safeguard good'' means--
                    (A) a horticulture safeguard good described 
                subsection (b)(1)(B); or
                    (B) a beef safeguard good described in subsection 
                (c)(1) or subsection (d)(1)(A).
            (5) Exceptions.--No additional duty shall be assessed on a 
        good under subsection (b), (c), or (d) if, at the time of entry, 
        the good is subject to import relief under--
                    (A) subtitle A of title III of this Act; or
                    (B) chapter 1 of title II of the Trade Act of 1974 
                (19 U.S.C. 2251 et seq.).
            (6) Termination.--The assessment of an additional duty on a 
        good under subsection (b) or (c), whichever is applicable, shall 
        cease to apply to that good on the date on which duty-free 
        treatment must be provided to that good under the Schedule of 
        the United States to Annex 2-B of the Agreement.
            (7) <<NOTE: Deadline.>> Notice.--Not later than 60 days 
        after the date on which the Secretary of the Treasury assesses 
        an additional duty on a good under subsection (b), (c), or (d), 
        the Secretary shall notify the Government of Australia in 
        writing of such action and shall provide to that Government data 
        supporting the assessment of the additional duty.

    (b) Additional Duties on Horticulture Safeguard Goods.--
            (1) Definitions.--In this subsection:
                    (A)  F.O.B.--The term ``F.O.B.'' means free on 
                board, regardless of the mode of transportation, at the 
                point of direct shipment by the seller to the buyer.
                    (B) Horticulture safeguard good.--The term 
                ``horticulture safeguard good'' means a good--
                          (i) that qualifies as an originating good 
                      under section 203;
                          (ii) that is included in the United States 
                      Horticulture Safeguard List set forth in Annex 3-A 
                      of the Agreement; and
                          (iii) for which a claim for preferential 
                      treatment under the Agreement has been made.
                    (C) Unit import price.--The ``unit import price'' of 
                a good means the price of the good determined on the 
                basis of the F.O.B. import price of the good, expressed 
                in either dollars per kilogram or dollars per liter, 
                whichever unit of measure is indicated for the good in 
                the United States Horticulture Safeguard List set forth 
                in Annex 3-A of the Agreement.
                    (D) Trigger price.--The ``trigger price'' for a good 
                is the trigger price indicated for that good in the 
                United States Horticulture Safeguard List set forth in 
                Annex 3-A of the Agreement or any amendment thereto.

[[Page 118 STAT. 925]]

            (2) Additional duties.--In addition to any duty proclaimed 
        under subsection (a) or (b) of section 201, and subject to 
        subsection (a) of this section, the Secretary of the Treasury 
        shall assess a duty on a horticulture safeguard good, in the 
        amount determined under paragraph (3), if the Secretary 
        determines that the unit import price of the good when it enters 
        the United States is less than the trigger price for that good.
            (3) Calculation of additional duty.--The additional duty 
        assessed under this subsection on a horticulture safeguard good 
        shall be an amount determined in accordance with the following 
        table:

      

                         If the excess of the trigger price      The additional duty is an amount equal to:
                          over the unit import price is:
 
                         Not more than 10 percent of the         0.
                          trigger price........................
                         More than 10 percent but not more than  30 percent of the excess of the applicable NTR (MFN) rate of duty
                          40 percent of the trigger price......   over the schedule rate of duty.
                         More than 40 percent but not more than  50 percent of such excess.
                          60 percent of the trigger price......
                         More than 60 percent but not more than  70 percent of such excess.
                          75 percent of the trigger price......
                         More than 75 percent of the trigger     100 percent of such excess.
                          price................................
 

    (c) Additional Duties on Beef Safeguard Goods Based on Quantity of 
Imports.--
            (1) Definition.--In this subsection, the term ``beef 
        safeguard good'' means a good--
                    (A) that qualifies as an originating good under 
                section 203;
                    (B) that is listed in paragraph 3 of Annex I of the 
                General Notes to the Schedule of the United States to 
                Annex 2-B of the Agreement; and
                    (C) for which a claim for preferential treatment 
                under the Agreement has been made.
            (2) Additional duties.--In addition to any duty proclaimed 
        under subsection (a) or (b) of section 201, and subject to 
        subsection (a) of this section and paragraphs (4) and (5) of 
        this subsection, the Secretary of the Treasury shall assess a 
        duty, in the amount determined under paragraph (3), on a beef 
        safeguard good imported into the United States in a calendar 
        year if the Secretary determines that, prior to such 
        importation, the total volume of beef safeguard goods imported 
        into the United States in that calendar year is equal to or 
        greater than 110 percent of the volume set out for beef 
        safeguard goods in the corresponding year in the table contained 
        in paragraph 3(a) of Annex I of the General Notes to the 
        Schedule of the United States to Annex 2-B of the Agreement. For 
        purposes of this subsection, the years 1 through 19 set out in 
        the table contained in paragraph 3(a) of such Annex I correspond 
        to the calendar years 2005 through 2023.
            (3) Calculation of additional duty.--The additional duty on 
        a beef safeguard good under this subsection shall

[[Page 118 STAT. 926]]

        be an amount equal to 75 percent of the excess of the applicable 
        NTR (MFN) rate of duty over the schedule rate of duty.
            (4) Waiver.--
                    (A) In general.--The United States Trade 
                Representative is authorized to waive the application of 
                this subsection, if the Trade Representative determines 
                that extraordinary market conditions demonstrate that 
                the waiver would be in the national interest of the 
                United States, after the requirements of subparagraph 
                (B) are met.
                    (B) Notice and consultations.--Promptly after 
                receiving a request for a waiver of this subsection, the 
                Trade Representative shall notify the Committee on Ways 
                and Means of the House of Representatives and the 
                Committee on Finance of the Senate, and may make the 
                determination provided for in subparagraph (A) only 
                after consulting with--
                          (i) appropriate private sector advisory 
                      committees established under section 135 of the 
                      Trade Act of 1974 (19 U.S.C. 2155); and
                          (ii) the Committee on Ways and Means of the 
                      House of Representatives and the Committee on 
                      Finance of the Senate regarding--
                                    (I) the reasons supporting the 
                                determination to grant the waiver; and
                                    (II) the proposed scope and duration 
                                of the waiver.
                          (C) <<NOTE: Federal Register, 
                      publication.>> Notification of the secretary of 
                      the treasury and publication.--Upon granting a 
                      waiver under this paragraph, the Trade 
                      Representative shall promptly notify the Secretary 
                      of the Treasury of the period in which the waiver 
                      will be in effect, and shall publish notice of the 
                      waiver in the Federal Register.
            (5) <<NOTE: Termination date.>> Effective dates.--This 
        subsection takes effect on January 1, 2013, and shall not be 
        effective after December 31, 2022.

    (d) Additional Duties on Beef Safeguard Goods Based on Price.--
            (1) Definitions.--In this subsection:
                    (A) Beef safeguard good.--The term ``beef safeguard 
                good'' means a good--
                          (i) that qualifies as an originating good 
                      under section 203;
                          (ii) that is classified under subheading 
                      0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50, 
                      0202.20.80, or 0202.30.80 of the HTS; and
                          (iii) for which a claim for preferential 
                      treatment under the Agreement has been made.
                    (B) Calendar quarter.--
                          (i) In general.--The term ``calendar quarter'' 
                      means any 3-month period beginning on January 1, 
                      April 1, July 1, or October 1 of a calendar year.
                          (ii) First calendar quarter.--The term ``first 
                      calendar quarter'' means the calendar quarter 
                      beginning on January 1.

