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[Senate Report 112-225]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                                 SENATE
 2d Session                                                     112-225

======================================================================

 
  AMENDING THE AFRICAN GROWTH AND OPPORTUNITY ACT TO EXTEND THE THIRD-
COUNTRY FABRIC PROGRAM AND TO ADD SOUTH SUDAN TO THE LIST OF COUNTRIES 
 ELIGIBLE FOR DESIGNATION UNDER THE ACT, TO MAKE TECHNICAL CORRECTIONS 
TO THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES RELATING TO THE 
TEXTILE AND APPAREL RULES OF ORIGIN FOR THE DOMINICAN REPUBLIC-CENTRAL 
 AMERICA-UNITED STATES FREE TRADE AGREEMENT, TO APPROVE THE RENEWAL OF 
IMPORT RESTRICTIONS CONTAINED IN THE BURMESE FREEDOM AND DEMOCRACY ACT 
                    OF 2003, AND FOR OTHER PURPOSES

                                _______
                                

               September 20, 2012.--Ordered to be printed

                                _______
                                

              Mr. Baucus, from the Committee on Finance, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 3326]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Finance, to which was referred the bill 
(S. 3326) to amend the African Growth and Opportunity Act to 
extend the third-country fabric program and to add South Sudan 
to the list of countries eligible for designation under that 
Act, to make technical corrections to the Harmonized Tariff 
Schedule of the United States relating to the textile and 
apparel rules of origin for the Dominican Republic-Central 
America-United States Free Trade Agreement, and to approve the 
renewal of import restrictions contained in the Burmese Freedom 
and Democracy Act of 2003, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Report and Other Materials of the Committee......................2
      A. Report of the Committee on Finance......................     2
      B. Summary of Congressional Consideration of the Bill......     2
          1. Background..........................................     2
          2. Committee and Floor Consideration...................     3
      C. Trade Relations with Sub-Saharan Africa.................     3
          1. United States-Sub-Saharan Africa Trade..............     3
          2. Third-Country Fabric Textiles and Apparel...........     4
          3. Republic of South Sudan.............................     5
      D. CAFTA-DR................................................     5
          1. The Free Trade Agreement............................     5
          2. United States-CAFTA-DR Trade........................     6
          3. Textiles and Apparel Rules of Origin Modifications..     7
      E. Burma Sanctions.........................................     7
          1. The Government of Burma.............................     7
          2. The Burmese Freedom and Democracy Act of 2003.......     8
          3. Report of the U.S. Department of State on the Trade 
              Sanctions Against Burma............................     9
      F. General Description of the Bill.........................    14
          Section 1--Amendments to African Growth and Opportunity 
              Act................................................    14
          Section 2--Modifications to Textile and Apparel Rules 
              of Origin for Dominican Republic-Central America-
              United States Free Trade Agreement.................    15
          Section 3--Extension and Renewal of Import Restrictions 
              Under Burmese Freedom and Democracy Act of 2003....    15
          Section 4--Time for Payment of Corporate Estimated 
              Taxes..............................................    15
          Section 5--Extension of Customs User Fees..............    15
      G. Vote of the Committee in Reporting the Bill.............    15
 II. Budgetary Impact of the Bill....................................16
III. Regulatory Impact of the Bill and Other Matters.................21
 IV. Additional Views of Senator Tom A. Coburn.......................22
  V. Changes in Existing Law Made by the Bill, as Reported...........24

             I. REPORT AND OTHER MATERIALS OF THE COMMITTEE

                 A. Report of the Committee on Finance

    The Committee on Finance, to which was referred the bill 
(S. 3326) to amend AGOA, to make technical changes to the 
CAFTA-DR, and to renew the BFDA, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

         B. Summary of Congressional Consideration of the Bill

1. Background

    African Growth and Opportunity Act: On June 21, 2012, 
Senator Baucus introduced S. 3326 on behalf of himself and 
Senators Hatch, Coons, McConnell, Blunt, Isakson, Brown of 
Massachusetts, and Thune. Since then, Senators Kerry, Wicker, 
Feinstein, Durbin, and Cochran have also joined as cosponsors. 
Also on June 21, 2012, Congressmen Camp, Rangel, Brady, and 
McDermott introduced companion legislation (H.R. 5986) in the 
House of Representatives.
    Dominican Republic-Central America-United States Free Trade 
Agreement: On August 5, 2004, the United States entered into 
the Dominican Republic-Central America-United States Free Trade 
Agreement. On July 28, 2005, the House of Representatives 
approved it (217 to 215), followed by passage in the Senate 
(55-45), clearing the measure for presidential signature on 
August 2, 2005 (Pub. L. 109-53). CAFTA-DR entered into force 
with El Salvador, Guatemala, Honduras, and Nicaragua during 
2006; the Dominican Republic in 2007; and Costa Rica in 2009.
    Burmese Freedom and Democracy Act: On June 4, 2003, the 
BFDA of 2003 was introduced in the U.S. House of 
Representatives (H.R. 2330) and the U.S. Senate (S. 1182). A 
revised version of the legislation was introduced in the Senate 
(S. 1215) on June 9, 2003. That latter version, S. 1215, passed 
the Senate with an amendment on June 11, 2003, by a recorded 
vote of 97-1. In the House, H.R. 2330 passed with an amendment 
on July 15, 2003, by a recorded vote of 418-2, 1 present. The 
Senate then passed the House-passed version of H.R. 2330 
without amendment on July 16, 2003, by a recorded vote of 94-1. 
The legislation was presented to the President on July 22, 
2003, and signed into law by the President on July 28, 2003 
(Pub. L. 108-61).

2. Committee and floor consideration

    The Senate Committee on Finance met in open executive 
session on July 18, 2012 to consider four legislative 
proposals, including the Chairman's Mark to amend provisions of 
the AGOA and the CAFTA-DR and to reauthorize and renew the 
import ban in the BFDA. The proposal the Committee considered 
was based upon S. 3326. During the Committee's consideration of 
the proposal, no amendments were offered. The Committee 
approved the proposal by voice vote.
    On August 2, 2012, the House of Representatives passed H.R. 
5986, the identical bill text as S. 3326, by voice vote. On the 
same day, the Senate voted on an amendment to S. 3326 by 
Senator Coburn that would have substituted a different offset 
to pay for the AGOA portion of the bill pursuant to a unanimous 
consent agreement. The amendment was not agreed to by a vote of 
40-58. Following the vote, and in accordance with the unanimous 
consent agreement, S. 3326 was read a third time and passed by 
the Senate. Later that day, the House of Representatives sent 
over H.R. 5986, the Senate read H.R. 5986 a third time, and it 
was passed by the Senate pursuant to the unanimous consent 
agreement.

               C. Trade Relations With Sub-Saharan Africa

1. United States-Sub-Saharan Africa trade

    In 2000, Congress amended the Trade Act of 1974 to 
establish U.S. trade and investment preferences for sub-Saharan 
Africa through the creation of a new trade preference program 
called AGOA. AGOA offers trade preferences and other economic 
benefits to sub-Saharan African countries that meet certain 
criteria, including progress towards a market economy, respect 
for the rule of law, elimination of barriers to U.S. trade and 
investment, and protection of worker rights. AGOA builds on 
existing U.S. trade programs by including additional products 
eligible for duty-free treatment beyond those previously 
available under the Generalized System of Preferences (GSP). 
Duty-free access to the U.S. market under the combined AGOA/GSP 
program now stands at approximately 7,000 product tariff lines, 
including the roughly 1,800 product tariff lines that were 
added to GSP by the AGOA legislation.
    AGOA has been amended several times since its initial 
enactment. In 2002, Congress amended AGOA to further increase 
market access for products from sub-Saharan Africa. In 2004, 
Congress passed legislation further amending AGOA, extending 
its benefits beyond the original deadline and clarifying 
certain provisions. This legislation also included directives 
to the President on investment initiatives and technical 
assistance. Congress passed legislation in 2006 that further 
amended AGOA and extended certain provisions concerning textile 
and apparel imports to 2012. AGOA itself expires on September 
30, 2015.
    In 2011, the United States imported $70.6 billion worth of 
goods from sub-Saharan African countries and exported $19.2 
billion worth of goods to sub-Saharan African countries, 
producing a U.S. trade deficit of $51.4 billion. Major U.S. 
imports from AGOA countries include natural resources such as 
oil, precious metals, iron, steel, ores, slag, ash, as well as 
manufactured products such as vehicles, machinery, mechanical 
appliances, and articles of apparel. Major U.S. exports to AGOA 
countries include manufactured products such as nuclear 
reactors, machinery, mechanical appliances, vehicles, and 
aircraft, as well as cereals and oils.

       TOP TEN U.S. IMPORTS FROM SUB-SAHARAN AFRICA, 2010 AND 2011
                             [In $ billions]
------------------------------------------------------------------------
                                                               Percent
          HTS Number                2010          2011      change 2010-
                                                                2011
------------------------------------------------------------------------
27--Mineral fuels and oil.....         51.38         58.97         14.80
71--Pearls, Precious Stones,            3.95          4.33          9.80
 Precious Metals, etc., Coin..
87--Vehicles, Except Railway            1.61          2.16         34.10
 Or Tramway, And Parts........
18--Cocoa and cocoa                     1.04          1.27         22.60
 preparations.................
29--Organic chemicals.........          1.22          1.16         -4.70
72--Iron and steel............          0.76          0.89         16.70
26--Ores, slag, and ash.......          0.67          0.79         17.70
62--Articles of apparel and             0.40          0.46         14.70
 clothing accessories, not
 knitted or crocheted.........
84--Nuclear Reactors, Boilers,          0.36          0.46         26.30
 Machinery and Parts..........
61--Articles of apparel and             0.39          0.44         14.30
 clothing accessories, knitted
 or crocheted.................
                               -----------------------------------------
    Subtotal..................         61.77         70.94         14.80
All Other.....................          2.58          3.08         19.40
                               -----------------------------------------
        Total.................         64.35         74.02         15.00 
------------------------------------------------------------------------
Source: U.S. International Trade Commission Trade Dataweb, http://
  www.usitc.gov.
Note: U.S. Imports for Consumption.

