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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1267 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1267

    To strengthen United States trade laws, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 23, 2011

Mr. Rockefeller introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
    To strengthen United States trade laws, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Strengthening 
America's Trade Laws Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--DISPUTE SETTLEMENT

             Subtitle A--Findings, Purpose, and Definitions

Sec. 101. Congressional findings and purpose.
Sec. 102. Definitions.
           Subtitle B--Participation in WTO Panel Proceedings

Sec. 111. Participation in WTO panel proceedings.
Subtitle C--Congressional Advisory Commission on WTO Dispute Settlement

Sec. 121. Establishment of Commission.
Sec. 122. Duties of the Commission.
Sec. 123. Powers of the Commission.
  Subtitle D--Congressional Approval of Regulatory Action Relating to 
                         Adverse WTO Decisions

Sec. 131. Congressional approval of regulatory actions relating to 
                            adverse WTO decisions.
      Subtitle E--Clarification of Rights and Obligations Through 
                              Negotiations

Sec. 141. Clarification of rights and obligations in the WTO through 
                            negotiations.
    TITLE II--STRENGTHENING ANTIDUMPING AND COUNTERVAILING DUTY LAWS

Sec. 201. Export price and constructed export price.
Sec. 202. Nonmarket economy methodology.
Sec. 203. Determinations on the basis of facts available.
Sec. 204. Clarification of determination of material injury.
Sec. 205. Revocation of nonmarket economy country status.
     TITLE III--EXPANSION OF APPLICABILITY OF COUNTERVAILING DUTIES

Sec. 301. Application of countervailing duties to nonmarket economy 
                            countries and strengthening application of 
                            the law.
Sec. 302. Treatment of exchange-rate manipulation as countervailable 
                            subsidy under Title VII of the Tariff Act 
                            of 1930.
Sec. 303. Affirmation of negotiating objective on border taxes.
Sec. 304. Presidential certification; application of countervailing 
                            duty law.
 TITLE IV--LIMITATION ON PRESIDENTIAL DISCRETION IN ADDRESSING MARKET 
                               DISRUPTION

Sec. 401. Standard for presidential action on ITC finding of market 
                            disruption.
 TITLE V--STRENGTHENING ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS AT 
                              U.S. BORDERS

Subtitle A--Coordination of Enforcement of Intellectual Property Rights

Sec. 501. Definitions.
Sec. 502. Director of Intellectual Property Rights Enforcement.
Sec. 503. Strategic plan for the enforcement of intellectual property 
                            rights.
Sec. 504. CBP and ICE coordinators.
 Subtitle B--Regulatory and Policy Improvements Against Counterfeiting 
                               and Piracy

Sec. 511. In general.
Sec. 512. Identification of certain unlawful goods.
Sec. 513. Training in new technologies.
Sec. 514. Disclosure of information and samples of shipments to 
                            intellectual property owners.
Sec. 515. Improvements to recordation process.
Sec. 516. Identification of low-risk shippers.
Sec. 517. ``Watch List'' database.
Sec. 518. Civil fines for importation of pirated or counterfeit goods.
                   Subtitle C--Training Enhancements

Sec. 521. International training and technical assistance enhancements.
           Subtitle D--New Legal Tools for Border Enforcement

Sec. 531. Expanded prohibitions on importation or exportation of 
                            counterfeit or pirated goods.
Sec. 532. Declarations regarding counterfeit and infringing 
                            merchandise.
                    Subtitle E--Regulatory Authority

Sec. 541. Regulatory authority.
                        TITLE VI--MISCELLANEOUS

Sec. 601. Application to Canada and Mexico.

                      TITLE I--DISPUTE SETTLEMENT

             Subtitle A--Findings, Purpose, and Definitions

SEC. 101. CONGRESSIONAL FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) The United States joined the World Trade Organization 
        as an original member with the goal of creating an improved 
        global trading system and providing expanded economic 
        opportunities for United States workers, farmers, and 
        businesses.
            (2) The dispute settlement rules of the WTO were created to 
        enhance the likelihood that governments will observe their WTO 
        obligations.
            (3) Successful operation of the WTO dispute settlement 
        system was critical to congressional approval of the Uruguay 
        Round Agreements and is critical to continued support by the 
        United States for the WTO. In particular, it is imperative that 
        dispute settlement panels and the Appellate Body--
                    (A) operate with fairness and in an impartial 
                manner;
                    (B) strictly observe the terms of reference and any 
                applicable standard of review set forth in the Uruguay 
                Round Agreements; and
                    (C) not add to the obligations, or diminish the 
                rights, of WTO members under the Uruguay Round 
                Agreements in violation of Articles 3.2 and 19.2 of the 
                Dispute Settlement Understanding.
            (4) An increasing number of reports by dispute settlement 
        panels and the Appellate Body have raised serious concerns 
        within the Congress about the ability of the WTO dispute 
        settlement system to operate in accordance with paragraph (3).
            (5) In particular, several reports of dispute settlement 
        panels and the Appellate Body have added to the obligations and 
        diminished the rights of WTO members, particularly under the 
        Agreement on Implementation of Article VI of the General 
        Agreement on Tariffs and Trade 1994, the Agreement on Subsidies 
        and Countervailing Measures, and the Agreement on Safeguards.
            (6) In order to come into compliance with reports of 
        dispute settlement panels and the Appellate Body that have been 
        adopted by the Dispute Settlement Body, the Congress may need 
        to amend or repeal statutes of the United States. In such 
        cases, the Congress must have a high degree of confidence that 
        the reports are in accordance with paragraph (3).
            (7) The Congress needs impartial, objective, and juridical 
        advice to determine the appropriate response to reports of 
        dispute settlement panels and the Appellate Body.
            (8) The United States remains committed to the 
        multilateral, rules-based trading system.
    (b) Purpose.--It is the purpose of this subtitle to provide for the 
establishment of the Congressional Advisory Commission on WTO Dispute 
Settlement to provide objective and impartial advice to the Congress on 
the operation of the dispute settlement system of the World Trade 
Organization.

SEC. 102. DEFINITIONS.

    In this title:
            (1) Adverse finding.--The term ``adverse finding'' means--
                    (A) in a proceeding of a dispute settlement panel 
                or the Appellate Body that is initiated against the 
                United States, a finding by the panel or the Appellate 
                Body that any law, regulation, practice, or 
                interpretation of the United States, or any State, is 
                inconsistent with the obligations of the United States 
                under a Uruguay Round Agreement (or nullifies or 
                impairs benefits accruing to a WTO member under such an 
                Agreement); or
                    (B) in a proceeding of a panel or the Appellate 
                Body in which the United States is a complaining party, 
                any finding by the panel or the Appellate Body that a 
                measure of the party complained against is not 
                inconsistent with that party's obligations under a 
                Uruguay Round Agreement (or does not nullify or impair 
                benefits accruing to the United States under such an 
                Agreement).
            (2) Appellate body.--The term ``Appellate Body'' means the 
        Appellate Body established by the Dispute Settlement Body 
        pursuant to Article 17.1 of the Dispute Settlement 
        Understanding.
            (3) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives.
            (4) Dispute settlement body.--The term ``Dispute Settlement 
        Body'' means the Dispute Settlement Body established pursuant 
        to the Dispute Settlement Understanding.
            (5) Dispute settlement panel; panel.--The terms ``dispute 
        settlement panel'' and ``panel'' mean a panel established 
        pursuant to Article 6 of the Dispute Settlement Understanding.
            (6) Dispute settlement understanding.--The term ``Dispute 
        Settlement Understanding'' means the Understanding on Rules and 
        Procedures Governing the Settlement of Disputes referred to in 
        section 101(d)(16) of the Uruguay Round Agreements Act (19 
        U.S.C. 3511(d)(16)).
            (7) Terms of reference.--The term ``terms of reference'' 
        has the meaning given that term in the Dispute Settlement 
        Understanding.
            (8) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.
            (9) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien admitted 
                for permanent residence into the United States; and
                    (B) a corporation, partnership, labor organization, 
                or other legal entity organized under the laws of the 
                United States or of any State, the District of 
                Columbia, or any commonwealth, territory, or possession 
                of the United States.
            (10) Uruguay round agreement.--The term ``Uruguay Round 
        Agreement'' means any of the Agreements described in section 
        101(d) of the Uruguay Round Agreements Act.
            (11) World trade organization; wto.--The terms ``World 
        Trade Organization'' and ``WTO'' mean the organization 
        established pursuant to the WTO Agreement.
            (12) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
            (13) WTO member.--The term ``WTO member'' has the meaning 
        given that term in section 2(10) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3501(10)).

           Subtitle B--Participation in WTO Panel Proceedings

SEC. 111. PARTICIPATION IN WTO PANEL PROCEEDINGS.

    (a) In General.--If the Trade Representative, in proceedings before 
a dispute settlement panel or the Appellate Body of the WTO, seeks--
            (1) to enforce United States rights under a multilateral 
        trade agreement, or
            (2) to defend an action or determination of the United 
        States Government that is challenged,
a United States person that is supportive of the United States 
Government's position before the panel or Appellate Body and that has a 
direct economic interest in the panel's or Appellate Body's resolution 
of the matters in dispute shall be permitted to participate in 
consultations and panel or Appellate Body proceedings. The Trade 
Representative shall issue regulations, consistent with subsections (b) 
and (c), ensuring full and effective participation by any such person.
    (b) Access to Information.--The Trade Representative shall make 
available to persons described in subsection (a) all information 
presented to or otherwise obtained by the Trade Representative in 
connection with the WTO dispute settlement proceeding in which such 
persons are participating. The Trade Representative shall promulgate 
regulations to protect information designated as confidential in the 
proceeding.
    (c) Participation in Panel Process.--Upon request from a person 
described in subsection (a), the Trade Representative shall--
            (1) consult in advance with such person regarding the 
        content of written submissions from the United States to the 
        panel or Appellate Body concerned or to the other member 
        countries involved;
            (2) include, if appropriate, such person or the person's 
        appropriate representative as an advisory member of the 
        delegation in sessions of the dispute settlement panel or 
        Appellate Body;
            (3) allow such person, if such person would bring special 
        knowledge to the proceeding, to appear before the panel or 
        Appellate Body, directly or through counsel, under the 
        supervision of responsible United States Government officials; 
        and
            (4) in proceedings involving confidential information, 
        allow the appearance of such person only through counsel as a 
        member of the special delegation.

