PUBLIC LAW 108–286—AUG. 3, 2004 118 STAT. 919

Public Law 108–286

108th Congress

An Act

To implement the United States-Australia Free Trade Agreement.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘United StatesAustralia 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.

United StatesAustralia Free

Trade Agreement

Implementation

Act.

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118 STAT. 920 PUBLIC LAW 108–286—AUG. 3, 2004

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.

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.

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. 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) 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

President.

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the entry into force, on or after January 1, 2005, of the Agreement

with respect to the United States.

SEC. 102. 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. 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

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118 STAT. 922 PUBLIC LAW 108–286—AUG. 3, 2004

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) 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. 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) 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) 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.

President.

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President.

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SEC. 106. EFFECTIVE DATES; EFFECT OF 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 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. 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

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118 STAT. 924 PUBLIC LAW 108–286—AUG. 3, 2004

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 dutyfree treatment must be provided to that good under the

Schedule of the United States to Annex 2–B of the Agreement.

(7) 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.

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(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

over the unit import price is:

The additional duty is an

amount equal to:

Not more than 10 percent of the trigger price ........................................... 0.

More than 10 percent but not more

than 40 percent of the trigger price 30 percent of the excess of the

applicable NTR (MFN) rate of

duty over the schedule rate of

duty.

More than 40 percent but not more

than 60 percent of the trigger price 50 percent of such excess.

More than 60 percent but not more

than 75 percent of the trigger price 70 percent of such excess.

More than 75 percent of the trigger

price .................................................. 100 percent of such excess.

(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

118 STAT. 926 PUBLIC LAW 108–286—AUG. 3, 2004

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) 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) 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.

Termination

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(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

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(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) 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 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—

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(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.

118 STAT. 930 PUBLIC LAW 108–286—AUG. 3, 2004

(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 builddown method:

PUBLIC LAW 108–286—AUG. 3, 2004 118 STAT. 931

AV–VNM

RVC = ———— × 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 selfproduced.

(3) BUILD-UP METHOD.—

(A) IN GENERAL.—The regional value-content of a good

may be calculated on the basis of the following buildup method:

VOM

RVC = ———— × 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 = ———— × 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.—

118 STAT. 932 PUBLIC LAW 108–286—AUG. 3, 2004

(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 valuecontent 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

PUBLIC LAW 108–286—AUG. 3, 2004 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 -

118 STAT. 934 PUBLIC LAW 108–286—AUG. 3, 2004

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.

PUBLIC LAW 108–286—AUG. 3, 2004 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:

118 STAT. 936 PUBLIC LAW 108–286—AUG. 3, 2004

(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;

PUBLIC LAW 108–286—AUG. 3, 2004 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

118 STAT. 938 PUBLIC LAW 108–286—AUG. 3, 2004

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.

PUBLIC LAW 108–286—AUG. 3, 2004 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 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 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) 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

Regulations.

19 USC 3805

note.

19 USC 3805

note.

118 STAT. 940 PUBLIC LAW 108–286—AUG. 3, 2004

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. 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

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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. 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. 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 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. The Commission shall transmit

a copy of any petition filed under this subsection to the United

States Trade Representative.

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(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 PETITION.

(a) 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

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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) 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 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.

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(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) 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) 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) 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) 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,

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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 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 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 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’’.

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Subtitle B—Textile and Apparel Safeguard

Measures

SEC. 321. COMMENCEMENT OF ACTION FOR 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) 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 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

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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) 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). 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;

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(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 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 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.).

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SEC. 325. RATE AFTER TERMINATION OF IMPORT 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 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 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 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 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.

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LEGISLATIVE HISTORY—H.R. 4759 (S. 2610):

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.

Æ

TITLE IV—PROCUREMENT

SEC. 401. ELIGIBLE 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.

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