               TOP TEN U.S. EXPORTS TO SUB-SAHARAN AFRICA
                             [In $ billions]
------------------------------------------------------------------------
                                                               Percent
          HTS Number                2010          2011         change
------------------------------------------------------------------------
84--Nuclear Reactors, Boilers,          3.43          3.93         14.30
 Machinery and Parts..........
87--Vehicles, Except Railway            2.40          3.45         43.60
 Or Tramway, And Parts........
27--Mineral Fuels and Oil.....          1.41          1.84         30.30
10--Cereals...................          1.36          1.79         31.60
88--Aircraft, Spacecraft, and           1.11          1.51         35.70
 Parts........................
85--Electric Machinery; Sound           0.81          0.75         -7.70
 and TV Equipment and Parts...
98--Special Classification              0.60          0.72         18.50
 Provisions...................
71--Pearls, Precious Stones,            0.42          0.62         44.90
 Precious Metals, etc., Coin..
90--Optical, Photography,               0.60          0.58         -3.50
 Medical or Surgical
 Instruments..................
39--Plastics and Articles               0.47          0.56         20.40
 Thereof......................
                               -----------------------------------------
    Subtotal..................         12.63         15.73         24.60
All Other.....................          3.81          4.57         19.80
                               -----------------------------------------
        Total.................         16.44         20.30         23.50
------------------------------------------------------------------------
Source: U.S. International Trade Commission Trade Dataweb, http://
  www.usitc.gov.

2. Third-country fabric textiles and apparel provisions

    The ``third-country fabric'' provision in AGOA allows duty-
free treatment of apparel assembled in one or more lesser-
developed AGOA beneficiary countries regardless of the country 
of origin of the fabric, subject to a cap of 3.5 percent (by 
quantity) of all U.S. apparel imports. The provision expires on 
September 30, 2012. S. 3326 extends the provision through 
September 30, 2015.
    Lesser-developed countries are defined in AGOA as those 
with a per capita gross national product of less than $1,500 
per year as measured by the World Bank. In subsequent 
amendments of AGOA, Botswana, Namibia, and Mauritius were also 
added to the list of lesser-developed countries. At present, 27 
AGOA-eligible countries qualify for the third-country fabric 
provision. Several sub-Saharan African countries, including 
Lesotho, Kenya, Mauritius, Swaziland, and Botswana, have 
exported a significant amount (both by quantity and value) of 
apparel under the provision, and exports of apparel to the 
United States present the major portion of their benefits under 
AGOA.

                       BENEFICIARY COUNTRIES UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT
                                                [As of May 2012]
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
Republic of Angola                    Republic of Ghana * *                 Democratic Republic of Sao Tome and
                                                                             Principe
Republic of Benin * *                 Republic of Guinea                    Republic of Senegal * *
Republic of Botswana * *              Republic of Guinea-Bissau             Republic of Seychelles
Burkina Faso * *                      Republic of Kenya * *                 Republic of Sierra Leone * *
Republic of Burundi                   Kingdom of Lesotho * *                Republic of South Africa
Republic of Cameroon * *              Republic of Liberia * *               Kingdom of Swaziland * *
Republic of Cape Verde * *            Republic of Malawi * *                United Republic of Tanzania * *
Republic of Chad * *                  Republic of Mali * *                  Republic of Togo
Union of the Comoros                  Islamic Republic of Mauritania        Republic of Uganda * *
Republic of Congo                     Republic of Mauritius * *             Republic of Zambia * *
Republic of Cote d'Ivoire             Republic of Mozambique * *
Republic of Djibouti                  Republic of Namibia* *
Ethiopia * *                          Republic of Niger * *
Gabonese Republic                     Federal Republic of Nigeria * *
Republic of the Gambia * *            Republic of Rwanda * *
----------------------------------------------------------------------------------------------------------------
Source: Harmonized Tariff Schedule of the United States, Revision 2, May 2012.
Notes: Countries in SSA region not currently AGOA-eligible: Democratic Republic of Congo, Eritrea, Equatorial
  Guinea, Madagascar, Somalia, Sudan, and Zimbabwe.
* * Beneficiary country is eligible for the lesser-developed country special rule for apparel (third-country
  fabric provision).

3. Republic of South Sudan

    The Republic of South Sudan became an independent country 
on July 9, 2011. In section 107 of AGOA (19 U.S.C. 3706), the 
term ``sub-Saharan Africa'' is defined to include a list of 
countries that may receive AGOA benefits if they meet certain 
eligibility criteria. This bill adds the Republic of South 
Sudan to that list. As with all countries on that list, prior 
to granting AGOA benefits to the Republic of South Sudan, the 
President must determine that it meets the eligibility criteria 
set forth in section 104 of AGOA (19 U.S.C. 3703), as well as 
the eligibility criteria set forth in section 502 of the 1974 
Act (19 U.S.C. 2462).

                              D. CAFTA-DR

1. The free trade agreement

    The CAFTA-DR is a permanent, comprehensive, and reciprocal 
trade agreement that eliminates tariff and non-tariff barriers 
to two-way trade and establishes rules and other standards for 
services, intellectual property rights, government procurement, 
investment, textiles, and other disciplines. The United States 
has seen strong growth in exports of mineral fuels, machinery, 
cereals, yarns, and fabrics to the CAFTA-DR countries.
    CAFTA-DR provides that each country must accord national 
and most favored nation treatment (non-discrimination) to all 
parties. The agreement also replaced the unilateral trade 
preferences that the region received under GSP, the Caribbean 
Basin Economic Recovery Act, and the Caribbean Basin Trade 
Partnership Act with permanent bilateral market-opening 
commitments.

2. United States-CAFTA-DR trade

    Some of the fastest growing U.S. exports to the CAFTA-DR 
region include petroleum products, machinery, electrical/
electronic products, textile fabrics, cotton yarns, cereals 
(wheat, corn, and rice), plastics, motor vehicles, paper 
products, and medical instruments. According to the U.S. 
Department of Commerce, the CAFTA-DR region was the 15th 
largest U.S. export market in the world in 2010 and the third 
largest in Latin America behind Mexico and Brazil.
    The United States exported $24.2 billion in goods to the 
five Central American countries and the Dominican Republic in 
2010, which represents an increase of 21 percent over 2009. 
From 2006 through 2010, since CAFTA-DR entered into force, U.S. 
exports have expanded by 43 percent. U.S. exports to each 
CAFTA-DR country have grown significantly during the first five 
years of the agreement, led by Guatemala and Nicaragua (both up 
57 percent), followed by Costa Rica (44 percent), Honduras (42 
percent), the Dominican Republic (39 percent), and El Salvador 
(32 percent).

                          TOP TEN U.S. IMPORTS TO CAFTA-DR COUNTRIES, 2010 AND 2011 ($)
----------------------------------------------------------------------------------------------------------------
                                                                                                        Percent
                        HTS Number & item                                2010              2011          change
                                                                                                       2010-2011
----------------------------------------------------------------------------------------------------------------
324--Petroleum & Coal Products...................................     3,644,728,914     6,383,119,529         75
313--Textiles & Fabrics..........................................     2,363,552,729     3,147,521,353         33
334--Computer And Electronic Products............................     2,671,428,736     2,797,227,961          5
325--Chemicals...................................................     2,195,597,030     2,481,168,171         13
111--Agricultural Products.......................................     1,685,067,127     2,301,866,395         37
990--Special Classification Provisions, Nesoi....................     1,737,420,129     2,026,228,715         17
311--Food Manufactures...........................................     1,660,444,641     1,936,558,626         17
333--Machinery, Except Electrical................................     1,328,205,398     1,437,620,052          8
336--Transportation Equipment....................................     1,283,270,903     1,245,075,122         -3
335--Electrical Equipment, Appliances & Components...............       826,060,401       948,021,582        15
----------------------------------------------------------------------------------------------------------------
Source: U.S. International Trade Commission Trade Dataweb, http://www.usitc.gov.
Note: U.S. Imports for Consumption.

                         TOP TEN U.S. IMPORTS FROM CAFTA-DR COUNTRIES, 2010 AND 2011 ($)
----------------------------------------------------------------------------------------------------------------
                                                                                                        Percent
                        HTS Number & item                                2010              2011          change
                                                                                                       2010-2011
----------------------------------------------------------------------------------------------------------------
315--Apparel Manufacturing Products..............................     7,106,963,291     7,967,234,072         12
334--Computer And Electronic Products............................     5,799,828,996     6,849,915,571         18
111--Agricultural Products.......................................     2,809,681,764     3,797,032,742         35
339--Miscellaneous Manufactured Commodities......................     1,762,361,369     1,805,090,915          2
331--Primary Metal Mfg...........................................       427,971,896     1,340,933,490        213
311--Food Manufactures...........................................     1,225,595,748     1,279,197,659          4
336--Transportation Equipment....................................       732,642,196       908,184,684         24
910--Waste And Scrap.............................................       558,146,026       703,007,401         26
312--Beverages & Tobacco Products................................       537,924,388       606,883,465         13
335--Electrical Equipment, Appliances & Components...............       428,644,049       522,096,391        22
----------------------------------------------------------------------------------------------------------------
Source: U.S. International Trade Commission Trade Dataweb, http://www.usitc.gov.
Note: U.S. Imports for Consumption.