Subtitle C--Congressional Advisory Commission on WTO Dispute Settlement

SEC. 121. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the Congressional Advisory Commission on WTO Dispute Settlement (in 
this subtitle referred to as the ``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 5 
        members, all of whom shall be judges or former judges of the 
        Federal judicial circuits and shall be appointed by the Speaker 
        of the House of Representatives and the President pro tempore 
        of the Senate after considering the recommendations of the 
        Chairman and ranking member of each of the appropriate 
        congressional committees. Commissioners shall be chosen without 
        regard to political affiliation and solely on the basis of each 
        Commissioner's fitness to perform the duties of a Commissioner.
            (2) Date.--The appointments of the initial members of the 
        Commission shall be made not later than 90 days after the date 
        of the enactment of this Act.
    (c) Period of Appointment; Vacancies.--
            (1) In general.--Members of the Commission shall each be 
        appointed for a term of 5 years, except that of the members 
        first appointed, 3 members shall each be appointed for a term 
        of 3 years.
            (2) Vacancies.--
                    (A) In general.--Any vacancy on the Commission 
                shall not affect its powers, but shall be filled in the 
                same manner in which the original appointment was made 
                and shall be subject to the same conditions as the 
                original appointment.
                    (B) Unexpired term.--An individual chosen to fill a 
                vacancy shall be appointed for the unexpired term of 
                the member replaced.
    (d) Initial Meeting.--Not later than 30 days after the date on 
which all members of the Commission have been appointed, the Commission 
shall hold its first meeting.
    (e) Meetings.--Except for the initial meeting, the Commission shall 
meet at the call of the Chairperson.
    (f) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.
    (g) Chairperson and Vice Chairperson.--The Commission shall select 
a Chairperson and Vice Chairperson from among its members.
    (h) Funding.--Members of the Commission shall be allowed travel 
expenses, including per diem in lieu of subsistence at rates authorized 
for employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Commission.

SEC. 122. DUTIES OF THE COMMISSION.

    (a) Advising the Congress on the Operation of the WTO Dispute 
Settlement System.--
            (1) In general.--The Commission shall review--
                    (A) all adverse findings that are--
                            (i) adopted by the Dispute Settlement Body; 
                        and
                            (ii) the result of a proceeding initiated 
                        against the United States by a WTO member; and
                    (B) upon the request of either of the appropriate 
                congressional committees--
                            (i) any adverse finding of a dispute 
                        settlement panel or the Appellate Body--
                                    (I) that is adopted by the Dispute 
                                Settlement Body; and
                                    (II) in which the United States is 
                                a complaining party; or
                            (ii) any other finding that is contained in 
                        a report of a dispute settlement panel or the 
                        Appellate Body that is adopted by the Dispute 
                        Settlement Body.
            (2) Scope of review.--The Commission shall advise the 
        Congress in connection with each adverse finding under 
        paragraph (1)(A) or (1)(B)(i) or other finding under paragraph 
        (1)(B)(ii) on--
                    (A) whether the dispute settlement panel or the 
                Appellate Body, as the case may be--
                            (i) exceeded its authority or its terms of 
                        reference;
                            (ii) added to the obligations, or 
                        diminished the rights, of the United States 
                        under the Uruguay Round Agreement that is the 
                        subject of the finding;
                            (iii) acted arbitrarily or capriciously, 
                        engaged in misconduct, or demonstrably departed 
                        from the procedures specified for panels and 
                        the Appellate Body in the applicable Uruguay 
                        Round Agreement; or
                            (iv) deviated from the applicable standard 
                        of review, including in antidumping, 
                        countervailing duty, and other trade remedy 
                        cases, the standard of review set forth in 
                        Article 17.6 of the Agreement on Implementation 
                        of Article VI of the General Agreement on 
                        Tariffs and Trade 1994; and
                    (B) whether the finding is consistent with the 
                original understanding by the United States of the 
                Uruguay Round Agreement that is the subject of the 
                finding as explained in the statement of administrative 
                action approved under section 101(a) of the Uruguay 
                Round Agreements Act (19 U.S.C. 3511(a)).
            (3) No deference.--In advising the Congress under paragraph 
        (2), the Commission shall not accord deference to findings of 
        law made by the dispute settlement panel or the Appellate Body, 
        as the case may be.
    (b) Determination; Report.--
            (1) Determination.--
                    (A) In general.--Not later than 150 days after the 
                date on which the Commission receives notice of a 
                report or request under section 123(b), the Commission 
                shall make a written determination with respect to the 
                matters described in paragraph (2) of subsection (a), 
                including a full analysis of the basis for its 
                determination. A vote by a majority of the members of 
                the Commission shall constitute a determination of the 
                Commission, although the members need not agree on the 
                basis for their vote.
                    (B) Dissenting or concurring opinions.--Any member 
                of the Commission who disagrees with a determination of 
                the Commission or who concurs in such a determination 
                on a basis different from that of the Commission or 
                other members of the Commission, may write an opinion 
                expressing such disagreement or concurrence, as the 
                case may be.
            (2) Report.--The Commission shall promptly report the 
        determinations described in paragraph (1)(A) to the appropriate 
        congressional committees. The Commission shall include with the 
        report any opinions written under paragraph (1)(B) with respect 
        to the determination.
    (c) Availability to the Public.--Each report of the Commission 
under subsection (b)(2), together with the opinions included with the 
report, shall be made available to the public.

SEC. 123. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold a public hearing to solicit 
views concerning an adverse finding or other finding described in 
section 122(a)(1), if the Commission considers such hearing to be 
necessary to carry out the purpose of this subtitle. The Commission 
shall provide reasonable notice of a hearing held pursuant to this 
subsection.
    (b) Information From Interested Parties and Federal Agencies.--
            (1) Notice to commission.--
                    (A) Under section 122(a)(1)(A).--The Trade 
                Representative shall advise the Commission not later 
                than 5 business days after the date the Dispute 
                Settlement Body adopts an adverse finding that is to be 
                reviewed by the Commission under section 122(a)(1)(A).
                    (B) Under section 122(a)(1)(B).--Either of the 
                appropriate congressional committees may make and 
                notify the Commission of a request under section 
                122(a)(1)(B) not later than 1 year after the Dispute 
                Settlement Body adopts the adverse finding or other 
                finding that is the subject of the request.
                    (C) Findings adopted prior to appointment of 
                commission.--With respect to any adverse finding or 
                other finding to which section 122(a)(1)(B) applies and 
                that is adopted before the date on which the first 
                members of the Commission are appointed under section 
                121(b)(2), either of the appropriate congressional 
                committees may make and notify the Commission of a 
                request under section 122(a)(1)(B) with respect to the 
                adverse finding or other finding not later than 1 year 
                after the date on which the first members of the 
                Commission are appointed under section 121(b)(2).
            (2) Submissions and requests for information.--
                    (A) In general.--The Commission shall promptly 
                publish in the Federal Register notice of--
                            (i) the notice received under paragraph (1) 
                        from the Trade Representative or either of the 
                        appropriate congressional committees; and
                            (ii) an opportunity for interested parties 
                        to submit written comments to the Commission.
                    (B) Comments available to public.--The Commission 
                shall make comments submitted pursuant to subparagraph 
                (A)(ii) available to the public.
                    (C) Information from federal agencies and 
                departments.--The Commission may secure directly from 
                any Federal department or agency such information as 
                the Commission considers necessary to carry out the 
                provisions of this subtitle. Upon the request of the 
                chairperson of the Commission, the head of such 
                department or agency shall furnish the information 
                requested to the Commission in a timely manner.
            (3) Access to panel and appellate body documents.--
                    (A) In general.--The Trade Representative shall 
                make available to the Commission all submissions and 
                relevant documents relating to an adverse finding 
                described in section 122(a)(1), including any 
                information contained in such submissions and relevant 
                documents identified by the provider of the information 
                as proprietary information or information designated as 
                confidential by a foreign government.
                    (B) Public access.--Any document that the Trade 
                Representative submits to the Commission shall be 
                available to the public, except information that is 
                identified as proprietary or confidential or the 
                disclosure of which would otherwise violate the rules 
                of the WTO.
    (c) Assistance From Federal Agencies; Confidentiality.--
            (1) Administrative assistance.--Any agency or department of 
        the United States that is designated by the President shall 
        provide administrative services, funds, facilities, staff, or 
        other support services to the Commission to assist the 
        Commission with the performance of the Commission's functions.
            (2) Confidentiality.--
                    (A) Documents and information from agencies.--The 
                Commission shall protect from disclosure any document 
                or information submitted to it by a department or 
                agency of the United States that the agency or 
                department requests be kept confidential.
                    (B) Disclosure of documents and information of 
                commission.--The Commission shall not be considered to 
                be an agency for purposes of section 552 of title 5, 
                United States Code.

  Subtitle D--Congressional Approval of Regulatory Action Relating to 
                         Adverse WTO Decisions

SEC. 131. CONGRESSIONAL APPROVAL OF REGULATORY ACTIONS RELATING TO 
              ADVERSE WTO DECISIONS.

    (a) In General.--Section 123(g) of the Uruguay Round Agreements Act 
(19 U.S.C. 3533(g)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (E), by striking ``and'';
                    (B) by redesignating subparagraph (F) as 
                subparagraph (H); and
                    (C) by inserting after subparagraph (E) the 
                following new subparagraphs:
                    ``(F) the appropriate congressional committees have 
                received the report on the determinations of the 
                Congressional Advisory Commission on WTO Dispute 
                Settlement under section 122(b)(2) of the Strengthening 
                America's Trade Laws Act with respect to the relevant 
                dispute settlement panel or Appellate Body decision;
                    ``(G) a joint resolution, described in paragraph 
                (2), approving the proposed modification or final rule 
                is enacted into law after the appropriate congressional 
                committees receive the report on the determinations of 
                the Congressional Advisory Commission on WTO Dispute 
                Settlement under section 122(b)(2) of the Strengthening 
                America's Trade Laws Act; and''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2) Joint resolution to approve modification in agency 
        regulation or practice.--
                    ``(A) In general.--For the purposes of paragraph 
                (1)(G), a joint resolution is a joint resolution of the 
                2 Houses of the Congress, the matter after the 
                resolving clause of which is as follows: `That the 
                Congress approves the modifications to the regulation 
                or practice of the United States proposed in a report 
                submitted to the Congress under subparagraph (D) or (F) 
                of section 123(g)(1) of the Uruguay Round Agreements 
                Act (19 U.S.C. 3533(g)(1) (D) and (F)) on _______, 
                relating to ______.', with the first blank space being 
                filled with the date on which the report is submitted 
                to the Congress and the second blank space being filled 
                with the specific modification proposed to the 
                regulation or practice of the United States.
                    ``(B) Procedural provisions.--The procedural 
                provisions of subsections (d) through (i) of section 
                206 of the Strengthening America's Trade Laws Act shall 
                apply to a joint resolution described in subparagraph 
                (A).''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Modifications made between january 1, 2007, and the 
        date of the enactment of this act.--
                    (A) In general.--Modifications to any regulation or 
                practice of a department or agency of the United States 
                made pursuant to the provisions of section 123(g) of 
                the Uruguay Round Agreements Act (19 U.S.C. 3533(g)) 
                that became effective on or after January 1, 2007, and 
                before the date of the enactment of this Act, shall be 
                suspended upon the enactment of this Act and have no 
                effect.
                    (B) Approval of modifications.--On or after the 
                date of the enactment of this Act, the Trade 
                Representative and the head of the department or agency 
                within whose jurisdiction the modification described in 
                subparagraph (A) falls may seek approval of such 
                modification pursuant to the procedures set out in 
                section 123(g)(1) of the Uruguay Round Agreements Act 
                (19 U.S.C. 3533(g)(1)), as amended by subsection (a).

