`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3450 Engrossed in House (EH)]

103d CONGRESS

  1st Session

                               H. R. 3450

_______________________________________________________________________

                                 AN ACT

         To implement the North American Free Trade Agreement.





103d CONGRESS
  1st Session
                                H. R. 3450

_______________________________________________________________________

                                 AN ACT


 
         To implement the North American Free Trade Agreement.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``North American 
Free Trade Agreement Implementation Act''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.
Sec. 2. Definitions.
  TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE NORTH 
                     AMERICAN FREE TRADE AGREEMENT

Sec. 101. Approval and entry into force of the North American Free 
                            Trade Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Consultation and layover requirements for, and effective date 
                            of, proclaimed actions.
Sec. 104. Implementing actions in anticipation of entry into force and 
                            initial regulations.
Sec. 105. United States Section of the NAFTA Secretariat.
Sec. 106. Appointments to chapter 20 panel proceedings.
Sec. 107. Termination or suspension of United States-Canada Free-Trade 
                            Agreement.
Sec. 108. Congressional intent regarding future accessions.
Sec. 109. Effective dates; effect of termination of NAFTA status.
                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications. 
Sec. 202. Rules of origin.
Sec. 203. Drawback.
Sec. 204. Customs user fees.
Sec. 205. Enforcement.
Sec. 206. Reliquidation of entries for NAFTA-origin goods.
Sec. 207. Country of origin marking of NAFTA goods.
Sec. 208. Protests against adverse origin determinations.
Sec. 209. Exchange of information.
Sec. 210. Prohibition on drawback for television picture tubes.
Sec. 211. Monitoring of television and picture tube imports.
Sec. 212. Title VI amendments.
Sec. 213. Effective dates.

      TITLE III--APPLICATION OF AGREEMENT TO SECTORS AND SERVICES

                         Subtitle A--Safeguards

       Part 1--Relief From Imports Benefiting From the Agreement

Sec. 301. Definitions.
Sec. 302. Commencing of action for relief.
Sec. 303. International Trade Commission action on petition.
Sec. 304. Provision of relief.
Sec. 305. Termination of relief authority.
Sec. 306. Compensation authority.
Sec. 307. Submission of petitions.
Sec. 308. Special tariff provisions for Canadian fresh fruits and 
                            vegetables.
Sec. 309. Price-based snapback for frozen concentrated orange juice.
             Part 2--Relief From Imports From All Countries

Sec. 311. NAFTA article impact in import relief cases under the Trade 
                            Act of 1974.
Sec. 312. Presidential action regarding NAFTA imports.
                       Part 3--General Provisions

Sec. 315. Provisional relief.
Sec. 316. Monitoring.
Sec. 317. Procedures concerning the conduct of International Trade 
                            Commission investigations.
Sec. 318. Effective date.
                        Subtitle B--Agriculture

Sec. 321. Agriculture.
                   Subtitle C--Intellectual Property

Sec. 331. Treatment of inventive activity.
Sec. 332. Rental rights in sound recordings.
Sec. 333. Nonregistrability of misleading geographic indications.
Sec. 334. Motion pictures in the public domain.
Sec. 335. Effective dates.
            Subtitle D--Temporary Entry of Business Persons

Sec. 341. Temporary entry.
Sec. 342. Effective date.
                         Subtitle E--Standards

                     Part 1--Standards and Measures

Sec. 351. Standards and sanitary and phytosanitary measures.
Sec. 352. Transportation.
                     Part 2--Agricultural Standards

Sec. 361. Agricultural technical and conforming amendments.
               Subtitle F--Corporate Average Fuel Economy

Sec. 371. Corporate average fuel economy.
                   Subtitle G--Government Procurement

Sec. 381. Government procurement.
  TITLE IV--DISPUTE SETTLEMENT IN ANTIDUMPING AND COUNTERVAILING DUTY 
                                 CASES

 Subtitle A--Organizational, Administrative, and Procedural Provisions 
      Regarding the Implementation of Chapter 19 of the Agreement

Sec. 401. References in subtitle.
Sec. 402. Organizational and administrative provisions.
Sec. 403. Testimony and production of papers in extraordinary 
                            challenges.
Sec. 404. Requests for review of determinations by competent 
                            investigating authorities of NAFTA 
                            countries.
Sec. 405. Rules of procedure for panels and committees.
Sec. 406. Subsidy negotiations.
Sec. 407. Identification of industries facing subsidized imports.
Sec. 408. Treatment of amendments to antidumping and countervailing 
                            duty law.
            Subtitle B--Conforming Amendments and Provisions

Sec. 411. Judicial review in antidumping duty and countervailing duty 
                            cases.
Sec. 412. Conforming amendments to other provisions of the Tariff Act 
                            of 1930.
Sec. 413. Consequential amendment to Free-Trade Agreement Act of 1988.
Sec. 414. Conforming amendments to title 28, United States Code.
Sec. 415. Effect of termination of NAFTA country status.
Sec. 416. Effective date.

 TITLE V--NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE AND OTHER PROVISIONS

      Subtitle A--NAFTA Transitional Adjustment Assistance Program

Sec. 501. Short title.
Sec. 502. Establishment of NAFTA transitional adjustment assistance 
                            program.
Sec. 503. Conforming amendments.
Sec. 504. Authorization of appropriations.
Sec. 505. Termination of transition program.
Sec. 506. Effective date.
Sec. 507. Treatment of self-employment assistance programs.
   Subtitle B--Provisions Relating to Performance Under the Agreement

Sec. 511. Discriminatory taxes.
Sec. 512. Review of the operation and effects of the agreement.
Sec. 513. Actions affecting United States cultural industries.
Sec. 514. Report on impact of NAFTA on motor vehicle exports to Mexico.
Sec. 515. Center for the study of Western Hemispheric Trade.
Sec. 516. Effective date.
                          Subtitle C--Funding

                       Part 1--Customs User Fees

Sec. 521. Fees for certain customs services.
                Part 2--Internal Revenue Code Amendments

Sec. 522. Authority to disclose certain tax information to the United 
                            States customs service.
Sec. 523. Use of electronic fund transfer system for collection of 
                            certain taxes.
      Subtitle D--Implementation of NAFTA Supplemental Agreements

          Part 1--Agreements Relating to Labor and Environment

Sec. 531. Agreement on labor cooperation.
Sec. 532. Agreement on environmental cooperation.
Sec. 533. Agreement on Border Environment Cooperation Commission.
    Part 2--North American Development Bank and Related Provisions.

Sec. 541. North American Development Bank.
Sec. 542. Status, immunities, and privileges.
Sec. 543. Community adjustment and investment program.
Sec. 544. Definition.
                    TITLE VI--CUSTOMS MODERNIZATION

Sec. 601. Reference.
            Subtitle A--Improvements in Customs Enforcement

Sec. 611. Penalties for violations of arrival, reporting, entry, and 
                            clearance requirements.
Sec. 612. Failure to declare.
Sec. 613. Customs testing laboratories; detention of merchandise.
Sec. 614. Recordkeeping.
Sec. 615. Examination of books and witnesses.
Sec. 616. Judicial enforcement.
Sec. 617. Review of protests.
Sec. 618. Repeal of provision relating to reliquidation on account of 
                            fraud.
Sec. 619. Penalties relating to manifests.
Sec. 620. Unlawful unlading or transshipment.
Sec. 621. Penalties for fraud, gross negligence, and negligence; prior 
                            disclosure.
Sec. 622. Penalties for false drawback claims.
Sec. 623. Interpretive rulings and decisions; public information.
Sec. 624. Seizure authority.
            Subtitle B--National Customs Automation Program

Sec. 631. National Customs Automation Program.
Sec. 632. Drawback and refunds.
Sec. 633. Effective date of rates of duty.
Sec. 634. Definitions.
Sec. 635. Manifests.
Sec. 636. Invoice contents.
Sec. 637. Entry of merchandise.
Sec. 638. Appraisement and other procedures.
Sec. 639. Voluntary reliquidations.
Sec. 640. Appraisement regulations.
Sec. 641. Limitation on liquidation.
Sec. 642. Payment of duties and fees.
Sec. 643. Abandonment and damage.
Sec. 644. Customs officer's immunity.
Sec. 645. Protests.
Sec. 646. Refunds and errors.
Sec. 647. Bonds and other security.
Sec. 648. Customhouse brokers.
Sec. 649. Conforming amendments.
     Subtitle C--Miscellaneous Amendments to the Tariff Act of 1930

Sec. 651. Administrative exemptions.
Sec. 652. Report of arrival.
Sec. 653. Entry of vessels.
Sec. 654. Unlawful return of foreign vessel papers.
Sec. 655. Vessels not required to enter.
Sec. 656. Unlading.
Sec. 657. Declarations.
Sec. 658. General orders.
Sec. 659. Unclaimed merchandise.
Sec. 660. Destruction of merchandise.
Sec. 661. Proceeds of sale.
Sec. 662. Entry under regulations.
Sec. 663. American trademarks.
Sec. 664. Simplified recordkeeping for merchandise transported by 
                            pipeline.
Sec. 665. Entry for warehouse.
Sec. 666. Cartage.
Sec. 667. Seizure.
Sec. 668. Limitation on actions.
Sec. 669. Collection of fees on behalf of other agencies.
Sec. 670. Authority to settle claims.
Sec. 671. Use of private collection agencies.
 Subtitle D--Miscellaneous Provisions and Consequential and Conforming 
                        Amendments to Other Laws

Sec. 681. Amendments to the Harmonized Tariff Schedule.
Sec. 682. Customs personnel airport work shift regulation.
Sec. 683. Use of harbor maintenance trust fund amounts for 
                            administrative expenses.
Sec. 684. Amendments to title 28, United States Code.
Sec. 685. Treasury forfeiture fund.
Sec. 686. Amendments to the Revised Statutes of the United States.
Sec. 687. Amendments to title 18, United States Code.
Sec. 688. Amendment to the Act to Prevent Pollution from Ships.
Sec. 689. Miscellaneous technical amendments.
Sec. 690. Repeal of obsolete provisions of law.
Sec. 691. Reports to Congress.
Sec. 692. Effective date.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) Agreement.--The term ``Agreement'' means the North 
        American Free Trade Agreement approved by the Congress under 
        section 101(a).
            (2) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.
            (3) Mexico.--Any reference to Mexico shall be considered to 
        be a reference to the United Mexican States.
            (4) NAFTA country.--Except as provided in section 202, the 
        term ``NAFTA country'' means--
                    (A) Canada for such time as the Agreement is in 
                force with respect to, and the United States applies 
                the Agreement to, Canada; and
                    (B) Mexico for such time as the Agreement is in 
                force with respect to, and the United States applies 
                the Agreement to, Mexico.
            (5) International trade commission.--The term 
        ``International Trade Commission'' means the United States 
        International Trade Commission.
            (6) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.

  TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE NORTH 
                     AMERICAN FREE TRADE AGREEMENT

SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE NORTH AMERICAN FREE 
              TRADE AGREEMENT.

    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 1103 of the Omnibus Trade and Competitiveness Act 
of 1988 (19 U.S.C. 2903) and section 151 of the Trade Act of 1974 (19 
U.S.C. 2191), the Congress approves--
            (1) the North American Free Trade Agreement entered into on 
        December 17, 1992, with the Governments of Canada and Mexico 
        and submitted to the Congress on November 4, 1993; and
            (2) the statement of administrative action proposed to 
        implement the Agreement that was submitted to the Congress on 
        November 4, 1993.
    (b) Conditions for Entry Into Force of the Agreement.--The 
President is authorized to exchange notes with the Government of Canada 
or Mexico providing for the entry into force, on or after January 1, 
1994, of the Agreement for the United States with respect to such 
country at such time as--
            (1) the President--
                    (A) determines that such country has implemented 
                the statutory changes necessary to bring that country 
                into compliance with its obligations under the 
                Agreement and has made provision to implement the 
                Uniform Regulations provided for under article 511 of 
                the Agreement regarding the interpretation, 
                application, and administration of the rules of origin, 
                and
                    (B) transmits a report to the House of 
                Representatives and the Senate setting forth the 
                determination under subparagraph (A) and including, in 
                the case of Mexico, a description of the specific 
                measures taken by that country to--
                            (i) bring its laws into conformity with the 
                        requirements of the Schedule of Mexico in Annex 
                        1904.15 of the Agreement, and
                            (ii) otherwise ensure the effective 
                        implementation of the binational panel review 
                        process under chapter 19 of the Agreement 
                        regarding final antidumping and countervailing 
                        duty determinations; and
            (2) the Government of such country exchanges notes with the 
        United States providing for the entry into force of the North 
        American Agreement on Environmental Cooperation and the North 
        American Agreement on Labor Cooperation for that country and 
        the United States.

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.

    (a) Relationship of Agreement to United States Law.--
            (1) United states law to prevail in conflict.--No provision 
        of the Agreement, nor the application of any such provision to 
        any person or circumstance, which is inconsistent with any law 
        of the United States shall have effect.
            (2) Construction.--Nothing in this Act shall be construed--
                    (A) to amend or modify any law of the United 
                States, including any law regarding--
                            (i) the protection of human, animal, or 
                        plant life or health,
                            (ii) the protection of the environment, or
                            (iii) motor carrier or worker safety; or
                    (B) to limit any authority conferred under any law 
                of the United States, including section 301 of the 
                Trade Act of 1974;
        unless specifically provided for in this Act.
    (b) Relationship of Agreement to State Law.--
            (1) Federal-state consultation.--
                    (A) In general.--Upon the enactment of this Act, 
                the President shall, through the intergovernmental 
                policy advisory committees on trade established under 
                section 306(c)(2)(A) of the Trade and Tariff Act of 
                1984, consult with the States for the purpose of 
                achieving conformity of State laws and practices with 
                the Agreement.
                    (B) Federal-state consultation process.--The Trade 
                Representative shall establish within the Office of the 
                United States Trade Representative a Federal-State 
                consultation process for addressing issues relating to 
                the Agreement that directly relate to, or will 
                potentially have a direct impact on, the States. The 
                Federal-State consultation process shall include 
                procedures under which--
                            (i) the Trade Representative will assist 
                        the States in identifying those State laws that 
                        may not conform with the Agreement but may be 
                        maintained under the Agreement by reason of 
                        being in effect before the Agreement entered 
                        into force;
                            (ii) the States will be informed on a 
                        continuing basis of matters under the Agreement 
                        that directly relate to, or will potentially 
                        have a direct impact on, the States;
                            (iii) the States will be provided 
                        opportunity to submit, on a continuing basis, 
                        to the Trade Representative information and 
                        advice with respect to matters referred to in 
                        clause (ii);
                            (iv) the Trade Representative will take 
                        into account the information and advice 
                        received from the States under clause (iii) 
                        when formulating United States positions 
                        regarding matters referred to in clause (ii); 
                        and
                            (v) the States will be involved (including 
                        involvement through the inclusion of 
                        appropriate representatives of the States) to 
                        the greatest extent practicable at each stage 
                        of the development of United States positions 
                        regarding matters referred to in clause (ii) 
                        that will be addressed by committees, 
                        subcommittees, or working groups established 
                        under the Agreement or through dispute 
                        settlement processes provided for under the 
                        Agreement.
        The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
        apply to the Federal-State consultation process established by 
        this paragraph.
            (2) Legal challenge.--No State law, or the application 
        thereof, may be declared invalid as to any person or 
        circumstance on the ground that the provision or application is 
        inconsistent with the Agreement, except in an action brought by 
        the United States for the purpose of declaring such law or 
        application invalid.
            (3) Definition of state law.--For purposes of this 
        subsection, the term ``State law'' includes--
                    (A) any law of a political subdivision of a State; 
                and
                    (B) any State law regulating or taxing the business 
                of insurance.
    (c) Effect of Agreement With Respect to Private Remedies.--No 
person other than the United States--
            (1) shall have any cause of action or defense under--
                    (A) the Agreement or by virtue of Congressional 
                approval thereof, or
                    (B) the North American Agreement on Environmental 
                Cooperation or the North American Agreement on Labor 
                Cooperation; or
            (2) may challenge, in any action brought under any 
        provision of law, any action or inaction by any department, 
        agency, or other instrumentality of the United States, any 
        State, or any political subdivision of a State on the ground 
        that such action or inaction is inconsistent with the 
        Agreement, the North American Agreement on Environmental 
        Cooperation, or the North American Agreement on Labor 
        Cooperation.

SEC. 103. CONSULTATION AND LAYOVER REQUIREMENTS FOR, AND EFFECTIVE DATE 
              OF, PROCLAIMED ACTIONS.

    (a) Consultation and Layover Requirements.--If a provision of this 
Act provides that the implementation of an action by the President by 
proclamation is subject to the consultation and layover requirements of 
this section, such action may be proclaimed only if--
            (1) the President has obtained advice regarding the 
        proposed action from--
                    (A) the appropriate advisory committees established 
                under section 135 of the Trade Act of 1974, and
                    (B) the International Trade Commission;
            (2) the President has submitted a report to the Committee 
        on Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate that sets forth--
                    (A) the action proposed to be proclaimed and the 
                reasons therefor, and
                    (B) the advice obtained under paragraph (1);
            (3) a period of 60 calendar days, beginning with the first 
        day on which the President has met the requirements of 
        paragraphs (1) and (2) with respect to such action, has 
        expired; and
            (4) the President has consulted with such Committees 
        regarding the proposed action during the period referred to in 
        paragraph (3).
    (b) Effective Date of Certain Proclaimed Actions.--Any action 
proclaimed by the President under the authority of this Act that is not 
subject to the consultation and layover requirements under subsection 
(a) may not take effect before the 15th day after the date on which the 
text of the proclamation is published in the Federal Register.

SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND 
              INITIAL REGULATIONS.

    (a) Implementing Actions.--After the date of the enactment of this 
Act--
            (1) the President may proclaim such actions; and
            (2) other appropriate officers of the United States 
        Government may issue such regulations;
as may be necessary to ensure that any provision of this Act, or 
amendment made by this Act, that takes effect on the date the Agreement 
enters into force is appropriately implemented on such date, but no 
such proclamation or regulation may have an effective date earlier than 
the date of entry into force. The 15-day restriction in section 103(b) 
on the taking effect of proclaimed actions is waived to the extent that 
the application of such restriction would prevent the taking effect on 
the date the Agreement enters into force of any action proclaimed under 
this section.
    (b) Initial Regulations.--Initial regulations necessary or 
appropriate to carry out the actions proposed in the statement of 
administrative action submitted under section 101(a)(2) to implement 
the Agreement shall, to the maximum extent feasible, be issued within 1 
year after the date of entry into force of the Agreement; except that 
interim or initial regulations to implement those Uniform Regulations 
regarding rules of origin provided for under article 511 of the 
Agreement shall be issued no later than the date of entry into force of 
the Agreement. In the case of any implementing action that takes effect 
on a date after the date of entry into force of the Agreement, initial 
regulations to carry out that action shall, to the maximum extent 
feasible, be issued within 1 year after such effective date.

SEC. 105. UNITED STATES SECTION OF THE NAFTA SECRETARIAT.

    (a) Establishment of the United States Section.--The President is 
authorized to establish within any department or agency of the United 
States Government a United States Section of the Secretariat 
established under chapter 20 of the Agreement. The United States 
Section, subject to the oversight of the interagency group established 
under section 402, shall carry out its functions within the Secretariat 
to facilitate the operation of the Agreement, including the operation 
of chapters 19 and 20 of the Agreement and the work of the panels, 
extraordinary challenge committees, special committees, and scientific 
review boards convened under those chapters. The United States Section 
may not be considered to be an agency for purposes of section 552 of 
title 5, United States Code.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year after fiscal year 1993 to the 
department or agency within which the United States Section is 
established the lesser of--
            (1) such sums as may be necessary; or
            (2) $2,000,000;
for the establishment and operations of the United States Section and 
for the payment of the United States share of the expenses of 
binational panels and extraordinary challenge committees convened under 
chapter 19, and of the expenses incurred in dispute settlement 
proceedings under chapter 20, of the Agreement.
    (c) Reimbursement of Certain Expenses.--If, in accordance with 
Annex 2002.2 of the Agreement, the Canadian Section or the Mexican 
Section of the Secretariat provides funds to the United States Section 
during any fiscal year, as reimbursement for expenses by the Canadian 
Section or the Mexican Section in connection with settlement 
proceedings under chapter 19 or 20 of the Agreement, the United States 
Section may retain and use such funds to carry out the functions 
described in subsection (a).

SEC. 106. APPOINTMENTS TO CHAPTER 20 PANEL PROCEEDINGS.

    (a) Consultation.--The Trade Representative shall consult with the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate regarding the selection and 
appointment of candidates for the rosters described in article 2009 of 
the Agreement.
    (b) Selection of Individuals With Environmental Expertise.--The 
United States shall, to the maximum extent practicable, encourage the 
selection of individuals who have expertise and experience in 
environmental issues for service in panel proceedings under chapter 20 
of the Agreement to hear any challenge to a United States or State 
environmental law.

SEC. 107. TERMINATION OR SUSPENSION OF UNITED STATES-CANADA FREE-TRADE 
              AGREEMENT.

    Section 501(c) of the United States-Canada Free-Trade 
Implementation Act of 1988 (19 U.S.C. 2112 note) is amended to read as 
follows:
    ``(c) Termination or Suspension of Agreement.--
            ``(1) Termination of agreement.--On the date the Agreement 
        ceases to be in force, the provisions of this Act (other than 
        this paragraph and section 410(b)), and the amendments made by 
        this Act, shall cease to have effect.
            ``(2) Effect of agreement suspension.--An agreement by the 
        United States and Canada to suspend the operation of the 
        Agreement shall not be deemed to cause the Agreement to cease 
        to be in force within the meaning of paragraph (1).
            ``(3) Suspension resulting from nafta.--On the date the 
        United States and Canada agree to suspend the operation of the 
        Agreement by reason of the entry into force between them of the 
        North American Free Trade Agreement, the following provisions 
        of this Act are suspended and shall remain suspended until such 
        time as the suspension of the Agreement may be terminated:
                    ``(A) Sections 204(a) and (b) and 205(a).
                    ``(B) Sections 302 and 304(f).
                    ``(C) Sections 404, 409, and 410(b).''.

SEC. 108. CONGRESSIONAL INTENT REGARDING FUTURE ACCESSIONS.

    (a) In General.--Section 101(a) may not be construed as conferring 
Congressional approval of the entry into force of the Agreement for the 
United States with respect to countries other than Canada and Mexico.
    (b) Future Free Trade Area Negotiations.--
            (1) Findings.--The Congress makes the following findings:
                    (A) Efforts by the United States to obtain greater 
                market opening through multilateral negotiations have 
                not produced agreements that fully satisfy the trade 
                negotiating objectives of the United States.
                    (B) United States trade policy should provide for 
                additional mechanisms with which to pursue greater 
                market access for United States exports of goods and 
                services and opportunities for export-related 
                investment by United States persons.
                    (C) Among the additional mechanisms should be a 
                system of bilateral and multilateral trade agreements 
                that provide greater market access for United States 
                exports and opportunities for export-related investment 
                by United States persons.
                    (D) The system of trade agreements can and should 
                be structured to be consistent with, and complementary 
                to, existing international obligations of the United 
                States and ongoing multilateral efforts to open 
                markets.
            (2) Report on significant market opening.--No later than 
        May 1, 1994, and May 1, 1997, the Trade Representative shall 
        submit to the President, and to the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives (hereafter in this section referred to as the 
        ``appropriate Congressional committees''), a report which lists 
        those foreign countries--
                    (A) that--
                            (i) currently provide fair and equitable 
                        market access for United States exports of 
                        goods and services and opportunities for 
                        export-related investment by United States 
                        persons, beyond what is required by existing 
                        multilateral trade agreements or obligations; 
                        or
                            (ii) have made significant progress in 
                        opening their markets to United States exports 
                        of goods and services and export-related 
                        investment by United States persons; and
                    (B) the further opening of whose markets has the 
                greatest potential to increase United States exports of 
                goods and services and export-related investment by 
                United States persons, either directly or through the 
                establishment of a beneficial precedent.
            (3) Presidential determination.--The President, on the 
        basis of the report submitted by the Trade Representative under 
        paragraph (2), shall determine with which foreign country or 
        countries, if any, the United States should seek to negotiate a 
        free trade area agreement or agreements.
            (4) Recommendations on future free trade area 
        negotiations.--No later than July 1, 1994, and July 1, 1997, 
        the President shall submit to the appropriate Congressional 
        committees a written report that contains--
                    (A) recommendations for free trade area 
                negotiations with each foreign country selected under 
                paragraph (3);
                    (B) with respect to each country selected, the 
                specific negotiating objectives that are necessary to 
                meet the objectives of the United States under this 
                section; and
                    (C) legislative proposals to ensure adequate 
                consultation with the Congress and the private sector 
                during the negotiations, advance Congressional approval 
                of the negotiations recommended by the President, and 
                Congressional approval of any trade agreement entered 
                into by the President as a result of the negotiations.
            (5) General negotiating objectives.--The general 
        negotiating objectives of the United States under this section 
        are to obtain--
                    (A) preferential treatment for United States goods;
                    (B) national treatment and, where appropriate, 
                equivalent competitive opportunity for United States 
                services and foreign direct investment by United States 
                persons;
                    (C) the elimination of barriers to trade in goods 
                and services by United States persons through 
                standards, testing, labeling, and certification 
                requirements;
                    (D) nondiscriminatory government procurement 
                policies and practices with respect to United States 
                goods and services;
                    (E) the elimination of other barriers to market 
                access for United States goods and services, and the 
                elimination of barriers to foreign direct investment by 
                United States persons;
                    (F) the elimination of acts, policies, and 
                practices which deny fair and equitable market 
                opportunities, including foreign government toleration 
                of anticompetitive business practices by private firms 
                or among private firms that have the effect of 
                restricting, on a basis that is inconsistent with 
                commercial considerations, purchasing by such firms of 
                United States goods and services;
                    (G) adequate and effective protection of 
                intellectual property rights of United States persons, 
                and fair and equitable market access for United States 
                persons that rely upon intellectual property 
                protection;
                    (H) the elimination of foreign export and domestic 
                subsidies that distort international trade in United 
                States goods and services or cause material injury to 
                United States industries;
                    (I) the elimination of all export taxes;
                    (J) the elimination of acts, policies, and 
                practices which constitute export targeting; and
                    (K) monitoring and effective dispute settlement 
                mechanisms to facilitate compliance with the matters 
                described in subparagraphs (A) through (J).