3. Textiles and Apparel Rules of Origin modifications

    At the February 2011 CAFTA-DR Free Trade Commission 
meeting, CAFTA-DR trade officials signed an agreement to make a 
series of changes to Annex 4.1 (Specific Rules of Origin) of 
the CAFTA-DR pursuant to Articles 3.25.3 and 19.1.3(b)(ii) of 
the CAFTA-DR agreement, which provides the authority to make 
such changes. All six of the CAFTA-DR countries have made the 
necessary reforms to their laws or regulations to effectuate 
these changes, and only the United States has yet to take 
action. The CAFTA-DR bill provisions will codify the necessary 
changes under U.S. law. These modifications will not go into 
effect until all the CAFTA-DR countries have adopted the 
necessary laws or regulations to implement the modifications.

                           E. Burma Sanctions

1. The Government of Burma

    In September 1988, a military junta known as the State 
Peace and Development Council (SPDC) took power in Burma. As 
discussed below, the SPDC maintained its hold on power through 
brutal means until March 2011, when it dissolved itself and 
turned over authority to a nominally civilian government. While 
that government has since allowed some significant political 
and economic progress in Burma, serious challenges remain.
    During its years in power, the SPDC violently suppressed 
pro-democracy movements. International human rights 
organizations and the U.S. Department of State reported a 
pattern of SPDC policies that included the suppression of 
political and civil liberties, jailing of political prisoners, 
widespread physical abuses, forced relocation of civilians, 
conscription of civilians--including children--into military 
services, and conscription of thousands of civilians for work 
on economic projects.
    In May 2003, a pro-government group of several hundred 
people assaulted Burmese Nobel Prize winner Aung San Suu Kyi, 
the leader of the opposition National League for Democracy 
(NLD), near Mandalay, Burma's second-largest city. The 
attackers were members of the United Solidarity Development 
Association (USDA), an organization affiliated with the SDPC. 
Some NLD supporters were killed, and others were taken into 
custody. Aung San Suu Kyi was imprisoned, and four months later 
released under house arrest.
    In September 2007, the Burmese government engaged in a 
violent crackdown against Buddhist monks and other Burmese 
citizens who were demonstrating peacefully against the poor 
economic conditions in Burma and the repressive policies of the 
SPDC. In May 2008, the Burmese government also failed to 
provide adequate humanitarian assistance or allow speedy entry 
of international aid in response to Cyclone Nargis.
    In August 2009, the regime convicted Aung San Suu Kyi of 
spurious charges of violating the terms of her house arrest, 
and sentenced her to three years in prison with hard labor, 
commuting that sentence to 29 months of house arrest.
    In November 2010, the SPDC allowed the first parliamentary 
election in Burma in over twenty years. The election was widely 
seen as government-rigged. Nonetheless, the SPDC announced that 
the election had paved the way for the transfer of power to 
civilian rule. In March 2011, former general Thein Sein was 
sworn in as president of Burma.
    Since March 2011, the government of President Thein Sein 
has taken some important steps towards political and economic 
reform. Aung San Suu Kyi was freed from house arrest, and the 
NLD was reinstated as a political party. On April 1, 2012, in a 
parliamentary by-election, the NLD won 43 of the 44 
parliamentary seats at stake. The government has signed 
ceasefire agreements with most armed ethnic groups, which were 
associated with some of the worse human rights abuses of the 
previous two decades. The government also allowed a more open 
public dialogue, through the relaxation of some media 
restrictions, the tolerance of peaceful protests, and the 
creation of a more meaningful parliamentary process. Hundreds 
of political prisoners have been gradually released.
    Nonetheless, as the U.S. State Department has reported to 
the Senate Finance Committee, significant challenges remain. 
The Burmese government has limited humanitarian access to areas 
of Burma where conflict with armed ethnic groups has increased. 
There are credible reports of human rights violations by the 
Burmese Army, including rape and forced labor. The Burmese 
constitution continues to provide the military an effective 
veto over broad political reform. Hundreds of political 
prisoners remain incarcerated, and the government has imposed 
restrictions on recently-released prisoners. There are also 
indications that Burma continues to engage in military trade 
with North Korea.

2. The Burmese Freedom and Democracy Act of 2003

    On June 4, 2003, the BFDA banned the importation of any 
article that is a product of Burma. The BFDA allows the 
President to lift these import restrictions if he certifies to 
Congress that (1) the SPDC has made substantial progress to end 
human rights violations, including rapes, and no longer 
systematically violates workers' rights, including forced and 
child labor, and conscription of child soldiers; (2) the SPDC 
has made substantial progress toward implementing a democratic 
government, including by releasing political prisoners, by 
allowing freedom of speech, press, association, and religion, 
and by reaching agreement with the NLD for a democratically 
elected civilian government; and (3) Burma has not been 
designated as a country that has failed to abide by its 
obligations under international counternarcotics agreements and 
failed to take other enumerated effective counternarcotics 
measures. In addition to the import ban, the BFDA also freezes 
the assets of the Burmese regime and its officials held by U.S. 
financial institutions, directs the Secretary of the Treasury 
to instruct the U.S. representatives to international financial 
institutions to oppose loans or other assistance to Burma, and 
authorizes the President to deny visas to the leaders of the 
Burmese regime.
    In July 2008, Congress amended the BFDA when it passed the 
Tom Lantos Block Burmese JADE (Junta's Anti-Democratic Efforts) 
Act of 2008 (JADE Act). The JADE Act was introduced in the 
House on October 18, 2007 and passed by voice vote on December 
11, 2007. The Senate passed an amended version of the bill on 
December 19, 2007. After resolving the differences between the 
two bills, the revised legislation was passed by the House on 
July 15, 2008 by voice vote and by the Senate on July 22, 2008 
by Unanimous Consent. The President signed the legislation into 
law on July 29, 2008. The JADE Act amended the import 
restrictions of the BFDA by prohibiting the importation into 
the United States of jewelry from any country that contains 
jadeite or rubies mined in Burma. The JADE Act also imposed 
additional financial and visa sanctions on members of the SPDC 
or USDA and their immediate family members.
    Pursuant to section 9(b) of the BFDA, the import ban 
expires after one year unless a new joint resolution approving 
a one-year renewal of the import ban is enacted into law prior 
to the anniversary of the date of enactment of the BFDA. The 
current import ban remains in effect through July 26, 2012.
    As originally enacted in 2003, section 9(b)(3) also limited 
the imposition of import restrictions to a maximum of three 
years from the date of enactment, or until 2006. In 2006, a 
joint resolution was introduced to extend this period to a 
maximum of six years from the date of enactment, or until 2009. 
Specifically, H.J. Res. 86 was introduced in the House on May 
19, 2006, and S.J. Res. 38 was introduced in the Senate on May 
26, 2006. The House passed H.J. Res. 86 on July 11, 2006 by 
voice vote. H.J. Res. 86 was placed on the Senate calendar on 
July 26, 2006 and passed without amendment by voice vote. The 
President signed the joint resolution on August 1, 2006 (Pub. 
L. 109-251).
    In 2009, S.J. Res. 17 was introduced to extend the 
limitation on the import restrictions for an additional three 
years, to a maximum of nine years from the date of enactment, 
or until 2012. A similar resolution (H.J. Res. 56) was passed 
by the House on July 21, 2009 by voice vote. H.J. Res. 56 was 
received by the Senate on July 22, 2009 and passed by Unanimous 
Consent on July 23, 2009. The resolution was signed by the 
President on July 28, 2009 (Pub. L. 111-42).
    On June 21, 2012, S. 3326 was introduced to, among other 
things, extend the import restrictions set forth in section 
9(b)(3) of the BFDA for an additional three years, to a maximum 
period of twelve years from the date of enactment, or until 
2015. Further, S. 3326, approves the renewal of those 
restrictions for another year, in accordance with section 9(b) 
of the BFDA. An identical companion bill, H.R. 5896, was 
introduced in the House of Representatives on June 21, 2012.

3. Report of the U.S. Department of State on the trade sanctions 
        against Burma

    On June 20, 2012, the U.S. Department of State submitted to 
Congress a report regarding the trade sanctions against Burma, 
as required by section 8(b)(3) of the BFDA. At the request of 
the Chairman, that report was made a part of the record of the 
Committee's consideration of S. 3326. The State Department 
report is reprinted below:

                                  U.S. Department of State,
                                     Washington, DC, June 20, 2012.
Hon. Max Baucus,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The enclosed report reviews measures to 
promote human rights and democracy in Burma and assesses the 
effectiveness of the trade provisions in the Burmese Freedom 
and Democracy Act of 2003 (P.L. 108-61) (BFDA) to improve 
conditions in Burma and to advance U.S. policy objectives. This 
year's report highlights the important reforms that have taken 
place in Burma and outlines the U.S. government's response to 
recognize and encourage progress on our core concerns.
    Our approach has been calibrated by announcing an easing 
rather than lifting of financial services and investment 
restrictions against Burma and maintaining all sanctions 
authorities in place. Consistent with this approach, we 
recommend Congressional renewal of the BFDA import ban as 
amended by the Junta's Anti-Democratic Efforts Act, while 
noting that if reforms continue in Burma, the Secretary of 
State may consider using executive authority to ease the import 
ban. As always, we will continue to consult closely with 
Congress regarding any updates to our Burma policy.
    We hope this information is useful to you. Please do not 
hesitate to contact us if we may be of further assistance in 
this matter.
            Sincerely,
                                            David S. Adams,
                          Assistant Secretary, Legislative Affairs.
    Enclosure: As stated.