      Subtitle E--Clarification of Rights and Obligations Through 
                              Negotiations

SEC. 141. CLARIFICATION OF RIGHTS AND OBLIGATIONS IN THE WTO THROUGH 
              NEGOTIATIONS.

    (a) In General.--After an adverse finding, the United States shall 
work within the World Trade Organization to obtain clarification of the 
Uruguay Round Agreement to which the adverse finding applies to conform 
the Agreement to the understanding of the United States regarding the 
rights and obligations of the United States and shall not modify the 
law, regulation, practice, or interpretation of the United States in 
response to the adverse finding if--
            (1) the United States has stated at the Dispute Settlement 
        Body that the adverse finding has created obligations never 
        agreed to by the United States;
            (2) either of the appropriate congressional committees by 
        resolution finds that the adverse finding has created 
        obligations never agreed to by the United States; or
            (3) the Congressional Advisory Commission on WTO Dispute 
        Resolution makes a determination under section 122(a)(2)(A)(ii) 
        that the adverse finding has created obligations never agreed 
        to by the United States.
    (b) Applicability.--
            (1) In general.--This section shall apply to any adverse 
        finding on or after January 1, 2002.
            (2) Effect on modification of regulation, practice, or 
        interpretation adopted before enactment of this act.--
                    (A) In general.--Any agency that modified a 
                regulation, practice, or interpretation in response to 
                an adverse finding between January 1, 2002, and the 
                date of the enactment of this Act shall provide notice 
                that the modification shall cease to have force and 
                effect on the date that is 30 days after the date of 
                the enactment of this Act and such modification shall 
                cease to have force and effect on such date.
                    (B) Applicability in trade remedy cases.--The 
                cessation of the force and effect of the modification 
                described in subparagraph (A) shall apply with respect 
                to--
                            (i) investigations initiated--
                                    (I) on the basis of petitions filed 
                                under section 702(b), 732(b), or 783(a) 
                                of the Tariff Act of 1930 (19 U.S.C. 
                                1671a(b), 1673a(b), and 1677n(a)) or 
                                section 202(a), 221, 251(a), or 292(a) 
                                of the Trade Act of 1974 (19 U.S.C. 
                                2252(a), 2271, 2341(a), and 2401a(a)) 
                                after the date on which the 
                                modification ceases to have force and 
                                effect under subparagraph (A);
                                    (II) by the administering authority 
                                under section 702(a) or 732(a) of the 
                                Tariff Act of 1930 (19 U.S.C. 1671a(a) 
                                and 1673a(a)) after such date; or
                                    (III) under section 753 of the 
                                Tariff Act of 1930 (19 U.S.C. 1675b) 
                                after such date;
                            (ii) reviews initiated under section 751 of 
                        the Tariff Act of 1930 (19 U.S.C. 1675)--
                                    (I) by the administering authority 
                                or the International Trade Commission 
                                on their own initiative after such 
                                date; or
                                    (II) pursuant to a request filed 
                                after such date; and
                            (iii) all proceedings conducted under 
                        section 129 of the Uruguay Round Agreements Act 
                        (19 U.S.C. 3538) commenced after such date.
            (3) Effect on prior statutory changes.--
                    (A) In general.--Paragraph (2)(A) shall not apply 
                to modifications to statutes of the United States made 
                in response to adverse findings.
                    (B) Clarification of united states rights.--If a 
                statute of the United States has been modified in 
                response to an adverse finding, the United States shall 
                obtain clarification of the rights and obligations of 
                the United States affected by the adverse finding 
                pursuant to subsection (a).

    TITLE II--STRENGTHENING ANTIDUMPING AND COUNTERVAILING DUTY LAWS

SEC. 201. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE.

    Section 772(c)(2)(A) of the Tariff Act of 1930 (19 U.S.C. 
1677a(c)(2)(A)) is amended by inserting ``(including antidumping and 
countervailing duties imposed under this title)'' after ``duties''.

SEC. 202. NONMARKET ECONOMY METHODOLOGY.

    Section 773(c)(4) of the Tariff Act of 1930 (19 U.S.C. 1677b(c)(4)) 
is amended to read as follows:
            ``(4) Valuation of factors of production.--
                    ``(A) In general.--The administering authority, in 
                valuing factors of production under paragraph (1), 
                shall utilize, to the extent possible, the prices or 
                costs of factors of production in one or more market 
                economy countries that are--
                            ``(i) at a level of economic development 
                        comparable to that of the nonmarket economy 
                        country; and
                            ``(ii) significant producers of comparable 
                        merchandise.
                In this paragraph, the term `surrogate' refers to the 
                values, calculations, and market economy countries used 
                under this subparagraph.
                    ``(B) Valuing materials used in production.--In 
                determining the value of materials used in production 
                under subparagraph (A), the following applies:
                            ``(i) The administering authority may use 
                        the value of inputs that are purchased from 
                        market economy suppliers and are not suspected 
                        of being dumped or subsidized, only for the 
                        quantity of such purchases.
                            ``(ii) All materials purchased or otherwise 
                        obtained from nonmarket economy countries shall 
                        be valued using surrogate values under 
                        subparagraph (A).
                            ``(iii) A purchased material shall be 
                        viewed as suspected of being subsidized if 
                        there are any affirmative findings by the 
                        United States or another WTO member of export 
                        subsidy programs in the supplying country.
                            ``(iv) A purchased material shall be viewed 
                        as suspected of being dumped if there are any 
                        affirmative findings by the United States or 
                        other WTO member of dumping in the general 
                        category of merchandise, or if information 
                        supplied by the petitioner or otherwise of 
                        record suggests significant underpricing to the 
                        purchaser in the nonmarket economy country.
                            ``(v) Surrogate values for materials from a 
                        market economy country shall be disregarded as 
                        not reflective of prices in that surrogate 
                        market only if prices in that market are viewed 
                        as aberrational, such as a case in which prices 
                        undersell or exceed any reported price in that 
                        surrogate market by a large amount.
                            ``(vi) There shall be a presumption that 
                        the administering authority will include all 
                        market prices from a surrogate market. Prices 
                        that are high or low shall be excluded only 
                        when it is demonstrated that the prices are not 
                        reflective of prices in the surrogate country 
                        for the relevant category of merchandise.
                            ``(vii) If amounts pertaining to the cost 
                        of production of imports into a surrogate 
                        country from market economy suppliers are used 
                        for valuing the materials used, such amounts 
                        shall be valued on the basis of CIF (cost, 
                        insurance, and freight), plus duties paid, to 
                        provide a proxy for prices in the surrogate 
                        country competing with locally produced goods. 
                        Such values shall not be reduced by the import 
                        duties.
                    ``(C) Valuing labor.--
                            ``(i) The administering authority may use 
                        an average of wage rates for market economies, 
                        but shall ensure that labor rates used fully 
                        reflect all labor costs, including benefits, 
                        health care, and pension costs.
                            ``(ii) Labor shall be the total labor 
                        employed by a nonmarket economy country 
                        producer or used by a nonmarket economy country 
                        producer in the overall business, with 
                        allocations to other merchandise produced or 
                        sold by that producer that is not subject 
                        merchandise.
                            ``(iii) Labor shall reflect the average 
                        labor for all other producers in the nonmarket 
                        economy country that are producing the 
                        particular merchandise subject to investigation 
                        or review, and shall not be limited to 
                        operations used for export.
                    ``(D) Valuing factory overhead, selling, general, 
                and administrative expenses, and profit.--
                            ``(i) In general.--The administering 
                        authority shall use the best information 
                        available with respect to likely values of 
                        factory overhead, selling, general, and 
                        administrative expenses, and profit from a 
                        surrogate country. If the values determined 
                        under subparagraphs (B) and (C) for materials 
                        used and labor consumed result in amounts that 
                        are demonstrably larger or smaller than the 
                        amounts used in determining surrogate ratios 
                        from financial or other reports from a 
                        surrogate country, adjustments shall be made to 
                        the ratios to reflect fully the level of such 
                        costs and profits in the surrogate country on a 
                        per item produced basis.
                            ``(ii) Ratios defined.--For purposes of 
                        this subparagraph, the term `ratios' means--
                                    ``(I) the ratio of factory overhead 
                                to labor, materials, and energy;
                                    ``(II) the ratio of selling, 
                                general, and administrative costs to 
                                factory overhead, labor, materials, and 
                                energy; and
                                    ``(III) the ratio of profit to 
                                selling, general, and administrative 
                                costs, factory overhead, labor, 
                                materials, and energy.
                    ``(E) Use of confidential information from a 
                foreign producer in a surrogate country.--The 
                administering authority shall generally use publicly 
                available information to value factors of production, 
                except that, in a case in which any foreign producer in 
                the surrogate country that is willing to provide 
                information to the administering authority on factors 
                of production to produce the same class of merchandise 
                and such information is subject to verification, the 
                administering authority shall accept and use such 
                information. The relationship of the foreign producer 
                providing the information to a party to the proceeding 
                shall not be a basis for disqualification.''.

SEC. 203. DETERMINATIONS ON THE BASIS OF FACTS AVAILABLE.