[[Page 118 STAT. 927]]

                          (iii) Second calendar quarter.--The term 
                      ``second calendar quarter'' means the calendar 
                      quarter beginning on April 1.
                          (iv) Third calendar quarter.--The term ``third 
                      calendar quarter'' means the calendar quarter 
                      beginning on July 1.
                          (v) Fourth calendar quarter.--The term 
                      ``fourth calendar quarter'' means the calendar 
                      quarter beginning on October 1.
                    (C) Monthly average index price.--The term ``monthly 
                average index price'' means the simple average, as 
                determined by the Secretary of Agriculture, for a 
                calendar month of the daily average index prices for 
                Wholesale Boxed Beef Cut-Out Value Select 1-3 Central 
                U.S. 600-750 lbs., or its equivalent, as such simple 
                average is reported by the Agricultural Marketing 
                Service of the Department of Agriculture in Report LM-
                XB459 or any equivalent report.
                    (D) 24-month trigger price.--The term ``24-month 
                trigger price'' means, with respect to any calendar 
                month, the average of the monthly average index prices 
                for the 24 preceding calendar months, multiplied by 
                0.935.
            (2) Additional duties.--In addition to any duty proclaimed 
        under subsection (a) or (b) of section 201, and subject to 
        subsection (a) of this section and paragraphs (4) through (6) of 
        this subsection, the Secretary of the Treasury shall assess a 
        duty, in the amount determined under paragraph (3), on a beef 
        safeguard good imported into the United States if--
                    (A)(i) the good is imported in the first calendar 
                quarter, second calendar quarter, or third calendar 
                quarter of a calendar year; and
                    (ii) the monthly average index price, in any 2 
                calendar months of the preceding calendar quarter, is 
                less than the 24-month trigger price; or
                    (B)(i) the good is imported in the fourth calendar 
                quarter of a calendar year; and
                    (ii)(I) the monthly average index price, in any 2 
                calendar months of the preceding calendar quarter, is 
                less than the 24-month trigger price; or
                    (II) the monthly average index price, in any of the 
                4 calendar months preceding January 1 of the succeeding 
                calendar year, is less than the 24-month trigger price.
            (3) Calculation of additional duty.--The additional duty on 
        a beef safeguard good under this subsection shall be an amount 
        equal to 65 percent of the applicable NTR (MFN) rate of duty for 
        that good.
            (4) Limitation.--An additional duty shall be assessed under 
        this subsection on a beef safeguard good imported into the 
        United States in a calendar year only if, prior to the 
        importation of that good, the total quantity of beef safeguard 
        goods imported into the United States in that calendar year is 
        equal to or greater than the sum of--
                    (A) the quantity of goods of Australia eligible to 
                enter the United States in that year specified in 
                Additional United States Note 3 to Chapter 2 of the HTS; 
                and
                    (B)(i) in 2023, 70,420 metric tons; or

[[Page 118 STAT. 928]]

                    (ii) in 2024, and in each year thereafter, a 
                quantity that is 0.6 percent greater than the quantity 
                provided for in the preceding year under this 
                subparagraph.
            (5) Waiver.--
                    (A) In general.--The United States Trade 
                Representative is authorized to waive the application of 
                this subsection, if the Trade Representative determines 
                that extraordinary market conditions demonstrate that 
                the waiver would be in the national interest of the 
                United States, after the requirements of subparagraph 
                (B) are met.
                    (B) Notice and consultations.--Promptly after 
                receiving a request for a waiver of this subsection, the 
                Trade Representative shall notify the Committee on Ways 
                and Means of the House of Representatives and the 
                Committee on Finance of the Senate, and may make the 
                determination provided for in subparagraph (A) only 
                after consulting with--
                          (i) appropriate private sector advisory 
                      committees established under section 135 of the 
                      Trade Act of 1974 (19 U.S.C. 2155); and
                          (ii) the Committee on Ways and Means of the 
                      House of Representatives and the Committee on 
                      Finance of the Senate regarding--
                                    (I) the reasons supporting the 
                                determination to grant the waiver; and
                                    (II) the proposed scope and duration 
                                of the waiver.
                          (C) <<NOTE: Federal Register, 
                      publication.>> Notification of the secretary of 
                      the treasury and publication.--Upon granting a 
                      waiver under this paragraph, the Trade 
                      Representative shall promptly notify the Secretary 
                      of the Treasury of the period in which the waiver 
                      will be in effect, and shall publish notice of the 
                      waiver in the Federal Register.
            (6) Effective date.--This subsection takes effect on January 
        1, 2023.

SEC. 203. RULES OF <<NOTE: 19 USC 3805 note.>> ORIGIN.

    (a) Application and Interpretation.--In this section:
            (1) Tariff classification.--The basis for any tariff 
        classification is the HTS.
            (2) Reference to hts.--Whenever in this section there is a 
        reference to a heading or subheading, such reference shall be a 
        reference to a heading or subheading of the HTS.
            (3) Cost or value.--Any cost or value referred to in this 
        section shall be recorded and maintained in accordance with the 
        generally accepted accounting principles applicable in the 
        territory of the country in which the good is produced (whether 
        Australia or the United States).

    (b) Originating Goods.--For purposes of this Act and for purposes of 
implementing the preferential treatment provided for under the 
Agreement, a good is an originating good if--
            (1) the good is a good wholly obtained or produced entirely 
        in the territory of Australia, the United States, or both;
            (2) the good--
                    (A) is produced entirely in the territory of 
                Australia, the United States, or both, and--

[[Page 118 STAT. 929]]

                          (i) each of the nonoriginating materials used 
                      in the production of the good undergoes an 
                      applicable change in tariff classification 
                      specified in Annex 4-A or Annex 5-A of the 
                      Agreement;
                          (ii) the good otherwise satisfies any 
                      applicable regional value-content requirement 
                      referred to in Annex 5-A of the Agreement; or
                          (iii) the good meets any other requirements 
                      specified in Annex 4-A or Annex 5-A of the 
                      Agreement; and
                    (B) the good satisfies all other applicable 
                requirements of this section;
            (3) the good is produced entirely in the territory of 
        Australia, the United States, or both, exclusively from 
        materials described in paragraph (1) or (2); or
            (4) the good otherwise qualifies as an originating good 
        under this section.

    (c) De Minimis Amounts of Nonoriginating Materials.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), a good that does not undergo a change in tariff 
        classification pursuant to Annex 5-A of the Agreement is an 
        originating good if--
                    (A) the value of all nonoriginating materials that--
                          (i) are used in the production of the good, 
                      and
                          (ii) do not undergo the required change in 
                      tariff classification,
                does not exceed 10 percent of the adjusted value of the 
                good;
                    (B) the good meets all other applicable requirements 
                of this section; and
                    (C) the value of such nonoriginating materials is 
                included in the value of nonoriginating materials for 
                any applicable regional value-content requirement for 
                the good.
            (2) Exceptions.--Paragraph (1) does not apply to the 
        following:
                    (A) A nonoriginating material provided for in 
                chapter 4 of the HTS or in subheading 1901.90 that is 
                used in the production of a
good provided for in chapter 4 of the HTS.
                    (B) A nonoriginating material provided for in 
                chapter 4 of the HTS or in subheading 1901.90 that is 
                used in the production of a good provided for in 
                subheading 1901.10, 1901.20, or 1901.90, heading 2105, 
                or subheading 2106.90, 2202.90, or 2309.90.
                    (C) A nonoriginating material provided for in 
                heading 0805 or any of subheadings 2009.11 through 
                2009.39 that is used in the production of a good 
                provided for in any of subheadings 2009.11 through 
                2009.39, or in subheading 2106.90 or 2202.90.
                    (D) A nonoriginating material provided for in 
                chapter 15 of the HTS that is used in the production of 
                a good provided for in any of headings 1501.00.00 
                through 1508, or in heading 1512, 1514, or 1515.
                    (E) A nonoriginating material provided for in 
                heading 1701 that is used in the production of a good 
                provided for in any of headings 1701 through 1703.

[[Page 118 STAT. 930]]

                    (F) A nonoriginating material provided for in 
                chapter 17 of the HTS or heading 1805.00.00 that is used 
                in the production of a good provided for in subheading 
                1806.10.
                    (G) A nonoriginating material provided for in any of 
                headings 2203 through 2208 that is used in the 
                production of a good provided for in heading 2207 or 
                2208.
                    (H) A nonoriginating material used in the production 
                of a good provided for in any of chapters 1 through 21 
                of the HTS unless the nonoriginating material is 
                provided for in a different subheading than the good for 
                which origin is being determined under this section.
            (3) Textile and apparel goods.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a textile or apparel good that is not an 
                originating good because certain fibers or yarns used in 
                the production of the component of the good that 
                determines the tariff classification of the good do not 
                undergo an applicable change in tariff classification 
                set out in Annex 4-A of the Agreement shall be 
                considered to be an originating good if the total weight 
                of all such fibers or yarns in that component is not 
                more than 7 percent of the total weight of that 
                component.
                    (B) Certain textile or apparel goods.--A textile or 
                apparel good containing elastomeric yarns in the 
                component of the good that determines the tariff 
                classification of the good shall be considered to be an 
                originating good only if such yarns are wholly formed in 
                the territory of Australia or the United States.
                    (C) Yarn, fabric, or fiber.--For purposes of this 
                paragraph, in the case of a textile or apparel good that 
                is a yarn, fabric, or group of fibers, the term 
                ``component of the good that determines the tariff 
                classification of the good'' means all of the fibers in 
                the yarn, fabric, or group of fibers.