SEC. 109. EFFECTIVE DATES; EFFECT OF TERMINATION OF NAFTA STATUS.

    (a) Effective Dates.--
            (1) In general.--This title (other than the amendment made 
        by section 107) takes effect on the date of the enactment of 
        this Act.
            (2) Section 107 amendment.--The amendment made by section 
        107 takes effect on the date the Agreement enters into force 
        between the United States and Canada.
    (b) Termination of NAFTA Status.--During any period in which a 
country ceases to be a NAFTA country, sections 101 through 106 shall 
cease to have effect with respect to such country.

                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--
            (1) Proclamation authority.--The President may proclaim--
                    (A) such modifications or continuation of any duty,
                    (B) such continuation of duty-free or excise 
                treatment, or
                    (C) such additional duties,
        as the President determines to be necessary or appropriate to 
        carry out or apply articles 302, 305, 307, 308, and 703 and 
        Annexes 302.2, 307.1, 308.1, 308.2, 300-B, 703.2, and 703.3 of 
        the Agreement.
            (2) Effect on mexican gsp status.--Notwithstanding section 
        502(a)(2) of the Trade Act of 1974 (19 U.S.C. 2462(a)(2)), the 
        President shall terminate the designation of Mexico as a 
        beneficiary developing country for purposes of title V of the 
        Trade Act of 1974 on the date of entry into force of the 
        Agreement between the United States and Mexico.
    (b) Other Tariff Modifications.--
            (1) In general.--Subject to paragraph (2) and the 
        consultation and layover requirements of section 103(a), the 
        President may proclaim--
                    (A) such modifications or continuation of any duty,
                    (B) such modifications as the United States may 
                agree to with Mexico or Canada regarding the staging of 
                any duty treatment set forth in Annex 302.2 of the 
                Agreement,
                    (C) such continuation of duty-free or excise 
                treatment, or
                    (D) such additional duties,
        as the President determines to be necessary or appropriate to 
        maintain the general level of reciprocal and mutually 
        advantageous concessions with respect to Canada or Mexico 
        provided for by the Agreement.
            (2) Special rule for articles with tariff phaseout periods 
        of more than 10 years.--The President may not consider a 
        request to accelerate the staging of duty reductions for an 
        article for which the United States tariff phaseout period is 
        more than 10 years if a request for acceleration with respect 
        to such article has been denied in the preceding 3 calendar 
        years.
    (c) Conversion to Ad Valorem Rates for Certain Textiles.--For 
purposes of subsections (a) and (b), with respect to an article covered 
by Annex 300-B of the Agreement imported from Mexico for which the base 
rate in the Schedule of the United States in Annex 300-B is a specific 
or compound rate of duty, the President may substitute for the base 
rate an ad valorem rate that the President determines to be equivalent 
to the base rate.

SEC. 202. RULES OF ORIGIN.

    (a) Originating Goods.--
            (1) In general.--For purposes of implementing the tariff 
        treatment and quantitative restrictions provided for under the 
        Agreement, except as otherwise provided in this section, a good 
        originates in the territory of a NAFTA country if--
                    (A) the good is wholly obtained or produced 
                entirely in the territory of one or more of the NAFTA 
                countries;
                    (B)(i) each nonoriginating material used in the 
                production of the good--
                            (I) undergoes an applicable change in 
                        tariff classification set out in Annex 401 of 
                        the Agreement as a result of production 
                        occurring entirely in the territory of one or 
                        more of the NAFTA countries; or
                            (II) where no change in tariff 
                        classification is required, the good otherwise 
                        satisfies the applicable requirements of such 
                        Annex; and
                    (ii) the good satisfies all other applicable 
                requirements of this section;
                    (C) the good is produced entirely in the territory 
                of one or more of the NAFTA countries exclusively from 
                originating materials; or
                    (D) except for a good provided for in chapters 61 
                through 63 of the HTS, the good is produced entirely in 
                the territory of one or more of the NAFTA countries, 
                but one or more of the nonoriginating materials, that 
                are provided for as parts under the HTS and are used in 
                the production of the good, does not undergo a change 
                in tariff classification because--
                            (i) the good was imported into the 
                        territory of a NAFTA country in an unassembled 
                        or a disassembled form but was classified as an 
                        assembled good pursuant to General Rule of 
                        Interpretation 2(a) of the HTS; or
                            (ii)(I) the heading for the good provides 
                        for and specifically describes both the good 
                        itself and its parts and is not further 
                        subdivided into subheadings; or
                            (II) the subheading for the good provides 
                        for and specifically describes both the good 
                        itself and its parts.
            (2) Special rules.--
                    (A) Foreign-trade zones.--Subparagraph (B) of 
                paragraph (1) shall not apply to a good produced in a 
                foreign-trade zone or subzone (established pursuant to 
                the Act of June 18, 1934, commonly known as the Foreign 
                Trade Zones Act) that is entered for consumption in the 
                customs territory of the United States.
                    (B) Regional value-content requirement.--For 
                purposes of subparagraph (D) of paragraph (1), a good 
                shall be treated as originating in a NAFTA country if 
                the regional value-content of the good, determined in 
                accordance with subsection (b), is not less than 60 
                percent where the transaction value method is used, or 
                not less than 50 percent where the net cost method is 
                used, and the good satisfies all other applicable 
                requirements of this section.
    (b) Regional Value-Content.--
            (1) In general.--Except as provided in paragraph (5), the 
        regional value-content of a good shall be calculated, at the 
        choice of the exporter or producer of the good, on the basis 
        of--
                    (A) the transaction value method described in 
                paragraph (2); or
                    (B) the net cost method described in paragraph (3).
            (2) Transaction value method.--
                    (A) In general.--An exporter or producer may 
                calculate the regional value-content of a good on the 
                basis of the following transaction value method:

                                                                        
                                 tv-vnm                                 
    rvc            =      -------------------       x            100    
                                   tv                                   
                                                                        

                    (B) Definitions.--For purposes of subparagraph (A):
                            (i) The term ``RVC'' means the regional 
                        value-content, expressed as a percentage.
                            (ii) The term ``TV'' means the transaction 
                        value of the good adjusted to a F.O.B. basis.
                            (iii) The term ``VNM'' means the value of 
                        nonoriginating materials used by the producer 
                        in the production of the good.
            (3) Net cost method.--
                    (A) In general.--An exporter or producer may 
                calculate the regional value-content of a good on the 
                basis of the following net cost method:

                                                                        
                                 nc-vnm                                 
    rvc            =      -------------------       x            100    
                                   nc                                   
                                                                        