    Section 776(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
1677e(a)(2)(B)) is amended to read as follows:
                    ``(B) fails to provide such information by the 
                deadline for submission of the information or in the 
                form and manner required, and in conformity with prior 
                administering authority determinations in the 
                proceeding and final judicial decisions in the 
                proceeding, subject to subsections (c)(1) and (e) of 
                section 782,''.

SEC. 204. CLARIFICATION OF DETERMINATION OF MATERIAL INJURY.

    (a) In General.--Section 771(7) of the Tariff Act of 1930 (19 
U.S.C. 1677(7)) is amended by adding at the end the following new 
subparagraph:
                    ``(J) Clarification of determination of material 
                injury.--In determining if there is material injury, or 
                threat of material injury, by reason of imports of the 
                subject merchandise, the Commission shall make the 
                Commission's determination without regard to--
                            ``(i) whether other imports would have 
                        replaced or are likely to replace imports of 
                        the subject merchandise if an order were issued 
                        or a suspension agreement were accepted under 
                        this title, or
                            ``(ii) the effect of a potential order or 
                        suspension agreement on the domestic industry, 
                        except for a finding required by section 
                        771(7)(F)(ii).''.
    (b) Likelihood of Continuation or Recurrence of Material Inquiry.--
Section 752(a)(4) of the Tariff Act of 1930 (19 U.S.C. 1675a(a)(4)) is 
amended by adding at the end the following: ``In reaching a decision as 
to whether revocation of an order or termination of a suspended 
investigation is likely to lead to a continuation or recurrence of 
material injury, the Commission shall make its determination without 
regard to whether other imports are likely to replace imports of the 
subject merchandise if an order is revoked or a suspension agreement 
terminated under this title.''.

SEC. 205. REVOCATION OF NONMARKET ECONOMY COUNTRY STATUS.

    (a) Amendment of Definition of ``Nonmarket Economy Country''.--
Section 771(18)(C)(i) of the Tariff Act of 1930 (19 U.S.C. 
1677(18)(C)(i)) is amended to read as follows:
                            ``(i) Any determination that a foreign 
                        country is a nonmarket economy country shall 
                        remain in effect until--
                                    ``(I) the administering authority 
                                makes a final determination to revoke 
                                the determination under subparagraph 
                                (A); and
                                    ``(II) a joint resolution is 
                                enacted into law pursuant to section 
                                206 of the Strengthening America's 
                                Trade Laws Act.''.
    (b) Notification by President; Joint Resolution.--Whenever the 
administering authority makes a final determination under section 
771(18)(C)(i)(I) of the Tariff Act of 1930 (19 U.S.C. 
1677(18)(C)(i)(I)) to revoke the determination that a foreign country 
is a nonmarket economy country--
            (1) the President shall notify the Committee on Finance of 
        the Senate and the Committee on Ways and Means of the House of 
        Representatives of that determination not later than 10 days 
        after the publication of the administering authority's final 
        determination in the Federal Register;
            (2) the President shall transmit to the Congress a request 
        that a joint resolution be introduced pursuant to this section; 
        and
            (3) a joint resolution shall be introduced in the Congress 
        pursuant to this section.
    (c) Definition.--For purposes of this section, the term ``joint 
resolution'' means only a joint resolution of the 2 Houses of the 
Congress, the matter after the resolving clause of which is as follows: 
``That the Congress approves the change of nonmarket economy status 
with respect to the products of _____ transmitted by the President to 
the Congress on _____.'', the first blank space being filled in with 
the name of the country with respect to which a determination has been 
made under section 771(18)(C)(i) of the Tariff Act of 1930 (19 U.S.C. 
1677(18)(C)(i)), and the second blank space being filled with the date 
on which the President notified the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of Representatives 
under subsection (b)(1).
    (d) Introduction.--A joint resolution shall be introduced (by 
request) in the House by the majority leader of the House, for himself, 
or by Members of the House designated by the majority leader of the 
House, and shall be introduced (by request) in the Senate by the 
majority leader of the Senate, for himself, or by Members of the Senate 
designated by the majority leader of the Senate.
    (e) Amendments Prohibited.--No amendment to a joint resolution 
shall be in order in either the House of Representatives or the Senate, 
and no motion to suspend the application of this subsection shall be in 
order in either House, nor shall it be in order in either House for the 
presiding officer to entertain a request to suspend the application of 
this subsection by unanimous consent.
    (f) Period for Committee and Floor Consideration.--
            (1) In general.--If the committee or committees of either 
        House to which a joint resolution has been referred have not 
        reported the joint resolution at the close of the 45th day 
        after its introduction, such committee or committees shall be 
        automatically discharged from further consideration of the 
        joint resolution and it shall be placed on the appropriate 
        calendar. A vote on final passage of the joint resolution shall 
        be taken in each House on or before the close of the 15th day 
        after the joint resolution is reported by the committee or 
        committees of that House to which it was referred, or after 
        such committee or committees have been discharged from further 
        consideration of the joint resolution. If, prior to the passage 
        by one House of a joint resolution of that House, that House 
        receives the same joint resolution from the other House, then--
                    (A) the procedure in that House shall be the same 
                as if no joint resolution had been received from the 
                other House, but
                    (B) the vote on final passage shall be on the joint 
                resolution of the other House.
            (2) Computation of days.--For purposes of paragraph (1), in 
        computing a number of days in either House, there shall be 
        excluded any day on which that House is not in session.
    (g) Floor Consideration in the House.--
            (1) Motion privileged.--A motion in the House of 
        Representatives to proceed to the consideration of a joint 
        resolution shall be highly privileged and not debatable. An 
        amendment to the motion shall not be in order, nor shall it be 
        in order to move to reconsider the vote by which the motion is 
        agreed to or disagreed to.
            (2) Debate limited.--Debate in the House of Representatives 
        on a joint resolution shall be limited to not more than 20 
        hours, which shall be divided equally between those favoring 
        and those opposing the joint resolution. A motion further to 
        limit debate shall not be debatable. It shall not be in order 
        to move to recommit a joint resolution or to move to reconsider 
        the vote by which a joint resolution is agreed to or disagreed 
        to.
            (3) Motions to postpone.--Motions to postpone, made in the 
        House of Representatives with respect to the consideration of a 
        joint resolution, and motions to proceed to the consideration 
        of other business, shall be decided without debate.
            (4) Appeals.--All appeals from the decisions of the Chair 
        relating to the application of the Rules of the House of 
        Representatives to the procedure relating to a joint resolution 
        shall be decided without debate.
            (5) Other rules.--Except to the extent specifically 
        provided in the preceding provisions of this subsection, 
        consideration of a joint resolution shall be governed by the 
        Rules of the House of Representatives applicable to other bills 
        and resolutions in similar circumstances.
    (h) Floor Consideration in the Senate.--
            (1) Motion privileged.--A motion in the Senate to proceed 
        to the consideration of a joint resolution shall be privileged 
        and not debatable. An amendment to the motion shall not be in 
        order, nor shall it be in order to move to reconsider the vote 
        by which the motion is agreed to or disagreed to.
            (2) Debate limited.--Debate in the Senate on a joint 
        resolution, and all debatable motions and appeals in connection 
        therewith, shall be limited to not more than 20 hours. The time 
        shall be equally divided between, and controlled by, the 
        majority leader and the minority leader or their designees.
            (3) Control of debate.--Debate in the Senate on any 
        debatable motion or appeal in connection with a joint 
        resolution shall be limited to not more than 1 hour, to be 
        equally divided between, and controlled by, the mover and the 
        manager of the joint resolution, except that in the event the 
        manager of the joint resolution is in favor of any such motion 
        or appeal, the time in opposition thereto shall be controlled 
        by the minority leader or his designee. Such leaders, or either 
        of them, may, from time under their control on the passage of a 
        joint resolution, allot additional time to any Senator during 
        the consideration of any debatable motion or appeal.
            (4) Other motions.--A motion in the Senate to further limit 
        debate is not debatable. A motion to recommit a joint 
        resolution is not in order.
    (i) Rules of House of Representatives and Senate.--Subsections (c) 
through (h) are enacted by the Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such 
        subsections (c) through (h) are deemed a part of the rules of 
        each House, respectively, but applicable only with respect to 
        the procedure to be followed in that House in the case of joint 
        resolutions described in subsection (c), and subsections (c) 
        through (h) supersede other rules only to the extent that they 
        are inconsistent therewith; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner and to 
        the same extent as in the case of any other rule of that House.

     TITLE III--EXPANSION OF APPLICABILITY OF COUNTERVAILING DUTIES

SEC. 301. APPLICATION OF COUNTERVAILING DUTIES TO NONMARKET ECONOMY 
              COUNTRIES AND STRENGTHENING APPLICATION OF THE LAW.

    (a) Application of Countervailing Duties to Nonmarket Economies.--
Section 701(a)(1) of the Tariff Act of 1930 (19 U.S.C. 1671(a)(1)) is 
amended by inserting ``(including a nonmarket economy country)'' after 
``country'' each place it appears.
    (b) Recognition of Countervailable Subsidies in Nonmarket Economy 
Countries.--Section771(5)(C) of the Tariff Act of 1930 (19 U.S.C. 
1677(5)(E)) is amended to read as follows:
                    ``(C) Other factors.--(i) The determination of 
                whether a subsidy exists shall be made without regard 
                to--
                            ``(I) whether the recipient of the subsidy 
                        is publicly or privately owned;
                            ``(II) whether the subsidy is provided 
                        directly or indirectly on the manufacture, 
                        production, or export of merchandise; and
                            ``(III)(aa) whether the country is a 
                        nonmarket economy country, or
                            ``(bb) the level of economic reforms in a 
                        country that is a nonmarket economy country, at 
                        the time the subsidy is provided.
                    ``(ii) The administering authority is not required 
                to consider the effect of the subsidy in determining 
                whether a subsidy exists under this paragraph.''.
    (c) Use of Alternate Methodologies Involving China.--Section 
771(5)(E) of the Tariff Act of 1930 U.S.C. 1677(5)(E)) is amended by 
adding at the end the following:
                ``If the administering authority encounters special 
                difficulties in identifying and calculating the amount 
                of a benefit under clauses (i) through (iv) with 
                respect to an investigation or review involving the 
                People's Republic of China, irrespective of whether the 
                administering authority determines that China is a 
                nonmarket economy country under paragraph (18) of this 
                section, the administering authority shall use 
                methodologies to identify and calculate the amount of 
                the benefit that take into account the possibility that 
                terms and conditions prevailing in China may not always 
                be available as appropriate benchmarks. In applying 
                such methodologies, where practicable, the 
                administering authority should take into account and 
                adjust terms and conditions prevailing in China before 
                using terms and conditions prevailing outside of China. 
                If the administering authority has determined that 
                China is a nonmarket economy country under paragraph 
                (18) of this section, the administering authority shall 
                presume that special difficulties exist in calculating 
                the amount of a benefit under clauses (i) through (iv) 
                with respect to an investigation or review involving 
                China and that it is not practicable to take into 
                account and adjust terms and conditions prevailing in 
                China, and the administering authority shall use terms 
                and conditions prevailing outside of China.''.
    (d) Subsidies Provided to State-Owned Enterprises in the People's 
Republic of China.--Section 771(5A) of the Tariff Act of 1930 (19 
U.S.C. 1677(5A)) is amended by adding at the end the following:
        ``For purposes of this paragraph, subsidies provided to state-
        owned enterprises in the People's Republic of China shall be 
        deemed to be specific if, inter alia, state-owned enterprises 
        are the predominant recipients of such subsidies or state-owned 
        enterprises receive disproportionately large amounts of such 
        subsidies.''.
    (e) Antidumping Provisions Not Affected.--The amendments made by 
this section shall not affect the status of a country as a nonmarket 
economy country for the purposes of any matter relating to antidumping 
duties under subtitle B of title VII of the Tariff Act of 1930 (19 
U.S.C. 1673 et seq.). In cases involving a nonmarket economy country, 
no offset or reduction shall be made to the amount of either the 
antidumping or countervailing duty imposed based on the finding of a 
domestic subsidy and the simultaneous application of antidumping 
duties.