            Report on U.S. Economic Sanctions Against Burma

                        INTRODUCTION AND SUMMARY

    (U) Pursuant to Section 8(b)(3) of the Burmese Freedom and 
Democracy Act of 2003 (Pub. L. 108-61) (the BFDA), and in view 
of the impending expiration of the import ban contained in the 
BFDA, as amended by the Tom Lantos Block Burmese Junta's Anti-
Democratic Efforts (JADE) Act of 2008 (Pub. L. 110-286) (the 
JADE Act), this report reviews bilateral and multilateral 
measures to promote human rights and democracy in Burma and 
assesses the effectiveness and impact of the BFDA's trade 
provisions and the furtherance of U.S. policy objectives.
    (U) The United States has been a leading advocate of human 
rights and democracy in Burma for more than two decades. During 
this reporting period, and for the first time since the 
enactment of the BFDA, there has been a significant political 
and economic opening in Burma. Burma's former autocratic 
military leader, Senior General Than Shwe, officially retired. 
President Thein Sein, a former regime member who assumed office 
through a flawed electoral process, initiated an important 
reform process shortly after taking office in March 2011.
    (SBU) The Burmese government's reform process included 
steps to address several core concerns of the United States and 
the international community. In October 2011 and January 2012, 
authorities released over 500 political prisoners. After the 
Burmese government initiated a substantive dialogue with Aung 
San Suu Kyi (ASSK) and amended electoral laws, the National 
League for Democracy (NLD)--the leading, previously banned, 
pro-democracy opposition party--registered and was reinstated 
as a political party in December 2011. On April 1, ASSK and the 
NLD won 43 of the 44 parliamentary seats they contested in by-
elections. Authorities signed preliminary ceasefire agreements 
with armed ethnic groups including the Chin National Front, the 
Karenni National Progressive Party, the New Mon State Party, 
the Shan State Army-South, Shan State Army-North, and, for the 
first time in 63 years, the Karen National Union. The Burmese 
government has also taken other steps toward civic openness, 
relaxing media restrictions, approving legislation to allow 
citizens to form labor unions and protest peacefully, 
criminalizing forced labor, and creating a more open and 
substantive parliamentary process.
    (SBU) Serious challenges and concerns remain. A 17-year 
ceasefire in Burma's northern Kachin State broke down in June 
2011 and confiict ensued, despite sporadic ceasefire talks. 
Humanitarian access to conflict zones, including to an 
estimated 60,000 persons displaced as a result of the fighting 
in Kachin State, has been limited.
    Credible reports of serious human rights violations by the 
Burmese Army, including rape and forced labor, continue. 
Burma's constitution remains flawed, in particular by granting 
the armed forces excessive authorities. Though the precise 
figure is unclear, hundreds of political prisoners reportedly 
remain in detention, and the Burmese government imposed 
conditions on many of the prisoners released in October and 
January. Despite official assurances to the contrary, there are 
indications that Burma's military trade with North Korea 
continues.
    (SBU) In response to Government of Burma action on core 
concerns, the United States decided in May to ease certain 
financial and investment sanctions, while maintaining all 
sanctions authorities in place. This calibrated approach 
recognizes and encourages the reform effort, while preserving 
the flexibility to tighten sanctions if warranted by conditions 
on the ground. Consistent with this approach, the State 
Department supports a Congressional resolution to maintain the 
BFDA import ban, as amended by the JADE Act. If positive 
reforms in Burma continue, the Secretary of State may elect to 
waive all or part of the ban on Burmese imports. As the 
Department proceeds with this approach, the Department intends 
to work closely with the Congress.

                           BILATERAL MEASURES

    (SBU) The United States significantly enhanced engagement 
with the Burmese government during the reporting period. To 
assess early signs of progress, President Obama requested 
Secretary Clinton to visit Burma from November 30 to December 
2, 2011, marking the first visit by a Secretary of State since 
1955. During her trip, Secretary Clinton announced an ``action-
for-action'' strategy to encourage further reforms. As part of 
this strategy, the United States has announced several measures 
such as resumption of World War II remains recovery operations, 
support for assessment missions by international financial 
institutions (via a partial and time-limited waiver of 
Trafficking Victims Protection Act sanctions), support for a 
normal UN Development Programme program in the country, an 
intention to re-establish a USAID mission, and an upgrade of 
diplomatic ties to exchange ambassadors. After Burma's credible 
parliamentary by-elections and other progress, the United 
States announced May 17 it would ease bans on the exportation 
of U.S. financial services and new investment across sectors of 
the Burmese economy. These steps reflect an ``easing'' (as 
opposed to a ``lifting'') of sanctions as all sanction 
authorities remain in place. In this regard, on May 17 
President Obama renewed the national emergency with respect to 
Burma declared pursuant to the International Emergency Economic 
Powers Act.
    (SBU) Since September 2011, U.S. Special Representative and 
Policy Coordinator for Burma Derek Mitchell and other key U.S. 
government officials, including Members of Congress, travelled 
to Burma to promote our human rights, democracy, and 
nonproliferation goals. On the margins of the UNGA in September 
2011, the State Department initiated a dialogue on political 
prisoners with Burmese officials and invited the Burmese 
foreign minister to the State Department. In every interaction 
with Burmese officials, the United States advocated for greater 
respect for human rights and encouraged political reform. 
Senior-level U.S. visitors to Burma consulted with ASSK, the 
NLD, civil society representatives, and ethnic minority 
leaders. Embassy Rangoon maintained regular contact with a 
broad spectrum of society, including ASSK, former political 
prisoners, and ethnic minority and civil society leaders. This 
outreach enabled more accurate assessments on the ground and 
calibration of U.S. actions and responses accordingly.

                         MULTILATERAL MEASURES

    (SBU) The United States pursued multilateral measures to 
advance our human rights and democracy goals. The United States 
has consistently urged the UN--including the UN Security 
Council, UN Human Rights Council (UNHRC), and the UN Secretary-
General's Good Offices Mission--to maintain focus on shared, 
international core concerns. The United States successfully co-
sponsored the annual resolution on the human rights situation 
in Burma in the UNGA's Third Committee and in the UNHRC. The 
2011 UNGA Resolution on Burma passed the Third Committee by a 
98 (yes)--25 (no)--63 (abstain) margin. The U.S. government 
supported the findings of UN Special Rapporteur on the 
Situation of Human Rights Thomas Ojea Quintana, based on his 
assessments during the reporting period. The United States 
urged respect for labor rights in statements at the 
International Labor Organization in November 2011.
    (SBU) Increasing its strategic engagement with ASEAN, the 
United States conveyed the importance of human rights and 
democracy progress in Burma at every level and opportunity. 
Secretary Clinton directly addressed our concerns with Burma 
during the ASEAN Regional Forum in July 2011 in Indonesia and 
President Obama highlighted U.S. core concerns and our desire 
to support hopeful, early signs of reforms in Burma on the 
margins of the East Asia Summit in November 2011, also in 
Indonesia. The State Department engages with ASEAN leaders on a 
routine basis and has ensured intensive engagement with key 
regional partners on Burma policy including with Japan, 
Australia, South Korea, and China.
    (SBU) Following Burma's April 1 parliamentary by-elections, 
the EU suspended its sanctions against Burma, with the 
exception of the embargo on arms. Australia, Canada, Norway, 
and Switzerland also eased their respective sanctions. The 
State Department coordinated closely with these like-minded 
partners and will be collaborating closely to ensure the 
Burmese government makes further progress on our shared 
concerns, particularly political prisoners, violence in ethnic 
minority areas, greater civic openness for the country's 
democratization process, and transparency on nonproliferation 
issues and military ties to North Korea.

               EFFECTS OF SANCTIONS ON SITUATION IN BURMA

    (SBU) U.S. economic sanctions have been an important tool 
in pressuring the Burmese government to improve respect for 
human rights and democratic reform. Senior Burmese officials 
repeatedly requested that sanctions be lifted, while 
highlighting completed steps to address U.S. concerns. 
Businessmen in Rangoon complained about the detrimental effects 
sanctions have had on their business operations and personal 
lives. Between March 25, 2011, and March 28, 2012, 107 
transactions totaling approximately $4.3 million involving 
Burmese individuals or entities were reported to the Treasury 
Department as blocked. Over the same period, the Treasury 
Department issued 22 licenses authorizing the release of 
blocked funds or otherwise prohibited transactions. These 
authorizations allowed, for example, NGOs to conduct 
assistance-related transactions to promote agricultural 
development, micro-finance, and education projects. To date, 
the United States has designated 42 individuals and 58 entities 
as subject to U.S. sanctions, including two individuals and 19 
companies identified as subject to the JADE Act blocking and 
financial sanctions.
    (SBU) Burma's trade with neighboring countries and its 
regional partners continues to increase. Although trade with 
the United States is historically insignificant, even prior to 
the imposition of sanctions, the prospect of increased commerce 
and investment from the United States and other trading 
partners may contribute to the Burmese government's calculation 
to embark on political reform.