    (d) Accumulation.--
            (1) Originating materials used in production of goods of 
        other country.--Originating materials from the territory of 
        Australia or the United States that are used in the production 
        of a good in the territory of the other country shall be 
        considered to originate in the territory of the other country.
            (2) Multiple procedures.--A good that is produced in the 
        territory of Australia, the United States, or both, by 1 or more 
        producers, is an originating good if the good satisfies the 
        requirements of subsection (b) and all other applicable 
        requirements of this section.

    (e) Regional Value-Content.--
            (1) In general.--For purposes of subsection (b)(2), the 
        regional value-content of a good referred to in Annex 5-A of the 
        Agreement, except for goods to which paragraph (4) applies, 
        shall be calculated by the importer, exporter, or producer of 
        the good, on the basis of the build-down method described in 
        paragraph (2) or the build-up method described in paragraph (3).
            (2) Build-down method.--
                    (A) In general.--The regional value-content of a 
                good may be calculated on the basis of the following 
                build-down method:

[[Page 118 STAT. 931]]

                                  av-vnm

                     rvc = -------- <dbl-dagger> 100

                                    av

                    (B) Definitions.--In subparagraph (A):
                          (i) RVC.--The term ``RVC'' means the regional 
                      value-content of the good, expressed as a 
                      percentage.
                          (ii) AV.--The term ``AV'' means the adjusted 
                      value of the good.
                          (iii) VNM.--The term ``VNM'' means the value 
                      of nonoriginating materials that are acquired and 
                      used by the producer in the production of the 
                      good, but does not include the value of a material 
                      that is self-produced.
            (3) Build-up method.--
                    (A) In general.--The regional value-content of a 
                good may be calculated on the basis of the following 
                build-up method:

                                   vom

                     rvc = -------- <dbl-dagger> 100

                                    av

                    (B) Definitions.--In subparagraph (A):
                          (i) RVC.--The term ``RVC'' means the regional 
                      value-content of the good, expressed as a 
                      percentage.
                          (ii) AV.--The term ``AV'' means the adjusted 
                      value of the good.
                          (iii) VOM.--The term ``VOM'' means the value 
                      of originating materials that are acquired or 
                      self-produced, and used by the producer in the 
                      production of the good.
            (4) Special rule for certain automotive goods.--
                    (A) In general.--For purposes of subsection (b)(2), 
                the regional value-content of an automotive good 
                referred to in Annex 5-A of the Agreement shall be 
                calculated by the importer, exporter, or producer of the 
                good, on the basis of the following net cost method:

                                  nc-vnm

                     rvc = -------- <dbl-dagger> 100

                                    nc

                    (B) Definitions.--In subparagraph (A):
                          (i) Automotive good.--The term ``automotive 
                      good'' means a good provided for in any of 
                      subheadings 8407.31 through 8407.34, subheading 
                      8408.20, heading 8409, or in any of headings 8701 
                      through 8708.
                          (ii) RVC.--The term ``RVC'' means the regional 
                      value-content of the automotive good, expressed as 
                      a percentage.
                          (iii) NC.--The term ``NC'' means the net cost 
                      of the automotive good.
                          (iv) VNM.--The term ``VNM'' means the value of 
                      nonoriginating materials that are acquired and 
                      used by the producer in the production of the 
                      automotive good, but does not include the value of 
                      a material that is self-produced.
                    (C) Motor vehicles.--

[[Page 118 STAT. 932]]

                          (i) Basis of calculation.--For purposes of 
                      determining the regional value-content under 
                      subparagraph (A) for an automotive good that is a 
                      motor vehicle provided for in any of headings 8701 
                      through 8705, an importer, exporter, or producer 
                      may average the amounts calculated under the 
                      formula contained in subparagraph (A), over the 
                      producer's fiscal year--
                                    (I) with respect to all motor 
                                vehicles in any one of the categories 
                                described in clause (ii); or
                                    (II) with respect to all motor 
                                vehicles in any such category that are 
                                exported to the territory of the United 
                                States or Australia.
                          (ii) Categories.--A category is described in 
                      this clause if it--
                                    (I) is the same model line of motor 
                                vehicles, is in the same class of 
                                vehicles, and is produced in the same 
                                plant in the territory of Australia or 
                                the United States, as the good described 
                                in clause (i) for which regional value-
                                content is being calculated;
                                    (II) is the same class of motor 
                                vehicles, and is produced in the same 
                                plant in the territory of Australia or 
                                the United States, as the good described 
                                in clause (i) for which regional value-
                                content is being calculated; or
                                    (III) is the same model line of 
                                motor vehicles produced in either the 
                                territory of Australia or the United 
                                States, as the good described in clause 
                                (i) for which regional value-content is 
                                being calculated.
                    (D) Other automotive goods.--For purposes of 
                determining the regional value-content under 
                subparagraph (A) for automotive goods provided for in 
                any of subheadings 8407.31 through 8407.34, in 
                subheading 8408.20, or in heading 8409, 8706, 8707, or
8708, that are produced in the same plant, an importer, exporter, or 
producer may--
                          (i) average the amounts calculated under the 
                      formula contained in subparagraph (A) over--
                                    (I) the fiscal year of the motor 
                                vehicle producer to whom the automotive 
                                goods are sold,
                                    (II) any quarter or month, or
                                    (III) its own fiscal year,
                      if the goods were produced during the fiscal year, 
                      quarter, or month that is the basis for the 
                      calculation;
                          (ii) determine the average referred to in 
                      clause (i) separately for such goods sold to one 
                      or more motor vehicle producers; or
                          (iii) make a separate determination under 
                      clause (i) or (ii) for automotive goods that are 
                      exported to the territory of the United States or 
                      Australia.
                    (E) Calculating net cost.--Consistent with the 
                provisions regarding allocation of costs set out in 
                generally accepted accounting principles, the net cost 
                of the automotive good under subparagraph (B) shall be 
                calculated by--
                          (i) calculating the total cost incurred with 
                      respect to all goods produced by the producer of 
                      the automotive

[[Page 118 STAT. 933]]

                      good, subtracting any sales promotion, marketing 
                      and after-sales service costs, royalties, shipping 
                      and packing costs, and nonallowable interest costs 
                      that are included in the total cost of all such 
                      goods, and then reasonably allocating the 
                      resulting net cost of those goods to the 
                      automotive good;
                          (ii) calculating the total cost incurred with 
                      respect to all goods produced by that producer, 
                      reasonably allocating the total cost to the 
                      automotive good, and then subtracting any sales 
                      promotion, marketing and after-sales service 
                      costs, royalties, shipping and packing costs, and 
                      nonallowable interest costs that are included in 
                      the portion of the total cost allocated to the 
                      automotive good; or
                          (iii) reasonably allocating each cost that 
                      forms part of the total cost incurred with respect 
                      to the automotive good so that the aggregate of 
                      these costs does not include any sales promotion, 
                      marketing and after-sales service costs, 
                      royalties, shipping and packing costs, or 
                      nonallowable interest costs.