SEC. 302. TREATMENT OF EXCHANGE-RATE MANIPULATION AS COUNTERVAILABLE 
              SUBSIDY UNDER TITLE VII OF THE TARIFF ACT OF 1930.

    (a) Amendments to Definition of Countervailable Subsidy.--Section 
771(5)(D) of the Tariff Act of 1930 (19 U.S.C. 1677(5)(D)) is amended--
            (1) by striking ``The term'' and inserting ``(i) The 
        term'';
            (2) by redesignating clauses (i) through (iv) as subclauses 
        (I) through (IV), respectively; and
            (3) by adding at the end the following:
                    ``(ii) The term `provides a financial contribution' 
                includes engaging in exchange-rate manipulation (as 
                defined in paragraph (5C)).''.
    (b) Definition of Exchange-Rate Manipulation.--Section 771 of the 
Tariff Act of 1930 (19 U.S.C. 1677) is amended by inserting after 
paragraph (5B) the following new paragraph:
            ``(5C) Definition of exchange-rate manipulation.--
                    ``(A) In general.--For purposes of paragraphs (5) 
                and (5A), the term `exchange-rate manipulation' means 
                protracted large-scale intervention by a country to 
                undervalue the country's currency in the exchange 
                market that prevents effective balance-of-payments 
                adjustment or that gains an unfair competitive 
                advantage over any other country.
                    ``(B) Factors.--In determining whether exchange-
                rate manipulation is occurring and a benefit thereby 
                conferred, the administering authority in each case--
                            ``(i) shall consider the exporting 
                        country's--
                                    ``(I) bilateral balance-of-trade 
                                surplus or deficit with the United 
                                States;
                                    ``(II) balance-of-trade surplus or 
                                deficit with its other trading partners 
                                individually and in the aggregate;
                                    ``(III) foreign direct investment 
                                in its territory;
                                    ``(IV) currency-specific and 
                                aggregate amounts of foreign currency 
                                reserves; and
                                    ``(V) mechanisms employed to 
                                maintain its currency at a fixed 
                                exchange rate relative to another 
                                currency and, particularly, the nature, 
                                duration, monetary expenditures, and 
                                potential monetary expenditures of 
                                those mechanisms;
                            ``(ii) may consider such other economic 
                        factors as are relevant; and
                            ``(iii) shall measure the trade surpluses 
                        or deficits described in subclauses (I) and 
                        (II) of clause (i) with reference to the trade 
                        data reported by the United States and the 
                        other trading partners of the exporting 
                        country, unless such trade data are not 
                        available or are demonstrably inaccurate, in 
                        which case the exporting country's trade data 
                        may be relied upon if shown to be sufficiently 
                        accurate and trustworthy.
                    ``(C) Type of economy.--A country found to be 
                engaged in exchange-rate manipulation may have--
                            ``(i) a market economy;
                            ``(ii) a nonmarket economy; or
                            ``(iii) a combination thereof.''.

SEC. 303. AFFIRMATION OF NEGOTIATING OBJECTIVE ON BORDER TAXES.

    The Congress reaffirms the negotiating objective relating to border 
taxes set forth in section 2102(b)(15) of the Bipartisan Trade 
Promotion Authority Act of 2002 (19 U.S.C. 3802(b)(15)).

SEC. 304. PRESIDENTIAL CERTIFICATION; APPLICATION OF COUNTERVAILING 
              DUTY LAW.

    (a) Certification by the President.--
            (1) In general.--The President shall certify to the 
        Congress by January 1, 2014, that, under the Agreement on 
        Subsidies and Countervailing Measures or subsequent agreement 
        of the World Trade Organization, the full or partial exemption, 
        remission, or deferral specifically related to exports of 
        direct taxes is treated in the same manner as the full or 
        partial exemption, remission, or deferral specifically related 
        to exports of indirect taxes.
            (2) Effect of failure to certify.--If the President does 
        not make the certification to Congress required by paragraph 
        (1) by January 1, 2014, the Secretary of Commerce, in any 
        investigation conducted under subtitle A of title VII of the 
        Tariff Act of 1930 (19 U.S.C. 1671 et seq.) to determine 
        whether a countervailable subsidy is being provided with 
        respect to a product of a country that provides the full or 
        partial exemption, remission, or deferral specifically related 
        to exports of indirect taxes on products exported from that 
        country, shall treat as a countervailable subsidy the full or 
        partial exemption, remission, or deferral specifically related 
        to exports of indirect taxes paid on that product.
    (b) Definitions.--In this section:
            (1) Agreement on subsidies and countervailing measures.--
        The term ``Agreement on Subsidies and Countervailing Measures'' 
        means the agreement referred to in section 101(d)(12) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12)).
            (2) Direct taxes.--The term ``direct taxes'' means taxes on 
        wages, profits, interest, rents, royalties, and all other forms 
        of income, and taxes on the ownership of real property.
            (3) Import charges.--The term ``import charges'' means 
        tariffs, duties, and other fiscal charges that are levied on 
        imports.
            (4) Indirect taxes.--The term ``indirect taxes'' means 
        sales, excise, turnover, value added, franchise, stamp, 
        transfer, inventory, and equipment taxes, border taxes, and all 
        taxes other than direct taxes and import charges.
            (5) Full or partial exemption, remission, or deferral 
        specifically related to exports of direct taxes.--The term 
        ``full or partial exemption, remission, or deferral 
        specifically related to exports of direct taxes'' means direct 
        taxes that are paid to the United States Government by a 
        business concern and are fully or partially exempted, remitted, 
        or deferred by the Government by reason of the export by that 
        business concern of its products from the United States.
            (6) Full or partial exemption, remission, or deferral 
        specifically related to exports of indirect taxes.--The term 
        ``full or partial exemption, remission, or deferral 
        specifically related to exports of indirect taxes'' means 
        indirect taxes that are paid to the government of a country by 
        a business concern and are fully or partially exempted, 
        remitted, or deferred by that government by reason of the 
        export by that business concern of its products from that 
        country.
    (c) Effective Period.--Subsection (a) shall cease to be effective 
on the date on which the President makes a certification described in 
subsection (a).

 TITLE IV--LIMITATION ON PRESIDENTIAL DISCRETION IN ADDRESSING MARKET 
                               DISRUPTION

SEC. 401. STANDARD FOR PRESIDENTIAL ACTION ON ITC FINDING OF MARKET 
              DISRUPTION.