             EFFECTS OF SANCTIONS ON BROADER U.S. INTERESTS

    (SBU) Our goal in easing certain financial and investment 
sanctions is to recognize the reforms that have taken place and 
to encourage further reforms to address our longstanding human 
rights, democracy, and nonproliferation interests. U.S. 
sanctions heretofore have imposed broad restrictions to 
prohibit dollar-based transactions with Burma and all new 
investment. The State Department assesses that given the 
current reforms underway, shifting from broad sanctions to more 
targeted restrictions and pursuing further engagement are the 
most effective means to advance our core interests. Some 
elements of the human rights and Burmese exile communities do 
not support lifting trade or other sanctions absent further 
progress on human rights and ethnic minority issues or legally 
binding requirements for U.S. businesses seeking to operate in 
Burma. During the reporting period, many opposition groups and 
ethnic minority parties inside Burma supported or called for 
the lifting of, or modification to, extant sanctions.
    (SBU) The trade-related and financial sanctions implemented 
pursuant to the BFDA and Executive Orders 13047, 13310, 13448, 
and 13464 have had a limited impact on U.S. relations with 
other nations. Following announcements of our intent to ease 
financial and investment-related sanctions, the State 
Department and other U.S. agencies received a dramatic increase 
in the number of commercial inquiries from U.S. businesses 
interested in investing in Burma. The United States has 
conveyed to regional and like-minded partners as well as U.S. 
companies that even as we ease sanctions we must remain 
coordinated in urging the release of all political prisoners 
unconditionally, an end to violence in ethnic minority areas, a 
dialogue toward genuine national reconciliation, and a 
cessation of Burma's military relationship with North Korea.

                               CONCLUSION

    (SBU) The political and economic opening in Burma has 
resulted in concrete steps to improve the human rights and 
political environments. A genuine reform process, however, will 
require significant time and effort to reach fruition and 
important, immediate concerns and challenges remain. The 
principled U.S. engagement and action-for-action approach have 
resulted in increasingly substantive interactions with Burmese 
officials. U.S. support for Burma's democracy movement remains 
strong and steadfast. The Department is committed to supporting 
reformers both inside and outside the government. The United 
States continues to work within the UN and with countries in 
Southeast Asia and beyond to effectively coordinate and promote 
Burma's peaceful transition to democracy.
    At this time, the Department of State supports 
Congressional renewal of the import ban in the Burmese Freedom 
and Democracy Act, as amended by the JADE Act, in line with our 
approach of ``easing'' and not ``lifting'' sanctions. If reform 
continues in Burma, the Secretary of State may decide to 
exercise her authority to ease the import ban as noted above 
using waiver authority to facilitate trade in Burmese-origin 
products in ways that support and encourage further reform and 
benefit the Burmese population. The State Department will 
continue to work closely with Congress as events unfold.

                   F. General Description of the Bill

Section 1--Amendments to African Growth and Opportunity Act

    Section 1 amends section 112(c)(1) of AGOA to extend the 
third-country fabric provision through September 30, 2015. It 
also adds the ``Republic of South Sudan (South Sudan)'' to the 
list of AGOA-eligible beneficiary countries and makes a 
conforming amendment to strike ``48'' in section 102(2) of the 
Act. The effective date of this section is the date of 
enactment of the Act.

Section 2--Modifications to Textile and Apparel Rules of Origin for 
        Dominican Republic-Central America-United States Free Trade 
        Agreement

    Section 2 amends the Harmonized Tariff Schedule by 
implementing the technical corrections and modifications agreed 
to by the CAFTA-DR trade officials in February 2011. These 
corrections include a change clarifying that certain 
monofilament sewing thread is required to be produced in the 
United States or the CAFTA-DR region in order for goods to 
qualify for preferential tariff treatment. The other 
modifications clarify or correct the language used in the text 
of the CAFTA-DR, which include the treatment of certain 
nightwear, as well as the treatment of several products under 
the ``short supply'' list in the CAFTA-DR. These products 
include elastomeric yarns, knit waistbands, and knit-to-shape 
components. The amendments made by this section apply to goods 
of a CAFTA-DR country that are entered, or withdrawn from 
warehouse for consumption, on or after the date that the U.S. 
Trade Representative determines is the first date on which the 
equivalent amendments to the rules of origin of CAFTA-DR have 
entered into force in all CAFTA-DR countries.

Section 3--Extension and renewal of import restrictions under Burmese 
        Freedom and Democracy Act of 2003

    Section 3 reauthorizes the import sanctions in the BFDA for 
an additional three years, through July 2015. In addition, the 
amendment provides annual renewal for the import sanctions, 
such that the sanction authority will remain in place until at 
least July 2013. The effective date of this section is the date 
of enactment or July 26, 2012, whichever comes first.

Section 4--Time for payment of corporate estimated taxes

    Section 4 increases the amount of the required installment 
of estimated tax otherwise due from a corporation with at least 
$1 billion in assets in July, August, or September, 2017 by 
0.25 percent. The bill reduces the next required installment to 
reflect the prior increase. The effective date of this section 
is the date of enactment of the Act.

Section 5--Extension of customs user fees

    Section 5 extends the passenger and conveyance processing 
fees authorized under section 13031(j)(3)(B)(i) of Consolidated 
Omnibus Budget Reconciliation Act of 1985 (COBRA) from 
September 30, 2021 through October 22, 2021. The section also 
extends the merchandise processing fees authorized under 
section 13031(j)(3)(A) of COBRA from September 30, 2021 through 
October 29, 2021. The effective date of this section is the 
date of enactment of the Act.

             G. Vote of the Committee in Reporting the Bill

    In compliance with section 133 of the Legislative 
Reorganization Act of 1946, the Committee states that on July 
18, 2011, S. 3326 was ordered favorably reported, without 
amendment, by voice vote.

                    II. BUDGETARY IMPACT OF THE BILL

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 20, 2012.
Hon. Max Baucus,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 3326, a bill to 
amend the African Growth and Opportunity Act to extend the 
third country fabric program and to add South Sudan to the list 
of countries eligible for designation under that Act, to make 
technical corrections to the Harmonized Tariff Schedule of the 
United States relating to the textile and apparel rules of 
origin for the Dominican Republic-Central America-United States 
Free Trade Agreement, to approve the renewal of import 
restrictions contained in the Burmese Freedom and Democracy Act 
of 2003, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kalyani 
Parthasarathy.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 3326--A bill to amend the African Growth and Opportunity Act to 
        extend the third country fabric program and to add South Sudan 
        to the list of countries eligible for designation under that 
        Act, to make technical corrections to the Harmonized Tariff 
        Schedule of the United States relating to the textile and 
        apparel rules of origin for the Dominican Republic-Central 
        America-United States Free Trade Agreement, to approve the 
        renewal of import restrictions contained in the Burmese Freedom 
        and Democracy Act of 2003, and for other purposes

    Summary: S. 3326 would extend for three years the 
preferential tariff treatment currently accorded to certain 
textile products from lesser-developed countries (LDCs) in the 
African Growth Opportunity Act (AGOA) program, modify the rules 
of origin for products imported from countries who are members 
of the Dominican Republic and Central America Free Trade 
Agreement (DR-CAFTA), and renew import restrictions enacted in 
the Burmese Freedom and Democracy Act of 2003. The bill also 
would shift some corporate income tax payments between fiscal 
years and extend user fees collected by Customs and Border 
Protection (CBP) that expire under current law.
    CBO and the staff of the Joint Committee on Taxation (JCT) 
estimate that enacting S. 3326 would reduce revenues by $59 
million in 2013, increase revenues by $4 million over the 2013-
2017 period, and reduce revenues by $192 million over the 2013-
2022 period. Enacting S. 3326 also would reduce direct spending 
by $197 million over the 2013-2022 period. Thus, the net impact 
of those effects is an estimated reduction in deficits of $5 
million over the 2013-2022 period. Pay-as-you-go procedures 
apply because enacting the legislation would affect direct 
spending and revenues.
    CBO has determined that the nontax provisions of the bill 
contain no intergovernmental mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments. JCT has determined that 
the tax provision of the bill contains no intergovernmental or 
private-sector mandates.
    CBO has determined that the nontax provisions of S. 3326 
would impose private-sector mandates as defined in UMRA by 
extending the authorization to collect customs user fees, and 
by renewing the ban on all imports from Burma. CBO estimates 
that the aggregate cost of those mandates would exceed the 
annual threshold established in UMRA for private-sector 
mandates ($146 million in 2012, adjusted annually for 
inflation).
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of S. 3326 is shown in the following table.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, in millions of dollars--
                                              ----------------------------------------------------------------------------------------------------------
                                                2013    2014    2015    2016     2017      2018     2019    2020    2021     2022   2013-2017  2013-2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   CHANGES IN REVENUES

Extension of AGOA LDC Preferences\a\.........     -59     -63     -70       0        0          0       0       0       0        0      -192       -192
Rules of Origin Changes for DR-CAFTA.........       *       *       *       *        *          *       *       *       *        *         *          *
Extension of Import Restrictions in the             *       0       0       0        0          0       0       0       0        0         *          *
 Burmese Freedom and Democracy Act of 2003...
Corporate Payments Shift.....................       0       0       0       0      196       -196       0       0       0        0       196          0
                                              ----------------------------------------------------------------------------------------------------------
    Total Changes in Revenues................     -59     -63     -70       *      196       -196       *       *       *        *         4       -192

                                                               CHANGES IN DIRECT SPENDING

Customs User Fees:
    Estimated Budget Authority...............       0       0       0       0        0          0       0       0       0     -197         0       -197
    Estimated Outlays........................       0       0       0       0        0          0       0       0       0     -197         0       -197

                                                       NET INCREASE OR DECREASE(-) IN THE DEFICIT

Net Change in Deficit........................      59      63      70       *     -196        196       *       *       *     -197        -4        -5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: CBO and the staff of the Joint Committee on Taxation.
Notes: Components may not sum to totals because of rounding.
* indicates amounts that are between -$500,000 and $500,000.
\a\This estimate assumes enactment before October 1, 2012. If enactment were delayed, the estimate would be adjusted to account for the intervening
  expiration of the AGOA LDC preference program.