    (f) Value of Materials.--
            (1) In general.--For the purpose of calculating the regional 
        value-content of a good under subsection (e), and for purposes 
        of applying the de minimis rules under subsection (c), the value 
        of a material is--
                    (A) in the case of a material that is imported by 
                the producer of the good, the adjusted value of the 
                material;
                    (B) in the case of a material acquired in the 
                territory in which the good is produced, the value, 
                determined in accordance with Articles 1 through 8, 
                article 15, and the corresponding interpretive notes of 
                the Agreement on Implementation of Article VII of the 
                General Agreement on Tariffs and Trade 1994 referred to 
                in section 101(d)(8) of the Uruguay Round Agreements 
                Act, as set forth in regulations promulgated by the 
                Secretary of the Treasury providing for the application 
                of such Articles in the absence of an importation; or
                    (C) in the case of a material that is self-produced, 
                the sum of--
                          (i) all expenses incurred in the production of 
                      the material, including general expenses; and
                          (ii) an amount for profit equivalent to the 
                      profit added in the normal course of trade.
            (2) Further adjustments to the value of materials.--
                    (A) Originating material.--The following expenses, 
                if not included in the value of an originating material 
                calculated under paragraph (1), may be added to the 
                value of the originating material:
                          (i) The costs of freight, insurance, packing, 
                      and all other costs incurred in transporting the 
                      material within or between the territory of 
                      Australia, the United States, or both, to the 
                      location of the producer.
                          (ii) Duties, taxes, and customs brokerage fees 
                      on the material paid in the territory of 
                      Australia, the United States, or both, other than 
                      duties or taxes that are waived, refunded, 
                      refundable, or otherwise

[[Page 118 STAT. 934]]

                      recoverable, including credit against duty or tax 
                      paid or payable.
                          (iii) The cost of waste and spoilage resulting 
                      from the use of the material in the production of 
                      the good, less the value of renewable scrap or 
                      byproducts.
                    (B) Nonoriginating material.--The following 
                expenses, if included in the value of a nonoriginating 
                material calculated under paragraph (1), may be deducted 
                from the value of the nonoriginating material:
                          (i) The costs of freight, insurance, packing, 
                      and all other costs incurred in transporting the 
                      material within or between the territory of 
                      Australia, the United States, or both, to the 
                      location of the producer.
                          (ii) Duties, taxes, and customs brokerage fees 
                      on the material paid in the territory of 
                      Australia, the United States, or both, other than 
                      duties or taxes that are waived, refunded, 
                      refundable, or otherwise recoverable, including 
                      credit against duty or tax paid or payable.
                          (iii) The cost of waste and spoilage resulting 
                      from the use of the material in the production of 
                      the good, less the value of renewable scrap or 
                      byproducts.
                          (iv) The cost of processing incurred in the 
                      territory of Australia, the United States, or 
                      both, in the production of the nonoriginating 
                      material.
                          (v) The cost of originating materials used in 
                      the production of the nonoriginating material in 
                      the territory of Australia, the United States, or 
                      both.

    (g) Accessories, Spare Parts, or Tools.--
            (1) In general.--Subject to paragraph (2), accessories, 
        spare parts, or tools delivered with a good that form part of 
        the good's standard accessories, spare parts, or tools shall--
                    (A) be treated as originating goods if the good is 
                an originating good; and
                    (B) be disregarded in determining whether all the 
                nonoriginating materials used in the production of the 
                good undergo the applicable change in tariff 
                classification set out in Annex 5-A of the Agreement.
            (2) Conditions.--Paragraph (1) shall apply only if--
                    (A) the accessories, spare parts, or tools are not 
                invoiced separately from the good;
                    (B) the quantities and value of the accessories, 
                spare parts, or tools are customary for the good; and
                    (C) if the good is subject to a regional value-
                content requirement, the value of the accessories, spare 
                parts, or tools is taken into account as originating or 
                nonoriginating materials, as the case may be, in 
                calculating the regional value-content of the good.

    (h) Fungible Goods and Materials.--
            (1) In general.--
                    (A) Claim for preferential treatment.--A person 
                claiming that a fungible good or fungible material is an 
                originating good may base the claim either on the 
                physical segregation of the fungible good or fungible 
                material or by using an inventory management method with 
                respect to the fungible good or fungible material.

[[Page 118 STAT. 935]]

                    (B) Inventory management method.--In this 
                subsection, the term ``inventory management method'' 
                means--
                          (i) averaging;
                          (ii) ``last-in, first-out'';
                          (iii) ``first-in, first-out''; or
                          (iv) any other method--
                                    (I) recognized in the generally 
                                accepted accounting principles of the 
                                country in which the production is 
                                performed (whether Australia or the 
                                United States); or
                                    (II) otherwise accepted by that 
                                country.
            (2) Election of inventory method.--A person selecting an 
        inventory management method under paragraph (1) for a particular 
        fungible good or fungible material shall continue to use that 
        method for that fungible good or fungible material throughout 
        the fiscal year of that person.

    (i) Packaging Materials and Containers for Retail Sale.--Packaging 
materials and containers in which a good is packaged for retail sale, if 
classified with the good, shall be disregarded in determining whether 
all the nonoriginating materials used in the production of the good 
undergo the applicable change in tariff classification set out in Annex 
4-A or Annex 5-A of the Agreement, and, if the good is subject to a 
regional value-content requirement, the value of such packaging 
materials and containers shall be taken into account as originating or 
nonoriginating materials, as the case may be, in calculating the 
regional value-content of the good.
    (j) Packing Materials and Containers for Shipment.--Packing 
materials and containers for shipment shall be disregarded in 
determining whether--
            (1) the nonoriginating materials used in the production of a 
        good undergo the applicable change in tariff classification set 
        out in Annex 4-A or Annex 5-A of the Agreement; and
            (2) the good satisfies a regional value-content requirement.

    (k) Indirect Materials.--An indirect material shall be treated as an 
originating material without regard to where it is produced, and its 
value shall be the cost registered in the accounting records of the 
producer of the good.
    (l) Third Country Operations.--A good that has undergone production 
necessary to qualify as an originating good under subsection (b) shall 
not be considered to be an originating good if, subsequent to that 
production, the good undergoes further production or any other operation 
outside the territory of Australia or the United States, other than 
unloading, reloading, or any other operation necessary to preserve the 
good in good condition or to transport the good to the territory of 
Australia or the United States.
    (m) Textile and Apparel Goods Classifiable as Goods Put Up in 
Sets.--Notwithstanding the rules set forth in Annex 4-A of the 
Agreement, textile or apparel goods classifiable as goods put up in sets 
for retail sale as provided for in General Rule of Interpretation 3 of 
the HTS shall not be considered to be originating goods unless each of 
the goods in the set is an originating good or the total value of the 
nonoriginating goods in the set does not exceed 10 percent of the value 
of the set determined for purposes of assessing customs duties.
    (n) Definitions.--In this section:

[[Page 118 STAT. 936]]

            (1) Adjusted value.--The term ``adjusted value'' means the 
        value determined under Articles 1 through 8, Article 15, and the 
        corresponding interpretive notes of the Agreement on 
        Implementation of Article VII of the General Agreement on 
        Tariffs and Trade 1994 referred to in section 101(d)(8) of the 
        Uruguay Round Agreements Act, adjusted to exclude any costs, 
        charges, or expenses incurred for
transportation, insurance, and related services incident to the 
international shipment of the good from the country of exportation to 
the place of importation.
            (2) Class of motor vehicles.--The term ``class of motor 
        vehicles'' means any one of the following categories of motor 
        vehicles:
                    (A) Motor vehicles provided for in subheading 
                8701.20, 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, 
                or heading 8705 or 8706, or motor vehicles for the 
                transport of 16 or more persons provided for in 
                subheading 8702.10 or 8702.90.
                    (B) Motor vehicles provided for in subheading 
                8701.10 or any of subheadings 8701.30 through 8701.90.
                    (C) Motor vehicles for the transport of 15 or fewer 
                persons provided for in subheading 8702.10 or 8702.90, 
                or motor vehicles provided for in subheading 8704.21 or 
                8704.31.
                    (D) Motor vehicles provided for in any of 
                subheadings 8703.21 through 8703.90.
            (3) Fungible good or fungible material.--The term ``fungible 
        good'' or ``fungible material'' means a good or material, as the 
        case may be, that is interchangeable with another good or 
        material for commercial purposes and the properties of which are 
        essentially identical to such other good or material.
            (4) Generally accepted accounting principles.--The term 
        ``generally accepted accounting principles'' means the 
        recognized consensus or substantial authoritative support in the 
        territory of Australia or the United States, as the case may be, 
        with respect to the recording of revenues, expenses, costs, 
        assets, and liabilities, the disclosure of information, and the 
        preparation of financial statements. These standards may 
        encompass broad guidelines of general application as well as 
        detailed standards, practices, and procedures.
            (5) Good wholly obtained or produced entirely in the 
        territory of Australia, the United States, or both.--The term 
        ``good wholly obtained or produced entirely in the territory of 
        Australia, the United States, or both'' means--
                    (A) a mineral good extracted in the territory of 
                Australia, the United States, or both;
                    (B) a vegetable good, as such goods are provided for 
                in the HTS, harvested in the territory of Australia, the 
                United States, or both;
                    (C) a live animal born and raised in the territory 
                of Australia, the United States, or both;
                    (D) a good obtained from hunting, trapping, fishing, 
                or aquaculture conducted in the territory of Australia, 
                the United States, or both;