                    (B) Definitions.--For purposes of subparagraph (A):
                            (i) The term ``RVC'' means the regional 
                        value-content, expressed as a percentage.
                            (ii) The term ``NC'' means the net cost of 
                        the good.
                            (iii) The term ``VNM'' means the value of 
                        nonoriginating materials used by the producer 
                        in the production of the good.
            (4) Value of nonoriginating materials used in originating 
        materials.--Except as provided in subsection (c)(1), and for a 
        motor vehicle identified in subsection (c)(2) or a component 
        identified in Annex 403.2 of the Agreement, the value of 
        nonoriginating materials used by the producer in the production 
        of a good shall not, for purposes of calculating the regional 
        value-content of the good under paragraph (2) or (3), include 
        the value of nonoriginating materials used to produce 
        originating materials that are subsequently used in the 
        production of the good.
            (5) Net cost method must be used in certain cases.--An 
        exporter or producer shall calculate the regional value-content 
        of a good solely on the basis of the net cost method described 
        in paragraph (3), if--
                    (A) there is no transaction value for the good;
                    (B) the transaction value of the good is 
                unacceptable under Article 1 of the Customs Valuation 
                Code;
                    (C) the good is sold by the producer to a related 
                person and the volume, by units of quantity, of sales 
                of identical or similar goods to related persons during 
                the six-month period immediately preceding the month in 
                which the good is sold exceeds 85 percent of the 
                producer's total sales of such goods during that 
                period;
                    (D) the good is--
                            (i) a motor vehicle provided for in heading 
                        8701 or 8702, subheadings 8703.21 through 
                        8703.90, or heading 8704, 8705, or 8706;
                            (ii) identified in Annex 403.1 or 403.2 of 
                        the Agreement and is for use in a motor vehicle 
                        provided for in heading 8701 or 8702, 
                        subheadings 8703.21 through 8703.90, or heading 
                        8704, 8705, or 8706;
                            (iii) provided for in subheadings 6401.10 
                        through 6406.10; or
                            (iv) a word processing machine provided for 
                        in subheading 8469.10.00;
                    (E) the exporter or producer chooses to accumulate 
                the regional value-content of the good in accordance 
                with subsection (d); or
                    (F) the good is designated as an intermediate 
                material under paragraph (10) and is subject to a 
                regional value-content requirement.
            (6) Net cost method allowed for adjustments.--If an 
        exporter or producer of a good calculates the regional value-
        content of the good on the basis of the transaction value 
        method and a NAFTA country subsequently notifies the exporter 
        or producer, during the course of a verification conducted in 
        accordance with chapter 5 of the Agreement, that the 
        transaction value of the good or the value of any material used 
        in the production of the good must be adjusted or is 
        unacceptable under Article 1 of the Customs Valuation Code, the 
        exporter or producer may calculate the regional value-content 
        of the good on the basis of the net cost method.
            (7) Review of adjustment.--Nothing in paragraph (6) shall 
        be construed to prevent any review or appeal available in 
        accordance with article 510 of the Agreement with respect to an 
        adjustment to or a rejection of--
                    (A) the transaction value of a good; or
                    (B) the value of any material used in the 
                production of a good.
            (8) Calculating net cost.--The producer may, consistent 
        with regulations implementing this section, calculate the net 
        cost of a good under paragraph (3), by--
                    (A) calculating the total cost incurred with 
                respect to all goods produced by that producer, 
                subtracting any sales promotion, marketing and after-
                sales service costs, royalties, shipping and packing 
                costs, and nonallowable interest costs that are 
                included in the total cost of all such goods, and 
                reasonably allocating the resulting net cost of those 
                goods to the good;
                    (B) calculating the total cost incurred with 
                respect to all goods produced by that producer, 
                reasonably allocating the total cost to the good, and 
                subtracting any sales promotion, marketing and after-
                sales service costs, royalties, shipping and packing 
                costs, and nonallowable interest costs that are 
                included in the portion of the total cost allocated to 
                the good; or
                    (C) reasonably allocating each cost that is part of 
                the total cost incurred with respect to the good so 
                that the aggregate of these costs does not include any 
                sales promotion, marketing and after-sales service 
                costs, royalties, shipping and packing costs, or 
                nonallowable interest costs.
            (9) Value of material used in production.--Except as 
        provided in paragraph (11), the value of a material used in the 
        production of a good--
                    (A) shall--
                            (i) be the transaction value of the 
                        material determined in accordance with Article 
                        1 of the Customs Valuation Code; or
                            (ii) in the event that there is no 
                        transaction value or the transaction value of 
                        the material is unacceptable under Article 1 of 
                        the Customs Valuation Code, be determined in 
                        accordance with Articles 2 through 7 of the 
                        Customs Valuation Code; and
                    (B) if not included under clause (i) or (ii) of 
                subparagraph (A), shall include--
                            (i) freight, insurance, packing, and all 
                        other costs incurred in transporting the 
                        material to the location of the producer;
                            (ii) duties, taxes, and customs brokerage 
                        fees paid on the material in the territory of 
                        one or more of the NAFTA countries; and
                            (iii) the cost of waste and spoilage 
                        resulting from the use of the material in the 
                        production of the good, less the value of 
                        renewable scrap or by-product.
            (10) Intermediate material.--Except for goods described in 
        subsection (c)(1), any self-produced material, other than a 
        component identified in Annex 403.2 of the Agreement, that is 
        used in the production of a good may be designated by the 
        producer of the good as an intermediate material for the 
        purpose of calculating the regional value-content of the good 
        under paragraph (2) or (3); provided that if the intermediate 
        material is subject to a regional value-content requirement, no 
        other self-produced material that is subject to a regional 
        value-content requirement and is used in the production of the 
        intermediate material may be designated by the producer as an 
        intermediate material.
            (11) Value of intermediate material.--The value of an 
        intermediate material shall be--
                    (A) the total cost incurred with respect to all 
                goods produced by the producer of the good that can be 
                reasonably allocated to the intermediate material; or
                    (B) the aggregate of each cost that is part of the 
                total cost incurred with respect to the intermediate 
                material that can be reasonably allocated to that 
                intermediate material.
            (12) Indirect material.--The value of an indirect material 
        shall be based on the Generally Accepted Accounting Principles 
        applicable in the territory of the NAFTA country in which the 
        good is produced.
    (c) Automotive Goods.--
            (1) Passenger vehicles and light trucks, and their 
        automotive parts.--For purposes of calculating the regional 
        value-content under the net cost method for--
                    (A) a good that is a motor vehicle for the 
                transport of 15 or fewer persons provided for in 
                subheading 8702.10.00 or 8702.90.00, or a motor vehicle 
                provided for in subheadings 8703.21 through 8703.90, or 
                subheading 8704.21 or 8704.31, or
                    (B) a good provided for in the tariff provisions 
                listed in Annex 403.1 of the Agreement, that is subject 
                to a regional value-content requirement and is for use 
                as original equipment in the production of a motor 
                vehicle for the transport of 15 or fewer persons 
                provided for in subheading 8702.10.00 or 8702.90.00, or 
                a motor vehicle provided for in subheadings 8703.21 
                through 8703.90, or subheading 8704.21 or 8704.31,
        the value of nonoriginating materials used by the producer in 
        the production of the good shall be the sum of the values of 
        all nonoriginating materials, determined in accordance with 
        subsection (b)(9) at the time the nonoriginating materials are 
        received by the first person in the territory of a NAFTA 
        country who takes title to them, that are imported from outside 
        the territories of the NAFTA countries under the tariff 
        provisions listed in Annex 403.1 of the Agreement and are used 
        in the production of the good or that are used in the 
        production of any material used in the production of the good.
            (2) Other vehicles and their automotive parts.--For 
        purposes of calculating the regional value-content under the 
        net cost method for a good that is a motor vehicle provided for 
        in heading 8701, subheading 8704.10, 8704.22, 8704.23, 8704.32, 
        or 8704.90, or heading 8705 or 8706, a motor vehicle for the 
        transport of 16 or more persons provided for in subheading 
        8702.10.00 or 8702.90.00, or a component identified in Annex 
        403.2 of the Agreement for use as original equipment in the 
        production of the motor vehicle, the value of nonoriginating 
        materials used by the producer in the production of the good 
        shall be the sum of--
                    (A) for each material used by the producer listed 
                in Annex 403.2 of the Agreement, whether or not 
                produced by the producer, at the choice of the producer 
                and determined in accordance with subsection (b), 
                either--
                            (i) the value of such material that is 
                        nonoriginating, or
                            (ii) the value of nonoriginating materials 
                        used in the production of such material; and
                    (B) the value of any other nonoriginating material 
                used by the producer that is not listed in Annex 403.2 
                of the Agreement determined in accordance with 
                subsection (b).
            (3) Averaging permitted.--
                    (A) In general.--For purposes of calculating the 
                regional value-content of a motor vehicle described in 
                paragraph (1) or (2), the producer may average its 
                calculation over its fiscal year, using any of the 
                categories described in subparagraph (B), on the basis 
                of either all motor vehicles in the category or on the 
                basis of only the motor vehicles in the category that 
                are exported to the territory of one or more of the 
                other NAFTA countries.
                    (B) Category described.--A category is described in 
                this subparagraph if it is--
                            (i) the same model line of motor vehicles 
                        in the same class of vehicles produced in the 
                        same plant in the territory of a NAFTA country;
                            (ii) the same class of motor vehicles 
                        produced in the same plant in the territory of 
                        a NAFTA country;
                            (iii) the same model line of motor vehicles 
                        produced in the territory of a NAFTA country; 
                        or
                            (iv) if applicable, the basis set out in 
                        Annex 403.3 of the Agreement.
            (4) Annex 403.1 and annex 403.2.--For purposes of 
        calculating the regional value-content for any or all goods 
        provided for in a tariff provision listed in Annex 403.1 of the 
        Agreement, or a component or material identified in Annex 403.2 
        of the Agreement, produced in the same plant, the producer of 
        the good may--
                    (A) average its calculation--
                            (i) over the fiscal year of the motor 
                        vehicle producer to whom the good is sold;
                            (ii) over any quarter or month; or
                            (iii) over its fiscal year, if the good is 
                        sold as an aftermarket part;
                    (B) calculate the average referred to in 
                subparagraph (A) separately for any or all goods sold 
                to one or more motor vehicle producers; or
                    (C) with respect to any calculation under this 
                paragraph, make a separate calculation for goods that 
                are exported to the territory of one or more NAFTA 
                countries.
            (5) Phase-in of regional value-content requirement.--
        Notwithstanding Annex 401 of the Agreement, and except as 
        provided in paragraph (6), the regional value-content 
        requirement shall be--
                    (A) for a producer's fiscal year beginning on the 
                day closest to January 1, 1998, and thereafter, 56 
                percent calculated under the net cost method, and for a 
                producer's fiscal year beginning on the day closest to 
                January 1, 2002, and thereafter, 62.5 percent 
                calculated under the net cost method, for--
                            (i) a good that is a motor vehicle for the 
                        transport of 15 or fewer persons provided for 
                        in subheading 8702.10.00 or 8702.90.00, or a 
                        motor vehicle provided for in subheadings 
                        8703.21 through 8703.90, or subheading 8704.21 
                        or 8704.31; and
                            (ii) a good provided for in heading 8407 or 
                        8408, or subheading 8708.40, that is for use in 
                        a motor vehicle identified in clause (i); and
                    (B) for a producer's fiscal year beginning on the 
                day closest to January 1, 1998, and thereafter, 55 
                percent calculated under the net cost method, and for a 
                producer's fiscal year beginning on the day closest to 
                January 1, 2002, and thereafter, 60 percent calculated 
                under the net cost method, for--
                            (i) a good that is a motor vehicle provided 
                        for in heading 8701, subheading 8704.10, 
                        8704.22, 8704.23, 8704.32, or 8704.90, or 
                        heading 8705 or 8706, or a motor vehicle for 
                        the transport of 16 or more persons provided 
                        for in subheading 8702.10.00 or 8702.90.00;
                            (ii) a good provided for in heading 8407 or 
                        8408, or subheading 8708.40 that is for use in 
                        a motor vehicle identified in clause (i); and
                            (iii) except for a good identified in 
                        subparagraph (A)(ii) or a good provided for in 
                        subheadings 8482.10 through 8482.80, or 
                        subheading 8483.20 or 8483.30, a good 
                        identified in Annex 403.1 of the Agreement that 
                        is subject to a regional value-content 
                        requirement and is for use in a motor vehicle 
                        identified in subparagraph (A)(i) or (B)(i).
            (6) New and refitted plants.--The regional value-content 
        requirement for a motor vehicle identified in paragraph (1) or 
        (2) shall be--
                    (A) 50 percent for 5 years after the date on which 
                the first motor vehicle prototype is produced in a 
                plant by a motor vehicle assembler, if--
                            (i) it is a motor vehicle of a class, or 
                        marque, or, except for a motor vehicle 
                        identified in paragraph (2), size category and 
                        underbody, not previously produced by the motor 
                        vehicle assembler in the territory of any of 
                        the NAFTA countries;
                            (ii) the plant consists of a new building 
                        in which the motor vehicle is assembled; and
                            (iii) the plant contains substantially all 
                        new machinery that is used in the assembly of 
                        the motor vehicle; or
                    (B) 50 percent for 2 years after the date on which 
                the first motor vehicle prototype is produced at a 
                plant following a refit, if it is a motor vehicle of a 
                class, or marque, or, except for a motor vehicle 
                identified in paragraph (2), size category and 
                underbody, different from that assembled by the motor 
                vehicle assembler in the plant before the refit.
            (7) Election for certain vehicles from canada.--In the case 
        of goods provided for in subheadings 8703.21 through 8703.90, 
        or subheading 8704.21 or 8704.31, exported from Canada directly 
        to the United States, and entered on or after January 1, 1989, 
        and before the date of entry into force of the Agreement 
        between the United States and Canada, an importer may elect to 
        use the rules of origin set out in this section in lieu of the 
        rules of origin contained in section 202 of the United States-
        Canada Free-Trade Agreement Implementation Act of 1988 (19 
        U.S.C. 2112 note) and may elect to use the method for 
        calculating the value of nonoriginating materials established 
        in article 403(2) of the Agreement in lieu of the method 
        established in article 403(1) of the Agreement for purposes of 
        determining eligibility for preferential duty treatment under 
        the United States-Canada Free-Trade Agreement. Any election 
        under this paragraph shall be made in writing to the Customs 
        Service not later than the date that is 180 days after the date 
        of entry into force of the Agreement between the United States 
        and Canada. Any such election may be made only if the 
        liquidation of such entry has not become final. For purposes of 
        averaging the calculation of regional value-content for the 
        goods covered by such entry, where the producer's 1989-1990 
        fiscal year began after January 1, 1989, the producer may 
        include the period between January 1, 1989, and the beginning 
        of its first fiscal year after January 1, 1989, as part of 
        fiscal year 1989-1990.
    (d) Accumulation.--
            (1) Determination of originating good.--For purposes of 
        determining whether a good is an originating good, the 
        production of the good in the territory of one or more of the 
        NAFTA countries by one or more producers shall, at the choice 
        of the exporter or producer of the good, be considered to have 
        been performed in the territory of any of the NAFTA countries 
        by that exporter or producer, if--
                    (A) all nonoriginating materials used in the 
                production of the good undergo an applicable tariff 
                classification change set out in Annex 401 of the 
                Agreement;
                    (B) the good satisfies any applicable regional 
                value-content requirement; and
                    (C) the good satisfies all other applicable 
                requirements of this section.
        The requirements of subparagraphs (A) and (B) must be satisfied 
        entirely in the territory of one or more of the NAFTA 
        countries.
            (2) Treatment as single producer.--For purposes of 
        subsection (b)(10), the production of a producer that chooses 
        to accumulate its production with that of other producers under 
        paragraph (1) shall be treated as the production of a single 
        producer.
    (e) De Minimis Amounts of Nonoriginating Materials.--
            (1) In general.--Except as provided in paragraphs (3), (4), 
        (5), and (6), a good shall be considered to be an originating 
        good if--
                    (A) the value of all nonoriginating materials used 
                in the production of the good that do not undergo an 
                applicable change in tariff classification (set out in 
                Annex 401 of the Agreement) is not more than 7 percent 
                of the transaction value of the good, adjusted to a 
                F.O.B. basis, or
                    (B) where the transaction value of the good is 
                unacceptable under Article 1 of the Customs Valuation 
                Code, the value of all such nonoriginating materials is 
                not more than 7 percent of the total cost of the good,
        provided that the good satisfies all other applicable 
        requirements of this section and, if the good is subject to a 
        regional value-content requirement, the value of such 
        nonoriginating materials is taken into account in calculating 
        the regional value-content of the good.
            (2) Goods not subject to regional value-content 
        requirement.--A good that is otherwise subject to a regional 
        value-content requirement shall not be required to satisfy such 
        requirement if--
                    (A)(i) the value of all nonoriginating materials 
                used in the production of the good is not more than 7 
                percent of the transaction value of the good, adjusted 
                to a F.O.B. basis; or
                    (ii) where the transaction value of the good is 
                unacceptable under Article 1 of the Customs Valuation 
                Code, the value of all nonoriginating materials is not 
                more than 7 percent of the total cost of the good; and
                    (B) the good satisfies all other applicable 
                requirements of this section.
            (3) Dairy products, etc.--Paragraph (1) does not apply to--
                    (A) a nonoriginating material provided for in 
                chapter 4 of the HTS or a dairy preparation containing 
                over 10 percent by weight of milk solids provided for 
                in subheading 1901.90.30, 1901.90.40, or 1901.90.80 
                that is used in the production of a good provided for 
                in chapter 4 of the HTS;
                    (B) a nonoriginating material provided for in 
                chapter 4 of the HTS or a dairy preparation containing 
                over 10 percent by weight of milk solids provided for 
                in subheading 1901.90.30, 1901.90.40, or 1901.90.80 
                that is used in the production of--
                            (i) preparations for infants containing 
                        over 10 percent by weight of milk solids 
                        provided for in subheading 1901.10.00;
                            (ii) mixes and doughs, containing over 25 
                        percent by weight of butterfat, not put up for 
                        retail sale, provided for in subheading 
                        1901.20.00;
                            (iii) a dairy preparation containing over 
                        10 percent by weight of milk solids provided 
                        for in subheading 1901.90.30, 1901.90.40, or 
                        1901.90.80;
                            (iv) a good provided for in heading 2105 or 
                        subheading 2106.90.05, or preparations 
                        containing over 10 percent by weight of milk 
                        solids provided for in subheading 2106.90.15, 
                        2106.90.40, 2106.90.50, or 2106.90.65;
                            (v) a good provided for in subheading 
                        2202.90.10 or 2202.90.20; or
                            (vi) animal feeds containing over 10 
                        percent by weight of milk solids provided for 
                        in subheading 2309.90.30;
                    (C) a nonoriginating material provided for in 
                heading 0805 or subheadings 2009.11 through 2009.30 
                that is used in the production of--
                            (i) a good provided for in subheadings 
                        2009.11 through 2009.30, or subheading 
                        2106.90.16, or concentrated fruit or vegetable 
                        juice of any single fruit or vegetable, 
                        fortified with minerals or vitamins, provided 
                        for in subheading 2106.90.19; or
                            (ii) a good provided for in subheading 
                        2202.90.30 or 2202.90.35, or fruit or vegetable 
                        juice of any single fruit or vegetable, 
                        fortified with minerals or vitamins, provided 
                        for in subheading 2202.90.36;
                    (D) a nonoriginating material provided for in 
                chapter 9 of the HTS that is used in the production of 
                instant coffee, not flavored, provided for in 
                subheading 2101.10.20;
                    (E) a nonoriginating material provided for in 
                chapter 15 of the HTS that is used in the production of 
                a good provided for in headings 1501 through 1508, or 
                heading 1512, 1514, or 1515;
                    (F) a nonoriginating material provided for in 
                heading 1701 that is used in the production of a good 
                provided for in headings 1701 through 1703;
                    (G) a nonoriginating material provided for in 
                chapter 17 of the HTS or heading 1805 that is used in 
                the production of a good provided for in subheading 
                1806.10;
                    (H) a nonoriginating material provided for in 
                headings 2203 through 2208 that is used in the 
                production of a good provided for in headings 2207 
                through 2208;
                    (I) a nonoriginating material used in the 
                production of--
                            (i) a good provided for in subheading 
                        7321.11.30;
                            (ii) a good provided for in subheading 
                        8415.10, subheadings 8415.81 through 8415.83, 
                        subheadings 8418.10 through 8418.21, 
                        subheadings 8418.29 through 8418.40, subheading 
                        8421.12 or 8422.11, subheadings 8450.11 through 
                        8450.20, or subheadings 8451.21 through 
                        8451.29;
                            (iii) trash compactors provided for in 
                        subheading 8479.89.60; or
                            (iv) a good provided for in subheading 
                        8516.60.40; and
                    (J) a printed circuit assembly that is a 
                nonoriginating material used in the production of a 
                good where the applicable change in tariff 
                classification for the good, as set out in Annex 401 of 
                the Agreement, places restrictions on the use of such 
                nonoriginating material.
            (4) Certain fruit juices.--Paragraph (1) does not apply to 
        a nonoriginating single juice ingredient provided for in 
        heading 2009 that is used in the production of--
                    (A) a good provided for in subheading 2009.90, or 
                concentrated mixtures of fruit or vegetable juice, 
                fortified with minerals or vitamins, provided for in 
                subheading 2106.90.19; or
                    (B) mixtures of fruit or vegetable juices, 
                fortified with minerals or vitamins, provided for in 
                subheading 2202.90.39.
            (5) Goods provided for in chapters 1 through 27 of the 
        hts.--Paragraph (1) does not apply to a nonoriginating material 
        used in the production of a good provided for in chapters 1 
        through 27 of the HTS unless the nonoriginating material is 
        provided for in a different subheading than the good for which 
        origin is being determined under this section.
            (6) Goods provided for in chapters 50 through 63 of the 
        hts.--A good provided for in chapters 50 through 63 of the HTS, 
        that does not originate because certain fibers or yarns used in 
        the production of the component of the good that determines the 
        tariff classification of the good do not undergo an applicable 
        change in tariff classification set out in Annex 401 of the 
        Agreement, shall be considered to be a good that originates if 
        the total weight of all such fibers or yarns in that component 
        is not more than 7 percent of the total weight of that 
        component.
    (f) Fungible Goods and Materials.--For purposes of determining 
whether a good is an originating good--
            (1) if originating and nonoriginating fungible materials 
        are used in the production of the good, the determination of 
        whether the materials are originating need not be made through 
        the identification of any specific fungible material, but may 
        be determined on the basis of any of the inventory management 
        methods set out in regulations implementing this section; and
            (2) if originating and nonoriginating fungible goods are 
        commingled and exported in the same form, the determination may 
        be made on the basis of any of the inventory management methods 
        set out in regulations implementing this section.
    (g) Accessories, Spare Parts, or Tools.--
            (1) In general.--Except as provided in paragraph (2), 
        accessories, spare parts, or tools delivered with the good that 
        form part of the good's standard accessories, spare parts, or 
        tools shall--
                    (A) be considered as originating goods if the good 
                is an originating good, and
                    (B) be disregarded in determining whether all the 
                nonoriginating materials used in the production of the 
                good undergo an applicable change in tariff 
                classification set out in Annex 401 of the Agreement.
            (2) Conditions.--Paragraph (1) shall apply only if--
                    (A) the accessories, spare parts, or tools are not 
                invoiced separately from the good;
                    (B) the quantities and value of the accessories, 
                spare parts, or tools are customary for the good; and
                    (C) in any case in which the good is subject to a 
                regional value-content requirement, the value of the 
                accessories, spare parts, or tools are taken into 
                account as originating or nonoriginating materials, as 
                the case may be, in calculating the regional value-
                content of the good.
    (h) Indirect Materials.--An indirect material shall be considered 
to be an originating material without regard to where it is produced.
    (i) Packaging Materials and Containers for Retail Sale.--Packaging 
materials and containers in which a good is packaged for retail sale, 
if classified with the good, shall be disregarded in determining 
whether all the nonoriginating materials used in the production of the 
good undergo an applicable change in tariff classification set out in 
Annex 401 of the Agreement. If the good is subject to a regional value-
content requirement, the value of such packaging materials and 
containers shall be taken into account as originating or nonoriginating 
materials, as the case may be, in calculating the regional value-
content of the good.
    (j) Packing Materials and Containers for Shipment.--Packing 
materials and containers in which a good is packed for shipment shall 
be disregarded--
            (1) in determining whether the nonoriginating materials 
        used in the production of the good undergo an applicable change 
        in tariff classification set out in Annex 401 of the Agreement; 
        and
            (2) in determining whether the good satisfies a regional 
        value-content requirement.
    (k) Transshipment.--A good shall not be considered to be an 
originating good by reason of having undergone production that 
satisfies the requirements of subsection (a) if, subsequent to that 
production, the good undergoes further production or any other 
operation outside the territories of the NAFTA countries, other than 
unloading, reloading, or any other operation necessary to preserve it 
in good condition or to transport the good to the territory of a NAFTA 
country.
    (l) Nonqualifying Operations.--A good shall not be considered to be 
an originating good merely by reason of--
            (1) mere dilution with water or another substance that does 
        not materially alter the characteristics of the good; or
            (2) any production or pricing practice with respect to 
        which it may be demonstrated, by a preponderance of evidence, 
        that the object was to circumvent this section.
    (m) Interpretation and Application.--For purposes of this section:
            (1) The basis for any tariff classification is the HTS.
            (2) Except as otherwise expressly provided, whenever in 
        this section there is a reference to a heading or subheading 
        such reference shall be a reference to a heading or subheading 
        of the HTS.
            (3) In applying subsection (a)(4), the determination of 
        whether a heading or subheading under the HTS provides for and 
        specifically describes both a good and its parts shall be made 
        on the basis of the nomenclature of the heading or subheading, 
        the rules of interpretation, or notes of the HTS.
            (4) In applying the Customs Valuation Code--
                    (A) the principles of the Customs Valuation Code 
                shall apply to domestic transactions, with such 
                modifications as may be required by the circumstances, 
                as would apply to international transactions;
                    (B) the provisions of this section shall take 
                precedence over the Customs Valuation Code to the 
                extent of any difference; and
                    (C) the definitions in subsection (o) shall take 
                precedence over the definitions in the Customs 
                Valuation Code to the extent of any difference.
            (5) All costs referred to in this section shall be recorded 
        and maintained in accordance with the Generally Accepted 
        Accounting Principles applicable in the territory of the NAFTA 
        country in which the good is produced.
    (n) Origin of Automatic Data Processing Goods.--Notwithstanding any 
other provision of this section, when the NAFTA countries apply the 
most-favored-nation rate of duty described in paragraph 1 of section A 
of Annex 308.1 of the Agreement to a good provided for under the tariff 
provisions set out in Table 308.1.1 of such Annex, the good shall, upon 
importation from a NAFTA country, be deemed to originate in the 
territory of a NAFTA country for purposes of this section.
    (o) Special Rule for Certain Agricultural Products.--
Notwithstanding any other provision of this section, for purposes of 
applying a rate of duty to a good provided for in--
            (1) heading 1202 that is exported from the territory of 
        Mexico, if the good is not wholly obtained in the territory of 
        Mexico,
            (2) subheading 2008.11 that is exported from the territory 
        of Mexico, if any material provided for in heading 1202 used in 
        the production of that good is not wholly obtained in the 
        territory of Mexico, or
            (3) subheading 1806.10.42 or 2106.90.12 that is exported 
        from the territory of Mexico, if any material provided for in 
        subheading 1701.99 used in the production of that good is not a 
        qualifying good,
such good shall be treated as a nonoriginating good and, for purposes 
of this subsection, the terms ``qualifying good'' and ``wholly obtained 
in the territory of'' have the meaning given such terms in paragraph 26 
of section A of Annex 703.2 of the Agreement.
    (p) Definitions.--For purposes of this section--
            (1) Class of motor vehicles.--The term ``class of motor 
        vehicles'' means any one of the following categories of motor 
        vehicles:
                    (A) Motor vehicles provided for in subheading 
                8701.20, subheading 8704.10, 8704.22, 8704.23, 8704.32, 
                or 8704.90, or heading 8705 or 8706, or motor vehicles 
                designed for the transport of 16 or more persons 
                provided for in subheading 8702.10.00 or 8702.90.00.
                    (B) Motor vehicles provided for in subheading 
                8701.10, or subheadings 8701.30 through 8701.90.
                    (C) Motor vehicles for the transport of 15 or fewer 
                persons provided for in subheading 8702.10.00 or 
                8702.90.00, or motor vehicles provided for in 
                subheading 8704.21 or 8704.31.
                    (D) Motor vehicles provided for in subheadings 
                8703.21 through 8703.90.
            (2) Customs valuation code.--The term ``Customs Valuation 
        Code'' means the Agreement on Implementation of Article VII of 
        the General Agreement on Tariffs and Trade, including its 
        interpretative notes.
            (3) F.O.B.--The term ``F.O.B.'' means free on board, 
        regardless of the mode of transportation, at the point of 
        direct shipment by the seller to the buyer.
            (4) Fungible goods and fungible materials.--The terms 
        ``fungible goods'' and ``fungible materials'' mean goods or 
        materials that are interchangeable for commercial purposes and 
        whose properties are essentially identical.
            (5) Generally accepted accounting principles.--The term 
        ``Generally Accepted Accounting Principles'' means the 
        recognized consensus or substantial authoritative support in 
        the territory of a NAFTA country with respect to the recording 
        of revenues, expenses, costs, assets and liabilities, 
        disclosure of information, and preparation of financial 
        statements. These standards may be broad guidelines of general 
        application as well as detailed standards, practices, or 
        procedures.
            (6) Goods wholly obtained or produced entirely in the 
        territory of one or more of the nafta countries.--The term 
        ``goods wholly obtained or produced entirely in the territory 
        of one or more of the NAFTA countries'' means--
                    (A) mineral goods extracted in the territory of one 
                or more of the NAFTA countries;
                    (B) vegetable goods harvested in the territory of 
                one or more of the NAFTA countries;
                    (C) live animals born and raised in the territory 
                of one or more of the NAFTA countries;
                    (D) goods obtained from hunting, trapping, or 
                fishing in the territory of one or more of the NAFTA 
                countries;
                    (E) goods (such as fish, shellfish, and other 
                marine life) taken from the sea by vessels registered 
                or recorded with a NAFTA country and flying its flag;
                    (F) goods produced on board factory ships from the 
                goods referred to in subparagraph (E), if such factory 
                ships are registered or recorded with that NAFTA 
                country and fly its flag;
                    (G) goods taken by a NAFTA country or a person of a 
                NAFTA country from the seabed or beneath the seabed 
                outside territorial waters, provided that a NAFTA 
                country has rights to exploit such seabed;
                    (H) goods taken from outer space, if the goods are 
                obtained by a NAFTA country or a person of a NAFTA 
                country and not processed in a country other than a 
                NAFTA country;
                    (I) waste and scrap derived from--
                            (i) production in the territory of one or 
                        more of the NAFTA countries; or
                            (ii) used goods collected in the territory 
                        of one or more of the NAFTA countries, if such 
                        goods are fit only for the recovery of raw 
                        materials; and
                    (J) goods produced in the territory of one or more 
                of the NAFTA countries exclusively from goods referred 
                to in subparagraphs (A) through (I), or from their 
                derivatives, at any stage of production.
            (7) Identical or similar goods.--The term ``identical or 
        similar goods'' means ``identical goods'' and ``similar 
        goods'', respectively, as defined in the Customs Valuation 
        Code.
            (8) Indirect material.--
                    (A) The term ``indirect material'' means a good--
                            (i) used in the production, testing, or 
                        inspection of a good but not physically 
                        incorporated into the good, or
                            (ii) used in the maintenance of buildings 
                        or the operation of equipment associated with 
                        the production of a good,
                in the territory of one or more of the NAFTA countries.
                    (B) When used for a purpose described in 
                subparagraph (A), the following materials are among 
                those considered to be indirect materials:
                            (i) Fuel and energy.
                            (ii) Tools, dies, and molds.
                            (iii) Spare parts and materials used in the 
                        maintenance of equipment and buildings.
                            (iv) Lubricants, greases, compounding 
                        materials, and other materials used in 
                        production or used to operate equipment and 
                        buildings.
                            (v) Gloves, glasses, footwear, clothing, 
                        safety equipment, and supplies.
                            (vi) Equipment, devices, and supplies used 
                        for testing or inspecting the goods.
                            (vii) Catalysts and solvents.
                            (viii) Any other goods that are not 
                        incorporated into the good, if the use of such 
                        goods in the production of the good can 
                        reasonably be demonstrated to be a part of that 
                        production.
            (9) Intermediate material.--The term ``intermediate 
        material'' means a material that is self-produced, used in the 
        production of a good, and designated pursuant to subsection 
        (b)(10).
            (10) Marque.--The term ``marque'' means the trade name used 
        by a separate marketing division of a motor vehicle assembler.
            (11) Material.--The term ``material'' means a good that is 
        used in the production of another good and includes a part or 
        an ingredient.
            (12) Model line.--The term ``model line'' means a group of 
        motor vehicles having the same platform or model name.
            (13) Motor vehicle assembler.--The term ``motor vehicle 
        assembler'' means a producer of motor vehicles and any related 
        persons or joint ventures in which the producer participates.
            (14) NAFTA country.--The term ``NAFTA country'' means the 
        United States, Canada or Mexico for such time as the Agreement 
        is in force with respect to Canada or Mexico, and the United 
        States applies the Agreement to Canada or Mexico.
            (15) New building.--The term ``new building'' means a new 
        construction, including at least the pouring or construction of 
        new foundation and floor, the erection of a new structure and 
        roof, and installation of new plumbing, electrical, and other 
        utilities to house a complete vehicle assembly process.
            (16) Net cost.--The term ``net cost'' means total cost less 
        sales promotion, marketing and after-sales service costs, 
        royalties, shipping and packing costs, and nonallowable 
        interest costs that are included in the total cost.
            (17) Net cost of a good.--The term ``net cost of a good'' 
        means the net cost that can be reasonably allocated to a good 
        using one of the methods set out in subsection (b)(8).
            (18) Nonallowable interest costs.--The term ``nonallowable 
        interest costs'' means interest costs incurred by a producer as 
        a result of an interest rate that exceeds the applicable 
        federal government interest rate for comparable maturities by 
        more than 700 basis points, determined pursuant to regulations 
        implementing this section.
            (19) Nonoriginating good; nonoriginating material.--The 
        term ``nonoriginating good'' or ``nonoriginating material'' 
        means a good or material that does not qualify as an 
        originating good or material under the rules of origin set out 
        in this section.
            (20) Originating.--The term ``originating'' means 
        qualifying under the rules of origin set out in this section.
            (21) Producer.--The term ``producer'' means a person who 
        grows, mines, harvests, fishes, traps, hunts, manufactures, 
        processes, or assembles a good.
            (22) Production.--The term ``production'' means growing, 
        mining, harvesting, fishing, trapping, hunting, manufacturing, 
        processing, or assembling a good.
            (23) Reasonably allocate.--The term ``reasonably allocate'' 
        means to apportion in a manner appropriate to the 
        circumstances.
            (24) Refit.--The term ``refit'' means a plant closure, for 
        purposes of plant conversion or retooling, that lasts at least 
        3 months.
            (25) Related persons.--The term ``related persons'' means 
        persons specified in any of the following subparagraphs:
                    (A) Persons who are officers or directors of one 
                another's businesses.
                    (B) Persons who are legally recognized partners in 
                business.
                    (C) Persons who are employer and employee.
                    (D) Persons one of whom owns, controls, or holds 25 
                percent or more of the outstanding voting stock or 
                shares of the other.
                    (E) Persons if 25 percent or more of the 
                outstanding voting stock or shares of each of them is 
                directly or indirectly owned, controlled, or held by a 
                third person.
                    (F) Persons one of whom is directly or indirectly 
                controlled by the other.
                    (G) Persons who are directly or indirectly 
                controlled by a third person.
                    (H) Persons who are members of the same family.
        For purposes of this paragraph, the term ``members of the same 
        family'' means natural or adoptive children, brothers, sisters, 
        parents, grandparents, or spouses.
            (26) Royalties.--The term ``royalties'' means payments of 
        any kind, including payments under technical assistance or 
        similar agreements, made as consideration for the use or right 
        to use any copyright, literary, artistic, or scientific work, 
        patent, trademark, design, model, plan, secret formula, or 
        process. It does not include payments under technical 
        assistance or similar agreements that can be related to 
        specific services such as--
                    (A) personnel training, without regard to where 
                performed; and
                    (B) if performed in the territory of one or more of 
                the NAFTA countries, engineering, tooling, die-setting, 
                software design and similar computer services, or other 
                services.
            (27) Sales promotion, marketing, and after-sales service 
        costs.--The term ``sales promotion, marketing, and after-sales 
        service costs'' means the costs related to sales promotion, 
        marketing, and after-sales service for the following:
                    (A) Sales and marketing promotion, media 
                advertising, advertising and market research, 
                promotional and demonstration materials, exhibits, 
                sales conferences, trade shows, conventions, banners, 
                marketing displays, free samples, sales, marketing and 
                after-sales service literature (product brochures, 
                catalogs, technical literature, price lists, service 
                manuals, sales aid information), establishment and 
                protection of logos and trademarks, sponsorships, 
                wholesale and retail restocking charges, and 
                entertainment.
                    (B) Sales and marketing incentives, consumer, 
                retailer, or wholesaler rebates, and merchandise 
                incentives.
                    (C) Salaries and wages, sales commissions, bonuses, 
                benefits (such as medical, insurance, and pension), 
                traveling and living expenses, and membership and 
                professional fees for sales promotion, marketing, and 
                after-sales service personnel.
                    (D) Recruiting and training of sales promotion, 
                marketing, and after-sales service personnel, and 
                after-sales training of customers' employees, where 
                such costs are identified separately for sales 
                promotion, marketing, and after-sales service of goods 
                on the financial statements or cost accounts of the 
                producer.
                    (E) Product liability insurance.
                    (F) Office supplies for sales promotion, marketing, 
                and after-sales service of goods, where such costs are 
                identified separately for sales promotion, marketing, 
                and after-sales service of goods on the financial 
                statements or cost accounts of the producer.
                    (G) Telephone, mail, and other communications, 
                where such costs are identified separately for sales 
                promotion, marketing, and after-sales service of goods 
                on the financial statements or cost accounts of the 
                producer.
                    (H) Rent and depreciation of sales promotion, 
                marketing, and after-sales service offices and 
                distribution centers.
                    (I) Property insurance, taxes, utilities, and 
                repair and maintenance of sales promotion, marketing, 
                and after-sales service offices and distribution 
                centers, where such costs are identified separately for 
                sales promotion, marketing, and after-sales service of 
                goods on the financial statements or cost accounts of 
                the producer.
                    (J) Payments by the producer to other persons for 
                warranty repairs.
            (28) Self-produced material.--The term ``self-produced 
        material'' means a material that is produced by the producer of 
        a good and used in the production of that good.
            (29) Shipping and packing costs.--The term ``shipping and 
        packing costs'' means the costs incurred in packing a good for 
        shipment and shipping the good from the point of direct 
        shipment to the buyer, but does not include the costs of 
        preparing and packaging the good for retail sale.
            (30) Size category.--The term ``size category'' means with 
        respect to a motor vehicle identified in subsection (c)(1)(A)--
                    (A) 85 cubic feet or less of passenger and luggage 
                interior volume;
                    (B) more than 85 cubic feet, but less than 100 
                cubic feet, of passenger and luggage interior volume;
                    (C) at least 100 cubic feet, but not more than 110 
                cubic feet, of passenger and luggage interior volume;
                    (D) more than 110 cubic feet, but less than 120 
                cubic feet, of passenger and luggage interior volume; 
                and
                    (E) 120 cubic feet or more of passenger and luggage 
                interior volume.
            (31) Territory.--The term ``territory'' means a territory 
        described in Annex 201.1 of the Agreement.
            (32) Total cost.--The term ``total cost'' means all product 
        costs, period costs, and other costs incurred in the territory 
        of one or more of the NAFTA countries.
            (33) Transaction value.--Except as provided in subsection 
        (c)(1) or (c)(2)(A), the term ``transaction value'' means the 
        price actually paid or payable for a good or material with 
        respect to a transaction of the producer of the good, adjusted 
        in accordance with the principles of paragraphs 1, 3, and 4 of 
        Article 8 of the Customs Valuation Code and determined without 
        regard to whether the good or material is sold for export.
            (34) Underbody.--The term ``underbody'' means the floor pan 
        of a motor vehicle.
            (35) Used.--The term ``used'' means used or consumed in the 
        production of goods.
    (q) Presidential Proclamation Authority.--
            (1) In general.--The President is authorized to proclaim, 
        as a part of the HTS--
                    (A) the provisions set out in Appendix 6.A of Annex 
                300-B, Annex 401, Annex 403.1, Annex 403.2, and Annex 
                403.3, of the Agreement, and
                    (B) any additional subordinate category necessary 
                to carry out this title consistent with the Agreement.
            (2) Modifications.--Subject to the consultation and layover 
        requirements of section 103, the President may proclaim--
                    (A) modifications to the provisions proclaimed 
                under the authority of paragraph (1)(A), other than the 
                provisions of paragraph A of Appendix 6 of Annex 300-B 
                and section XI of part B of Annex 401 of the Agreement; 
                and
                    (B) a modified version of the definition of any 
                term set out in subsection (p) (and such modified 
                version of the definition shall supersede the version 
                in subsection (p)), but only if the modified version 
                reflects solely those modifications to the same term in 
                article 415 of the Agreement that are agreed to by the 
                NAFTA countries before the 1st anniversary of the date 
                of the enactment of this Act.
            (3) Special rules for textiles.--Notwithstanding the 
        provisions of paragraph (2)(A), and subject to the consultation 
        and layover requirements of section 103, the President may 
        proclaim--
                    (A) modifications to the provisions proclaimed 
                under the authority of paragraph (1)(A) as are 
                necessary to implement an agreement with one or more of 
                the NAFTA countries pursuant to paragraph 2 of section 
                7 of Annex 300-B of the Agreement, and
                    (B) before the 1st anniversary of the date of the 
                enactment of this Act, modifications to correct any 
                typographical, clerical, or other nonsubstantive 
                technical error regarding the provisions of Appendix 
                6.A of Annex 300-B and section XI of part B of Annex 
                401 of the Agreement.