    Basis of Estimate: For the purposes of this estimate, CBO 
assumes that S. 3326 will be enacted by the start of fiscal 
year 2013.

Revenues

    S. 3326 would extend the special treatment that certain 
lesser-developed sub-Saharan countries receive under AGOA. 
Under AGOA, which is scheduled to expire on September 30, 2015, 
about 40 African countries receive preferential duty treatment 
for apparel goods that are assembled within the country, using 
fabric and yarn originating in the United States or the AGOA 
region. In addition, through September 30, 2012, countries 
designated ``lesser-developed'' within AGOA may export duty-
free to the United States apparel goods that are assembled 
within the country regardless of the origin of the fabric or 
yarn. Most of the AGOA countries currently have LDC status. The 
bill would allow the LDCs to receive such special treatment for 
an additional three years, through September 30, 2015, until 
the scheduled expiration of the overall AGOA program. CBO 
estimates that the extension would result in $192 million in 
forgone revenues over the 2013-2022 period, net of income and 
payroll tax offsets.
    S. 3326 also would include South Sudan in the list of 
countries eligible for AGOA preferences. South Sudan became an 
independent nation, separate from Sudan, in July 2011. Based on 
the negligible amount of customs duties paid on imports from 
South Sudan since its independence, and from Sudan prior to 
independence, CBO estimates that the inclusion of South Sudan 
in the AGOA preference program would have a negligible effect 
on revenues over the 2013-2022 period.
    The bill also would modify the rules of origin established 
in the DR-CAFTA for certain apparel and textile goods. Goods 
imported from the DR-CAFTA region are eligible for duty-free 
treatment based on the nature and sources of their component 
fabrics and yarns. The bill would adjust such eligibility for 
goods to prevent the use of some components from outside the 
DR-CAFTA region and permit the use of certain others. Based on 
information from the Department of Commerce, CBO estimates that 
the net revenue effect of these changes would be insignificant 
in any year and over the 2013-2022 period.
    S. 3326 would extend for one year, through July 26, 2013, 
the ban on all imports from Burma that was enacted in the 
Burmese Freedom and Democracy Act of 2003. It also would extend 
the ban on imports of certain gemstones originating from Burma 
that was added by the Tom Lantos Block Burmese Junta's Anti-
Democratic Efforts Act of 2008. The original ban was set to 
expire on July 28, 2004, and since then enacted legislation has 
renewed it annually, most recently through July 26, 2012. An 
executive order implementing the import ban, citing authority 
under the Burmese Freedom and Democracy Act of 2003 as well as 
other laws, was recently extended into May 2013. CBO estimates 
that the revenue effect of extending the import ban for roughly 
two months beyond the executive order would be insignificant in 
2013 and over the 2013-2022 period.
    The bill also would shift payments of corporate estimated 
taxes between fiscal years 2017 and 2018. For corporations with 
at least $1 billion in assets, the bill would increase the 
portion of corporate estimated payments due from July through 
September in 2017. JCT estimates that those changes would 
increase revenues by $196 million in 2017 and decrease them by 
$196 million in 2018.

Direct spending

    Under current law, customs user fees will expire after 
September 30, 2021. The bill would permit CBP to collect these 
fees through October 22, 2021 (for merchandise processing fees) 
and through October 29, 2021 (for COBRA fees, which were 
established in the Consolidated Omnibus Budget Reconciliation 
Act of 1985). CBO estimates that these changes would increase 
offsetting receipts (a credit against direct spending) by $197 
million in fiscal year 2022.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in revenues that are subject to those 
pay-as-you-go procedures are shown in the following table.

                CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS OF S. 3326, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FINANCE ON JULY 18, 2012
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                  ------------------------------------------------------------------------------------------------------
                                                    2012   2013   2014   2015   2016   2017    2018    2019   2020   2021    2022   2012-2017  2012-2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT

Statutory Pay-As-You-Go Impact...................      0     59     63     70      0    196     -196      0      0      0     -197        -4         -5
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated Impact on State, Local, and Tribal Governments: 
CBO has determined that the nontax provisions of the bill 
contain no intergovernmental mandates as defined in UMRA and 
would impose no costs on state, local, or tribal governments. 
JCT has determined that the tax provision of the bill contains 
no intergovernmental mandates.
    Estimated Impact on the Private Sector: CBO has determined 
that the nontax provisions of S. 3326 would impose private-
sector mandates as defined in UMRA on entities required to pay 
customs user fees and on certain importers. CBO estimates that 
the aggregate cost of those mandates would exceed the annual 
threshold established in UMRA for private-sector mandates ($146 
million in 2012, adjusted annually for inflation.) JCT has 
determined that the tax provision of the bill contains no 
private-sector mandates.
    By extending the authorization for the CBP to collect 
customs user fees (merchandise processing fees and COBRA fees) 
the bill would impose mandates on entities required to pay 
those fees. CBO estimates the cost to private entities would 
amount to $197 million paid in fees in 2022.
    The bill also would extend for roughly two months the ban 
on all imports from Burma (and jewelry that contains gems mined 
in Burma) that is scheduled to expire in May 2013. The cost of 
the mandate for importers would be the net value of forgone 
profits from banned Burmese products. Based on information from 
the U.S. International Trade Commission CBO estimates the cost 
of the ban for importers would be small.
    Estimate prepared by: Federal Costs: Kalyani Parthasarathy 
and Mark Grabowicz; Impact on State, Local, and Tribal 
Governments: J'nell L. Blanco; Impact on the Private Sector: 
Marin Randall.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis; Frank Sammartino, Assistant Director for 
Tax Analysis.

          III. REGULATORY IMPACT OF THE BILL AND OTHER MATTERS

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee states 
that the resolution will not significantly regulate any 
individuals or businesses, will not affect the personal privacy 
of individuals, and will result in no significant additional 
paperwork. The following information is provided in accordance 
with section 423 of the Unfunded Mandates Reform Act of 1995 
(UMRA) (Pub. L. No. 104-04). The Committee has reviewed the 
provisions of S. 3326 as approved by the Committee on July 18, 
2012. In accordance with the requirement of Pub. L. No. 104-04, 
the Committee has determined that the bill contains no 
intergovernment mandates, as defined in the UMRA, and would not 
affect the budgets of state, local, or tribal governments.