    Section 421 of the Trade Act of 1974 (19 U.S.C. 2451) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``any'' before ``increased 
                duties''; and
                    (B) by striking ``, to the extent and for such 
                period'' and all that follows to the end period and 
                inserting ``recommended by the International Trade 
                Commission'';
            (2) in subsection (e), in the second sentence, by striking 
        ``agreed upon by either group'' and all that follows to the end 
        period and inserting ``shall be considered an affirmative 
        determination under subsection (b)'';
            (3) in subsection (f)--
                    (A) in the heading, by striking ``on Proposed 
                Remedies'' and inserting ``for Relief'';
                    (B) in the first sentence--
                            (i) by striking ``the President or Trade 
                        Representative may consider as'' and inserting 
                        ``is to be considered''; and
                            (ii) by striking ``the Commission shall 
                        propose'' and inserting ``the Commission shall 
                        recommend''; and
                    (C) in the second sentence, by striking ``proposed 
                action'' and inserting ``recommended action'';
            (4) in subsection (g)(2)(B)--
                    (A) by striking ``or may be considered by the 
                President or the Trade Representative as'' and 
                inserting ``or if the determination is considered to 
                be''; and
                    (B) by striking ``on proposed remedies'' and 
                inserting ``for relief'';
            (5) in subsection (h)--
                    (A) in the heading, by striking ``Proposed Measure 
                and Recommendation to the President'' and inserting 
                ``Recommended Relief and Report by Trade 
                Representative'';
                    (B) in paragraph (1)--
                            (i) by striking ``measure proposed by the 
                        Trade Representative to be taken pursuant to 
                        subsection (a)'' and inserting ``relief 
                        recommended by the Commission under subsection 
                        (f)''; and
                            (ii) by striking ``proposed measure'' and 
                        inserting ``recommended relief'';
                    (C) in paragraph (2), by striking ``on the measure 
                proposed by the Trade Representative'' and all that 
                follows to the end period and inserting ``, shall 
                transmit a report to the President recommending what 
                action to take under subsection (k)''; and
                    (D) by adding at the end the following new 
                paragraph:
    ``(3) The Trade Representative, after submitting a report to the 
President under paragraph (2), shall promptly make the report available 
to the public, excluding any proprietary or confidential information. 
The Trade Representative shall publish a summary of the report in the 
Federal Register.'';
            (6) in subsection (i)--
                    (A) in the flush sentence at the end of paragraph 
                (1), by striking ``agreed upon by either group'' and 
                all that follows to the end period and inserting 
                ``shall be considered an affirmative determination of 
                the Commission''; and
                    (B) by striking paragraphs (2), (3), and (4), and 
                inserting the following:
    ``(2) On the date on which the Commission completes its 
determinations under paragraph (1), the Commission shall transmit a 
report on the determinations to the President and the Trade 
Representative, including the reasons for its determinations. If the 
determinations under paragraph (1) are affirmative or if the 
determinations are considered to be affirmative under paragraph (1), 
the Commission shall include in its report its recommendations on 
provisional relief to be taken to prevent or remedy the market 
disruption. Only those members of the Commission who agreed to the 
affirmative determinations under paragraph (1) are eligible to vote on 
the recommended provisional relief to prevent or remedy market 
disruption. Members of the Commission who did not agree to the 
affirmative determinations may submit, in the report, dissenting or 
separate views regarding the determination and any recommendation of 
provisional relief referred to in this paragraph.
    ``(3) The provisional relief referred to in paragraph (2) may 
include--
            ``(A) the imposition of or increase in any duty;
            ``(B) any modification, or imposition of any quantitative 
        restriction on the importation of any article into the United 
        States; or
            ``(C) any combination of actions under subparagraph (A) or 
        (B).
    ``(4) If the determinations under paragraph (1) are affirmative or 
if the determinations are considered to be affirmative under paragraph 
(1), the Trade Representative shall, within 10 days after receipt of 
the Commission's report, transmit a report to the President 
recommending what action to take with respect to provisional relief 
under subsection (k).
    ``(5)(A) The President shall proclaim any provisional relief 
recommended by the Commission not later than 10 days after the date the 
President receives the report described in paragraph (4) from the Trade 
Representative.
    ``(B) Any provisional relief proclaimed by the President pursuant 
to a determination of critical circumstances shall remain in effect for 
a period not to exceed 200 days.
    ``(C) Provisional relief shall cease to apply upon the effective 
date of relief proclaimed under subsection (a), upon a decision by the 
President not to provide such relief under subsection (k), or upon a 
negative determination by the Commission under subsection (b).'';
            (7) in subsection (j)--
                    (A) in paragraph (1), by striking ``which the Trade 
                Representative considers to be'' and inserting ``that 
                is considered to be''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
    ``(2) If no agreement is reached with the People's Republic of 
China pursuant to consultations under paragraph (1) in the time 
required for Presidential action under subsection (k), or if the 
President determines that an agreement reached pursuant to such 
consultations is not preventing or remedying the market disruption at 
issue in the time required for Presidential action under subsection 
(k), the President shall provide import relief in accordance with 
subsection (a).'';
            (8) in subsection (k)--
                    (A) in the heading, by striking ``Standard for 
                Presidential Action'' and inserting ``Timing for 
                Presidential Action; Exceptions'';
                    (B) in paragraph (1), by striking ``a 
                recommendation from the Trade Representative'' and all 
                that follows to the end period and inserting ``a report 
                from the Trade Representative under subsection (h)(2), 
                the President shall, pursuant to subsection (a), 
                proclaim the relief recommended by the Commission''; 
                and
                    (C) by amending paragraph (2) to read as follows:
    ``(2) The President may decline to proclaim relief pursuant to 
subsection (a), may proclaim relief pursuant to subsection (a) that 
differs from the relief recommended by the Commission, may decline to 
proclaim provisional relief pursuant to subsection (i), or may proclaim 
provisional relief pursuant to subsection (i) that differs from the 
relief recommended by the Commission--
            ``(A) only in extraordinary cases; and
            ``(B) only if the President determines that providing 
        relief or provisional relief pursuant to subsection (a) or (i) 
        or providing relief recommended by the Commission pursuant to 
        subsection (a) or (i) would cause serious harm to the economic 
        interests or to the national security of the of the United 
        States.'';
            (9) in subsection (l), by amending paragraph (1) to read as 
        follows:
    ``(1) The President's decision under subsection (k) shall be 
submitted to the Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives and shall be 
published in the Federal Register within 15 days of the decision. In 
the submission to the committees and in publication in the Federal 
Register, the President shall include the reasons for the decision and 
the scope and duration of any action taken. If the President takes 
action that differs from the action recommended by the Commission under 
subsection (f) or declines to take action pursuant to subsection 
(k)(2), the President shall state in detail the reasons for such action 
or inaction.'';
            (10) by redesignating subsections (m) through (o) as 
        subsections (n) through (p), respectively;
            (11) by inserting after subsection (l) the following new 
        subsection:
    ``(m) Implementation of Action Recommended by Commission.--(1) If 
the President takes action that differs from the action recommended by 
the Commission under subsection (f) or declines to take action pursuant 
to subsection (k)(2)(B)(i), the action recommended by the Commission 
under subsection (f) shall take effect (as provided in subsection 
(n)(2)) upon the enactment of a joint resolution described in paragraph 
(2) within the 90-day period beginning on the date on which the 
President's decision is transmitted to the Congress pursuant to 
subsection (l).
    ``(2) For purposes of this section, the term `joint resolution' 
means a joint resolution of the 2 Houses of the Congress, the sole 
matter after the resolving clause of which is as follows: `That the 
Congress does not approve the action taken by, or the determination of, 
the President under section 421 of the Trade Act of 1974, notice of 
which was transmitted to the Congress on ______.', with the blank space 
being filled with the appropriate case number and date.
    ``(3) The provisions of section 152(b), (c), (d), (e), and (f) of 
the Trade Act of 1974 (19 U.S.C. 2192(b), (c), (d), (e), and (f)) shall 
apply to joint resolutions under this section.'';
            (12) in subsection (n), as redesignated, by striking 
        ``Import relief under this section'' and all that follows to 
        the end period and inserting the following:
    ``(1) Except as provided in paragraph (2), import relief under this 
section shall take effect not later than 15 days after the President's 
determination to provide such relief.
    ``(2) If the action recommended by the Commission takes effect 
pursuant to subsection (m), the President shall, within 15 days after 
the date of the enactment of the joint resolution referred to in 
subsection (m), proclaim the action recommended by the Commission under 
subsection (f). Such action shall take effect not later than 15 days 
after the date of the President's proclamation.'';
            (13) in subsection (o), as redesignated--
                    (A) in paragraph (1), by striking ``6-month'' and 
                inserting ``1-year''; and
                    (B) in paragraph (3), by inserting ``or (m)'' after 
                ``subsection (k)''; and
            (14) in subsection (p), as redesignated--
                    (A) in paragraph (1), by inserting ``or (m)'' after 
                ``subsection (k);''; and
                    (B) in paragraph (3), by striking ``subsection 
                (m)'' and inserting ``subsection (n)''.

 TITLE V--STRENGTHENING ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS AT 
                              U.S. BORDERS

Subtitle A--Coordination of Enforcement of Intellectual Property Rights

SEC. 501. DEFINITIONS.

    In this title:
            (1) Assistant secretary for ice.--The term ``Assistant 
        Secretary for ICE'' means the Assistant Secretary for U.S. 
        Immigration and Customs Enforcement.
            (2) Commissioner.--The term ``Commissioner'' means the 
        Commissioner responsible for U.S. Customs and Border 
        Protection.
            (3) Counterfeiting; counterfeit goods.--
                    (A) Counterfeiting.--The term ``counterfeiting'' 
                means activities related to production of or 
                trafficking in goods, including packaging, that bear a 
                spurious mark or designation that is identical to or 
                substantially indistinguishable from a mark or 
                designation protected under the trademark laws or 
                related legislation.  
                    (B) Counterfeit goods.--The term ``counterfeit 
                goods'' means those goods described in subparagraph 
                (A).
            (4) CBP.--The term ``CBP'' means U.S. Customs and Border 
        Protection.
            (5) Director.--The term ``Director'' means the Director of 
        Intellectual Property Rights Enforcement of the Department of 
        the Treasury established in section 502.
            (6) Enforcement of intellectual property rights.--The term 
        ``enforcement of intellectual property rights'' means 
        activities to enforce copyrights, patents, trademarks, and 
        other forms of intellectual property, including activities to 
        control counterfeiting and piracy, and activities to enforce 
        exclusion orders issued by the United States International 
        Trade Commission by reason of any of subparagraphs (B) through 
        (E) of subsection (a)(1) of section 337 of the Tariff Act of 
        1930 (19 U.S.C. 1337(a)(1)(B) through (E)).
            (7) Exclusion order.--The term ``exclusion order'' means an 
        order of the United States International Trade Commission 
        issued under section 337(d) of the Tariff Act of 1930 to 
        exclude goods from entry into the United States.
            (8) ICE.--The term ``ICE'' means U.S. Immigration and 
        Customs Enforcement.
            (9) Piracy; pirated goods.--
                    (A) Piracy.--The term ``piracy'' means activities 
                related to production of or trafficking in unauthorized 
                copies or phonorecords of works protected under 
                copyright law or related legislation.
                    (B) Pirated goods.--The term ``pirated goods'' 
                means those copies or phonorecords described in 
                subparagraph (A).

SEC. 502. DIRECTOR OF INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT.

    (a) Establishment.--There is established within the Department of 
the Treasury the position of Director of Intellectual Property Rights 
Enforcement.
    (b) Appointment.--The Director shall be appointed by the Secretary 
of the Treasury, and shall be responsible to and shall report directly 
to the Deputy Secretary of the Treasury.
    (c) Duties.--The Director shall--
            (1) coordinate all activities of the Department of the 
        Treasury involving the enforcement of intellectual property 
        rights, with particular reference to the activities of CBP and 
        ICE;
            (2) oversee the development and implementation of the 
        strategic plan for the enforcement of intellectual property 
        rights required under section 503;
            (3) coordinate the policy and regulatory changes set forth 
        in subtitle D;
            (4) serve as staff representative of the Department of the 
        Treasury in interagency bodies with responsibility for 
        coordination of activities involving the enforcement of 
        intellectual property rights;
            (5) conduct an evaluation of the effectiveness of the 
        organizational structure of CBP for reducing the entry into the 
        United States of counterfeit or pirated goods, goods in 
        violation of exclusion orders, and other goods in violation of 
        other intellectual property rights; and
            (6) carry out other duties, as assigned by the Secretary or 
        Deputy Secretary of the Treasury, to improve the effectiveness 
        of the efforts of the Department of the Treasury under the laws 
        within its jurisdiction with respect to enforcement of 
        intellectual property rights.