SEC. 203. DRAWBACK.

    (a) Definition of a Good Subject to NAFTA Drawback.--For purposes 
of this Act and the amendments made by subsection (b), the term ``good 
subject to NAFTA drawback'' means any imported good other than the 
following:
            (1) A good entered under bond for transportation and 
        exportation to a NAFTA country.
            (2) A good exported to a NAFTA country in the same 
        condition as when imported into the United States. For purposes 
        of this paragraph--
                    (A) processes such as testing, cleaning, repacking, 
                or inspecting a good, or preserving it in its same 
                condition, shall not be considered to change the 
                condition of the good, and
                    (B) except for a good referred to in paragraph 12 
                of section A of Annex 703.2 of the Agreement that is 
                exported to Mexico, if a good described in the first 
                sentence of this paragraph is commingled with fungible 
                goods and exported in the same condition, the origin of 
                the good may be determined on the basis of the 
                inventory methods provided for in the regulations 
                implementing this title.
            (3) A good--
                    (A) that is--
                            (i) deemed to be exported from the United 
                        States,
                            (ii) used as a material in the production 
                        of another good that is deemed to be exported 
                        to a NAFTA country, or
                            (iii) substituted for by a good of the same 
                        kind and quality that is used as a material in 
                        the production of another good that is deemed 
                        to be exported to a NAFTA country, and
                    (B) that is delivered--
                            (i) to a duty-free shop,
                            (ii) for ship's stores or supplies for 
                        ships or aircraft, or
                            (iii) for use in a project undertaken 
                        jointly by the United States and a NAFTA 
                        country and destined to become the property of 
                        the United States.
            (4) A good exported to a NAFTA country for which a refund 
        of customs duties is granted by reason of--
                    (A) the failure of the good to conform to sample or 
                specification, or
                    (B) the shipment of the good without the consent of 
                the consignee.
            (5) A good that qualifies under the rules of origin set out 
        in section 202 that is--
                    (A) exported to a NAFTA country,
                    (B) used as a material in the production of another 
                good that is exported to a NAFTA country, or
                    (C) substituted for by a good of the same kind and 
                quality that is used as a material in the production of 
                another good that is exported to a NAFTA country.
            (6) A good provided for in subheading 1701.11.02 of the HTS 
        that is--
                    (A) used as a material, or
                    (B) substituted for by a good of the same kind and 
                quality that is used as a material,
        in the production of a good provided for in existing Canadian 
        tariff item 1701.99.00 or existing Mexican tariff item 
        1701.99.01 or 1701.99.99 (relating to refined sugar).
            (7) A citrus product that is exported to Canada.
            (8) A good used as a material, or substituted for by a good 
        of the same kind and quality that is used as a material, in the 
        production of--
                    (A) apparel, or
                    (B) a good provided for in subheading 6307.90.99 
                (insofar as it relates to furniture moving pads), 
                5811.00.20, or 5811.00.30 of the HTS,
        that is exported to Canada and that is subject to Canada's 
        most-favored-nation rate of duty upon importation into Canada.
Where in paragraph (6) a good referred to by an item is described in 
parentheses following the item, the description is provided for 
purposes of reference only.
    (b) Consequential Amendments With Delayed Effect.--
            (1) Bonded manufacturing warehouses.--The last paragraph of 
        section 311 of the Tariff Act of 1930 (19 U.S.C. 1311) is 
        amended to read as follows:
    ``No article manufactured in a bonded warehouse from materials that 
are goods subject to NAFTA drawback, as defined in section 203(a) of 
the North American Free Trade Agreement Implementation Act, may be 
withdrawn from warehouse for exportation to a NAFTA country, as defined 
in section 2(4) of that Act, without assessment of a duty on the 
materials in their condition and quantity, and at their weight, at the 
time of importation into the United States. The duty shall be paid 
before the 61st day after the date of exportation, except that upon the 
presentation, before such 61st day, of satisfactory evidence of the 
amount of any customs duties paid to the NAFTA country on the article, 
the customs duty may be waived or reduced (subject to section 
508(b)(2)(B)) in an amount that does not exceed the lesser of--
            ``(1) the total amount of customs duties paid or owed on 
        the materials on importation into the United States, or
            ``(2) the total amount of customs duties paid on the 
        article to the NAFTA country.
If Canada ceases to be a NAFTA country and the suspension of the 
operation of the United States-Canada Free-Trade Agreement thereafter 
terminates, no article manufactured in a bonded warehouse, except to 
the extent that such article is made from an article that is a drawback 
eligible good under section 204(a) of the United States-Canada Free-
Trade Agreement Implementation Act of 1988, may be withdrawn from such 
warehouse for exportation to Canada during the period such Agreement is 
in operation without payment of a duty on such imported merchandise in 
its condition, and at the rate of duty in effect, at the time of 
importation.''.
            (2) Bonded smelting and refining warehouses.--Section 312 
        of the Tariff Act of 1930 (19 U.S.C. 1312) is amended--
                    (A) in paragraphs (1) and (4) of subsection (b), by 
                striking out the parenthetical matter and the final ``, 
                or'' and by adding at the end the following:
        ``; except that in the case of a withdrawal for exportation of 
        such a product to a NAFTA country, as defined in section 2(4) 
        of the North American Free Trade Agreement Implementation Act, 
        if any of the imported metal-bearing materials are goods 
        subject to NAFTA drawback, as defined in section 203(a) of that 
        Act, the duties on the materials shall be paid, and the charges 
        against the bond canceled, before the 61st day after the date 
        of exportation; but upon the presentation, before such 61st 
        day, of satisfactory evidence of the amount of any customs 
        duties paid to the NAFTA country on the product, the duties on 
        the materials may be waived or reduced (subject to section 
        508(b)(2)(B)) in an amount that does not exceed the lesser of--
                    ``(A) the total amount of customs duties owed on 
                the materials on importation into the United States, or
                    ``(B) the total amount of customs duties paid to 
                the NAFTA country on the product, or'';
                    (B) by adding at the end of subsection (b) the 
                following new flush sentence.
``If Canada ceases to be a NAFTA country and the suspension of the 
operation of the United States-Canada Free-Trade Agreement thereafter 
terminates, no charges against such bond may be canceled in whole or 
part upon an exportation to Canada under paragraph (1) or (4) during 
the period such Agreement is in operation except to the extent that the 
metal-bearing materials were of Canadian origin as determined in 
accordance with section 202 of the United States-Canada Free-Trade 
Agreement Implementation Act of 1988.''; and
                    (C) in subsection (d) by striking out the 
                parenthetical matter and by inserting before the period 
                the following:
``; except that in the case of a withdrawal for exportation to a NAFTA 
country, as defined in section 2(4) of the North American Free Trade 
Agreement Implementation Act, if any of the imported metal-bearing 
materials are goods subject to NAFTA drawback, as defined in section 
203(a) of that Act, charges against the bond shall be paid before the 
61st day after the date of exportation; but upon the presentation, 
before such 61st day, of satisfactory evidence of the amount of any 
customs duties paid to the NAFTA country on the product, the bond shall 
be credited (subject to section 508(b)(2)(B)) in an amount not to 
exceed the lesser of--
            ``(1) the total amount of customs duties paid or owed on 
        the materials on importation into the United States, or
            ``(2) the total amount of customs duties paid to the NAFTA 
        country on the product.
If Canada ceases to be a NAFTA country and the suspension of the 
operation of the United States-Canada Free-Trade Agreement thereafter 
terminates, no bond shall be credited under this subsection with 
respect to an exportation of a product to Canada during the period such 
Agreement is in operation except to the extent that the product is a 
drawback eligible good under section 204(a) of the United States-Canada 
Free Trade Agreement Implementation Act of 1988''.
            (3) Drawback.--Subsections (n) and (o) of section 313 of 
        the Tariff Act of 1930 (19 U.S.C. 1313(n) and (o)) are amended 
        to read as follows:
    ``(n)(1) For purposes of this subsection and subsection (o)--
            ``(A) the term `NAFTA Act' means the North American Free 
        Trade Agreement Implementation Act;
            ``(B) the terms `NAFTA country' and `good subject to NAFTA 
        drawback' have the same respective meanings that are given such 
        terms in sections 2(4) and 203(a) of the NAFTA Act; and
            ``(C) a refund, waiver, or reduction of duty under 
        paragraph (2) of this subsection or paragraph (1) of subsection 
        (o) is subject to section 508(b)(2)(B).
    ``(2) For purposes of subsections (a), (b), (f), (h), (p), and (q), 
if an article that is exported to a NAFTA country is a good subject to 
NAFTA drawback, no customs duties on the good may be refunded, waived, 
or reduced in an amount that exceeds the lesser of--
            ``(A) the total amount of customs duties paid or owed on 
        the good on importation into the United States, or
            ``(B) the total amount of customs duties paid on the good 
        to the NAFTA country.
    ``(3) If Canada ceases to be a NAFTA country and the suspension of 
the operation of the United States-Canada Free-Trade Agreement 
thereafter terminates, then for purposes of subsections (a), (b), (f), 
(h), (j)(2), and (q), the shipment to Canada during the period such 
Agreement is in operation of an article made from or substituted for, 
as appropriate, a drawback eligible good under section 204(a) of the 
United States-Canada Free-Trade Implementation Act of 1988 does not 
constitute an exportation.
    ``(o)(1) For purposes of subsection (g), if--
            ``(A) a vessel is built for the account and ownership of a 
        resident of a NAFTA country or the government of a NAFTA 
        country, and
            ``(B) imported materials that are used in the construction 
        and equipment of the vessel are goods subject to NAFTA 
        drawback,
the amount of customs duties refunded, waived, or reduced on such 
materials may not exceed the lesser of the total amount of customs 
duties paid or owed on the materials on importation into the United 
States or the total amount of customs duties paid on the vessel to the 
NAFTA country.
    ``(2) If Canada ceases to be a NAFTA country and the suspension of 
the operation of the United States-Canada Free-Trade Agreement 
thereafter terminates, then for purposes of subsection (g), vessels 
built for Canadian account and ownership, or for the Government of 
Canada, may not be considered to be built for any foreign account and 
ownership, or for the government of any foreign country, except to the 
extent that the materials in such vessels are drawback eligible goods 
under section 204(a) of the United States-Canada Free-Trade 
Implementation Act of 1988.''.
            (4) Manipulation in warehouse.--Section 562 of the Tariff 
        Act of 1930 (19 U.S.C. 1562) is amended--
                    (A) in the second sentence by striking out 
                ``without payment of duties--'' and inserting a dash;
                    (B) by striking out paragraphs (1), (2), and (3) 
                and inserting the following:
            ``(1) without payment of duties for exportation to a NAFTA 
        country, as defined in section 2(4) of the North American Free 
        Trade Agreement Implementation Act, if the merchandise is of a 
        kind described in any of paragraphs (1) through (8) of section 
        203(a) of that Act;
            ``(2) for exportation to a NAFTA country if the merchandise 
        consists of goods subject to NAFTA drawback, as defined in 
        section 203(a) of that Act, except that--
                    ``(A) the merchandise may not be withdrawn from 
                warehouse without assessment of a duty on the 
                merchandise in its condition and quantity, and at its 
                weight, at the time of withdrawal from the warehouse 
                with such additions to or deductions from the final 
                appraised value as may be necessary by reason of change 
                in condition, and
                    ``(B) duty shall be paid on the merchandise before 
                the 61st day after the date of exportation, but upon 
                the presentation, before such 61st day, of satisfactory 
                evidence of the amount of any customs duties paid to 
                the NAFTA country on the merchandise, the customs duty 
                may be waived or reduced (subject to section 
                508(b)(2)(B)) in an amount that does not exceed the 
                lesser of--
                            ``(i) the total amount of customs duties 
                        paid or owed on the merchandise on importation 
                        into the United States, or
                            ``(ii) the total amount of customs duties 
                        paid on the merchandise to the NAFTA country;
            ``(3) without payment of duties for exportation to any 
        foreign country other than to a NAFTA country or to Canada when 
        exports to that country are subject to paragraph (4);
            ``(4) without payment of duties for exportation to Canada 
        (if that country ceases to be a NAFTA country and the 
        suspension of the operation of the United States-Canada Free-
        Trade Agreement thereafter terminates), but the exemption from 
        the payment of duties under this paragraph applies only in the 
        case of an exportation during the period such Agreement is in 
        operation of merchandise that--
                    ``(A) is only cleaned, sorted, or repacked in a 
                bonded warehouse, or
                    ``(B) is a drawback eligible good under section 
                204(a) of the United States-Canada Free-Trade Agreement 
                Implementation Act of 1988; and
            ``(5) without payment of duties for shipment to the Virgin 
        Islands, American Samoa, Wake Island, Midway Island, Kingman 
        Reef, Johnston Island or the island of Guam.''; and
                    (B) in the third sentence by striking out 
                ``paragraph (1) of the preceding sentence'' and 
                inserting ``paragraph (4) of the preceding sentence''.
            (5) Foreign trade zones.--Section 3(a) of the Act of June 
        18, 1934 (commonly known as the ``Foreign Trade Zones Act''; 19 
        U.S.C. 81c(a)) is amended--
                    (A) in the last proviso--
                            (i) by inserting after ``That'' the 
                        following: ``, if Canada ceases to be a NAFTA 
                        country and the suspension of the operation of 
                        the United States-Canada Free-Trade Agreement 
                        thereafter terminates,''; and
                            (ii) by striking out ``on or after January 
                        1, 1994, or such later date as may be 
                        proclaimed by the President under section 
                        204(b)(2)(B) of such Act of 1988,'' and 
                        inserting ``during the period such Agreement is 
                        in operation''; and
                    (B) by inserting before such last proviso the 
                following new proviso: ``: Provided, further, That no 
                merchandise that consists of goods subject to NAFTA 
                drawback, as defined in section 203(a) of the North 
                American Free Trade Agreement Implementation Act, that 
                is manufactured or otherwise changed in condition shall 
                be exported to a NAFTA country, as defined in section 
                2(4) of that Act, without an assessment of a duty on 
                the merchandise in its condition and quantity, and at 
                its weight, at the time of its exportation (or if the 
                privilege in the first proviso to this subsection was 
                requested, an assessment of a duty on the merchandise 
                in its condition and quantity, and at its weight, at 
                the time of its admission into the zone) and the 
                payment of the assessed duty before the 61st day after 
                the date of exportation of the article, except that 
                upon the presentation, before such 61st day, of 
                satisfactory evidence of the amount of any customs 
                duties paid or owed to the NAFTA country on the 
                article, the customs duty may be waived or reduced 
                (subject to section 508(b)(2)(B) of the Tariff Act of 
                1930) in an amount that does not exceed the lesser of 
                (1) the total amount of customs duties paid or owed on 
                the merchandise on importation into the United States, 
                or (2) the total amount of customs duties paid on the 
                article to the NAFTA country:''.
    (c) Consequential Amendment With Immediate Effect.--Section 313(j) 
of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is amended--
            (1) by striking out ``If'' in paragraph (2) and inserting 
        ``Subject to paragraph (4), if''; and
            (2) by adding at the end the following new paragraph:
            ``(4) Effective upon the entry into force of the North 
        American Free Trade Agreement, the exportation to a NAFTA 
        country, as defined in section 2(4) of the North American Free 
        Trade Agreement Implementation Act, of merchandise that is 
        fungible with and substituted for imported merchandise, other 
        than merchandise described in paragraphs (1) through (8) of 
        section 203(a) of that Act, shall not constitute an exportation 
        for purposes of paragraph (2).''.
    (d) Elimination of Drawback for Section 22 Fees.--Notwithstanding 
any other provision of law, the Secretary of the Treasury may not, on 
condition of export, refund or reduce a fee applied pursuant to section 
22 of the Agricultural Adjustment Act (7 U.S.C. 624) with respect to 
goods included under subsection (a) that are exported to--
            (1) Canada after December 31, 1995, for so long as it is a 
        NAFTA country; or
            (2) Mexico after December 31, 2000, for so long as it is a 
        NAFTA country.
    (e) Inapplicability to Countervailing and Antidumping Duties.--
Nothing in this section or the amendments made by it shall be 
considered to authorize the refund, waiver, or reduction of 
countervailing duties or antidumping duties imposed on an imported 
good.

SEC. 204. CUSTOMS USER FEES.

    Paragraph (10) of section 13031(b) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)) is amended to 
read as follows:
    ``(10)(A) The fee charged under subsection (a)(9) or (10) with 
respect to goods of Canadian origin (as determined under section 202 of 
the United States-Canada Free-Trade Agreement) when the United States-
Canada Free-Trade Agreement is in force shall be in accordance with 
section 403 of that Agreement.
    ``(B) For goods qualifying under the rules of origin set out in 
section 202 of the North American Free Trade Agreement Implementation 
Act, the fee under subsection (a)(9) or (10)--
            ``(i) may not be charged with respect to goods that qualify 
        to be marked as goods of Canada pursuant to Annex 311 of the 
        North American Free Trade Agreement, for such time as Canada is 
        a NAFTA country, as defined in section 2(4) of such 
        Implementation Act; and
            ``(ii) may not be increased after December 31, 1993, and 
        may not be charged after June 29, 1999, with respect to goods 
        that qualify to be marked as goods of Mexico pursuant to such 
        Annex 311, for such time as Mexico is a NAFTA country.
Any service for which an exemption from such fee is provided by reason 
of this paragraph may not be funded with money contained in the Customs 
User Fee Account.''.

SEC. 205. ENFORCEMENT.

    (a) Recordkeeping Requirements.--Section 508 of the Tariff Act of 
1930 (19 U.S.C. 1508) is amended as follows:
            (1) Subsection (b) is amended to read as follows:
    ``(b) Exportations to Free Trade Countries.--
            ``(1) Definitions.--As used in this subsection--
                    ``(A) The term `associated records' means, in 
                regard to an exported good under paragraph (2), records 
                associated with--
                            ``(i) the purchase of, cost of, value of, 
                        and payment for, the good;
                            ``(ii) the purchase of, cost of, value of, 
                        and payment for, all material, including 
                        indirect materials, used in the production of 
                        the good; and
                            ``(iii) the production of the good.
                For purposes of this subparagraph, the terms `indirect 
                material,' `material,' `preferential tariff treatment,' 
                `used,' and `value' have the respective meanings given 
                them in articles 415 and 514 of the North American Free 
                Trade Agreement.
                    ``(B) The term `NAFTA Certificate of Origin' means 
                the certification, established under article 501 of the 
                North American Free Trade Agreement, that a good 
                qualifies as an originating good under such Agreement.
            ``(2) Exports to nafta countries.--
                    ``(A) In general.--Any person who completes and 
                signs a NAFTA Certificate of Origin for a good for 
                which preferential treatment under the North American 
                Free Trade Agreement is claimed shall make, keep, and 
                render for examination and inspection all records 
                relating to the origin of the good (including the 
                Certificate or copies thereof) and the associated 
                records.
                    ``(B) Claims for certain waivers, reductions, or 
                refunds of duties or for credit against bonds.--
                            ``(i) In general.--Any person that claims 
                        with respect to an article--
                                    ``(I) a waiver or reduction of duty 
                                under the last paragraph of section 
                                311, section 312(b)(1) or (4), section 
                                562(2), or the last proviso to section 
                                3(a) of the Foreign Trade Zones Act;
                                    ``(II) a credit against a bond 
                                under section 312(d); or
                                    ``(III) a refund, waiver, or 
                                reduction of duty under section 
                                313(n)(2) or (o)(1);
                        must disclose to the Customs Service the 
                        information described in clause (ii).
                            ``(ii) Information required.--Within 30 
                        days after making a claim described in clause 
                        (i) with respect to an article, the person 
                        making the claim must disclose to the Customs 
                        Service whether that person has prepared, or 
                        has knowledge that another person has prepared, 
                        a NAFTA Certificate of Origin for the article. 
                        If after such 30-day period the person making 
                        the claim either--
                                    ``(I) prepares a NAFTA Certificate 
                                of Origin for the article; or
                                    ``(II) learns of the existence of 
                                such a Certificate for the article;
                        that person, within 30 days after the 
                        occurrence described in subclause (I) or (II), 
                        must disclose the occurrence to the Customs 
                        Service.
                            ``(iii) Action on claim.--If the Customs 
                        Service determines that a NAFTA Certificate of 
                        Origin has been prepared with respect to an 
                        article for which a claim described in clause 
                        (i) is made, the Customs Service may make such 
                        adjustments regarding the previous customs 
                        treatment of the article as may be warranted.
            ``(3) Exports under the canadian agreement.--Any person who 
        exports, or who knowingly causes to be exported, any 
        merchandise to Canada during such time as the United States-
        Canada Free-Trade Agreement is in force with respect to, and 
        the United States applies that Agreement to, Canada shall make, 
        keep, and render for examination and inspection such records 
        (including certifications of origin or copies thereof) which 
        pertain to the exportations.''.
            (2) Subsection (c) is amended to read as follows:
    ``(c) Period of Time.--The records required by subsections (a) and 
(b) shall be kept for such periods of time as the Secretary shall 
prescribe; except that--
            ``(1) no period of time for the retention of the records 
        required under subsection (a) or (b)(3) may exceed 5 years from 
        the date of entry or exportation, as appropriate;
            ``(2) the period of time for the retention of the records 
        required under subsection (b)(2) shall be at least 5 years from 
        the date of signature of the NAFTA Certificate of Origin; and
            ``(3) records for any drawback claim shall be kept until 
        the 3rd anniversary of the date of payment of the claim.''.
            (3) Subsection (e) is amended to read as follows:
    ``(e) Subsection (b) Penalties.--
            ``(1) Relating to nafta exports.--Any person who fails to 
        retain records required by paragraph (2) of subsection (b) or 
        the regulations issued to implement that paragraph shall be 
        liable for--
                    ``(A) a civil penalty not to exceed $10,000; or
                    ``(B) the general recordkeeping penalty that 
                applies under the customs laws;
        whichever penalty is higher.
            ``(2) Relating to canadian agreement exports.--Any person 
        who fails to retain the records required by paragraph (3) of 
        subsection (b) or the regulations issued to implement that 
        paragraph shall be liable for a civil penalty not to exceed 
        $10,000.''.
    (b) Conforming Amendment.--Section 509(a)(2)(A)(ii) of the Tariff 
Act of 1930 (19 U.S.C. 1509(a)(2)(A)(ii)) is amended to read as 
follows:
                            ``(ii) exported merchandise, or knowingly 
                        caused merchandise to be exported, to a NAFTA 
                        country (as defined in section 2(4) of the 
                        North American Free Trade Agreement 
                        Implementation Act) or to Canada during such 
                        time as the United States-Canada Free-Trade 
                        Agreement is in force with respect to, and the 
                        United States applies that Agreement to, 
                        Canada,''.
    (c) Disclosure of Incorrect Information.--Section 592 of the Tariff 
Act of 1930 (19 U.S.C. 1592) is amended--
            (1) in subsection (c)--
                    (A) by redesignating paragraph (5) as paragraph 
                (6); and
                    (B) by inserting after paragraph (4) the following 
                new paragraph:
            ``(5) Prior disclosure regarding nafta claims.--An importer 
        shall not be subject to penalties under subsection (a) for 
        making an incorrect claim for preferential tariff treatment 
        under section 202 of the North American Free Trade Agreement 
        Implementation Act if the importer--
                    ``(A) has reason to believe that the NAFTA 
                Certificate of Origin (as defined in section 508(b)(1)) 
                on which the claim was based contains incorrect 
                information; and
                    ``(B) in accordance with regulations issued by the 
                Secretary, voluntarily and promptly makes a corrected 
                declaration and pays any duties owing.''; and
            (2) by adding at the end the following new subsection:
    ``(f) False Certifications Regarding Exports to NAFTA Countries.--
            ``(1)  In general.--Subject to paragraph (3), it is 
        unlawful for any person to certify falsely, by fraud, gross 
        negligence, or negligence, in a NAFTA Certificate of Origin (as 
        defined in section 508(b)(1)) that a good to be exported to a 
        NAFTA country (as defined in section 2(4) of the North American 
        Free Trade Agreement Implementation Act) qualifies under the 
        rules of origin set out in section 202 of that Act.
            ``(2)  Applicable provisions.--The procedures and penalties 
        of this section that apply to a violation of subsection (a) 
        also apply to a violation of paragraph (1), except that--
                    ``(A) subsection (d) does not apply, and
                    ``(B) subsection (c)(5) applies only if the person 
                voluntarily and promptly provides, to all persons to 
                whom the person provided the NAFTA Certificate of 
                Origin, written notice of the falsity of the 
                Certificate.
            ``(3) Exception.--A person may not be considered to have 
        violated paragraph (1) if--
                    ``(A) the information was correct at the time it 
                was provided in a NAFTA Certificate of Origin but was 
                later rendered incorrect due to a change in 
                circumstances; and
                    ``(B) the person voluntarily and promptly provides 
                written notice of the change to all persons to whom the 
                person provided the Certificate of Origin.''.