             IV. ADDITIONAL VIEWS OF SENATOR TOM A. COBURN

    On July 23, 2012, Senator Coburn of Oklahoma objected to 
CAL. #459, a unanimous consent agreement to allow the Senate to 
approve S. 3326 without floor debate or opportunity for 
consideration of amendments. Senator Coburn's objection to Cal. 
#459 was based solely on the basis of the offset included in S. 
3326, and not due to the underlying polices related to amending 
of the African Growth and Opportunity Act (AGOA), technical 
changes to the Dominican Republic-Central America-United States 
Free Trade Agreement (CAFTA-DR), or the renewal of the Burmese 
Freedom and Democracy Act (BFDA).
    Senator Coburn previously made his objection to the 
proposal known during executive session held on July 18, 2012. 
During this executive session, Senator Coburn voiced concern 
that the proposal's offset does not pay for costs incurred in 
the first three years of the scoring window until 2022, and for 
the package's reliance on what he contends is a budget gimmick 
intended to circumvent PAYGO. The Senate pay-as-you-go, or 
PAYGO, rule generally requires that any legislation projected 
to increase direct spending or reduce revenues must also 
include equivalent amounts of direct spending cuts, revenue 
increases, or a combination of the two, so that the legislation 
does not increase the on-budget deficit over a six-year period 
and an 11-year period.
    To comply with PAYGO, the underlying package relies on what 
Senator Coburn contended to be a budget gimmick, a provision 
(termed a ``corporate payment shift'') requiring corporations 
with assets over $1 billion to be taxed more than they owe in 
year 2017, only to have such excess amounts paid refunded in 
2018. Senator Coburn contends this administrative burden for 
affected corporations serves no purpose other than ensuring 
PAYGO compliance since the legislative proposal does not offset 
costs of the package until year ten of the scoring window.
    During floor debate held on the morning of July 26, 2012, 
Senator Baucus confirmed\1\ that Senator Coburn filed an 
amendment proposing an alternative offset during the Finance 
Committee executive session held on July 18, 2012. The Coburn 
amendment filed during executive session proposed paying for 
costs of the bill by reducing spending by at least $200 million 
annually by eliminating, rescinding, consolidating, or 
streamlining government trade programs, tax benefits and 
agencies starting Fiscal Year 2013. Senator Coburn noted during 
his opening statement of executive session that he would not 
offer his alternative pay-for amendment because he was informed 
such amendment would be ruled out of order, and noted his 
opposition to the package on the basis of the offset.\2\ During 
floor debate held on the morning of July 26, 2012, Senator 
Baucus confirmed\3\ that he planned to rule the amendment filed 
by Senator Coburn during executive session as non-germane.
---------------------------------------------------------------------------
    \1\July 26, 2012 Senate floor proceeding, 1:28 mark, http://
www.senate.gov/floor/index.htm, accessed August 8, 2012.
    \2\Senate Committee on Finance, July 18, 2012 Executive Session to 
consider the Enforcing Orders and Reducing Customs Evasion (ENFORCE) 
Act; Citrus, Cotton, and Wool Trust Funds; African Growth and 
Opportunity Act (AGOA) Amendments, Dominican Republic-Central America-
United States Free Trade Agreement (CAFTA-DR) Technical Corrections, 
Burma Sanctions; and Russia Permanent Normal Trade Relations (PNTR) and 
Moldova PNTR, http://www.finance.senate.gov/hearings/hearing/
?id=12437dde095056-a032-5227-cd85d08834ed, 75:00 minute mark, accessed 
August 8, 2012.
    \3\July 26, 2012 Senate floor proceeding, 1:28 mark, http://
www.senate.gov/floor/index.htm, accessed August 8, 2012.
---------------------------------------------------------------------------
    On July 26, 2012, Senator Coburn asked for Unanimous 
Consent agreement that the Senate proceed to the immediate 
consideration of S. 3326, with an amendment to immediately pass 
the BFDA and CAFTA-DR. Senator Coburn asked for Unanimous 
Consent to pass BFDA and CAFTA-DR because neither piece of the 
underlying package result in costs needing to be offset, so as 
to avoid the expiration of BFDA on July 26, 2012, and to allow 
time for further negotiations on an alternative pay-for to the 
AGOA package prior to its expiration on September 30, 2012, or 
for an agreement to be reached resulting in floor time allowing 
for a vote on an amendment to provide for an alternative pay-
for. Senator Baucus objected to such Unanimous Consent 
agreement.
    Senator Coburn also spoke in favor of a Unanimous Consent 
agreement subsequently offered on the floor on July 26, 2012, 
by Minority Leader McConnell to immediately approve the annual 
Burma Sanctions bill prior to its expiration. Senator Baucus 
objected to such Unanimous Consent agreement.
    On August 2, 2012, pursuant to a unanimous consent 
agreement, the Senate voted on a Coburn amendment to S. 3326 
that would have substituted a different offset to pay for the 
AGOA portion of the bill. The Coburn amendment sought to offset 
the bill's $192 million costs in fiscal years (FYs 2012 and 
2013) by instructing OMB to produce such savings by 
eliminating, consolidating or streamlining federal programs and 
agencies with duplicative or overlapping missions related to 
trade. The Coburn amendment sought to achieve such savings 
through a combination of reduced spending as a result of 
streamlining of federal trade agencies and programs, and a 
rescission of unobligated FY 2012 funds from trade programs of 
the Department of Commerce, Small Business Administration, 
Export-Import Bank, Overseas Private Investment Corporation and 
the Trade Development Agency. The amendment was not agreed to 
by a vote of 40-58.
        V. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

THE AFRICAN GROWTH AND OPPORTUNITY ACT

           *       *       *       *       *       *       *

SEC. 112. TREATMENT OF CERTAIN TEXTILES AND APPAREL.

           *       *       *       *       *       *       *

    (c) Lesser Developed Countries.--
          (1) Preferential treatment of products through 
        September 30, [2012] 2015
                  (A) Products covered.--In addition to the 
                products described in subsection (b) of this 
                section the preferential treatment described in 
                subsection (a) of this section shall apply 
                through September 30, [2012] 2015, to apparel 
                articles wholly assembled, or knit-to-shape and 
                wholly assembled, or both, in one or more 
                lesser developed beneficiary sub-Saharan 
                African countries, regardless of the country of 
                origin of the fabric or the yarn used to make 
                such articles, in an amount not to exceed the 
                applicable percentage of the aggregate square 
                meter equivalents of all apparel articles 
                imported into the United States in the 
                preceding 12-month period for which data are 
                available.
                  (B) Applicable percentage.--

           *       *       *       *       *       *       *

                          iii. 3.5 percent for the 1-year 
                        period beginning on October 1, 2006, 
                        and each 1-year period thereafter 
                        through September 30, [2012] 2015.

           *       *       *       *       *       *       *

SEC. 107. SUB-SAHARAN AFRICA DEFINED.

    For purposes of this chapter, the terms ``sub-Saharan 
Africa'', ``sub-Saharan African country'', ``country in sub-
Saharan Africa'', and ``countries in sub-Saharan Africa'' refer 
to the following or any successor political entities:

           *       *       *       *       *       *       *

    Republic of South Africa (South Africa).
    Republic of South Sudan (South Sudan).

           *       *       *       *       *       *       *

SEC. 102. FINDINGS.

    Congress finds that--

           *       *       *       *       *       *       *

          (2) the [48] countries of sub-Saharan Africa form a 
        region richly endowed with both natural and human 
        resources;

           *       *       *       *       *       *       *

HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES

           *       *       *       *       *       *       *

    General Rules of Interpretation.--

           *       *       *       *       *       *       *

    29. Dominican Republic-Central America-United States Free 
Trade Agreement Implementation Act

           *       *       *       *       *       *       *

    (m) * * *

           *       *       *       *       *       *       *

          (viii) * * *
                  (A) * * *

           *       *       *       *       *       *       *

                          (2) a combination of the fibers and 
                        yarns listed in U.S. note 20 to such 
                        subchapter XXII and one or more fibers 
                        and yarns that originate under the 
                        terms of this note.
                The originating fibers and yarns referred to in 
                subdivision (A)(2) may contain up to 10 percent 
                by weight of fibers or yarns that do not 
                undergo an applicable change in tariff 
                classification set out in subdivision (n) of 
                this note. [Any elastomeric yarn contained in a 
                textile good of chapters 50 through 60 of the 
                tariff schedule must be formed in the territory 
                of one or more of the parties to the 
                Agreement.] Any elastomeric yarn (except latex) 
                contained in the originating yarns referred to 
                in subdivision (A)(2) must be formed in the 
                territory of one or more of the parties to the 
                Agreement.
                  (B) An apparel good of chapter 61 or 62 of 
                the tariff schedule and imported under heading 
                9822.05.01 of the tariff schedule shall be 
                considered originating if it is cut or knit to 
                shape, or both, and sewn or otherwise assembled 
                in the territory of one or more of the parties 
                to the Agreement, and if the fabric of the 
                outer shell, [exclusive of collars and cuffs 
                where applicable] exclusive of collars, cuffs 
                and ribbed waistbands (only if the ribbed 
                waistband is present in combination with cuffs 
                and identical in fabric construction to the 
                cuffs), is wholly of--
                          (1) one or more fabrics listed in 
                        U.S. note 20 to subchapter XXII of 
                        chapter 98; or
                          (2) one or more fabrics or knit to 
                        shape components formed in the 
                        territory of one or more of the parties 
                        to the Agreement from one or more of 
                        the yarns listed in U.S. note 20 to 
                        such subchapter XXII; or
                          (3) any combination of the fabrics 
                        referred to in subdivision (B)(1), the 
                        fabrics or knit to shape components 
                        referred to in subdivision (B)(2), or 
                        one or more fabrics or knit to shape 
                        components originating under this note.
                The originating fabrics referred to in 
                subdivision (B)(3) may contain up to 10 percent 
                by weight of fibers or yarns that do not 
                undergo an applicable change in tariff 
                classification set out in subdivision (n) of 
                this note. [Any elastomeric yarn contained in a 
                fabric referred to in subdivision (B)(1), 
                (B)(2) or (B)(3) must be formed in the 
                territory of one or more of the parties to the 
                Agreement.] Any elastomeric yarn (except latex) 
                contained in an originating fabric or knit to 
                shape component referred to in subdivision 
                (B)(3) must be formed in the territory of one 
                or more of the parties to the Agreement.
                  (C) A textile good of chapter 63 or 94 of the 
                tariff schedule and imported under heading 
                9822.05.01 of the tariff schedule shall be 
                considered originating if it is cut or knit to 
                shape, or both, and sewn or otherwise assembled 
                in the territory of one or more of the parties 
                to the Agreement, and if the component that 
                determines the tariff classification of the 
                good is wholly of--
                          (1) one or more fabrics listed in 
                        U.S. note 20 to subchapter XXII of 
                        chapter 98; or
                          (2) one or more fabrics or knit to 
                        shape components formed in the 
                        territory of one or more of the parties 
                        to the Agreement from one or more of 
                        the yarns listed in U.S. note 20 to 
                        such subchapter XXII; or
                          (3) any combination of the fabrics 
                        referred to in subdivision (C)(1), the 
                        fabrics or knit to shape components 
                        referred to in subdivision (C)(2) or 
                        one or more fabrics or knit to shape 
                        components originating under this note.
                The originating fabrics referred to in 
                subdivision (C)(3) may contain up to 10 percent 
                by weight of fibers or yarns that do not 
                undergo an applicable change in tariff 
                classification set out in subdivision (n) of 
                this note. [Any elastomeric yarn contained in a 
                fabric referred to in subdivision (C)(1), 
                (C)(2) or (C)(3) must be formed in the 
                territory of one or more of the parties to the 
                Agreement.] Any elastomeric yarn (except latex) 
                contained in an originating fabric or knit to 
                shape component referred to in subdivision 
                (C)(3) must be formed in the territory of one 
                or more of the parties to the Agreement.

           *       *       *       *       *       *       *

    (n) * * *

           *       *       *       *       *       *       *

    Chapter 61.