SEC. 503. STRATEGIC PLAN FOR THE ENFORCEMENT OF INTELLECTUAL PROPERTY 
              RIGHTS.

    (a) In General.--The Director shall develop, for approval by the 
Deputy Secretary of the Treasury, an annual strategic plan for the 
enforcement of intellectual property rights.
    (b) Consultation.--In developing the annual strategic plan required 
under subsection (a), the Director shall consult with--
            (1) the CBP coordinator of intellectual property 
        enforcement activities and the ICE coordinator of intellectual 
        property enforcement authorities appointed under section 504;
            (2) all other entities within the Department of the 
        Treasury with expertise and experience in the enforcement of 
        intellectual property rights;
            (3) the Advisory Committee;
            (4) other agencies of the executive branch engaged in the 
        enforcement of intellectual property rights, including any 
        officials designated to coordinate such enforcement efforts on 
        an interagency basis; and
            (5) officials from foreign law enforcement agencies and 
        international organizations, including the World Customs 
        Organization, with experience and expertise in border control 
        measures relating to the enforcement of intellectual property 
        rights.
    (c) Contents of Plan.--The annual strategic plan shall set forth 
objectives, goals, and strategies for more effective use of the 
authorities of CBP and ICE relating to the enforcement of intellectual 
property rights, and shall--
            (1) provide for specific measurement of the current 
        effectiveness of enforcement tools, including targeting, 
        examination, post-entry auditing, and penalty actions;
            (2) give priority to those enforcement tools determined 
        under paragraph (1) to be most effective;
            (3) identify best practices, both in the United States and 
        abroad, in the enforcement of intellectual property rights, 
        taking into account the practices of enforcement authorities of 
        other countries, and implement those practices;
            (4) identify and apply the specific performance measures to 
        be used to evaluate the progress of CBP and ICE in improving 
        the effectiveness of its efforts relating to the enforcement of 
        intellectual property rights;
            (5) address border control programs administered by CBP and 
        ICE at ports of entry for passengers and freight, and at points 
        of entry for postal and courier services, as well as for goods 
        in transit through United States ports and in the process of 
        being exported from the United States;
            (6) recommend the optimal feasible allocation of human, 
        financial, physical, and technological resources that CBP and 
        ICE should use to achieve the goals of the annual strategic 
        plan;
            (7) report on the key activities of CBP and ICE during the 
        preceding year in the enforcement of intellectual property 
        rights ; and
            (8) contain such other information as the Director 
        considers appropriate to convey what CBP and ICE will do, over 
        the ensuing year, with respect to the enforcement of 
        intellectual property rights and reduce the costs that 
        violations of intellectual property rights impose on the United 
        States economy and public safety.
    (d) Submission to Congress.--Upon the approval by the Deputy 
Secretary of the Treasury of the annual strategic plan, after ensuring 
its consistency with relevant interagency strategic plans for the 
enforcement of intellectual property rights, the Deputy Secretary of 
the Treasury shall transmit the annual strategic plan to the Committee 
on Finance of the Senate and the Committee on Ways and Means of the 
House of Representatives, along with any recommendations of the 
Department of the Treasury for statutory changes or funding 
authorizations needed to improve the effectiveness of the Department's 
efforts in the enforcement of intellectual property rights.
    (e) Timing.--The Deputy Secretary of the Treasury shall submit the 
annual strategic plan under subsection (d) not later than 180 days 
after the date of the enactment of this Act and annually thereafter.

SEC. 504. CBP AND ICE COORDINATORS.

    (a) CBP Coordinators.--
            (1) Appointment.--The Commissioner shall appoint a CBP 
        coordinator of intellectual property rights enforcement 
        activities (in this subtitle referred to as the ``CBP 
        Coordinator''), who shall report directly to the Commissioner.
            (2) Duties.--The CBP Coordinator shall--
                    (A) assist the Director of Intellectual Property 
                Rights Enforcement of the Department of the Treasury in 
                the development of the annual strategic plan, and 
                coordinate the implementation of those aspects of the 
                plan that involve CBP;
                    (B) coordinate all efforts, at all ports of entry 
                and elsewhere, carried out by CBP in the enforcement of 
                intellectual property rights, including training and 
                staffing;
                    (C) supervise the implementation of those aspects 
                of the regulatory and policy reforms set out in this 
                title that involve CBP; and
                    (D) carry out such other duties, as assigned by the 
                Commissioner, the purpose of which is to improve the 
                performance of CBP in the enforcement of intellectual 
                property rights.
    (b) ICE Coordinator.--
            (1) Appointment.--The Assistant Secretary for United States 
        Immigration and Customs Enforcement shall appoint an ICE 
        coordinator of intellectual property enforcement activities 
        (referred to in this subtitle as the ``ICE Coordinator''), who 
        shall report directly to the Assistant Secretary for ICE.
            (2) Duties.--The ICE Coordinator shall--
                    (A) assist the Director of Intellectual Property 
                Rights Enforcement of the Department of the Treasury in 
                the development of the annual strategic plan, and 
                coordinate the implementation of those aspects of the 
                plan that involve ICE;
                    (B) coordinate all efforts carried out by ICE the 
                enforcement of intellectual property rights, including 
                training and staffing;
                    (C) supervise the implementation of those aspects 
                of the regulatory and policy reforms set out in this 
                title that involve ICE; and
                    (D) carry out such other duties, as assigned by the 
                Assistant Secretary for ICE, the purpose which is to 
                improve the performance of ICE in the enforcement of 
                intellectual property rights.

 Subtitle B--Regulatory and Policy Improvements Against Counterfeiting 
                               and Piracy

SEC. 511. IN GENERAL.

    (a) Commissioner's Responsibilities.--The Commissioner, acting 
through the CBP Coordinator, shall undertake the initiatives provided 
in this subtitle.
    (b) CBP Coordinator's Responsibilities.--Except as otherwise 
provided in this subtitle, the CBP Coordinator shall--
            (1) prepare an annual report on activities carried out 
        under this subtitle; and
            (2) provide the annual report to the Director of 
        Intellectual Property Rights Enforcement of the Department of 
        the Treasury in a timely manner that will permit its inclusion 
        in the annual strategic plan prepared under section 503.

SEC. 512. IDENTIFICATION OF CERTAIN UNLAWFUL GOODS.

    (a) In General.--The Secretary of the Treasury, acting through the 
Commissioner, shall accelerate efforts to apply risk assessment 
modeling techniques to border enforcement activities to combat 
counterfeiting and piracy. These efforts shall include, but not be 
limited to--
            (1) preparing a report and evaluation on CBP's pilot 
        project in risk assessment modeling with respect to shipments 
        of counterfeit or pirated products;
            (2) expanding the pilot project to include development of a 
        rule set for the Automated Targeting System; and
            (3) developing a plan for the development, testing, 
        evaluation, and continuous improvement of risk assessment 
        modeling techniques for purposes of targeting goods that 
        violate intellectual property rights.
    (b) Inclusion in Strategic Plan.--The report specified in 
subsection (a)(1), and the plan specified in subsection (a)(3), shall 
be included in the annual strategic plan that is prepared under section 
503.

SEC. 513. TRAINING IN NEW TECHNOLOGIES.

    (a) Training of Personnel.--The Commissioner shall consult with the 
Advisory Committee to determine the feasibility of training CBP 
personnel in the use of new technological means for detecting and 
identifying, at ports of entry, counterfeit and pirated goods, and 
goods that are the subject of exclusion orders, whether for entry into 
the United States or in transit to other destinations.
    (b) Identification of Technologies and Sources of Training.--In 
consultation with the Advisory Committee, the Commissioner shall 
identify--
            (1) new technologies with the cost-effective capability to 
        detect and identify goods described in subsection (a) at ports 
        of entry; and
            (2) economical sources of training CBP personnel in using 
        such new technologies,
to the extent such training is determined to be feasible under 
subsection (a).
    (c) Regulatory and Policy Changes.--The United States Government 
Accountability Office shall provide to the Congress a report analyzing 
the costs and benefits of allowing necessary regulatory and policy 
changes to enable the receipt of donations of hardware, software, 
equipment, and similar technologies, and the acceptance of training and 
other support services, from the private sector, to facilitate the 
achievement of the purposes of this section.

SEC. 514. DISCLOSURE OF INFORMATION AND SAMPLES OF SHIPMENTS TO 
              INTELLECTUAL PROPERTY OWNERS.

    The Commissioner shall make the necessary regulatory and policy 
changes to--
            (1) increase disclosure to owners of copyrights, 
        trademarks, patents, and other forms of intellectual property 
        of information about shipments of goods that have been detained 
        at ports of entry on suspicion that their importation into, or 
        transit through, the United States would violate the 
        intellectual property rights of the owners of those rights, 
        including--
                    (A) disclosure of the identities and contact 
                information of all parties involved in the shipments, 
                including importers, exporters, declarants, consignees, 
                freight forwarders, and warehouse owners;
                    (B) providing documents relating to the shipments; 
                and
                    (C) identifying points of origin and destination of 
                the shipments; and
            (2) improve the process of making available to 
        representatives of owners of copyrights, trademarks, patents, 
        and other forms of intellectual property, in an efficient and 
        cost-effective manner, samples of shipments of goods suspected 
        of infringing intellectual property rights, for the purpose of 
        inspection or analysis.

SEC. 515. IMPROVEMENTS TO RECORDATION PROCESS.

    (a) Improvements in Recordation Process.--The Commissioner shall 
make the necessary regulatory and policy changes to ensure that the 
system for recordation of copyrights, trademarks, and other forms of 
intellectual property that may be subject to recordation does not 
impede the rapid seizure of goods that infringe the rights of the 
owners of such copyrights, trademarks, and other forms of intellectual 
property.
    (b) Simultaneous Recordation.--
            (1) In general.--In consultation with the Under Secretary 
        of Commerce for Intellectual Property and Director of the 
        United States Patent and Trademark Office, and the Register of 
        Copyrights, the Commissioner shall provide a system whereby 
        trademarks may be recorded with CBP simultaneously with the 
        issuance of trademark registration, and whereby copyrights of 
        audiovisual works and sound recordings may be recorded with CBP 
        simultaneously with the filing of an application for a 
        certificate of copyright registration or an application for 
        registration of another intellectual property right under title 
        17, United States Code.
            (2) Definitions.--In this subsection, the terms 
        ``audiovisual works'' and ``sound recordings'' have the 
        meanings given those terms in section 101 of title 17, United 
        States Code.