SEC. 206. RELIQUIDATION OF ENTRIES FOR NAFTA-ORIGIN GOODS.

    Section 520 of the Tariff Act of 1930 (19 U.S.C. 1520) is amended 
by adding at the end the following new subsection:
    ``(d) Notwithstanding the fact that a valid protest was not filed, 
the Customs Service may, in accordance with regulations prescribed by 
the Secretary, reliquidate an entry to refund any excess duties paid on 
a good qualifying under the rules of origin set out in section 202 of 
the North American Free Trade Agreement Implementation Act for which no 
claim for preferential tariff treatment was made at the time of 
importation if the importer, within 1 year after the date of 
importation, files, in accordance with those regulations, a claim that 
includes--
            ``(1) a written declaration that the good qualified under 
        those rules at the time of importation;
            ``(2) copies of all applicable NAFTA Certificates of Origin 
        (as defined in section 508(b)(1)); and
            ``(3) such other documentation relating to the importation 
        of the goods as the Customs Service may require.''.

SEC. 207. COUNTRY OF ORIGIN MARKING OF NAFTA GOODS.

    (a) Amendments to Tariff Act of 1930.--Section 304 of the Tariff 
Act of 1930 (19 U.S.C. 1304) is amended--
            (1) in subsection (c)(1), by striking ``or engraving'' and 
        inserting ``engraving, or continuous paint stenciling'';
            (2) in subsection (c)(2)--
                    (A) by striking ``four'' and inserting ``five''; 
                and
                    (B) by striking ``such as paint stenciling'';
            (3) in subsection (e), by striking ``or engraving'' and 
        inserting ``engraving, or an equally permanent method of 
        marking'';
            (4) by redesignating subsection (h) as subsection (i); and
            (5) by inserting after subsection (g) the following new 
        subsection:
    ``(h) Treatment of Goods of a NAFTA Country.--
            ``(1) Application of section.--In applying this section to 
        an article that qualifies as a good of a NAFTA country (as 
        defined in section 2(4) of the North American Free Trade 
        Agreement Implementation Act) under the regulations issued by 
        the Secretary to implement Annex 311 of the North American Free 
        Trade Agreement--
                    ``(A) the exemption under subsection (a)(3)(H) 
                shall be applied by substituting `reasonably know' for 
                `necessarily know';
                    ``(B) the Secretary shall exempt the good from the 
                requirements for marking under subsection (a) if the 
                good--
                            ``(i) is an original work of art, or
                            ``(ii) is provided for under subheading 
                        6904.10, heading 8541, or heading 8542 of the 
                        Harmonized Tariff Schedule of the United 
                        States; and
                    ``(C) subsection (b) does not apply to the usual 
                container of any good described in subsection (a)(3)(E) 
                or (I) or subparagraph (B)(i) or (ii) of this 
                paragraph.
            ``(2) Petition rights of nafta exporters and producers 
        regarding marking determinations.--
                    ``(A) Definitions.--For purposes of this paragraph:
                            ``(i) The term `adverse marking decision' 
                        means a determination by the Customs Service 
                        which an exporter or producer of merchandise 
                        believes to be contrary to Annex 311 of the 
                        North American Free Trade Agreement.
                            ``(ii) A person may not be treated as the 
                        exporter or producer of merchandise regarding 
                        which an adverse marking decision was made 
                        unless such person--
                                    ``(I) if claiming to be the 
                                exporter, is located in a NAFTA country 
                                and is required to maintain records in 
                                that country regarding exportations to 
                                NAFTA countries; or
                                    ``(II) if claiming to be the 
                                producer, grows, mines, harvests, 
                                fishes, traps, hunts, manufactures, 
                                processes, or assembles such 
                                merchandise in a NAFTA country.
                    ``(B) Intervention or petition regarding adverse 
                marking decisions.--If the Customs Service makes an 
                adverse marking decision regarding any merchandise, the 
                Customs Service shall, upon written request by the 
                exporter or producer of the merchandise, provide to the 
                exporter or producer a statement of the basis for the 
                decision. If the exporter or producer believes that the 
                decision is not correct, it may intervene in any 
                protest proceeding initiated by the importer of the 
                merchandise. If the importer does not file a protest 
                with regard to the decision, the exporter or producer 
                may file a petition with the Customs Service setting 
                forth--
                            ``(i) a description of the merchandise; and
                            ``(ii) the basis for its claim that the 
                        merchandise should be marked as a good of a 
                        NAFTA country.
                    ``(C) Effect of determination regarding decision.--
                If, after receipt and consideration of a petition filed 
                by an exporter or producer under subparagraph (B), the 
                Customs Service determines that the adverse marking 
                decision--
                            ``(i) is not correct, the Customs Service 
                        shall notify the petitioner of the 
                        determination and all merchandise entered, or 
                        withdrawn from warehouse for consumption, more 
                        than 30 days after the date that notice of the 
                        determination under this clause is published in 
                        the weekly Custom Bulletin shall be marked in 
                        conformity with the determination; or
                            ``(ii) is correct, the Customs Service 
                        shall notify the petitioner that the petition 
                        is denied.
                    ``(D) Judicial review.--For purposes of judicial 
                review, the denial of a petition under subparagraph 
                (C)(ii) shall be treated as if it were a denial of a 
                petition of an interested party under section 516 
                regarding an issue arising under any of the preceding 
                provisions of this section.''.
    (b) Coordination With 1988 Act Regarding Certain Articles.--
Articles that qualify as goods of a NAFTA country under regulations 
issued by the Secretary in accordance with Annex 311 of the Agreement 
are exempt from the marking requirements promulgated by the Secretary 
of the Treasury under section 1907(c) of the Omnibus Trade and 
Competitiveness Act of 1988 (Public Law 100-418), but are subject to 
the requirements of section 304 of the Tariff Act of 1930 (19 U.S.C. 
1304).

SEC. 208. PROTESTS AGAINST ADVERSE ORIGIN DETERMINATIONS.

    Section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) is amended--
            (1) in subsection (c)(1) by inserting ``, or with respect 
        to a determination of origin under section 202 of the North 
        American Free Trade Agreement Implementation Act,'' after 
        ``with respect to any one category of merchandise'' in the 
        fourth sentence;
            (2) in subsection (c)(2)--
                    (A) by striking out ``or'' at the end of 
                subparagraph (D);
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F);
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) with respect to a determination of origin 
                under section 202 of the North American Free Trade 
                Agreement Implementation Act, any exporter or producer 
                of the merchandise subject to that determination, if 
                the exporter or producer completed and signed a NAFTA 
                Certificate of Origin covering the merchandise; or''; 
                and
                    (D) by striking ``clauses (A) through (D)'' in 
                subparagraph (F) (as redesignated by subparagraph (B)), 
                and inserting ``clauses (A) through (E)''; and
            (3) by adding at the end the following new subsections:
    ``(e) Advance Notice of Certain Determinations.--Except as provided 
in subsection (f), an exporter or producer referred to in subsection 
(c)(2)(E) shall be provided notice in advance of an adverse 
determination of origin under section 202 of the North American Free 
Trade Agreement Implementation Act. The Secretary may, by regulations, 
prescribe the time period in which such advance notice shall be issued 
and authorize the Customs Service to provide in the notice the entry 
number and any other entry information considered necessary to allow 
the exporter or producer to exercise the rights provided by this 
section.
    ``(f) Denial of Preferential Treatment.--If the Customs Service 
finds indications of a pattern of conduct by an exporter or producer of 
false or unsupported representations that goods qualify under the rules 
of origin set out in section 202 of the North American Free Trade 
Agreement Implementation Act--
            ``(1) the Customs Service, in accordance with regulations 
        issued by the Secretary, may deny preferential tariff treatment 
        to entries of identical goods exported or produced by that 
        person; and
            ``(2) the advance notice requirement in subsection (e) 
        shall not apply to that person;
 until the person establishes to the satisfaction of the Customs 
Service that its representations are in conformity with section 202.''.

SEC. 209. EXCHANGE OF INFORMATION.

    Section 628 of the Tariff Act of 1930 (19 U.S.C. 1628) is amended 
by adding at the end the following new subsection:
    ``(c) The Secretary may authorize the Customs Service to exchange 
information with any government agency of a NAFTA country, as defined 
in section 2(4) of the North American Free Trade Agreement 
Implementation Act, if the Secretary--
            ``(1) reasonably believes the exchange of information is 
        necessary to implement chapter 3, 4, or 5 of the North American 
        Free Trade Agreement, and
            ``(2) obtains assurances from such country that the 
        information will be held in confidence and used only for 
        governmental purposes.''.

SEC. 210. PROHIBITION ON DRAWBACK FOR TELEVISION PICTURE TUBES.

    Notwithstanding any other provision of law, no customs duties may 
be refunded, waived, or reduced on color cathode-ray television picture 
tubes, including video monitor cathode-ray tubes (provided for in 
subheading 8540.11.00 of the HTS), that are nonoriginating goods under 
section 202(p)(19) and are--
            (A) exported to a NAFTA country;
            (B) used as a material in the production of other goods 
        that are exported to a NAFTA country; or
            (C) substituted for by goods of the same kind and quality 
        used as a material in the production of other goods that are 
        exported to a NAFTA country.

SEC. 211. MONITORING OF TELEVISION AND PICTURE TUBE IMPORTS.

    (a) Monitoring.--Beginning on the date the Agreement enters into 
force with respect to the United States, the United States Customs 
Service shall, for a period of 5 years, monitor imports into the United 
States of articles described in subheading 8528.10 of the HTS from 
NAFTA countries and shall take action to exercise all rights of the 
United States under chapter 5 of the Agreement with respect to such 
imports. The United States Customs Service shall take appropriate 
action under chapter 5 of the Agreement with respect to such imports, 
including verifications to ensure that the rules of origin under the 
Agreement are fully complied with and that the duty drawback 
obligations contained in article 303 and Annex 303.8 of the Agreement 
are fully implemented and duties are correctly assessed.
    (b) Report to Trade Representative.--The United States Customs 
Service shall make the results of the monitoring and verification 
required by subsection (a) available to the President and the Trade 
Representative. If, based on such information, the President has reason 
to believe that articles described in subheading 8540.11 of the HTS, 
intended for ultimate consumption in the United States, are entering 
the territory of a NAFTA country inconsistent with the provisions of 
the Agreement, or have been undervalued in a manner that may raise 
concerns under United States trade laws, the President shall promptly 
take such action as may be appropriate under all relevant provisions of 
the Agreement, including article 317 and chapter 20, and under 
applicable United States trade statutes.

SEC. 212. TITLE VI AMENDMENTS.

    Any amendment in this title to a law that is also amended under 
title VI shall be made after the title VI amendment is executed.

SEC. 213. EFFECTIVE DATES.

    (a) Provisions Effective on Date of Enactment.--Section 212 and 
this section take effect on the date of the enactment of this Act.
    (b) Provisions Effective When Agreement Enters Into Force.--Section 
201, section 202, section 203(a), (d), and (e), section 210 and section 
211, the amendment made by section 203(c), and the amendments made by 
sections 204 through 209 take effect on the date the Agreement enters 
into force with respect to the United States.
    (c) Provisions With Delayed Effective Dates.--The amendments made 
by section 203(b) apply--
            (1) with respect to exports from the United States to 
        Canada--
                    (A) on January 1, 1996, if Canada is a NAFTA 
                country on that date, and
                    (B) after such date for so long as Canada continues 
                to be a NAFTA country; and
            (2) with respect to exports from the United States to 
        Mexico--
                    (A) on January 1, 2001, if Mexico is a NAFTA 
                country on that date; and
                    (B) after such date for so long as Mexico continues 
                to be a NAFTA country.

      TITLE III--APPLICATION OF AGREEMENT TO SECTORS AND SERVICES

                         Subtitle A--Safeguards

       PART 1--RELIEF FROM IMPORTS BENEFITING FROM THE AGREEMENT

SEC. 301. DEFINITIONS.

    As used in this part:
            (1) Canadian article.--The term ``Canadian article'' means 
        an article that--
                    (A) is an originating good under chapter 4 of the 
                Agreement; and
                    (B) qualifies under the Agreement to be marked as a 
                good of Canada.
            (2) Mexican article.--The term ``Mexican article'' means an 
        article that--
                    (A) is an originating good under chapter 4 of the 
                Agreement; and
                    (B) qualifies under the Agreement to be marked as a 
                good of Mexico.

SEC. 302. COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--
            (1) In general.--A petition requesting action under this 
        part for the purpose of adjusting to the obligations of the 
        United States under the Agreement may be filed with the 
        International Trade Commission by an entity, including a trade 
        association, firm, certified or recognized union, or group of 
        workers, that is representative of an industry. The 
        International Trade Commission shall transmit a copy of any 
        petition filed under this subsection to the Trade 
        Representative.
            (2) Provisional relief.--An entity filing a petition under 
        this subsection may request that provisional relief be provided 
        as if the petition had been filed under section 202(a) of the 
        Trade Act of 1974.
            (3) Critical circumstances.--An allegation that critical 
        circumstances exist must be included in the petition or made on 
        or before the 90th day after the date on which the 
        investigation is initiated under subsection (b).
    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the International Trade Commission, unless 
subsection (d) applies, shall promptly initiate an investigation to 
determine whether, as a result of the reduction or elimination of a 
duty provided for under the Agreement, a Canadian article or a Mexican 
article, as the case may be, is being imported into the United States 
in such increased quantities (in absolute terms) and under such 
conditions so that imports of the article, alone, constitute a 
substantial cause of--
            (1) serious injury; or
            (2) except in the case of a Canadian article, a threat of 
        serious injury;
to the domestic industry producing an article that is like, or directly 
competitive with, the imported article.
    (c) Applicable Provisions.--The provisions of--
            (1) paragraphs (1)(B), (3) (except subparagraph (A)), and 
        (4) of subsection (b);
            (2) subsection (c); and
            (3) subsection (d),
of section 202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with 
respect to any investigation initiated under subsection (b).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to--
            (1) any Canadian article or Mexican article if import 
        relief has been provided under this part with respect to that 
        article; or
            (2) any textile or apparel article set out in Appendix 1.1 
        of Annex 300-B of the Agreement.

SEC. 303. INTERNATIONAL TRADE COMMISSION ACTION ON PETITION.

    (a) Determination.--By no later than 120 days after the date on 
which an investigation is initiated under section 302(b) with respect 
to a petition, the International Trade Commission shall--
            (1) make the determination required under that section; and
            (2) if the determination referred to in paragraph (1) is 
        affirmative and an allegation regarding critical circumstances 
        was made under section 302(a), make a determination regarding 
        that allegation.
    (b) Additional Finding and Recommendation if Determination 
Affirmative.--If the determination made by the International Trade 
Commission under subsection (a) with respect to imports of an article 
is affirmative, the International Trade Commission shall find, and 
recommend to the President in the report required under subsection (c), 
the amount of import relief that is necessary to remedy or, except in 
the case of imports of a Canadian article, prevent the injury found by 
the International Trade Commission in the determination. The import 
relief recommended by the International Trade Commission under this 
subsection shall be limited to that described in section 304(c).
    (c) Report to President.--No later than the date that is 30 days 
after the date on which a determination is made under subsection (a) 
with respect to an investigation, the International Trade Commission 
shall submit to the President a report that shall include--
            (1) a statement of the basis for the determination;
            (2) dissenting and separate views; and
            (3) any finding made under subsection (b) regarding import 
        relief.
    (d) Public Notice.--Upon submitting a report to the President under 
subsection (c), the International Trade Commission shall promptly make 
public such report (with the exception of information which the 
International Trade Commission determines to be confidential) and shall 
cause a summary thereof to be published in the Federal Register.
    (e) Applicable Provisions.--For purposes of this part, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be applied with respect to 
determinations and findings made under this section as if such 
determinations and findings were made under section 202 of the Trade 
Act of 1974 (19 U.S.C. 2252).

SEC. 304. PROVISION OF RELIEF.

    (a) In General.--No later than the date that is 30 days after the 
date on which the President receives the report of the International 
Trade Commission containing an affirmative determination of the 
International Trade Commission under section 303(a), the President, 
subject to subsection (b), shall provide relief from imports of the 
article that is the subject of such determination to the extent that 
the President determines necessary to remedy or, except in the case of 
imports of a Canadian article, prevent the injury found by the 
International Trade Commission.
    (b) Exception.--The President is not required to provide import 
relief under this section if the President determines that the 
provision of the import relief will not provide greater economic and 
social benefits than costs.
    (c) Nature of Relief.--The import relief (including provisional 
relief) that the President is authorized to provide under this part is 
as follows:
            (1) In the case of imports of a Canadian article--
                    (A) the suspension of any further reduction 
                provided for under Annex 401.2 of the United States-
                Canada Free-Trade Agreement in the duty imposed on such 
                article;
                    (B) an increase in the rate of duty imposed on such 
                article to a level that does not exceed the lesser of--
                            (i) the column 1 general rate of duty 
                        imposed under the HTS on like articles at the 
                        time the import relief is provided, or
                            (ii) the column 1 general rate of duty 
                        imposed on like articles on December 31, 1988; 
                        or
                    (C) in the case of a duty applied on a seasonal 
                basis to such article, an increase in the rate of duty 
                imposed on the article to a level that does not exceed 
                the column 1 general rate of duty imposed on the 
                article for the corresponding season occurring 
                immediately before January 1, 1989.
            (2) In the case of imports of a Mexican article--
                    (A) the suspension of any further reduction 
                provided for under the United States Schedule to Annex 
                302.2 of the Agreement in the duty imposed on such 
                article;
                    (B) an increase in the rate of duty imposed on such 
                article to a level that does not exceed the lesser of--
                            (i) the column 1 general rate of duty 
                        imposed under the HTS on like articles at the 
                        time the import relief is provided, or
                            (ii) the column 1 general rate of duty 
                        imposed under the HTS on like articles on the 
                        day before the date on which the Agreement 
                        enters into force; or
                    (C) in the case of a duty applied on a seasonal 
                basis to such article, an increase in the rate of duty 
                imposed on the article to a level that does not exceed 
                the column 1 general rate of duty imposed under the HTS 
                on the article for the corresponding season immediately 
                occurring before the date on which the Agreement enters 
                into force.
    (d) Period of Relief.--The import relief that the President is 
authorized to provide under this section may not exceed 3 years, except 
that, if a Canadian article or Mexican article which is the subject of 
the action--
            (1) is provided for in an item for which the transition 
        period of tariff elimination set out in the United States 
        Schedule to Annex 302.2 of the Agreement is greater than 10 
        years; and
            (2) the President determines that the affected industry has 
        undertaken adjustment and requires an extension of the period 
        of the import relief;
the President, after obtaining the advice of the International Trade 
Commission, may extend the period of the import relief for not more 
than 1 year, if the duty applied during the initial period of the 
relief is substantially reduced at the beginning of the extension 
period.
    (e) Rate on Mexican Articles After Termination of Import Relief.--
When import relief under this part is terminated with respect to a 
Mexican article--
            (1) the rate of duty on that article after such termination 
        and on or before December 31 of the year in which termination 
        occurs shall be the rate that, according to the United States 
        Schedule to Annex 302.2 of the Agreement for the staged 
        elimination of the tariff, would have been in effect 1 year 
        after the initiation of the import relief action under section 
        302; and
            (2) the tariff treatment for that article after December 31 
        of the year in which termination occurs shall be, at the 
        discretion of the President, either--
                    (A) the rate of duty conforming to the applicable 
                rate set out in the United States Schedule to Annex 
                302.2; or
                    (B) the rate of duty resulting from the elimination 
                of the tariff in equal annual stages ending on the date 
                set out in the United States Schedule to Annex 302.2 
                for the elimination of the tariff.

SEC. 305. TERMINATION OF RELIEF AUTHORITY.

    (a) General Rule.--Except as provided in subsection (b), no import 
relief may be provided under this part--
            (1) in the case of a Canadian article, after December 31, 
        1998; or
            (2) in the case of a Mexican article, after the date that 
        is 10 years after the date on which the Agreement enters into 
        force;
unless the article against which the action is taken is an item for 
which the transition period for tariff elimination set out in the 
United States Schedule to Annex 302.2 of the Agreement is greater than 
10 years, in which case the period during which relief may be granted 
shall be the period of staged tariff elimination for that article.
    (b) Exception.--Import relief may be provided under this part in 
the case of a Canadian article or Mexican article after the date on 
which such relief would, but for this subsection, terminate under 
subsection (a), but only if the Government of Canada or Mexico, as the 
case may be, consents to such provision.

SEC. 306. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 304 
shall be treated as action taken under chapter I of title II of such 
Act.

SEC. 307. SUBMISSION OF PETITIONS.

    A petition for import relief may be submitted to the International 
Trade Commission under--
            (1) this part;
            (2) chapter 1 of title II of the Trade Act of 1974; or
            (3) under both this part and such chapter 1 at the same 
        time, in which case the International Trade Commission shall 
        consider such petitions jointly.

SEC. 308. SPECIAL TARIFF PROVISIONS FOR CANADIAN FRESH FRUITS AND 
              VEGETABLES.

    (a) In general.--Section 301(a) of the United States-Canada Free-
Trade Agreement Implementation Act of 1988 (19 U.S.C. 2112 note) is 
amended--
            (1) in paragraph (1), by striking ``promptly'' in the flush 
        sentence at the end thereof and inserting ``immediately'',
            (2) by redesignating paragraphs (2) through (9) as 
        paragraphs (3) through (10), respectively,
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) No later than 6 days after publication in the Federal 
        Register of the notice described in paragraph (1), the 
        Secretary shall decide whether to recommend the imposition of a 
        temporary duty to the President, and if the Secretary decides 
        to make such a recommendation, the recommendation shall be 
        forwarded immediately to the President.'',
            (4) in paragraph (5), as redesignated by paragraph (2), by 
        striking ``paragraph (3)'' and inserting ``paragraph (4)'', and
            (5) by amending paragraph (9), as redesignated by paragraph 
        (2), to read as follows:
            ``(9) For purposes of assisting the Secretary in carrying 
        out this subsection--
                    ``(A) the Commissioner of Customs and the Director 
                of the Bureau of Census shall cooperate in providing 
                the Secretary with timely information and data relating 
                to the importation of Canadian fresh fruits and 
                vegetables, and
                    ``(B) importers shall report such information 
                relating to Canadian fresh fruits and vegetables to the 
                Commissioner of Customs at such time and in such manner 
                as the Commissioner requires.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of the enactment of this Act.