           *       *       *       *       *       *       *

    Chapter rule 4. Notwithstanding chapter rule 2 to this 
chapter, a good of this chapter, other than a good of 
subheading 6102.20, tariff item 6102.90.90 (for goods subject 
to cotton restraints), 6104.12.00 (for jackets imported as 
parts of suits), 6104.13.20, 6104.19.15, 6104.19.80 (for 
jackets imported as parts of suits and subject to cotton 
restraints or for goods subject to man-made fiber restraints), 
6104.22.00 (for garments described in heading 6102 or jackets 
and blazers described in heading 6104), 6104.29.20 (for 
garments described in heading 6102 or jackets and blazers 
described in heading 6104, the foregoing subject to cotton 
restraints), subheading 6104.32, tariff item 6104.39.20 (for 
goods subject to cotton restraints), 6112.11.00 (for women's or 
girls' garments described in headings 6101 or 6102), 6113.00.90 
(for coats and jackets of cotton, for women or girls) or 
6117.90.90 (for coats and jackets of cotton), containing sewing 
thread of heading 5204, [5401 or 5508] 5401, or 5508 or yarn of 
heading 5402 used as sewing thread shall be considered 
originating only if such sewing thread or yarn is both formed 
and finished in the territory of one or more of the parties to 
the Agreement.

           *       *       *       *       *       *       *

    Chapter rule 6: Notwithstanding chapter rules 1, 3, 4 or 5 
to this chapter, an apparel good of chapter 61 shall be 
considered originating regardless of the origin of any visible 
lining fabric described in chapter rule 1 to this chapter, 
narrow elastic fabrics as described in chapter rule 3 to this 
chapter, sewing thread or yarn of heading 5402 used as sewing 
thread described in chapter rule 4 to this chapter or pocket 
bag fabric described in chapter rule 5 to this chapter, 
provided such material is listed in U.S. note 20 to subchapter 
XXII of chapter 98 and the good meets all other applicable 
requirements for preferential tariff treatment under this note.
    Chapter 62.

           *       *       *       *       *       *       *

    Chapter rule 3. Notwithstanding chapter rule 2 to this 
chapter, a good of this chapter, other than--
    (a) a good of headings 6207 through 6208 (for boxers, 
pajamas, and [nightwear] sleepwear only),

           *       *       *       *       *       *       *

    Chapter rule 4. Notwithstanding chapter rule 2, a good of 
this chapter, other than--
    (a) a good of headings 6207 through 6208 (for boxers, 
pajamas, and [nightwear] sleepwear only), subheading 6204.23, 
6204.29, 6204.32, 6212.10, tariff item 6202.12.20, 6202.19.90 
(for goods subject to cotton restraints), 6202.91.20 (for goods 
for women), 6202.92.15, 6202.92.20 (other than padded, 
sleeveless jackets without attachments for sleeves), 
6202.93.45, 6202.99.90 (for goods subject to cotton 
restraints), 6203.39.90 (for goods subject to wool restraints), 
6204.12.00 (for jackets imported as parts of suits), 
6204.13.20, 6204.19.20, 6204.19.80 (for jackets imported as 
parts of suits and subject to cotton restraints, or for goods 
subject to man-made fiber restraints), 6204.22.30 (for garments 
described in heading 6202, or for jackets and blazers described 
in heading 6204), 6204.33.20, 6204.39.80, 6204.42.30 (for 
garments for girls, other than of corduroy), 6204.43.40 (for 
garments for girls), 6204.44.40 (for garments for girls), 
6205.20.20 (for dress shirts for men, with two or more colors 
in the warp and/or the filling, each with collar and sleeve 
size stated in inches, without dual collar sizing, the 
foregoing individually packaged with chipboards, pins, jett 
clips, individual polybags and hang tags ready for retail 
sale), 6205.30.20 (for dress shirts for men, with two or more 
colors in the warp and/or the filling, each with collar and 
sleeve size stated in inches, without dual collar sizing, the 
foregoing individually packaged with chipboards, pins, jett 
clips, individual polybags and hang tags each for retail sale), 
6209.20.10, 6210.30.90 (for garments other than of linen), 
6210.50.90 (for anoraks), 6211.20.15 (for anoraks (including 
ski-jackets), windbreakers, and similar articles (including 
padded, sleeveless jackets), for women or girls, of cotton, 
imported as parts of ski suits), 6211.20.58 (for goods of 
cotton), 6211.41.00 (for jackets and jacket type garments 
excluded from heading 6202), 6211.42.00 (for track suits, other 
than trousers, or for jackets and jacket-type garments excluded 
from heading 6202) or 6217.90.90 (for coats and jackets, of 
cotton); or
    (b) men's and boys' and women's and girls' suits, trousers, 
suit-type jackets and blazers, vests and women's and girls' 
skirts of wool fabric, of subheadings 6203.11, 6203.31, 
6203.41, 6204.11, 6204.31, 6204.51, 6204.61, 6211.39 or 
6211.41, provided that such goods are not made of carded wool 
fabric or made from wool yarn having an average fiber diameter 
of less than or equal to 18.5 microns,

containing sewing thread of heading 5204, [5401 or 5508] 5401, 
or 5508 or yarn of heading 5402 used as sewing thread shall be 
considered originating only if such sewing thread or yarn is 
both formed and finished in the territory of one or more of the 
parties to the Agreement.
    Chapter rule 5. Notwithstanding chapter rule 2, a good of 
this chapter, other than--
    (a) a good of headings 6207 through 6208 (for boxers, 
pajamas, and [nightwear] sleepwear only),

           *       *       *       *       *       *       *

    Chapter rule 6: Notwithstanding chapter rules 1, 3, 4 or 5 
to this chapter, an apparel good of chapter 62 shall be 
considered originating regardless of the origin of any visible 
lining fabric described in chapter rule 1 to this chapter, 
narrow elastic fabrics as described in chapter rule 3 to this 
chapter, sewing thread or yarn of heading 5402 used as sewing 
thread described in chapter rule 4 to this chapter or pocket 
bag fabric described in chapter rule 5, provided such material 
is listed in U.S. note 20 to subchapter XXII of chapter 98 and 
the good meets all other applicable requirements for 
preferential tariff treatment under this note.

           *       *       *       *       *       *       *

    33. [A change to pajamas and nightwear of subheadings 
6207.21 or 6207.22, tariff items 6207.91.30 or 6207.92.40 or 
subheadings 6208.21 or 6208.22 from any other chapter, provided 
that the good is cut or knit to shape, or both, and sewn or 
otherwise assembled in the territory of one or more of the 
parties to the Agreement.] A change to pajamas and sleepwear of 
subheadings 6207.21 or 6207.22, tariff items 6207.91.30 or 
6207.92.40, subheadings 6208.21 or 6208.22 or tariff items 
6208.91.30, 6208.92.00 or 6208.99.20 from any other chapter, 
provided that the good is cut or knit to shape, or both, and 
sewn or otherwise assembled in the territory of one or more of 
the parties to the Agreement.

           *       *       *       *       *       *       *

    Chapter 63.

           *       *       *       *       *       *       *

    Chapter rule 2: Notwithstanding chapter rule 1 to this 
chapter, a good of this chapter containing sewing thread of 
headings 5204, [5401 or 5508] 5401, or 5508 or yarn of heading 
5402 used as sewing thread shall be considered originating only 
if such sewing thread or yarn is wholly formed in the territory 
of one or more of the parties to the Agreement.
    Chapter rule 3: Notwithstanding chapter rule 2 to this 
chapter, a good of this chapter shall be considered originating 
regardless of the origin of sewing thread or yarn of heading 
5402 used as sewing thread described in chapter rule 2 to this 
chapter, provided the thread or yarn is listed in U.S. note 20 
to subchapter XXII of chapter 98 and the good meets all other 
applicable requirements for preferential tariff treatment under 
this note. 

BURMESE FREEDOM AND DEMOCRACY ACT OF 2003

           *       *       *       *       *       *       *

SEC. 9. DURATION OF SANCTIONS.

           *       *       *       *       *       *       *

          (3) Limitation.--The import restrictions contained in 
        section 3(a)(1) may be renewed for a maximum of [nine 
        years] twelve years from the date of the enactment of 
        this Act.

           *       *       *       *       *       *       *

CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 1985

           *       *       *       *       *       *       *

                        TITLE 19--CUSTOMS DUTIES

CHAPTER 1--COLLECTION DISTRICTS, PORTS, AND OFFICERS

           *       *       *       *       *       *       *

SEC. 58C. FEES FOR CERTAIN CUSTOMS SERVICES.

    (a) Schedule of Fees.--

           *       *       *       *       *       *       *

    (j) Effective Dates.--
          (1) * * *
          (2) * * *
          (3)(A) Fees may not be charged under paragraphs (9) 
        and (10) of subsection (a) of this section after 
        [August 2, 2021] October 22, 2021.
          (B)(i) Subject to clause (ii), Fees may not be 
        charged under paragraphs (1) through (8) of subsection 
        (a) of this section after [December 8, 2020] October 
        29, 2021.

           *       *       *       *       *       *       *

          [(C)(i) Notwithstanding subparagraph (A), fees may be 
        charged under paragraphs (9) and (10) of subsection (a) 
        during the period beginning on August 3, 2021, and 
        ending on September 30, 2021.]
          [(ii) Notwithstanding subparagraph (B)(i), fees may 
        be charged under paragraphs (1) through (8) of 
        subsection (a) during the period beginning on December 
        9, 2020, and ending on August 31, 2021.]
          [(D) Notwithstanding subparagraph (B)(i), fees may be 
        charged under paragraphs (1) through (8) of subsection 
        (a) during the period beginning on September 1, 2021, 
        and ending on September 30, 2021.]

                                  
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