[[Page 118 STAT. 937]]

                    (E) a good (fish, shellfish, and other marine life) 
                taken from the sea by vessels registered or recorded 
                with Australia or the United States and flying the flag 
                of that country;
                    (F) a good produced exclusively from products 
                referred to in subparagraph (E) on board factory ships 
                registered or recorded with Australia or the United 
                States and flying the flag of that country;
                    (G) a good taken by Australia or the United States 
                or a person of Australia or the United States from the 
                seabed or beneath the seabed outside territorial waters, 
                if Australia or the United States has rights to exploit 
                such seabed;
                    (H) a good taken from outer space, if such good is 
                obtained by Australia or the United States or a person 
                of Australia or the United States and not processed in 
                the territory of a country other than Australia or the 
                United States;
                    (I) waste and scrap derived from--
                          (i) production in the territory of Australia, 
                      the United States, or both; or
                          (ii) used goods collected in the territory of 
                      Australia, the United States, or both, if such 
                      goods are fit only for the recovery of raw 
                      materials;
                    (J) a recovered good derived in the territory of 
                Australia or the United States from goods that have 
                passed their life expectancy, or are no longer usable 
                due to defects, and utilized in the territory of that 
                country in the production of remanufactured goods; or
                    (K) a good produced in the territory of Australia, 
                the United States, or both, exclusively--
                          (i) from goods referred to in any of 
                      subparagraphs (A) through (I), or
                          (ii) from the derivatives of goods referred to 
                      in clause (i),
                at any stage of production.
            (6) Indirect material.--The term ``indirect material'' means 
        a good used in the production, testing, or inspection of a good 
        but not physically incorporated into the good, or a good used in 
        the maintenance of buildings or the operation of equipment 
        associated with the production of a good, including--
                    (A) fuel and energy;
                    (B) tools, dies, and molds;
                    (C) spare parts and materials used in the 
                maintenance of equipment or buildings;
                    (D) lubricants, greases, compounding materials, and 
                other materials used in production or used to operate 
                equipment or buildings;
                    (E) gloves, glasses, footwear, clothing, safety 
                equipment, and supplies;
                    (F) equipment, devices, and supplies used for 
                testing or inspecting the good;
                    (G) catalysts and solvents; and
                    (H) any other goods that are not incorporated into 
                the good but the use of which in the production of the

[[Page 118 STAT. 938]]

                good can reasonably be demonstrated to be a part of that 
                production.
            (7) Material.--The term ``material'' means a good that is 
        used in the production of another good.
            (8) Material that is self-produced.--The term ``material 
        that is self-produced'' means an originating material that is 
        produced by a producer of a good and used in the production of 
        that good.
            (9) Model line.--The term ``model line'' means a group of 
        motor vehicles having the same platform or model name.
            (10) Nonallowable interest costs.--The term ``nonallowable 
        interest costs'' means interest costs incurred by a producer 
        that exceed 700 basis points above the applicable official 
        interest rate for comparable maturities of the country (whether 
        Australia or the United States).
            (11) Nonoriginating material.--The term ``nonoriginating 
        material'' means a material that does not qualify as originating 
        under this section.
            (12) Preferential treatment.--The term ``preferential 
        treatment'' means the customs duty rate, and the treatment under 
        article 2.12 of the Agreement, that are applicable to an 
        originating good pursuant to the Agreement.
            (13) Producer.--The term ``producer'' means a person who 
        engages in the production of a good in the territory of 
        Australia or the United States.
            (14) Production.--The term ``production'' means growing, 
        raising, mining, harvesting, fishing, trapping, hunting, 
        manufacturing, processing, assembling, or disassembling a good.
            (15) Reasonably allocate.--The term ``reasonably allocate'' 
        means to apportion in a manner that would be appropriate under 
        generally accepted accounting principles.
            (16) Recovered goods.--The term ``recovered goods'' means 
        materials in the form of individual parts that result from--
                    (A) the complete disassembly of goods which have 
                passed their life expectancy, or are no longer usable 
                due to defects, into individual parts; and
                    (B) the cleaning, inspecting, or testing, or other 
                processing that is necessary for improvement to sound 
                working condition of such individual parts.
            (17) Remanufactured good.--The term ``remanufactured good'' 
        means an industrial good that is assembled in the territory of 
        Australia or the United States, that is classified under chapter 
        84, 85, or 87 of the HTS or heading 9026, 9031, or 9032, other 
        than a good classified under heading 8418 or 8516 or any of 
        headings 8701 through 8706, and that--
                    (A) is entirely or partially comprised of recovered 
                goods;
                    (B) has a similar life expectancy to, and meets the 
                same performance standards as, a like good that is new; 
                and
                    (C) enjoys a factory warranty similar to a like good 
                that is new.
            (18) Total cost.--The term ``total cost'' means all product 
        costs, period costs, and other costs for a good incurred in the 
        territory of Australia, the United States, or both.
            (19) Used.--The term ``used'' means used or consumed in the 
        production of goods.

[[Page 118 STAT. 939]]

    (o) Presidential Proclamation Authority.--
            (1) In general.--The President is authorized to proclaim, as 
        part of the HTS--
                    (A) the provisions set out in Annex 4-A and Annex 5-
                A of the Agreement; and
                    (B) any additional subordinate category necessary to 
                carry out this title consistent with the Agreement.
            (2) Modifications.--
                    (A) In general.--Subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim modifications to the provisions proclaimed 
                under the authority of paragraph (1)(A), other than 
                provisions of chapters 50 through 63 of the HTS, as 
                included in Annex 4-A of the Agreement.
                    (B) Additional proclamations.--Notwithstanding 
                subparagraph (A), and subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim--
                          (i) modifications to the provisions proclaimed 
                      under the authority of paragraph (1)(A) as are 
                      necessary to implement an agreement with Australia 
                      pursuant to article 4.2.5 of the Agreement; and
                          (ii) before the end of the 1-year period 
                      beginning on the date of the enactment of this 
                      Act, modifications to correct any typographical, 
                      clerical, or other nonsubstantive technical error 
                      regarding the provisions of chapters 50 through 63 
                      of the HTS, as included in Annex 4-A of the 
                      Agreement.

SEC. 204. CUSTOMS USER <<NOTE: 19 USC 3805 note.>> FEES.

    Section 13031(b) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph (13) 
the following:
    ``(14) No fee may be charged under subsection (a) (9) or (10) with 
respect to goods that qualify as originating goods under section 203 of 
the United States-Australia 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.''.

SEC. 205. DISCLOSURE OF INCORRECT <<NOTE: 19 USC 3805 
            note.>> INFORMATION.

    Section 592(c) of the Tariff Act of 1930 (19 U.S.C. 1592(c)) is 
amended--
            (1) by redesignating paragraph (8) as paragraph (9); and
            (2) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) Prior disclosure regarding claims under the united 
        states-australia free trade agreement.--
                    ``(A) <<NOTE: Regulations.>> In general.--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 203 of 
                the United States-Australia Free Trade Agreement 
                Implementation Act if the importer, in accordance with 
                regulations issued by the Secretary of the Treasury, 
                voluntarily and promptly makes a corrected declaration 
                and pays any duties owing.
                    ``(B) Time periods for making corrections.--In the 
                regulations referred to in subparagraph (A), the 
                Secretary

[[Page 118 STAT. 940]]

                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.''.

SEC. 206. <<NOTE: 19 USC 3805 note.>> ENFORCEMENT RELATING TO TRADE IN 
            TEXTILE AND APPAREL GOODS.

    (a) Action During Verification.--
            (1) In general.--If the Secretary of the Treasury requests 
        the Government of Australia to conduct a verification pursuant 
        to article 4.3 of the Agreement for purposes of making a 
        determination under paragraph (2), the President may direct the 
        Secretary to take appropriate action described in subsection (b) 
        while the verification is being conducted.