SEC. 309. PRICE-BASED SNAPBACK FOR FROZEN CONCENTRATED ORANGE JUICE.

    (a) Trigger Price Determination.--
            (1) In general.--The Secretary shall determine--
                    (A) each period of 5 consecutive business days in 
                which the daily price for frozen concentrated orange 
                juice is less than the trigger price; and
                    (B) for each period determined under subparagraph 
                (A), the first period occurring thereafter of 5 
                consecutive business days in which the daily price for 
                frozen concentrated orange juice is greater than the 
                trigger price.
            (2) Notice of determinations.--The Secretary shall 
        immediately notify the Commissioner of Customs and publish 
        notice in the Federal Register of any determination under 
        paragraph (1), and the date of such publication shall be the 
        determination date for that determination.
    (b) Imports of Mexican Articles.--Whenever after any determination 
date for a determination under subsection (a)(1)(A), the quantity of 
Mexican articles of frozen concentrated orange juice that is entered 
exceeds--
            (1) 264,978,000 liters (single strength equivalent) in any 
        of calendar years 1994 through 2002; or
            (2) 340,560,000 liters (single strength equivalent) in any 
        of calendar years 2003 through 2007;
the rate of duty on Mexican articles of frozen concentrated orange 
juice that are entered after the date on which the applicable 
limitation in paragraph (1) or (2) is reached and before the 
determination date for the related determination under subsection 
(a)(1)(B) shall be the rate of duty specified in subsection (c).
    (c) Rate of Duty.--The rate of duty specified for purposes of 
subsection (b) for articles entered on any day is the rate in the HTS 
that is the lower of--
            (1) the column 1-General rate of duty in effect for such 
        articles on July 1, 1991; or
            (2) the column 1-General rate of duty in effect on that 
        day.
    (d) Definitions.--For purposes of this section--
            (1) The term ``daily price'' means the daily closing price 
        of the New York Cotton Exchange, or any successor as determined 
        by the Secretary, for the closest month in which contracts for 
        frozen concentrated orange juice are being traded on the 
        Exchange.
            (2) The term ``business day'' means a day in which 
        contracts for frozen concentrated orange juice are being traded 
        on the New York Cotton Exchange, or any successor as determined 
        by the Secretary.
            (3) The term ``entered'' means entered or withdrawn from 
        warehouse for consumption, in the customs territory of the 
        United States.
            (4) The term ``frozen concentrated orange juice'' means all 
        products classifiable under subheading 2009.11.00 of the HTS.
            (5) The term ``Secretary'' means the Secretary of 
        Agriculture.
            (6) The term ``trigger price'' means the average daily 
        closing price of the New York Cotton Exchange, or any successor 
        as determined by the Secretary, for the corresponding month 
        during the previous 5-year period, excluding the year with the 
        highest average price for the corresponding month and the year 
        with the lowest average price for the corresponding month.

             PART 2--RELIEF FROM IMPORTS FROM ALL COUNTRIES

SEC. 311. NAFTA ARTICLE IMPACT IN IMPORT RELIEF CASES UNDER THE TRADE 
              ACT OF 1974.

    (a) In General.--If, in any investigation initiated under chapter 1 
of title II of the Trade Act of 1974, the International Trade 
Commission makes an affirmative determination (or a determination which 
the President may treat as an affirmative determination under such 
chapter by reason of section 330(d) of the Tariff Act of 1930), the 
International Trade Commission shall also find (and report to the 
President at the time such injury determination is submitted to the 
President) whether--
            (1) imports of the article from a NAFTA country, considered 
        individually, account for a substantial share of total imports; 
        and
            (2) imports of the article from a NAFTA country, considered 
        individually or, in exceptional circumstances, imports from 
        NAFTA countries considered collectively, contribute importantly 
        to the serious injury, or threat thereof, caused by imports.
    (b) Factors.--
            (1) Substantial import share.--In determining whether 
        imports from a NAFTA country, considered individually, account 
        for a substantial share of total imports, such imports normally 
        shall not be considered to account for a substantial share of 
        total imports if that country is not among the top 5 suppliers 
        of the article subject to the investigation, measured in terms 
        of import share during the most recent 3-year period.
            (2) Application of ``contribute importantly'' standard.--In 
        determining whether imports from a NAFTA country or countries 
        contribute importantly to the serious injury, or threat 
        thereof, the International Trade Commission shall consider such 
        factors as the change in the import share of the NAFTA country 
        or countries, and the level and change in the level of imports 
        of such country or countries. In applying the preceding 
        sentence, imports from a NAFTA country or countries normally 
        shall not be considered to contribute importantly to serious 
        injury, or the threat thereof, if the growth rate of imports 
        from such country or countries during the period in which an 
        injurious increase in imports occurred is appreciably lower 
        than the growth rate of total imports from all sources over the 
        same period.
    (c) Definition.--For purposes of this section and section 312(a), 
the term ``contribute importantly'' refers to an important cause, but 
not necessarily the most important cause.

SEC. 312. PRESIDENTIAL ACTION REGARDING NAFTA IMPORTS.

    (a) In General.--In determining whether to take action under 
chapter 1 of title II of the Trade Act of 1974 with respect to imports 
from a NAFTA country, the President shall determine whether--
            (1) imports from such country, considered individually, 
        account for a substantial share of total imports; or
            (2) imports from a NAFTA country, considered individually, 
        or in exceptional circumstances imports from NAFTA countries 
        considered collectively, contribute importantly to the serious 
        injury, or threat thereof, found by the International Trade 
        Commission.
    (b) Exclusion of NAFTA Imports.--In determining the nature and 
extent of action to be taken under chapter 1 of title II of the Trade 
Act of 1974, the President shall exclude from such action imports from 
a NAFTA country if the President makes a negative determination under 
subsection (a)(1) or (2) with respect to imports from such country.
    (c) Action After Exclusion of NAFTA Country Imports.--
            (1) In general.--If the President, under subsection (b), 
        excludes imports from a NAFTA country or countries from action 
        under chapter 1 of title II of the Trade Act of 1974 but 
        thereafter determines that a surge in imports from that country 
        or countries is undermining the effectiveness of the action--
                    (A) the President may take appropriate action under 
                such chapter 1 to include those imports in the action; 
                and
                    (B) any entity that is representative of an 
                industry for which such action is being taken may 
                request the International Trade Commission to conduct 
                an investigation of the surge in such imports.
            (2) Investigation.--Upon receiving a request under 
        paragraph (1)(B), the International Trade Commission shall 
        conduct an investigation to determine whether a surge in such 
        imports undermines the effectiveness of the action. The 
        International Trade Commission shall submit the findings of its 
        investigation to the President no later than 30 days after the 
        request is received by the International Trade Commission.
            (3) Definition.--For purposes of this subsection, the term 
        ``surge'' means a significant increase in imports over the 
        trend for a recent representative base period.
    (d) Condition Applicable to Quantitative Restrictions.--Any action 
taken under this section proclaiming a quantitative restriction shall 
permit the importation of a quantity or value of the article which is 
not less than the quantity or value of such article imported into the 
United States during the most recent period that is representative of 
imports of such article, with allowance for reasonable growth.

                       PART 3--GENERAL PROVISIONS

SEC. 315. PROVISIONAL RELIEF.

    Section 202(d) of the Trade Act of 1974 (19 U.S.C. 2252(d)) is 
amended--
            (1) in paragraph (1)(A) by inserting ``or citrus product'' 
        after ``agricultural product'' each place it appears;
            (2) in the text of paragraph (1)(C) that appears before 
        subclauses (I) and (II)--
                    (A) by inserting ``or citrus product'' after 
                ``agricultural product'' each place it appears, and
                    (B) by inserting ``or citrus product'' after 
                ``perishable product'';
            (3) by redesignating subparagraphs (A) and (B) of paragraph 
        (5) as subparagraphs (B) and (C); and
            (4) by inserting a new subparagraph (A) in paragraph (5) to 
        read as follows:
                    ``(A) The term `citrus product' means any processed 
                oranges or grapefruit, or any orange or grapefruit 
                juice, including concentrate.''.

SEC. 316. MONITORING.

    For purposes of expediting an investigation concerning provisional 
relief under this subtitle or section 202 of the Trade Act of 1974 
regarding--
            (1) fresh or chilled tomatoes provided for in subheading 
        0702.00.00 of the HTS; and
            (2) fresh or chilled peppers, other than chili peppers 
        provided for in subheading 0709.60.00 of the HTS;
the International Trade Commission, until January 1, 2009, shall 
monitor imports of such goods as if proper requests for such monitoring 
had been made under subsection 202(d)(1)(C)(i) of such section 202. At 
the request of the International Trade Commission, the Secretary of 
Agriculture and the Commissioner of Customs shall provide to the 
International Trade Commission information relevant to the monitoring 
carried out under this section.

SEC. 317. PROCEDURES CONCERNING THE CONDUCT OF INTERNATIONAL TRADE 
              COMMISSION INVESTIGATIONS.

    (a) Procedures and Rules.--The International Trade Commission shall 
adopt such procedures and rules and regulations as are necessary to 
bring its procedures into conformity with chapter 8 of the Agreement.
    (b) Conforming Amendment.--Section 202(a) of the Trade Act of 1974 
is amended by adding at the end thereof the following:
            ``(8) The procedures concerning the release of confidential 
        business information set forth in section 332(g) of the Tariff 
        Act of 1930 shall apply with respect to information received by 
        the Commission in the course of investigations conducted under 
        this chapter and part 1 of title III of the North American Free 
        Trade Agreement Implementation Act.''.

SEC. 318. EFFECTIVE DATE.

    Except as provided in section 308(b), the provisions of this 
subtitle take effect on the date the Agreement enters into force with 
respect to the United States.

                        Subtitle B--Agriculture

SEC. 321. AGRICULTURE.

    (a) Meat Import Act of 1979.--The Meat Import Act of 1979 (19 
U.S.C. 2253 note) is amended--
            (1) in subsection (b)--
                    (A) by striking the last sentence in paragraph (2),
                    (B) by redesignating paragraph (3) as paragraph (4) 
                and inserting after paragraph (2) the following new 
                paragraph:
            ``(3) The term `meat articles' does not include any article 
        described in paragraph (2) that--
                    ``(A) originates in a NAFTA country (as determined 
                in accordance with section 202 of the NAFTA Act), or
                    ``(B) originates in Canada (as determined in 
                accordance with section 202 of the United States-Canada 
                Free-Trade Agreement Implementation Act of 1988) during 
                such time as the United States-Canada Free-Trade 
                Agreement is in force with respect to, and the United 
                States applies such Agreement to, Canada.''; and
                    (C) by inserting after paragraph (4) (as 
                redesignated by subparagraph (B) of this paragraph) the 
                following new paragraphs:
            ``(5) The term `NAFTA Act' means the North American Free 
        Trade Agreement Implementation Act.
            ``(6) The term `NAFTA country' has the meaning given such 
        term in section 2(4) of the NAFTA Act.'';
            (2) in subsection (f)(1), by striking the end period and 
        inserting ``, except that the President may exclude any such 
        article originating in a NAFTA country (as determined in 
        accordance with section 202 of the NAFTA Act) or, if paragraph 
        (3)(B) applies, any such article originating in Canada as 
        determined in accordance with such paragraph (3)(B).''; and
            (3) in subsection (i), by inserting ``and Mexico'' after 
        ``Canada'' each place it appears.
    (b) Section 22 of the Agricultural Adjustment Act.--
            (1) In general.--The President may, pursuant to article 309 
        and Annex 703.2 of the Agreement, exempt from any quantitative 
        limitation or fee imposed pursuant to section 22 of the 
        Agricultural Adjustment Act (7 U.S.C. 624), reenacted with 
        amendments by the Agricultural Marketing Agreement Act of 1937, 
        any article which originates in Mexico, if Mexico is a NAFTA 
        country.
            (2) Qualification of articles.--The determination of 
        whether an article originates in Mexico shall be made in 
        accordance with section 202, except that operations performed 
        in, or materials obtained from, any country other than the 
        United States or Mexico shall be treated as if performed in or 
        obtained from a country other than a NAFTA country.
    (c) Tariff Rate Quotas.--In implementing the tariff rate quotas set 
out in the United States Schedule to Annex 302.2 of the Agreement, the 
President shall take such action as may be necessary to ensure that 
imports of agricultural goods do not disrupt the orderly marketing of 
commodities in the United States.
    (d) Peanuts.--
            (1) Effect of the agreement.--
                    (A) In general.--Nothing in the Agreement or this 
                Act reduces or eliminates--
                            (i) any penalty required under section 
                        358e(d) of the Agricultural Adjustment Act of 
                        1938 (7 U.S.C. 1359a(d)); or
                            (ii) any requirement under Marketing 
                        Agreement No. 146, Regulating the Quality of 
                        Domestically Produced Peanuts, on peanuts in 
                        the domestic market, pursuant to section 
                        108B(f) of the Agricultural Act of 1949 (7 
                        U.S.C. 1445c-3(f)).
                    (B) Reentry of exported peanuts.--Paragraph (6) of 
                section 358e(d) of the Agricultural Adjustment Act of 
                1938 (7 U.S.C. 1359a(d)(6)) is amended to read as 
                follows:
            ``(6) Reentry of exported peanuts.--
                    ``(A) Penalty.--If any additional peanuts exported 
                by a handler are reentered into the United States in 
                commercial quantities as determined by the Secretary, 
                the importer of the peanuts shall be subject to a 
                penalty at a rate equal to 140 percent of the loan 
                level for quota peanuts on the quantity of peanuts 
                reentered.
                    ``(B) Records.--Each person, firm, or handler who 
                imports peanuts into the United States shall maintain 
                such records and documents as are required by the 
                Secretary to ensure compliance with this subsection.''.
            (2) Consultations on imports.--It is the sense of Congress 
        that the United States should request consultations in the 
        Working Group on Emergency Action, established in the 
        Understanding Between the Parties to the North American Free 
        Trade Agreement Concerning Chapter Eight--Emergency Action, if 
        imports of peanuts exceed the in-quota quantity under a tariff 
        rate quota set out in the United States Schedule to Annex 302.2 
        of the Agreement concerning whether--
                    (A) the increased imports of peanuts constitute a 
                substantial cause of, or contribute importantly to, 
                serious injury, or threat of serious injury, to the 
                domestic peanut industry; and
                    (B) recourse under Chapter Eight of the Agreement 
                or Article XIX of the General Agreement on Tariffs and 
                Trade is appropriate.
    (e) Fresh Fruits, Vegetables, and Cut Flowers.--
            (1) In general.--The Secretary of Agriculture shall collect 
        and compile the information specified under paragraph (3), if 
        reasonably available, from appropriate Federal departments and 
        agencies and the relevant counterpart ministries of the 
        Government of Mexico.
            (2) Designation of an office.--The Secretary of Agriculture 
        shall designate an office within the United States Department 
        of Agriculture to be responsible for maintaining and 
        disseminating, in a timely manner, the data accumulated for 
        verifying citrus, fruit, vegetable, and cut flower trade 
        between the United States and Mexico. The information shall be 
        made available to the public and the NAFTA Agriculture 
        Committee Working Groups.
            (3) Information collected.--The information to be 
        collected, if reasonably available, includes--
                    (A) monthly fresh fruit, fresh vegetable, fresh 
                citrus, and processed citrus product import and export 
                data;
                    (B) monthly citrus juice production and export 
                data;
                    (C) data on inspections of shipments of citrus, 
                vegetables, and cut flowers entering the United States 
                from Mexico; and
                    (D) in the case of fruits, vegetables, and cut 
                flowers entering the United States from Mexico, data 
                regarding--
                            (i) planted and harvested acreage; and
                            (ii) wholesale prices, quality, and grades.
    (f) End-Use Certificates.--
            (1) In general.--The Secretary of Agriculture (referred to 
        in this subsection as the ``Secretary'') shall implement, in 
        coordination with the Commissioner of Customs, a program 
        requiring that end-use certificates be included in the 
        documentation covering the entry into, or the withdrawal from a 
        warehouse for consumption in, the customs territory of the 
        United States--
                    (A) of any wheat that is a product of any foreign 
                country or instrumentality that requires, as of the 
                effective date of this subsection, end-use certificates 
                for imports of wheat that is a product of the United 
                States (referred to in this subsection as ``United 
                States-produced wheat''); and
                    (B) of any barley that is a product of any foreign 
                country or instrumentality that requires, as of the 
                effective date of this subsection, end-use certificates 
                for imports of barley that is a product of the United 
                States (referred to in this subsection as ``United 
                States-produced barley'').
            (2) Regulations.--The Secretary shall prescribe by 
        regulation such requirements regarding the information to be 
        included in end-use certificates as may be necessary and 
        appropriate to carry out this subsection.
            (3) Producer protection determination.--At any time after 
        the effective date of the requirements established under 
        paragraph (1), the Secretary may, subject to paragraph (5), 
        suspend the requirements when making a determination, after 
        consultation with domestic producers, that the program 
        implemented under this subsection has directly resulted in--
                    (A) the reduction of income to the United States 
                producers of agricultural commodities; or
                    (B) the reduction of the competitiveness of United 
                States agricultural commodities in the world export 
                markets.
            (4) Suspension of requirements.--
                    (A) Wheat.--If a foreign country or instrumentality 
                that requires end-use certificates for imports of 
                United States-produced wheat as of the effective date 
                of the requirement under paragraph (1)(A) eliminates 
                the requirement, the Secretary shall suspend the 
                requirement under paragraph (1)(A) beginning 30 
                calendar days after suspension by the foreign country 
                or instrumentality.
                    (B) Barley.--If a foreign country or 
                instrumentality that requires end-use certificates for 
                imports of United States-produced barley as of the 
                effective date of the requirement under paragraph 
                (1)(B) eliminates the requirement, the Secretary shall 
                suspend the requirement under paragraph (1)(B) 
                beginning 30 calendar days after suspension by the 
                foreign country or instrumentality.
            (5) Report to congress.--The Secretary shall not suspend 
        the requirements established under paragraph (1) under 
        circumstances identified in paragraph (3) before the Secretary 
        submits a report to Congress detailing the determination made 
        under paragraph (3) and the reasons for making the 
        determination.
            (6) Compliance.--It shall be a violation of section 1001 of 
        title 18, United States Code, for a person to engage in fraud 
        or knowingly violate this subsection or a regulation 
        implementing this subsection.
            (7) Effective date.--This subsection shall become effective 
        on the date that is 120 days after the date of enactment of 
        this Act.
    (g) Agricultural Fellowship Program.--Section 1542(d) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 
U.S.C. 5622 note) is amended by adding at the end the following new 
paragraph:
            ``(3) Agricultural fellowships for nafta countries.--
                    ``(A) In general.--The Secretary shall grant 
                fellowships to individuals from countries that are 
                parties to the North American Free Trade Agreement 
                (referred to in this paragraph as `NAFTA') to study 
                agriculture in the United States, and to individuals in 
                the United States to study agriculture in other NAFTA 
                countries.
                    ``(B) Purpose.--The purpose of fellowships granted 
                under this paragraph is--
                            ``(i) to allow the recipients to expand 
                        their knowledge and understanding of 
                        agricultural systems and practices in other 
                        NAFTA countries;
                            ``(ii) to facilitate the improvement of 
                        agricultural systems in NAFTA countries; and
                            ``(iii) to establish and expand 
                        agricultural trade linkages between the United 
                        States and other NAFTA countries.
                    ``(C) Eligible recipients.--The Secretary may 
                provide fellowships under this paragraph to 
                agricultural producers and consultants, government 
                officials, and other individuals from the private and 
                public sectors.
                    ``(D) Acceptance of gifts.--The Secretary may 
                accept money, funds, property, and services of every 
                kind by gift, devise, bequest, grant, or otherwise, and 
                may in any manner, dispose of all of the holdings and 
                use the receipts generated from the disposition to 
                carry out this paragraph. Receipts under this paragraph 
                shall remain available until expended.
                    ``(E) Authorization of appropriation.--There are 
                authorized to be appropriated such sums as are 
                necessary to carry out this paragraph.''.
    (h) Assistance for Affected Farmworkers.--
            (1) In general.--Subject to paragraph (3), if at any time 
        the Secretary of Agriculture determines that the implementation 
        of the Agreement has caused low-income migrant or seasonal 
        farmworkers to lose income, the Secretary may make available 
        grants, not to exceed $20,000,000 for any fiscal year, to 
        public agencies or private organizations with tax-exempt status 
        under section 501(c)(3) of the Internal Revenue Code of 1986, 
        that have experience in providing emergency services to low-
        income migrant or seasonal farmworkers. Emergency services to 
        be provided with assistance received under this subsection may 
        include such types of assistance as the Secretary determines to 
        be necessary and appropriate.
            (2) Definition.--As used in this subsection, the term 
        ``low-income migrant or seasonal farmworker'' shall have the 
        same meaning as provided in section 2281(b) of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (42 U.S.C. 
        5177a(b)).
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated $20,000,000 for each fiscal year to carry 
        out this subsection.
    (i) Biennial Report on Effects of the Agreement on American 
Agriculture.--
            (1) In general.--The Secretary of Agriculture shall prepare 
        a biennial report on the effects of the Agreement on United 
        States producers of agricultural commodities and on rural 
        communities located in the United States.
            (2) Contents of report.--The report required under this 
        subsection shall include--
                    (A) an assessment of the effects of implementing 
                the Agreement on the various agricultural commodities 
                affected by the Agreement, on a commodity-by-commodity 
                basis;
                    (B) an assessment of the effects of implementing 
                the Agreement on investments made in United States 
                agriculture and on rural communities located in the 
                United States;
                    (C) an assessment of the effects of implementing 
                the Agreement on employment in United States 
                agriculture, including any gains or losses of jobs in 
                businesses directly or indirectly related to United 
                States agriculture; and
                    (D) such other information and data as the 
                Secretary determines appropriate.
            (3) Submission of report.--The Secretary shall furnish the 
        report required under this subsection to the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate and to the 
        Committee on Agriculture of the House of Representatives. The 
        report shall be due every 2 years and shall be submitted by 
        March 1 of the year in which the report is due. The first 
        report shall be due by March 1, 1997, and the final report 
        shall be due by March 1, 2011.

                   Subtitle C--Intellectual Property

SEC. 331. TREATMENT OF INVENTIVE ACTIVITY.

    Section 104 of title 35, United States Code, is amended to read as 
follows:
``Sec. 104. Invention made abroad
    ``(a) In General.--In proceedings in the Patent and Trademark 
Office, in the courts, and before any other competent authority, an 
applicant for a patent, or a patentee, may not establish a date of 
invention by reference to knowledge or use thereof, or other activity 
with respect thereto, in a foreign country other than a NAFTA country, 
except as provided in sections 119 and 365 of this title. Where an 
invention was made by a person, civil or military, while domiciled in 
the United States or a NAFTA country and serving in any other country 
in connection with operations by or on behalf of the United States or a 
NAFTA country, the person shall be entitled to the same rights of 
priority in the United States with respect to such invention as if such 
invention had been made in the United States or a NAFTA country. To the 
extent that any information in a NAFTA country concerning knowledge, 
use, or other activity relevant to proving or disproving a date of 
invention has not been made available for use in a proceeding in the 
Office, a court, or any other competent authority to the same extent as 
such information could be made available in the United States, the 
Commissioner, court, or such other authority shall draw appropriate 
inferences, or take other action permitted by statute, rule, or 
regulation, in favor of the party that requested the information in the 
proceeding.
    ``(b) Definition.--As used in this section, the term `NAFTA 
country' has the meaning given that term in section 2(4) of the North 
American Free Trade Agreement Implementation Act.''.

SEC. 332. RENTAL RIGHTS IN SOUND RECORDINGS.

    Section 4 of the Record Rental Amendment of 1984 (17 U.S.C. 109 
note) is amended by striking out subsection (c).

SEC. 333. NONREGISTRABILITY OF MISLEADING GEOGRAPHIC INDICATIONS.