SEC. 516. IDENTIFICATION OF LOW-RISK SHIPPERS.

    (a) Voluntary Certification Program.--The Commissioner shall create 
a voluntary certification program for low-risk shippers that have taken 
specific measures to strengthen and protect their supply chains to 
prevent the infiltration of counterfeit and pirated goods, goods that 
are the subject to exclusions orders, and goods that violate other 
forms of intellectual property rights.
    (b) Self Certifications; Verifications.--The program under 
subsection (a) shall generally operate on a self-certification basis, 
except that the Commissioner shall identify any circumstances in which 
third party verifications and attestations are required for inclusion 
in the program, which may include importations from the People's 
Republic of China.
    (c) Expedited Movement.--The Commissioner shall create incentives 
for shippers to participate in the certification program, including 
providing expedited movement of the goods of the shippers through the 
customs inspection process.
    (d) Definition.--In this section, the term ``international supply 
chain'' means the end-to-end process for transporting goods to or from 
the United States beginning with the point of origin (including 
manufacturer, supplier, or vendor) through the point of distribution to 
the destination.

SEC. 517. ``WATCH LIST'' DATABASE.

    (a) In General.--The Commissioner shall prepare a plan for the 
implementation of a ``Watch List'' database of importers, shippers, 
freight forwarders, and other participants in the import, export, and 
transshipment process, whose activities merit additional scrutiny at 
ports of entry with respect to the risk of importation or transshipment 
of counterfeit or pirated goods and goods that are the subject to 
exclusions orders.
    (b) Working Groups.--The Commissioner shall consult with the 
Advisory Committee on the development of criteria for the ``Watch 
List'' database.
    (c) Information Sources.--The plan under subsection (a) shall 
identify legitimate information sources for the database from within 
CBP, from other law enforcement sources, and from the private sector.
    (d) Criteria for Access to Database.--The plan under subsection (a) 
shall specify criteria under which the database should be made 
available to qualified CBP and other law enforcement officers, for 
intelligence purposes, and for use in flagging and diverting for 
enhanced scrutiny shipments to ports of entry that are associated with 
entities listed in the database.
    (e) Other Matters.--The plan under subsection (a) shall identify 
any regulatory or policy changes that the Department of the Treasury 
would make in order to bring the database into operation, as well as 
any recommendations for needed changes to legislation to make the 
database more effective. The plan shall also include budget estimates 
for implementation and operation of the database, and for evaluation of 
its effectiveness, and a timetable for such implementation.
    (f) Timing.--The Commissioner shall complete the plan in a timely 
fashion that will permit its inclusion in the first annual strategic 
plan prepared under section 503.

SEC. 518. CIVIL FINES FOR IMPORTATION OF PIRATED OR COUNTERFEIT GOODS.

    (a) Limitation on Mitigation, Dismissal, and Vacation of Fines.--
Unless otherwise ordered by a court of competent jurisdiction, any 
civil fine imposed pursuant to section 526(f) of the Tariff Act of 1930 
(19 U.S.C. 1526(f))--
            (1) may not be mitigated, except pursuant to regulations 
        issued by the Commissioner; and
            (2) may not be dismissed or vacated, except pursuant to 
        regulations issued by the Commissioner that require the 
        specific approval of the Commissioner or the Commissioner's 
        designee for such dismissal or vacation.
    (b) Extraordinary Cases.--In issuing regulations under subsection 
(a), the Commissioner shall ensure that the mitigation, dismissal, or 
vacation of civil fines for involvement in the importation, 
exportation, or transshipment of pirated or counterfeit goods is 
limited to extraordinary cases in which the interests of justice will 
clearly be served by such action.
    (c) Report to Congress.--The Commissioner shall, not later than 180 
days after the date of the enactment of this Act, report to the 
Committee on Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives on the following:
            (1) Whether CBP currently has the authority to employ 
        effective collection techniques for collecting civil fines it 
        imposes on participants in the importation, exportation, or 
        transshipment of pirated or counterfeit goods.
            (2) If CBP lacks such authority, the Commissioner's 
        recommendations for legislation to provide CBP with such 
        authority.
            (3) If CBP has such authority, how CBP is using such 
        authority, and with what results in terms of increased 
        collections of fines imposed.
            (4) The Commissioner's recommendations on whether, in 
        specific cases, copyright or trademark owners should be 
        authorized to pursue and collect fines imposed because of 
        activities that infringe their intellectual property rights, 
        and whether such copyright or trademark owners should be 
        allowed to retain some or all of the funds that they collect.
            (5) Any other recommendations for statutory, regulatory, or 
        policy changes not under the control of CBP that would improve 
        the ability of CBP to impose civil fines, at deterrent levels, 
        on participants in trafficking in counterfeit or pirated goods, 
        and to collect the fines imposed.
    (d) Definition.--As used in subsection (c), the term ``effective 
collection techniques'' includes--
            (1) confiscation of the proceeds of acts for which civil 
        fines can be imposed;
            (2) seizure of and execution upon property acquired with 
        such proceeds;
            (3) imposition of liens on the real or personal property of 
        persons upon whom civil fines are imposed;
            (4) use of bonds to secure full payment of fines;
            (5) piercing the corporate veil of corporations upon which 
        civil fines are imposed, in order to satisfy the fine from the 
        assets of natural persons or of other legal persons; and
            (6) engaging private sector entities to collect civil fines 
        imposed.

                   Subtitle C--Training Enhancements

SEC. 521. INTERNATIONAL TRAINING AND TECHNICAL ASSISTANCE ENHANCEMENTS.

    The Secretary of the Treasury shall take the necessary steps--
            (1) to increase staffing and resources of offices of CBP 
        and ICE engaged in providing training and technical assistance 
        to the customs services and enforcement agencies of other 
        countries in order to improve the effectiveness of such foreign 
        services and agencies in detecting, intercepting, and imposing 
        deterrent penalties upon the export, import, or transshipment 
        of counterfeit or pirated goods, goods that are the subject to 
        exclusions orders, and goods that violate other forms of 
        intellectual property rights;
            (2) to ensure that the Director, in order to make the most 
        efficient and effective use of training and technical 
        assistance resources--
                    (A) coordinates the international training and 
                technical assistance activities of CBP and ICE as part 
                of the Director's coordination responsibilities under 
                section 502;
                    (B) gives priority to such activities in those 
                countries where such programs can be carried out most 
                effectively and with the greatest benefit to protecting 
                the intellectual property rights of United States right 
                holders;
                    (C) takes steps to minimize duplication, overlap, 
                or inconsistency of international training and 
                technical assistance efforts; and
                    (D) coordinates such activities of the Department 
                of the Treasury with international training and 
                technical assistance activities against counterfeiting 
                and piracy carried out by other agencies, and enhances 
                the participation of Department of the Treasury 
                personnel in interagency training and technical 
                assistance activities in this field.

           Subtitle D--New Legal Tools for Border Enforcement

SEC. 531. EXPANDED PROHIBITIONS ON IMPORTATION OR EXPORTATION OF 
              COUNTERFEIT OR PIRATED GOODS.

    Section 526 of the Tariff Act of 1930 (19 U.S.C. 1526) is amended--
            (1) in the section heading, by inserting ``or protected by 
        copyright'' after ``trademark'';
            (2) in subsection (e), by inserting ``or exported from the 
        United States'' after ``imported into the United States'';
            (3) in subsection (f), by striking paragraph (1) and 
        inserting the following:
            ``(1) Any person who engages in, directs, assists 
        financially or otherwise, or aids and abets the importation or 
        exportation of merchandise that is seized under subsection (e) 
        of this section, or under regulations issued pursuant to 
        section 603(c) of title 17, United States Code, shall be 
        subject to a civil fine.''; and
            (4) in subsection (f)--
                    (A) by redesignating paragraph (4) as paragraph 
                (5); and
                    (B) by inserting after paragraph (3) the following:
    ``(4) When the seizure giving rise to the civil fine is made under 
circumstances indicating that the importation or exportation was for 
the purpose of sale or public distribution of the good seized, the 
maximum fine amounts set forth in paragraphs (2) and (3) shall be 
tripled.''.

SEC. 532. DECLARATIONS REGARDING COUNTERFEIT AND INFRINGING 
              MERCHANDISE.

    (a) Declarations.--Section 485(a) of the Tariff Act of 1930 (19 
U.S.C. 1485(a)), is amended--
            (1) in paragraph (1), by striking ``Whether'' and inserting 
        ``whether'';
            (2) in paragraph (2), by striking ``That'' and inserting 
        ``that'';
            (3) in paragraph (3)--
                    (A) by striking ``That'' and inserting ``that''; 
                and
                    (B) by striking ``and'' after the semicolon;
            (4) in paragraph (4)--
                    (A) by striking ``That'' and inserting ``that''; 
                and
                    (B) by striking the period and inserting a 
                semicolon; and
            (5) by adding at the end the following:
            ``(5) that the merchandise being imported does not bear a 
        mark that is counterfeit as that term is defined in section 45 
        of the of July 5, 1946 (commonly referred to as the `Trademark 
        Act of 1946'; 15 U.S.C. 1127);
            ``(6) that the merchandise is not an infringing copy or 
        phonorecord or one whose making would have constituted an 
        infringement of copyright if title 17, United States Code, had 
        applied; and
            ``(7) that the merchandise does not violate--
                    ``(A) does not violate an exclusion order of the 
                United States International Trade Commission under 
                section 337(d) by reason of any of subparagraphs (B) 
                through (E) of subsection (a)(1) of section 337; or
                    ``(B) infringe any other intellectual property 
                right not covered by subparagraph (A) or by paragraph 
                (5) or (6).''.
    (b) Regulations.--The Secretary of the Treasury shall issue 
regulations requiring that the declarations required by paragraphs (5), 
(6), and (7) of section 485(a) of the Tariff Act of 1930 be made by all 
persons arriving in the United States with respect to articles carried 
on their person or contained in their baggage.

                    Subtitle E--Regulatory Authority

SEC. 541. REGULATORY AUTHORITY.

    The Secretary may issue such regulations as are necessary to carry 
out this title.

                        TITLE VI--MISCELLANEOUS

SEC. 601. APPLICATION TO CANADA AND MEXICO.

    Pursuant to article 1902 of the North American Free Trade Agreement 
and section 408 of the North American Free Trade Agreement 
Implementation Act (19 U.S.C. 3438), this Act and the amendments made 
by this Act shall apply with respect to goods from Canada and Mexico.
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