    (2) Determination.--A determination under this paragraph is a 
determination--
                    (A) that an exporter or producer in Australia is 
                complying with applicable customs laws, regulations, 
                procedures, requirements, or practices affecting trade 
                in textile or apparel goods; or
                    (B) that a claim that a textile or apparel good 
                exported or produced by such exporter or producer--
                          (i) qualifies as an originating good under 
                      section 203 of this Act; or
                          (ii) is a good of Australia,
                is accurate.

    (b) Appropriate Action Described.--Appropriate action under 
subsection (a)(1) includes--
            (1) suspension of liquidation of the entry of any textile or 
        apparel good exported or produced by the person that is the 
        subject of a verification under subsection (a)(1) regarding 
        compliance described in subsection (a)(2)(A), in a case in which 
        the request for verification was based on a reasonable suspicion 
        of unlawful activity related to such goods; and
            (2) suspension of liquidation of the entry of a textile or 
        apparel good for which a claim has been made that is the subject 
        of a verification under subsection (a)(1) regarding a claim 
        described in subsection (a)(2)(B).

    (c) Action When Information is Insufficient.--If the Secretary of 
the Treasury determines that the information obtained within 12 months 
after making a request for a verification under subsection (a)(1) is 
insufficient to make a determination under subsection (a)(2), the 
President may direct the Secretary to take appropriate action described 
in subsection (d) until such time as the Secretary receives information 
sufficient to make a determination under subsection (a)(2) or until such 
earlier date as the President may direct.

    (d) Appropriate Action Described.--Appropriate action referred to in 
subsection (c) includes--
            (1) publication of the name and address of the person that 
        is the subject of the verification;
            (2) denial of preferential tariff treatment under the 
        Agreement to--
                    (A) any textile or apparel good exported or produced 
                by the person that is the subject of a verification 
                under

[[Page 118 STAT. 941]]

                subsection (a)(1) regarding compliance described in 
                subsection (a)(2)(A); or
                    (B) a textile or apparel good for which a claim has 
                been made that is the subject of a verification under 
                subsection (a)(1) regarding a claim described in 
                subsection (a)(2)(B); and
            (3) denial of entry into the United States of--
                    (A) any textile or apparel good exported or produced 
                by the person that is the subject of a verification 
                under subsection (a)(1) regarding compliance described 
                in subsection (a)(2)(A); or
                    (B) a textile or apparel good for which a claim has 
                been made that is the subject of a verification under 
                subsection (a)(1) regarding a claim described in 
                subsection (a)(2)(B).

SEC. 207. <<NOTE: 19 USC 3805 note.>> REGULATIONS.

    The Secretary of the Treasury shall prescribe such regulations as 
may be necessary to carry out--
            (1) subsections (a) through (n) of section 203 and section 
        204;
            (2) amendments to existing law made by the sections referred 
        to in paragraph (1); and
            (3) proclamations issued under section 203(o).

                     TITLE III--RELIEF FROM IMPORTS

SEC. 301. <<NOTE: 19 USC 3805 note.>> DEFINITIONS.

     As used in this title:
            (1) Australian article.--The term ``Australian article'' 
        means an article that qualifies as an originating good under 
        section 203(b) of this Act.
            (2) Australian textile or apparel article.--The term 
        ``Australian textile or apparel article'' means an article--
                    (A) that is listed in the Annex to the Agreement on 
                Textiles and Clothing referred to in section 101(d)(4) 
                of the Uruguay Round Agreements Act (19 U.S.C. 
                3511(d)(4)); and
                    (B) that is an Australian article.
            (3) Commission.--The term ``Commission'' means the United 
        States International Trade Commission.

      Subtitle A--Relief From Imports Benefiting From the Agreement

SEC. 311. COMMENCING OF ACTION FOR <<NOTE: 19 USC 3805 note.>> RELIEF.

    (a) Filing of Petition.--
            (1) In general.--A petition requesting action under this 
        subtitle for the purpose of adjusting to the obligations of the 
        United States under the Agreement may be filed with the 
        Commission by an entity, including a trade association, firm, 
        certified or recognized union, or group of workers, that is 
        representative of an industry. <<NOTE: Records.>> The Commission 
        shall
transmit a copy of any petition filed under this subsection to the 
United States Trade Representative.

[[Page 118 STAT. 942]]

            (2) Provisional relief.--An entity filing a petition under 
        this subsection may request that provisional relief be provided 
        as if the petition had been filed under section 202(a) of the 
        Trade Act of 1974 (19 U.S.C. 2252(a)).
            (3) Critical circumstances.--Any allegation that critical 
        circumstances exist shall be included in the petition.

    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the Commission, unless subsection (d) applies, 
shall promptly initiate an investigation to determine whether, as a 
result of the reduction or elimination of a duty provided for under the 
Agreement, an Australian article is being imported into the United 
States in such increased quantities, in absolute terms or relative to 
domestic production, and under such conditions that imports of the 
Australian article constitute a substantial cause of serious injury or 
threat thereof to the domestic industry producing an article that is 
like, or directly competitive with, the imported article.
    (c) Applicable Provisions.--The following provisions of section 202 
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any 
investigation initiated under subsection (b):
            (1) Paragraphs (1)(B) and (3) of subsection (b).
            (2) Subsection (c).
            (3) Subsection (d).
            (4) Subsection (i).

    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any Australian article if, 
after the date on which the Agreement enters into force, import relief 
has been provided with respect to that Australian article under this 
subtitle.

SEC. 312. COMMISSION ACTION ON <<NOTE: 19 USC 3805 note.>> PETITION.

    (a) <<NOTE: Deadline.>> Determination.--Not later than 120 days (180 
days if critical circumstances have been alleged) after the date on 
which an investigation is initiated under section 311(b) with respect to 
a petition, the Commission shall make the determination required under 
that section.

    (b) Applicable Provisions.--For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under this 
section as if such determinations and findings were made under section 
202 of the Trade Act of 1974 (19 U.S.C. 2252).
    (c) Additional Finding and Recommendation if Determination 
Affirmative.--If the determination made by the Commission under 
subsection (a) with respect to imports of an article is affirmative, or 
if the President may consider a determination of the Commission to be an 
affirmative determination as provided for under paragraph (1) of section 
330(d) of the Tariff Act of 1930) (19 U.S.C. 1330(d)), the Commission 
shall find, and recommend to the President in the report required under 
subsection (d), the amount of import relief that is necessary to remedy 
or prevent the injury found by the Commission in the determination and 
to facilitate the efforts of the domestic industry to make a positive 
adjustment to import competition. The import relief recommended by the 
Commission under this subsection shall be limited to that described in 
section 313(c). Only those members of the Commission who voted in the 
affirmative under subsection (a) are eligible to

[[Page 118 STAT. 943]]

vote on the proposed action to remedy or prevent the injury found by the 
Commission. Members of the Commission who did not vote in the 
affirmative may submit, in the report required under subsection (d), 
separate views regarding what action, if any, should be taken to remedy 
or prevent the injury.
    (d) Report to President.--Not later than the date that is 30 days 
after the date on which a determination is made under subsection (a) 
with respect to an investigation, the Commission shall submit to the 
President a report that includes--
            (1) the determination made under subsection (a) and an 
        explanation of the basis for the determination;
            (2) if the determination under subsection (a) is 
        affirmative, any findings and recommendations for import relief 
        made under subsection (c) and an explanation of the basis for 
        each recommendation; and
            (3) any dissenting or separate views by members of the 
        Commission regarding the determination and recommendation 
        referred to in paragraphs (1) and (2).

    (e) <<NOTE: Federal Register, publication.>> Public Notice.--Upon 
submitting a report to the President under subsection (d), the 
Commission shall promptly make public such report (with the exception of 
information which the Commission determines to be confidential) and 
shall cause a summary thereof to be published in the Federal Register.

SEC. 313. PROVISION OF <<NOTE: 19 USC 3805 
            note. Deadline. President.>> RELIEF.