    (a) Marks Not Registrable on the Principal Register.--Section 2 of 
the Act entitled ``An Act to provide for the registration and 
protection of trademarks used in commerce, to carry out the provisions 
of certain international conventions, and for other purposes'', 
approved July 5, 1946, commonly referred to as the Trademark Act of 
1946 (15 U.S.C. 1052(e)), is amended--
            (1) by amending subsection (e) to read as follows:
    ``(e) Consists of a mark which (1) when used on or in connection 
with the goods of the applicant is merely descriptive or deceptively 
misdescriptive of them, (2) when used on or in connection with the 
goods of the applicant is primarily geographically descriptive of them, 
except as indications of regional origin may be registrable under 
section 4, (3) when used on or in connection with the goods of the 
applicant is primarily geographically deceptively misdescriptive of 
them, or (4) is primarily merely a surname.''; and
            (2) in subsection (f)--
                    (A) by striking out ``and (d)'' and inserting 
                ``(d), and (e)(3)''; and
                    (B) by adding at the end the following new 
                sentence: ``Nothing in this section shall prevent the 
                registration of a mark which, when used on or in 
                connection with the goods of the applicant, is 
                primarily geographically deceptively misdescriptive of 
                them, and which became distinctive of the applicant's 
                goods in commerce before the date of the enactment of 
                the North American Free Trade Agreement Implementation 
                Act.''.
    (b) Supplemental Register.--Section 23(a) of the Trademark Act of 
1946 (15 U.S.C. 1091(a)) is amended--
            (1) by striking out ``and (d)'' and inserting ``(d), and 
        (e)(3)''; and
            (2) by adding at the end the following new sentence: 
        ``Nothing in this section shall prevent the registration on the 
        supplemental register of a mark, capable of distinguishing the 
        applicant's goods or services and not registrable on the 
        principal register under this Act, that is declared to be 
        unregistrable under section 2(e)(3), if such mark has been in 
        lawful use in commerce by the owner thereof, on or in 
        connection with any goods or services, since before the date of 
        the enactment of the North American Free Trade Agreement 
        Implementation Act.''.

SEC. 334. MOTION PICTURES IN THE PUBLIC DOMAIN.

    (a) In General.--Chapter 1 of title 17, United States Code, is 
amended by inserting after section 104 the following new section:
``Sec. 104A. Copyright in certain motion pictures
    ``(a) Restoration of Copyright.--Subject to subsections (b) and 
(c)--
            ``(1) any motion picture that is first fixed or published 
        in the territory of a NAFTA country as defined in section 2(4) 
        of the North American Free Trade Agreement Implementation Act 
        to which Annex 1705.7 of the North American Free Trade 
        Agreement applies, and
            ``(2) any work included in such motion picture that is 
        first fixed in or published with such motion picture,
that entered the public domain in the United States because it was 
first published on or after January 1, 1978, and before March 1, 1989, 
without the notice required by section 401, 402, or 403 of this title, 
the absence of which has not been excused by the operation of section 
405 of this title, as such sections were in effect during that period, 
shall have copyright protection under this title for the remainder of 
the term of copyright protection to which it would have been entitled 
in the United States had it been published with such notice.
    ``(b) Effective Date of Protection.--The protection provided under 
subsection (a) shall become effective, with respect to any motion 
picture or work included in such motion picture meeting the criteria of 
that subsection, 1 year after the date on which the North American Free 
Trade Agreement enters into force with respect to, and the United 
States applies the Agreement to, the country in whose territory the 
motion picture was first fixed or published if, before the end of that 
1-year period, the copyright owner in the motion picture or work files 
with the Copyright Office a statement of intent to have copyright 
protection restored under subsection (a). The Copyright Office shall 
publish in the Federal Register promptly after that effective date a 
list of motion pictures, and works included in such motion pictures, 
for which protection is provided under subsection (a).
    ``(c) Use of Previously Owned Copies.--A national or domiciliary of 
the United States who, before the date of the enactment of the North 
American Free Trade Agreement Implementation Act, made or acquired 
copies of a motion picture, or other work included in such motion 
picture, that is subject to protection under subsection (a), may sell 
or distribute such copies or continue to perform publicly such motion 
picture and other work without liability for such sale, distribution, 
or performance, for a period of 1 year after the date on which the list 
of motion pictures, and works included in such motion pictures, that 
are subject to protection under subsection (a) is published in the 
Federal Register under subsection (b).''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 1 of title 17, United States Code, is amended by inserting 
after the item relating to section 104 the following new item:

``104A. Copyright in certain motion pictures.''.

SEC. 335. EFFECTIVE DATES.

    (a) in General.--Subject to subsections (b) and (c), the amendments 
made by this subtitle take effect on the date the Agreement enters into 
force with respect to the United States.
    (b) Section 331.--The amendments made by section 331 shall apply to 
all patent applications that are filed on or after the date of the 
enactment of this Act: Provided, That an applicant for a patent, or a 
patentee, may not establish a date of invention by reference to 
knowledge or use thereof, or other activity with respect thereto, in a 
NAFTA country, except as provided in sections 119 and 365 of title 35, 
United States Code, that is earlier than the date of the enactment of 
this Act.
    (c) Section 333.--The amendments made by section 333 shall apply 
only to trademark applications filed on or after the date of the 
enactment of this Act.

            Subtitle D--Temporary Entry of Business Persons

SEC. 341. TEMPORARY ENTRY.

    (a) Nonimmigrant Traders and Investors.--Upon a basis of 
reciprocity secured by the Agreement, an alien who is a citizen of 
Canada or Mexico, and the spouse and children of any such alien if 
accompanying or following to join such alien, may, if otherwise 
eligible for a visa and if otherwise admissible into the United States 
under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), be 
considered to be classifiable as a nonimmigrant under section 
101(a)(15)(E) of such Act (8 U.S.C. 1101(a)(15)(E)) if entering solely 
for a purpose specified in Section B of Annex 1603 of the Agreement, 
but only if any such purpose shall have been specified in such Annex on 
the date of entry into force of the Agreement. For purposes of this 
section, the term ``citizen of Mexico'' means ``citizen'' as defined in 
Annex 1608 of the Agreement.
    (b) Nonimmigrant Professionals and Annual Numerical Limit.--Section 
214 of the Immigration and Nationality Act (8 U.S.C. 1184) is amended 
by redesignating subsection (e) as paragraph (1) of subsection (e) and 
adding after such paragraph (1), as redesignated, the following new 
paragraphs:
    ``(2) An alien who is a citizen of Canada or Mexico, and the spouse 
and children of any such alien if accompanying or following to join 
such alien, who seeks to enter the United States under and pursuant to 
the provisions of Section D of Annex 1603 of the North American Free 
Trade Agreement (in this subsection referred to as `NAFTA') to engage 
in business activities at a professional level as provided for in such 
Annex, may be admitted for such purpose under regulations of the 
Attorney General promulgated after consultation with the Secretaries of 
State and Labor. For purposes of this Act, including the issuance of 
entry documents and the application of subsection (b), such alien shall 
be treated as if seeking classification, or classifiable, as a 
nonimmigrant under section 101(a)(15). The admission of an alien who is 
a citizen of Mexico shall be subject to paragraphs (3), (4), and (5). 
For purposes of this paragraph and paragraphs (3), (4), and (5), the 
term `citizen of Mexico' means `citizen' as defined in Annex 1608 of 
NAFTA.
    ``(3) The Attorney General shall establish an annual numerical 
limit on admissions under paragraph (2) of aliens who are citizens of 
Mexico, as set forth in Appendix 1603.D.4 of Annex 1603 of the NAFTA. 
Subject to paragraph (4), the annual numerical limit--
            ``(A) beginning with the second year that NAFTA is in 
        force, may be increased in accordance with the provisions of 
        paragraph 5(a) of Section D of such Annex, and
            ``(B) shall cease to apply as provided for in paragraph 3 
        of such Appendix.
    ``(4) The annual numerical limit referred to in paragraph (3) may 
be increased or shall cease to apply (other than by operation of 
paragraph 3 of such Appendix) only if--
            ``(A) the President has obtained advice regarding the 
        proposed action from the appropriate advisory committees 
        established under section 135 of the Trade Act of 1974 (19 
        U.S.C. 2155);
            ``(B) the President has submitted a report to the Committee 
        on the Judiciary of the Senate and the Committee on the 
        Judiciary of the House of Representatives that sets forth--
                    ``(i) the action proposed to be taken and the 
                reasons therefor, and
                    ``(ii) the advice obtained under subparagraph (A);
            ``(C) a period of at least 60 calendar days that begins on 
        the first day on which the President has met the requirements 
        of subparagraphs (A) and (B) with respect to such action has 
        expired; and
            ``(D) the President has consulted with such committees 
        regarding the proposed action during the period referred to in 
        subparagraph (C).
    ``(5) During the period that the provisions of Appendix 1603.D.4 of 
Annex 1603 of the NAFTA apply, the entry of an alien who is a citizen 
of Mexico under and pursuant to the provisions of Section D of Annex 
1603 of NAFTA shall be subject to the attestation requirement of 
section 212(m), in the case of a registered nurse, or the application 
requirement of section 212(n), in the case of all other professions set 
out in Appendix 1603.D.1 of Annex 1603 of NAFTA, and the petition 
requirement of subsection (c), to the extent and in the manner 
prescribed in regulations promulgated by the Secretary of Labor, with 
respect to sections 212(m) and 212(n), and the Attorney General, with 
respect to subsection (c).''.
    (c) Labor Disputes.--Section 214 of the Immigration and Nationality 
Act (8 U.S.C. 1184) is amended by adding at the end the following new 
subsection:
    ``(j) Notwithstanding any other provision of this Act, an alien who 
is a citizen of Canada or Mexico who seeks to enter the United States 
under and pursuant to the provisions of Section B, Section C, or 
Section D of Annex 1603 of the North American Free Trade Agreement, 
shall not be classified as a nonimmigrant under such provisions if 
there is in progress a strike or lockout in the course of a labor 
dispute in the occupational classification at the place or intended 
place of employment, unless such alien establishes, pursuant to 
regulations promulgated by the Attorney General, that the alien's entry 
will not affect adversely the settlement of the strike or lockout or 
the employment of any person who is involved in the strike or lockout. 
Notice of a determination under this subsection shall be given as may 
be required by paragraph 3 of article 1603 of such Agreement. For 
purposes of this subsection, the term `citizen of Mexico' means 
`citizen' as defined in Annex 1608 of such Agreement.''.

SEC. 342. EFFECTIVE DATE.

    The provisions of this subtitle take effect on the date the 
Agreement enters into force with respect to the United States.

                         Subtitle E--Standards

                     PART 1--STANDARDS AND MEASURES

SEC. 351. STANDARDS AND SANITARY AND PHYTOSANITARY MEASURES.

    (a) In General.--Title IV of the Trade Agreements Act of 1979 (19 
U.S.C. 2531 et seq.) is amended by inserting at the end the following 
new subtitle:

  ``Subtitle E--Standards and Measures Under the North American Free 
                            Trade Agreement

            ``CHAPTER 1--SANITARY AND PHYTOSANITARY MEASURES

``SEC. 461. GENERAL.

    ``Nothing in this chapter may be construed--
            ``(1) to prohibit a Federal agency or State agency from 
        engaging in activity related to sanitary or phytosanitary 
        measures to protect human, animal, or plant life or health; or
            ``(2) to limit the authority of a Federal agency or State 
        agency to determine the level of protection of human, animal, 
        or plant life or health the agency considers appropriate.

``SEC. 462. INQUIRY POINT.

    ``The standards information center maintained under section 414 
shall, in addition to the functions specified therein, make available 
to the public relevant documents, at such reasonable fees as the 
Secretary of Commerce may prescribe, and information regarding--
            ``(1) any sanitary or phytosanitary measure of general 
        application, including any control or inspection procedure or 
        approval procedure proposed, adopted, or maintained by a 
        Federal or State agency;
            ``(2) the procedures of a Federal or State agency for risk 
        assessment, and factors the agency considers in conducting the 
        assessment and in establishing the levels of protection that 
        the agency considers appropriate;
            ``(3) the membership and participation of the Federal 
        Government and State governments in international and regional 
        sanitary and phytosanitary organizations and systems, and in 
        bilateral and multilateral arrangements regarding sanitary and 
        phytosanitary measures, and the provisions of those systems and 
        arrangements; and
            ``(4) the location of notices of the type required under 
        article 719 of the NAFTA, or where the information contained in 
        such notices can be obtained.

``SEC. 463. CHAPTER DEFINITIONS.

    ``Notwithstanding section 451, for purposes of this chapter--
            ``(1) Animal.--The term `animal' includes fish, bees, and 
        wild fauna.
            ``(2) Approval procedure.--The term `approval procedure' 
        means any registration, notification, or other mandatory 
        administrative procedure for--
                    ``(A) approving the use of an additive for a stated 
                purpose or under stated conditions, or
                    ``(B) establishing a tolerance for a stated purpose 
                or under stated conditions for a contaminant,
        in a food, beverage, or feedstuff prior to permitting the use 
        of the additive or the marketing of a food, beverage, or 
        feedstuff containing the additive or contaminant.
            ``(3) Contaminant.--The term `contaminant' includes 
        pesticide and veterinary drug residues and extraneous matter.
            ``(4) Control or inspection procedure.--The term `control 
        or inspection procedure' means any procedure used, directly or 
        indirectly, to determine that a sanitary or phytosanitary 
        measure is fulfilled, including sampling, testing, inspection, 
        evaluation, verification, monitoring, auditing, assurance of 
        conformity, accreditation, registration, certification, or 
        other procedure involving the physical examination of a good, 
        of the packaging of a good, or of the equipment or facilities 
        directly related to production, marketing, or use of a good, 
        but does not mean an approval procedure.
            ``(5) Plant.--The term `plant' includes wild flora.
            ``(6) Risk assessment.--The term `risk assessment' means an 
        evaluation of--
                    ``(A) the potential for the introduction, 
                establishment or spread of a pest or disease and 
                associated biological and economic consequences; or
                    ``(B) the potential for adverse effects on human or 
                animal life or health arising from the presence of an 
                additive, contaminant, toxin or disease-causing 
                organism in a food, beverage, or feedstuff.
            ``(7) Sanitary or phytosanitary measure.--
                    ``(A) In general.--The term `sanitary or 
                phytosanitary measure' means a measure to--
                            ``(i) protect animal or plant life or 
                        health in the United States from risks arising 
                        from the introduction, establishment, or spread 
                        of a pest or disease;
                            ``(ii) protect human or animal life or 
                        health in the United States from risks arising 
                        from the presence of an additive, contaminant, 
                        toxin, or disease-causing organism in a food, 
                        beverage, or feedstuff;
                            ``(iii) protect human life or health in the 
                        United States from risks arising from a 
                        disease-causing organism or pest carried by an 
                        animal or plant, or a product thereof; or
                            ``(iv) prevent or limit other damage in the 
                        United States arising from the introduction, 
                        establishment, or spread of a pest.
                    ``(B) Form.--The form of a sanitary or 
                phytosanitary measure includes--
                            ``(i) end product criteria;
                            ``(ii) a product-related processing or 
                        production method;
                            ``(iii) a testing, inspection, 
                        certification, or approval procedure;
                            ``(iv) a relevant statistical method;
                            ``(v) a sampling procedure;
                            ``(vi) a method of risk assessment;
                            ``(vii) a packaging and labeling 
                        requirement directly related to food safety; 
                        and
                            ``(viii) a quarantine treatment, such as a 
                        relevant requirement associated with the 
                        transportation of animals or plants or with 
                        material necessary for their survival during 
                        transportation.

                ``CHAPTER 2--STANDARDS-RELATED MEASURES

``SEC. 471. GENERAL.

    ``(a) No Bar To Engaging in Standards Activity.--Nothing in this 
chapter shall be construed--
            ``(1) to prohibit a Federal agency from engaging in 
        activity related to standards-related measures, including any 
        such measure relating to safety, the protection of human, 
        animal, or plant life or health, the environment or consumers; 
        or
            ``(2) to limit the authority of a Federal agency to 
        determine the level it considers appropriate of safety or of 
        protection of human, animal, or plant life or health, the 
        environment or consumers.
    ``(b) Exclusion.--This chapter does not apply to--
            ``(1) technical specifications prepared by a Federal agency 
        for production or consumption requirements of the agency; or
            ``(2) sanitary or phytosanitary measures under chapter 1.

``SEC. 472. INQUIRY POINT.

    ``The standards information center maintained under section 414 
shall, in addition to the functions specified therein, make available 
to the public relevant documents, at such reasonable fees as the 
Secretary of Commerce may prescribe, and information regarding--
            ``(1) the membership and participation of the Federal 
        Government, State governments, and relevant nongovernmental 
        bodies in the United States in international and regional 
        standardizing bodies and conformity assessment systems, and in 
        bilateral and multilateral arrangements regarding standards-
        related measures, and the provisions of those systems and 
        arrangements;
            ``(2) the location of notices of the type required under 
        article 909 of the NAFTA, or where the information contained in 
        such notice can be obtained; and
            ``(3) the Federal agency procedures for assessment of risk, 
        and factors the agency considers in conducting the assessment 
        and establishing the levels of protection that the agency 
        considers appropriate.

``SEC. 473. CHAPTER DEFINITIONS.

    ``Notwithstanding section 451, for purposes of this chapter--
            ``(1) Approval procedure.--The term `approval procedure' 
        means any registration, notification, or other mandatory 
        administrative procedure for granting permission for a good or 
        service to be produced, marketed, or used for a stated purpose 
        or under stated conditions.
            ``(2) Conformity assessment procedure.--The term 
        `conformity assessment procedure' means any procedure used, 
        directly or indirectly, to determine that a technical 
        regulation or standard is fulfilled, including sampling, 
        testing, inspection, evaluation, verification, monitoring, 
        auditing, assurance of conformity, accreditation, registration, 
        or approval used for such a purpose, but does not mean an 
        approval procedure.
            ``(3) Objective.--The term `objective' includes--
                    ``(A) safety,
                    ``(B) protection of human, animal, or plant life or 
                health, the environment or consumers, including matters 
                relating to quality and identifiability of goods or 
                services, and
                    ``(C) sustainable development,
        but does not include the protection of domestic production.
            ``(4) Service.--The term `service' means a land 
        transportation service or a telecommunications service.
            ``(5) Standard.--The term `standard' means--
                    ``(A) characteristics for a good or a service,
                    ``(B) characteristics, rules, or guidelines for--
                            ``(i) processes or production methods 
                        relating to such good, or
                            ``(ii) operating methods relating to such 
                        service, and
                    ``(C) provisions specifying terminology, symbols, 
                packaging, marking, or labelling for--
                            ``(i) a good or its related process or 
                        production methods, or
                            ``(ii) a service or its related operating 
                        methods,
                for common and repeated use, including explanatory and 
                other related provisions set out in a document approved 
                by a standardizing body, with which compliance is not 
                mandatory.
            ``(6) Standards-related measure.--The term `standards-
        related measure' means a standard, technical regulation, or 
        conformity assessment procedure.
            ``(7) Technical regulation.--The term `technical 
        regulation' means--
                    ``(A) characteristics or their related processes 
                and production methods for a good,
                    ``(B) characteristics for a service or its related 
                operating methods, or
                    ``(C) provisions specifying terminology, symbols, 
                packaging, marking, or labelling for--
                            ``(i) a good or its related process or 
                        production method, or
                            ``(ii) a service or its related operating 
                        method,
        set out in a document, including applicable administrative, 
        explanatory, and other related provisions, with which 
        compliance is mandatory.
            ``(8) Telecommunications service.--The term 
        `telecommunications service' means a service provided by means 
        of the transmission and reception of signals by any 
        electromagnetic means, but does not mean the cable, broadcast, 
        or other electromagnetic distribution of radio or television 
        programming to the public generally.

                   ``CHAPTER 3--SUBTITLE DEFINITIONS

``SEC. 481. DEFINITIONS.

    ``Notwithstanding section 451, for purposes of this subtitle--
            ``(1) NAFTA.--The term `NAFTA' means the North American 
        Free Trade Agreement.
            ``(2) State.--The term `State' means any of the several 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico.''.
    (b) Technical Amendments.--
            (1) Definition of trade representative.--Section 451(12) of 
        the Trade Agreements Act of 1979 is amended to read as follows:
            ``(12) Trade representative.--The term `Trade 
        Representative' means the United States Trade 
        Representative.''.
            (2) Conforming amendments.--Title IV of the Trade Agreement 
        Act of 1979 is further amended--
                    (A) by striking out ``Special Representative'' each 
                place it appears and inserting ``Trade 
                Representative''; and
                    (B) in the section heading to section 411, by 
                striking out ``special representative'' and inserting 
                ``trade representative''.

SEC. 352. TRANSPORTATION.

    No regulation issued by the Secretary of Transportation 
implementing a recommendation of the Land Transportation Standards 
Subcommittee established under article 913(5)(a)(i) of the Agreement 
may take effect before the date 90 days after the date of issuance.

                     PART 2--AGRICULTURAL STANDARDS

SEC. 361. AGRICULTURAL TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Federal Seed Act.--Section 302(e)(1) of the Federal Seed Act (7 
U.S.C. 1582(e)(1)) is amended by inserting ``or Mexico'' after 
``Canada''.
    (b) Importation of Animals.--The first sentence of section 6 of the 
Act of August 30, 1890 (26 Stat. 416, chapter 839; 21 U.S.C. 104), is 
amended by striking ``: Provided'' and all that follows through the 
period at the end of the sentence and inserting ``, except that the 
Secretary of Agriculture, in accordance with such regulations as the 
Secretary may issue, may (1) permit the importation of cattle, sheep, 
or other ruminants, and swine, from Canada or Mexico, and (2) permit 
the importation from the British Virgin Islands into the Virgin Islands 
of the United States, for slaughter only, of cattle that have been 
infested with or exposed to ticks on being freed from the ticks.''.
    (c) Inspection of Animals.--Section 10 of the Act of August 30, 
1890 (26 Stat. 417, chapter 839; 21 U.S.C. 105), is amended--
            (1) by inserting above ``Sec. 10.'' the following new 
        section heading:

``SEC. 10. INSPECTION OF ANIMALS.'';