    (a) In General.--Not later than the date that is 30 days after the 
date on which the President receives the report of the Commission in 
which the Commission's determination under section 312(a) is 
affirmative, or which contains a determination under section 312(a) that 
the President considers to be affirmative under paragraph (1) of section 
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the President, 
subject to subsection (b), shall provide relief from imports of the 
article that is the subject of such determination to the extent that the 
President determines necessary to remedy or prevent the injury found by 
the Commission and to facilitate the efforts of the domestic industry to 
make a positive adjustment to import competition.
    (b) Exception.--The President is not required to provide import 
relief under this section if the President determines that the provision 
of the import relief will not provide greater economic and social 
benefits than costs.
    (c) Nature of Relief.--
            (1) In general.--The import relief (including provisional 
        relief) that the President is authorized to provide under this 
        section with respect to imports of an article is as follows:
                    (A) The suspension of any further reduction provided 
                for under Annex 2-B of the Agreement in the duty imposed 
                on such article.
                    (B) An increase in the rate of duty imposed on such 
                article to a level that does not exceed the lesser of--
                          (i) the column 1 general rate of duty imposed 
                      under the HTS on like articles at the time the 
                      import relief is provided; or
                          (ii) the column 1 general rate of duty imposed 
                      under the HTS on like articles on the day before 
                      the date on which the Agreement enters into force.

[[Page 118 STAT. 944]]

                    (C) In the case of a duty applied on a seasonal 
                basis to such article, an increase in the rate of duty 
                imposed on the article to a level that does not exceed 
                the lesser of--
                          (i) the column 1 general rate of duty imposed 
                      under the HTS on like articles for the immediately 
                      preceding corresponding season; or
                          (ii) the column 1 general rate of duty imposed 
                      under the HTS on like articles on the day before 
                      the date on which the Agreement enters into force.
            (2) <<NOTE: President.>> Progressive liberalization.--If the 
        period for which import relief is provided under this section is 
        greater than 1 year, the President shall provide for the 
        progressive liberalization (described in article 9.2.7 of the 
        Agreement) of such relief at regular intervals during the period 
        in which the relief is in effect.

    (d) Period of Relief.--
            (1) In general.--Subject to paragraph (2), any import relief 
        that the President provides under this section may not be in 
        effect for more than 2 years.
            (2) Extension.--
                    (A) In general.--Subject to subparagraph (C), the 
                President, after receiving an affirmative determination 
                from the Commission under subparagraph (B), may extend 
                the effective period of any import relief provided under 
                this section if the President determines that--
                          (i) the import relief continues to be 
                      necessary to remedy or prevent serious injury and 
                      to facilitate adjustment by the domestic industry 
                      to import competition; and
                          (ii) there is evidence that the industry is 
                      making a positive adjustment to import 
                      competition.
                    (B) <<NOTE: Deadline.>> Action by commission.--(i) 
                Upon a petition on behalf of the industry concerned that 
                is filed with the Commission not earlier than the date 
                which is 9 months, and not later than the date which is 
                6 months, before the date any action taken under 
                subsection (a) is to terminate, the Commission shall 
                conduct an investigation to determine whether action 
                under this section continues to be necessary to remedy 
                or prevent serious injury and whether there is evidence 
                that the industry is making a positive adjustment to 
                import competition.
                    (ii) <<NOTE: Federal Register, publication.>> The 
                Commission shall publish notice of the commencement of 
                any proceeding under this subparagraph in the Federal 
                Register and shall, within a reasonable time thereafter, 
                hold a public hearing at which the Commission shall 
                afford interested parties and consumers an opportunity 
                to be present, to present evidence, and to respond to 
                the presentations of other parties and consumers, and 
                otherwise to be heard.
                    (iii) <<NOTE: Reports. Deadline.>> The Commission 
                shall transmit to the President a report on its 
                investigation and determination under this subparagraph 
                not later than 60 days before the action under 
                subsection (a) is to terminate, unless the President 
                specifies a different date.
                    (C) Period of import relief.--Any import relief 
                provided under this section, including any extensions 
                thereof,

[[Page 118 STAT. 945]]

                may not, in the aggregate, be in effect for more than 4 
                years.

    (e) Rate After Termination of Import Relief.--When import relief 
under this section is terminated with respect to an article--
            (1) the rate of duty on that article after such termination 
        and on or before December 31 of the year in which such 
        termination occurs shall be the rate that, according to the 
        Schedule of the United States to Annex 2-B of the Agreement for 
        the staged elimination of the tariff, would have been in effect 
        1 year after the provision of relief under subsection (a); and
            (2) the rate of duty for that article after December 31 of 
        the year in which termination occurs shall be, at the discretion 
        of the President, either--
                    (A) the applicable NTR (MFN) rate of duty for that 
                article set out in the Schedule of the United States to 
                Annex 2-B of the Agreement; or
                    (B) the rate of duty resulting from the elimination 
                of the tariff in equal annual stages ending on the date 
                set out in the Schedule of the United States to Annex 2-
                B of the Agreement for the elimination of the tariff.

    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on any article that--
            (1) is subject to--
                    (A) import relief under subtitle B; or
                    (B) an assessment of additional duty under 
                subsection (b), (c), or (d) of section 202; or
            (2) has been subject to import relief under this subtitle 
        after the date on which the Agreement enters into force.

SEC. 314. TERMINATION OF RELIEF <<NOTE: 19 USC 3805 note.>> AUTHORITY.

    (a) General Rule.--Subject to subsection (b), no import relief may 
be provided under this subtitle after the date that is 10 years after 
the date on which the Agreement enters into force.
    (b) Exception.--If an article for which relief is provided under 
this subtitle is an article for which the period for tariff elimination, 
set out in the Schedule of the United States to Annex 2-B of the 
Agreement, is greater than
10 years, no relief under this subtitle may be provided for that article 
after the date on which such period ends.

    (c) Presidential Determination.--Import relief may be provided under 
this subtitle in the case of an Australian article after the date on 
which such relief would, but for this subsection, terminate under 
subsection (a) or (b), if the President determines that Australia has 
consented to such relief.

SEC. 315. COMPENSATION <<NOTE: 19 USC 3805 note.>> AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 313 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 316. CONFIDENTIAL BUSINESS <<NOTE: 19 USC 3805 note.>> INFORMATION.

    Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is 
amended in the first sentence--
            (1) by striking ``and''; and
            (2) by inserting before the period at the end ``, and title 
        III of the United States-Australia Free Trade Agreement 
        Implementation Act''.

[[Page 118 STAT. 946]]

           Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. COMMENCEMENT OF ACTION FOR <<NOTE: President. 19 USC 3805 
            note.>> RELIEF.

    (a) In General.--A request under this subtitle for the purpose of 
adjusting to the obligations of the United States under the Agreement 
may be filed with the President by an interested party. Upon the filing 
of a request, the President shall review the request to determine, from 
information presented in the request, whether to commence consideration 
of the request.
    (b) Allegation of Critical Circumstances.--An interested party 
filing a request under this section may--
            (1) allege that critical circumstances exist such that delay 
        in the provision of relief would cause damage that would be 
        difficult to repair; and
            (2) based on such allegation, request that relief be 
        provided on a provisional basis.

    (c) <<NOTE: Federal Register, publication.>> Publication of 
Request.--If the President determines that the request under subsection 
(a) provides the information necessary for the request to be considered, 
the President shall cause to be published in the Federal Register a 
notice of commencement of consideration of the request, and notice 
seeking public comments regarding the request. The notice shall include 
a summary of the request and the dates by which comments and rebuttals 
must be received.

SEC. 322. DETERMINATION AND PROVISION OF <<NOTE: President. 19 USC 3805 
            note.>> RELIEF.

    (a) Determination.--
            (1) In general.--If a positive determination is made under 
        section 321(c), the President shall determine whether, as a 
        result of the reduction or elimination of a duty under the 
        Agreement, an Australian textile or apparel article is being 
        imported into the United States in such increased quantities, in 
        absolute terms or relative to the domestic market for that 
        article, and under such conditions as to cause serious damage, 
        or actual threat thereof, to a domestic industry producing an 
        article that is like, or directly competitive with, the imported 
        article.
            (2) Serious damage.--In making a determination under 
        paragraph (1), the President--
                    (A) shall examine the effect of increased imports on 
                the domestic industry, as reflected in changes in such 
                relevant economic factors as output, productivity, 
                utilization of capacity, inventories, market share, 
                exports, wages, employment, domestic prices, profits, 
                and investment, none of which is necessarily decisive; 
                and
                    (B) shall not consider changes in technology or 
                consumer preference as factors supporting a 
                determination of serious damage or actual threat 
                thereof.

    (b) Provision of Relief.--
            (1) In general.--If a determination under subsection (a) is 
        affirmative, the President may provide relief from imports of 
        the article that is the subject of such determination, as 
        described in paragraph (2), to the extent that the President 
        determines necessary to remedy or prevent the serious damage

[[Page 118 STAT. 947]]

        and to facilitate adjustment by the domestic industry to import 
        competition.
            (2) Nature of relief.--The relief that the President is 
        authorized to provide under this subsection with respect to 
        imports of an article is an increase in the rate of duty imposed 
        on the article to a level that does not exceed the lesser of--
                    (A) the column 1 general rate of duty imposed under 
                the HTS on like articles at the time the import relief 
                is provided; or
                    (B) the column 1 general rate of duty imposed under 
                the HTS on like articles on the day before the date on 
                which the Agreement enters into force.

    (c) Critical Circumstances.--
            (1) <<NOTE: Deadline.>> Presidential determination.--When a 
        request filed under section 321(a) contains an allegation of 
        critical circumstances and a request for provisional relief 
        under section 321(b), the President shall, not later than 60 
        days after the request is filed, determine, on the basis of 
        available information, whether--
                    (A) there is clear evidence that--
                          (i) imports from Australia have increased as 
                      the result of the reduction or elimination of a 
                      customs duty under the Agreement; and
                          (ii) such imports are causing serious damage, 
                      or actual threat thereof, to the domestic industry 
                      producing an article like or directly competitive 
                      with the imported article; and
                    (B) delay in taking action under this subtitle would 
                cause damage to that industry that would be difficult to 
                repair.
            (2) Extent of provisional relief.--If the determinations 
        under subparagraphs (A) and (B) of paragraph (1) are 
        affirmative, the President shall determine the extent of 
        provisional relief that is necessary to remedy or prevent the 
        serious damage. The nature of the provisional relief available 
        shall be the relief described in subsection 
        (b)(2). <<NOTE: Deadline.>> Within 30 days after making 
        affirmative determinations under subparagraphs (A) and (B) of 
        paragraph (1), the President, if the President considers 
        provisional relief to
be warranted, shall provide, for a period not to exceed 200 days, such 
provisional relief that the President considers necessary to remedy or 
prevent the serious damage.
            (3) Suspension of liquidation.--If provisional relief is 
        provided under paragraph (2), the President shall order the 
        suspension of liquidation of all imported articles subject to 
        the affirmative determinations under subparagraphs (A) and (B) 
        of paragraph (1) that are entered, or withdrawn from warehouse 
        for consumption, on or after the date of the determinations.
            (4) Termination of provisional relief.--
                    (A) In general.--Any provisional relief implemented 
                under this subsection with respect to an imported 
                article shall terminate on the day on which--
                          (i) the President makes a negative 
                      determination under subsection (a) regarding 
                      serious damage or actual threat thereof by imports 
                      of such article;

[[Page 118 STAT. 948]]

                          (ii) action described in subsection (b) takes 
                      effect with respect to such article;
                          (iii) a decision by the President not to take 
                      any action under subsection (b) with respect to 
                      such article becomes final; or
                          (iv) the President determines that, because of 
                      changed circumstances, such relief is no longer 
                      warranted.
                    (B) Suspension of liquidation.--Any suspension of 
                liquidation ordered under paragraph (3) with respect to 
                an imported article shall terminate on the day on which 
                provisional relief is terminated under subparagraph (A) 
                with respect to the article.
                    (C) Rates of duty.--If an increase in, or the 
                imposition of, a duty that is provided under subsection 
                (b) on an imported article is different from a duty 
                increase or imposition that was provided for such an 
                article under this subsection, then the entry of any 
                such article for which liquidation was suspended under 
                paragraph (3) shall be liquidated at whichever of such 
                rates of duty is lower.
                    (D) Rate of duty if provisional relief.--If 
                provisional relief is provided under this subsection 
                with respect to an imported article and neither a duty 
                increase nor a duty imposition is provided under 
                subsection (b) for such article, the entry of any such 
                article for which liquidation was suspended under 
                paragraph (3) shall be liquidated at the rate of duty 
                that applied before the provisional relief was provided.

SEC. 323. PERIOD OF <<NOTE: 19 USC 3805 note.>> RELIEF.

    (a) In General.--Subject to subsection (b), the import relief that 
the President provides under subsections (b) and (c) of section 322 may 
not, in the aggregate, be in effect for more than 2 years.

    (b) Extension.--
            (1) In general.--Subject to paragraph (2), the President may 
        extend the effective period of any import relief provided under 
        this subtitle for a period of not more than 2 years, if the 
        President determines that--
                    (A) the import relief continues to be necessary to 
                remedy or prevent serious damage and to facilitate 
                adjustment by the domestic industry to import 
                competition; and
                    (B) there is evidence that the industry is making a 
                positive adjustment to import competition.
            (2) Limitation.--Any relief provided under this subtitle, 
        including any extensions thereof, may not, in the aggregate, be 
        in effect for more than 4 years.

SEC. 324. ARTICLES EXEMPT FROM <<NOTE: 19 USC 3805 note.>> RELIEF.

     The President may not provide import relief under this subtitle 
with respect to any article if--
            (1) import relief previously has been provided under this 
        subtitle with respect to that article; or
            (2) the article is subject to import relief under--
                    (A) subtitle A; or
                    (B) chapter 1 of title II of the Trade Act of 1974 
                (19 U.S.C. 2251 et seq.).

[[Page 118 STAT. 949]]

SEC. 325. RATE AFTER TERMINATION OF IMPORT <<NOTE: 19 USC 3805 
            note.>> RELIEF.

     When import relief under this subtitle is terminated with respect 
to an article, the rate of duty on that article shall be the rate that 
would have been in effect, but for the provision of such relief, on the 
date the relief terminates.

SEC. 326. TERMINATION OF RELIEF <<NOTE: 19 USC 3805 note.>> AUTHORITY.

     No import relief may be provided under this subtitle with respect 
to any article after the date that is 10 years after the date on which 
duties on the article are eliminated pursuant to the Agreement.

SEC. 327. COMPENSATION <<NOTE: 19 USC 3805 note.>> AUTHORITY.

     For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under this subtitle 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 328. BUSINESS CONFIDENTIAL <<NOTE: 19 USC 3805 note.>> INFORMATION.

    The President may not release information which is submitted in a 
proceeding under this subtitle and which the President considers to be 
confidential business information unless the party submitting the 
confidential business information had notice, at the time of submission, 
that such information would be released, or such party subsequently 
consents to the release of the information. To the extent a party 
submits confidential business information to the President in a 
proceeding under this subtitle, the party also shall submit a 
nonconfidential version of the information, in which the confidential 
business information is summarized or, if necessary, deleted.

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

SEC. 331. FINDINGS AND ACTION ON GOODS FROM <<NOTE: 19 USC 3805 
            note.>> AUSTRALIA.

    (a) Effect of Imports.--If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), 
the Commission makes an affirmative determination (or a determination 
which the President may treat as an affirmative determination under such 
chapter by reason of section 330(d) of the Tariff Act of 1930), the 
Commission shall also find (and report to the President at the time such 
injury determination is submitted to the President) whether imports of 
the article from Australia are a substantial cause of serious injury or 
threat thereof.
    (b) Presidential Determination Regarding Australian Imports.--In 
determining the nature and extent of action to be taken under chapter 1 
of title II of the Trade Act of 1974, the President shall determine 
whether imports from Australia are a substantial cause of the serious 
injury or threat thereof found by the Commission and, if such 
determination is in the negative, may exclude from such action imports 
from Australia.

[[Page 118 STAT. 950]]

                          TITLE IV--PROCUREMENT

SEC. 401. ELIGIBLE <<NOTE: 19 USC 3805 note.>> PRODUCTS.

     Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C. 
2518(4)(A)) is amended--
            (1) by striking ``or'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``; or''; and
            (3) by adding at the end the following new clause:
                          ``(iii) a party to a free trade agreement that 
                      entered into force with respect to the United 
                      States after December 31, 2003, and before January 
                      2, 2005, a product or service of that country or 
                      instrumentality which is covered under the free 
                      trade agreement for procurement by the United 
                      States.''.

    Approved August 3, 2004.

LEGISLATIVE HISTORY--H.R. 4759 (S. 2610):
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HOUSE REPORTS: No. 108-597 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 150 (2004):
            July 14, considered and passed House.
            July 15, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 40 (2004):
            Aug. 3, Presidential remarks.

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