            (2) by striking ``Sec. 10. That the Secretary of 
        Agriculture shall'' and inserting ``(a) In General.--Except as 
        provided in subsection (b), the Secretary of Agriculture 
        shall''; and
            (3) by adding at the end the following new subsection:
    ``(b) Exception.--The Secretary of Agriculture, in accordance with 
such regulations as the Secretary may issue, may waive any provision of 
subsection (a) in the case of shipments between the United States and 
Canada or Mexico.''.
    (d) Disease-Free Countries or Regions.--
            (1) Tariff act of 1930.--Section 306 of the Tariff Act of 
        1930 (19 U.S.C. 1306) is amended--
                    (A) in subsection (a), by striking ``Rinderpest and 
                Foot-and-Mouth Disease.--If the Secretary of 
                Agriculture'' and inserting ``In General.--Except as 
                provided in subsection (b), if the Secretary of 
                Agriculture''; and
                    (B) by striking subsection (b) and inserting the 
                following new subsection:
    ``(b) Exception.--The Secretary of Agriculture may permit, subject 
to such terms and conditions as the Secretary determines appropriate, 
the importation of cattle, sheep, other ruminants, or swine (including 
embryos of the animals), or the fresh, chilled, or frozen meat of the 
animals, from a region if the Secretary determines that the region from 
which the animal or meat originated is, and is likely to remain, free 
from rinderpest and foot-and-mouth disease.''.
            (2) Honeybee act.--The first section of the Act of August 
        31, 1922 (commonly known as the ``Honeybee Act'') (42 Stat. 
        833, chapter 301; 7 U.S.C. 281), is amended--
                    (A) in subsection (a)--
                            (i) by striking ``, or'' at the end of 
                        paragraph (1) and inserting a semicolon;
                            (ii) by striking the period at the end of 
                        paragraph (2) and inserting ``; or''; and
                            (iii) by adding at the end the following 
                        new paragraph:
            ``(3) from Canada or Mexico, subject to such terms and 
        conditions as the Secretary of Agriculture determines 
        appropriate, if the Secretary determines that the region of 
        Canada or Mexico from which the honeybees originated is, and is 
        likely to remain, free of diseases or parasites harmful to 
        honeybees, and undesirable species or subspecies of 
        honeybees.''; and
                    (B) in subsection (b)--
                            (i) by inserting ``(1)'' after ``imported 
                        into the United States only from''; and
                            (ii) by inserting before the period the 
                        following: ``, or (2) Canada or Mexico, if the 
                        Secretary of Agriculture determines that the 
                        region of Canada or Mexico from which the 
                        imports originate is, and is likely to remain, 
                        free of undesirable species or subspecies of 
                        honeybees''.
    (e) Poultry Products Inspection Act.--Section 17(d) of the Poultry 
Products Inspection Act (21 U.S.C. 466(d)) is amended--
            (1) in paragraph (1), by inserting after ``Notwithstanding 
        any other provision of law,'' the following: ``except as 
        provided in paragraph (2),'';
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
    ``(2)(A) Notwithstanding any other provision of law, all poultry, 
or parts or products of poultry, capable of use as human food offered 
for importation into the United States from Canada and Mexico shall--
            ``(i) comply with paragraph (1); or
            ``(ii)(I) be subject to inspection, sanitary, quality, 
        species verification, and residue standards that are equivalent 
        to United States standards; and
            ``(II) have been processed in facilities and under 
        conditions that meet standards that are equivalent to United 
        States standards.
    ``(B) The Secretary may treat as equivalent to a United States 
standard a standard of Canada or Mexico described in subparagraph 
(A)(ii) if the exporting country provides the Secretary with scientific 
evidence or other information, in accordance with risk assessment 
methodologies agreed to by the Secretary and the exporting country, to 
demonstrate that the standard of the exporting country achieves the 
level of protection that the Secretary considers appropriate.
    ``(C) The Secretary may--
            ``(i) determine, on a scientific basis, that the standard 
        of the exporting country does not achieve the level of 
        protection that the Secretary considers appropriate; and
            ``(ii) provide the basis for the determination in writing 
        to the exporting country on request.''.
    (f) Federal Meat Inspection Act.--Section 20(e) of the Federal Meat 
Inspection Act (21 U.S.C. 620(e)) is amended--
            (1) by striking ``not be limited to--'' and inserting ``not 
        be limited to the following:'';
            (2) by striking paragraph (1);
            (3) by redesignating paragraphs (2) through (6) as 
        paragraphs (3) through (7), respectively;
            (4) by inserting after ``not be limited to the following:'' 
        (as amended by paragraph (1)) the following new paragraphs:
            ``(1)(A) Subject to subparagraphs (B) and (C), a 
        certification by the Secretary that foreign plants in Canada 
        and Mexico that export carcasses or meat or meat products 
        referred to in subsection (a) have complied with paragraph (2) 
        or with requirements that are equivalent to United States 
        requirements with regard to all inspection and building 
        construction standards, and all other provisions of this Act 
        and regulations issued under this Act.
            ``(B) Subject to subparagraph (C), the Secretary may treat 
        as equivalent to a United States requirement a requirement 
        described in subparagraph (A) if the exporting country provides 
        the Secretary with scientific evidence or other information, in 
        accordance with risk assessment methodologies agreed to by the 
        Secretary and the exporting country, to demonstrate that the 
        requirement or standard of the exporting country achieves the 
        level of protection that the Secretary considers appropriate.
            ``(C) The Secretary may--
                    ``(i) determine, on a scientific basis, that a 
                requirement of an exporting country does not achieve 
                the level of protection that the Secretary considers 
                appropriate; and
                    ``(ii) provide the basis for the determination to 
                the exporting country in writing on request.
            ``(2) A certification by the Secretary that, except as 
        provided in paragraph (1), foreign plants that export carcasses 
        or meat or meat products referred to in subsection (a) have 
        complied with requirements that are at least equal to all 
        inspection and building construction standards and all other 
        provisions of this Act and regulations issued under this 
        Act.'';
            (5) in paragraphs (3) through (7) (as redesignated by 
        paragraph (3)), by striking ``the'' the first place it appears 
        in each paragraph and inserting ``The'';
            (6) in paragraphs (3) through (5) (as so redesignated), by 
        striking the semicolon at the end of each paragraph and 
        inserting a period; and
            (7) in paragraph (6) (as so redesignated), by striking ``; 
        and'' at the end and inserting a period.
    (g) Peanut Butter and Peanut Paste.--
            (1) In general.--Except as provided in paragraph (2), all 
        peanut butter and peanut paste in the United States domestic 
        market shall be processed from peanuts that meet the quality 
        standards established for peanuts under Marketing Agreement No. 
        146.
            (2) Imports.--Peanut butter and peanut paste imported into 
        the United States shall comply with paragraph (1) or with 
        sanitary measures that achieve at least the same level of 
        sanitary protection.
    (h) Animal Health Biocontainment Facility.--
            (1) Grant for construction.--The Secretary of Agriculture 
        shall make a grant to a land grant college or university 
        described in paragraph (2) for the construction of a facility 
        at the college or university for the conduct of research in 
        animal health, disease-transmitting insects, and toxic 
        chemicals that requires the use of biocontainment facilities 
        and equipment. The facility to be constructed with the grant 
        shall be known as the ``Southwest Regional Animal Health 
        Biocontainment Facility''.
            (2) Grant recipient described.--To be eligible for the 
        grant under paragraph (1), a land grant college or university 
        must be--
                    (A) located in a State adjacent to the 
                international border with Mexico; and
                    (B) determined by the Secretary of Agriculture to 
                have an established program in animal health research 
                and education and to have a collaborative relationship 
                with one or more colleges of veterinary medicine or 
                universities located in Mexico.
            (3) Activities of the facility.--The facility constructed 
        using the grant made under paragraph (1) shall be used for 
        conducting the following activities:
                    (A) The biocontainment facility shall offer the 
                ability to organize multidisciplinary international 
                teams working on basic and applied research on 
                diagnostic method development and disease control 
                strategies, including development of vaccines.
                    (B) The biocontainment facility shall support 
                research that will improve the scientific basis for 
                regulatory activities, decreasing the need for new 
                regulatory programs and enhancing international trade.
                    (C) The biocontainment facility shall allow 
                academic institutions, governmental agencies, and the 
                private sector to conduct research in basic and applied 
                research biology, epidemiology, pathogenesis, host 
                response, and diagnostic methods, on disease agents 
                that threaten the livestock industries of the United 
                States and Mexico.
                    (D) The biocontainment facility may be used to 
                support research involving food safety, toxicology, 
                environmental pollutants, radioisotopes, recombinant 
                microorganisms, and selected naturally resistant or 
                transgenic animals.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated for each fiscal year such sums as are 
        necessary to carry out this subsection.
    (i) Reports on Inspection of Imported Meat, Poultry, Other Foods, 
Animals, and Plants.--
            (1) Definitions.--As used in this subsection:
                    (A) Imports.--The term ``imports'' means any meat, 
                poultry, other food, animal, or plant that is imported 
                into the United States in commercially significant 
                quantities.
                    (B) Secretary.--The term ``Secretary'' means the 
                Secretary of Agriculture.
            (2) In general.--In consultation with representatives of 
        other appropriate agencies, the Secretary shall prepare an 
        annual report on the impact of the Agreement on the inspection 
        of imports.
            (3) Contents of reports.--The report required under this 
        subsection shall, to the maximum extent practicable, include a 
        description of--
                    (A) the quantity or, with respect to the Customs 
                Service, the number of shipments, of imports from a 
                NAFTA country that are inspected at the borders of the 
                United States with Canada and Mexico during the prior 
                year;
                    (B) any change in the level or types of inspections 
                of imports in each NAFTA country during the prior year;
                    (C) in any case in which the Secretary has 
                determined that the inspection system of another NAFTA 
                country is equivalent to the inspection system of the 
                United States, the reasons supporting the determination 
                of the Secretary;
                    (D) the incidence of violations of inspection 
                requirements by imports from NAFTA countries during the 
                prior year--
                            (i) at the borders of the United States 
                        with Mexico or Canada; or
                            (ii) at the last point of inspection in a 
                        NAFTA country prior to shipment to the United 
                        States if the agency accepts inspection in that 
                        country;
                    (E) the incidence of violations of inspection 
                requirements of imports to the United States from 
                Mexico or Canada prior to the implementation of the 
                Agreement;
                    (F) any additional cost associated with maintaining 
                an adequate inspection system of imports as a result of 
                the implementation of the Agreement;
                    (G) any incidence of transshipment of imports--
                            (i) that originate in a country other than 
                        a NAFTA country;
                            (ii) that are shipped to the United States 
                        through a NAFTA country during the prior year; 
                        and
                            (iii) that are incorrectly represented by 
                        the importer to qualify for preferential 
                        treatment under the Agreement;
                    (H) the quantity and results of any monitoring by 
                the United States of equivalent inspection systems of 
                imports in other NAFTA countries during the prior year;
                    (I) the use by other NAFTA countries of sanitary 
                and phytosanitary measures (as defined in the 
                Agreement) to limit exports of United States meat, 
                poultry, other foods, animals, and plants to the 
                countries during the prior year; and
                    (J) any other information the Secretary determines 
                to be appropriate.
            (4) Frequency of reports.--The Secretary shall submit--
                    (A) the initial report required under this 
                subsection not later than January 31, 1995; and
                    (B) an annual report required under this subsection 
                not later than 1 year after the date of the submission 
                of the initial report and the end of each 1-year period 
                thereafter through calendar year 2004.
            (5) Report to congress.--The Secretary shall prepare and 
        submit the report required under this subsection to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate.

               Subtitle F--Corporate Average Fuel Economy

SEC. 371. CORPORATE AVERAGE FUEL ECONOMY.

    (a) In General.--Section 503(b)(2) of the Motor Vehicle Information 
and Cost Savings Act (15 U.S.C. 2003(b)(2)) is amended by adding at the 
end the following new subparagraph:
            ``(G)(i) In accordance with the schedule set out in clause 
        (ii), an automobile shall be considered domestically 
        manufactured in a model year if at least 75 percent of the cost 
        to the manufacturer of the automobile is attributable to value 
        added in the United States, Canada, or Mexico, unless the 
        assembly of the automobile is completed in Canada or Mexico and 
        the automobile is not imported into the United States prior to 
        the expiration of 30 days following the end of that model year.
            ``(ii) Clause (i) shall apply to all automobiles 
        manufactured by a manufacturer and sold in the United States, 
        wherever assembled, in accordance with the following schedule:
                    ``(I) With respect to a manufacturer that initiated 
                the assembly of automobiles in Mexico before model year 
                1992, the manufacturer may elect, at any time between 
                January 1, 1997, and January 1, 2004, to have clause 
                (i) apply to all automobiles it manufactures, beginning 
                with the model year commencing after the date of such 
                election.
                    ``(II) With respect to a manufacturer initiating 
                the assembly of automobiles in Mexico after model year 
                1991, clause (i) shall apply to all automobiles it 
                manufactures, beginning with the model year commencing 
                after January 1, 1994, or the model year commencing 
                after the date that the manufacturer initiates the 
                assembly of automobiles in Mexico, whichever is later.
                    ``(III) With respect to a manufacturer not 
                described by subclause (I) or (II) assembling 
                automobiles in the United States or Canada but not in 
                Mexico, the manufacturer may elect, at any time between 
                January 1, 1997, and January 1, 2004, to have clause 
                (i) apply to all automobiles it manufactures, beginning 
                with the model year commencing after the date of such 
                election, except that if such manufacturer initiates 
                the assembly of automobiles in Mexico before making 
                such election, this subclause shall not apply and the 
                manufacturer shall be subject to clause (II).
                    ``(IV) With respect to a manufacturer not 
                assembling automobiles in the United States, Canada, or 
                Mexico, clause (i) shall apply to all automobiles it 
                manufactures, beginning with the model year commencing 
                after January 1, 1994.
                    ``(V) With respect to a manufacturer authorized to 
                make an election under subclause (I) or (III) which has 
                not made that election within the specified period, 
                clause (i) shall apply to all automobiles it 
                manufactures, beginning with the model year commencing 
                after January 1, 2004.
            ``(iii) The Secretary shall prescribe reasonable procedures 
        for elections under this subparagraph, and the EPA 
        Administrator may prescribe rules for purposes of carrying out 
        this subparagraph.''.
    (b) Conforming Amendments.--The first sentence of section 
503(b)(2)(E) of the Motor Vehicle Information and Cost Savings Act (15 
U.S.C. 2003(b)(2)(E)) is amended--
            (1) by striking ``An'' and inserting ``Except as provided 
        in subparagraph (G), an'', and
            (2) in the last sentence, by striking ``this subparagraph'' 
        and inserting ``this subparagraph and subparagraph (G)''.

                   Subtitle G--Government Procurement

SEC. 381. GOVERNMENT PROCUREMENT.

    (a) In General.--Section 301 of the Trade Agreements Act of 1979 
(19 U.S.C. 2511) is amended--
            (1) in subsection (a) by striking ``The President'' and 
        inserting ``Subject to subsection (f) of this section, the 
        President'';
            (2) by inserting ``or the North American Free Trade 
        Agreement'' after ``the Agreement'' in paragraph (1) of 
        subsection (b); and
            (3) by adding at the end the following new subsections:
    ``(e) Procurement Procedures by Certain Federal Agencies.--
Notwithstanding any other provision of law, the President may direct 
any agency of the United States listed in Annex 1001.1a-2 of the North 
American Free Trade Agreement to procure eligible products in 
compliance with the procedural provisions of chapter 10 of such 
Agreement.
    ``(f) Small Business and Minority Preferences.--The authority of 
the President under subsection (a) of this section to waive any law, 
regulation, procedure, or practice regarding Government procurement 
does not authorize the waiver of any small business or minority 
preference.''.
    (b) Reciprocal Competitive Procurement Practices.--Section 302(a) 
of such Act (19 U.S.C. 2512(a)) is amended by striking ``would 
otherwise be eligible products'' in paragraph (1) and inserting ``are 
products covered under the Agreement for procurement by the United 
States''.
    (c) Definition of Eligible Product.--Section 308(4)(A) of such Act 
(19 U.S.C. 2518(4)(A)) is amended to read as follows:
                    ``(A) In general.--The term `eligible product' 
                means, with respect to any foreign country or 
                instrumentality that is--
                            ``(i) a party to the Agreement, a product 
                        or service of that country or instrumentality 
                        which is covered under the Agreement for 
                        procurement by the United States; or
                            ``(ii) a party to the North American Free 
                        Trade Agreement, a product or service of that 
                        country or instrumentality which is covered 
                        under the North American Free Trade Agreement 
                        for procurement by the United States.''.
    (d) Conforming Amendments.--Section 401 of the Rural 
Electrification Act of 1938 (7 U.S.C. 903 note) is amended by inserting 
``, Mexico, or Canada'' after ``the United States'' each place it 
appears.
    (e) Effective Date.--The provisions of this subtitle take effect on 
the date the Agreement enters into force with respect to the United 
States.

  TITLE IV--DISPUTE SETTLEMENT IN ANTIDUMPING AND COUNTERVAILING DUTY 
                                 CASES

 Subtitle A--Organizational, Administrative, and Procedural Provisions 
      Regarding the Implementation of Chapter 19 of the Agreement

SEC. 401. REFERENCES IN SUBTITLE.

    Any reference in this subtitle to an Annex, chapter, or article 
shall be considered to be a reference to the respective Annex, chapter, 
or article of the Agreement.

SEC. 402. ORGANIZATIONAL AND ADMINISTRATIVE PROVISIONS.

    (a) Criteria for Selection of Individuals to Serve on Panels and 
Committees.--
            (1) In general.--The selection of individuals under this 
        section for--
                    (A) placement on lists prepared by the interagency 
                group under subsection (c)(2)(B)(i) and (ii);
                    (B) placement on preliminary candidate lists under 
                subsection (c)(3)(A);
                    (C) placement on final candidate lists under 
                subsection (c)(4)(A);
                    (D) placement by the Trade Representative on the 
                rosters described in paragraph 1 of Annex 1901.2 and 
                paragraph 1 of Annex 1904.13; and
                    (E) appointment by the Trade Representative for 
                service on the panels and committees convened under 
                chapter 19;
        shall be made on the basis of the criteria provided in 
        paragraph 1 of Annex 1901.2 and paragraph 1 of Annex 1904.13 
        and shall be made without regard to political affiliation.
            (2) Additional criteria for roster placements and 
        appointments under paragraph 1 of annex 1901.2.--Rosters 
        described in paragraph 1 of Annex 1901.2 shall include, to the 
        fullest extent practicable, judges and former judges who meet 
        the criteria referred to in paragraph (1). The Trade 
        Representative shall, subject to subsection (b), appoint judges 
        to binational panels convened under chapter 19, extraordinary 
        challenge committees convened under chapter 19, and special 
        committees established under article 1905, where such judges 
        offer and are available to serve and such service is authorized 
        by the chief judge of the court on which they sit.
    (b) Selection of Certain Judges to Serve on Panels and 
Committees.--
            (1) Applicability.--This subsection applies only with 
        respect to the selection of individuals for binational panels 
        convened under chapter 19, extraordinary challenge committees 
        convened under chapter 19, and special committees established 
        under article 1905, who are judges of courts created under 
        article III of the Constitution of the United States.
            (2) Consultation with chief judges.--The Trade 
        Representative shall consult, from time to time, with the chief 
        judges of the Federal judicial circuits regarding the interest 
        in, and availability for, participation in binational panels, 
        extraordinary challenge committees, and special committees, of 
        judges within their respective circuits. If the chief judge of 
        a Federal judicial circuit determines that it is appropriate 
        for one or more judges within that circuit to be included on a 
        roster described in subsection (a)(1)(D), the chief judge shall 
        identify all such judges for the Chief Justice of the United 
        States who may, upon his or her approval, submit the names of 
        such judges to the Trade Representative. The Trade 
        Representative shall include the names of such judges on the 
        roster.
            (3) Submission of lists to congress.--The Trade 
        Representative shall submit to the Committee on the Judiciary 
        and the Committee on Ways and Means of the House of 
        Representatives and to the Committee on Finance and the 
        Committee on the Judiciary of the Senate a list of all judges 
        included on a roster under paragraph (2). Such list shall be 
        submitted at the same time as the final candidate lists are 
        submitted under subsection (c)(4)(A) and the final forms of 
        amendments are submitted under subsection (c)(4)(C)(iv).
            (4) Appointment of judges to panels or committees.--At such 
        time as the Trade Representative proposes to appoint a judge 
        described in paragraph (1) to a binational panel, an 
        extraordinary challenge committee, or a special committee, the 
        Trade Representative shall consult with that judge in order to 
        ascertain whether the judge is available for such appointment.
    (c) Selection of Other Candidates.--
            (1) Applicability.--This subsection applies only with 
        respect to the selection of individuals for binational panels 
        convened under chapter 19, extraordinary challenge committees 
        convened under chapter 19, and special committees established 
        under article 1905, other than those individuals to whom 
        subsection (b) applies.
            (2) Interagency group.--
                    (A) Establishment.--There is established within the 
                interagency organization established under section 242 
                of the Trade Expansion Act of 1962 (19 U.S.C. 1872) an 
                interagency group which shall--
                            (i) be chaired by the Trade Representative; 
                        and
                            (ii) consist of such officers (or the 
                        designees thereof) of the United States 
                        Government as the Trade Representative 
                        considers appropriate.
                    (B) Functions.--The interagency group established 
                under subparagraph (A) shall, in a manner consistent 
                with chapter 19--
                            (i) prepare by January 3 of each calendar 
                        year--
                                    (I) a list of individuals who are 
                                qualified to serve as members of 
                                binational panels convened under 
                                chapter 19; and
                                    (II) a list of individuals who are 
                                qualified to serve on extraordinary 
                                challenge committees convened under 
                                chapter 19 and special committees 
                                established under article 1905;
                            (ii) if the Trade Representative makes a 
                        request under paragraph (4)(C)(i) with respect 
                        to a final candidate list during any calendar 
                        year, prepare by July 1 of such calendar year a 
                        list of those individuals who are qualified to 
                        be added to that final candidate list;
                            (iii) exercise oversight of the 
                        administration of the United States Section 
                        that is authorized to be established under 
                        section 105; and
                            (iv) make recommendations to the Trade 
                        Representative regarding the convening of 
                        extraordinary challenge committees and special 
                        committees under chapter 19.
            (3) Preliminary candidate lists.--
                    (A) In general.--The Trade Representative shall 
                select individuals from the respective lists prepared 
                by the interagency group under paragraph (2)(B)(i) for 
                placement on--
                            (i) a preliminary candidate list of 
                        individuals eligible to serve as members of 
                        binational panels under Annex 1901.2; and
                            (ii) a preliminary candidate list of 
                        individuals eligible for selection as members 
                        of extraordinary challenge committees under 
                        Annex 1904.13 and special committees under 
                        article 1905.
                    (B) Submission of lists to congressional 
                committees.--
                            (i) In general.--No later than January 3 of 
                        each calendar year, the Trade Representative 
                        shall submit to the Committee on Finance of the 
                        Senate and the Committee on Ways and Means of 
                        the House of Representatives (hereafter in this 
                        section referred to as the ``appropriate 
                        Congressional Committees'') the preliminary 
                        candidate lists of those individuals selected 
                        by the Trade Representative under subparagraph 
                        (A) to be candidates eligible to serve on 
                        panels or committees convened pursuant to 
                        chapter 19 during the 1-year period beginning 
                        on April 1 of such calendar year.
                            (ii) Additional information.--At the time 
                        the candidate lists are submitted under clause 
                        (i), the Trade Representative shall submit for 
                        each individual on the list a statement of 
                        professional qualifications.
                    (C) Consultation.--Upon submission of the 
                preliminary candidate lists under subparagraph (B) to 
                the appropriate Congressional Committees, the Trade 
                Representative shall consult with such Committees with 
                regard to the individuals included on the preliminary 
                candidate lists.
                    (D) Revision of lists.--The Trade Representative 
                may add and delete individuals from the preliminary 
                candidate lists submitted under subparagraph (B) after 
                consultation with the appropriate Congressional 
                Committees regarding the additions and deletions. The 
                Trade Representative shall provide to the appropriate 
                Congressional Committees written notice of any addition 
                or deletion of an individual from the preliminary 
                candidate lists, along with the information described 
                in subparagraph (B)(ii) with respect to any proposed 
                addition.
            (4) Final candidate lists.--
                    (A) Submission of lists to congressional 
                committees.--No later than March 31 of each calendar 
                year, the Trade Representative shall submit to the 
                appropriate Congressional Committees the final 
                candidate lists of those individuals selected by the 
                Trade Representative to be candidates eligible to serve 
                on panels and committees convened under chapter 19 
                during the 1-year period beginning on April 1 of such 
                calendar year. An individual may be included on a final 
                candidate list only if such individual was included in 
                the preliminary candidate list or if written notice of 
                the addition of such individual to the preliminary 
                candidate list was submitted to the appropriate 
                Congressional Committees at least 15 days before the 
                date on which that final candidate list is submitted to 
                such Committees under this subparagraph.
                    (B) Finality of lists.--Except as provided in 
                subparagraph (C), no additions may be made to the final 
                candidate lists after the final candidate lists are 
                submitted to the appropriate Congressional Committees 
                under subparagraph (A).
                    (C) Amendment of lists.--
                            (i) In general.--If, after the Trade 
                        Representative has submitted the final 
                        candidate lists to the appropriate 
                        Congressional Committees under subparagraph (A) 
                        for a calendar year and before July 1 of such 
                        calendar year, the Trade Representative 
                        determines that additional individuals need to 
                        be added to a final candidate list, the Trade 
                        Representative shall--
                                    (I) request the interagency group 
                                established under paragraph (2)(A) to 
                                prepare a list of individuals who are 
                                qualified to be added to such candidate 
                                list;
                                    (II) select individuals from the 
                                list prepared by the interagency group 
                                under paragraph (2)(B)(ii) to be 
                                included in a proposed amendment to 
                                such final candidate list; and
                                    (III) by no later than July 1 of 
                                such calendar year, submit to the 
                                appropriate Congressional Committees 
                                the proposed amendments to such final 
                                candidate list developed by the Trade 
                                Representative under subclause (II), 
                                along with the information described in 
                                paragraph (3)(B)(ii).
                            (ii) Consultation with congressional 
                        committees.--Upon submission of a proposed 
                        amendment under clause (i)(III) to the 
                        appropriate Congressional Committees, the Trade 
                        Representative shall consult with the 
                        appropriate Congressional Committees with 
                        regard to the individuals included in the 
                        proposed amendment.
                            (iii) Adjustment of proposed amendment.--
                        The Trade Representative may add and delete 
                        individuals from any proposed amendment 
                        submitted under clause (i)(III) after 
                        consulting with the appropriate Congressional 
                        Committees with regard to the additions and 
                        deletions. The Trade Representative shall 
                        provide to the appropriate Congressional 
                        Committees written notice of any addition or 
                        deletion of an individual from the proposed 
                        amendment.
                            (iv) Final amendment.--
                                    (I) In general.--If the Trade 
                                Representative submits under clause 
                                (i)(III) in any calendar year a 
                                proposed amendment to a final candidate 
                                list, the Trade Representative shall, 
                                no later than September 30 of such 
                                calendar year, submit to the 
                                appropriate Congressional Committees 
                                the final form of such amendment. On 
                                October 1 of such calendar year, such 
                                amendment shall take effect and, 
                                subject to subclause (II), the 
                                individuals included in the final form 
                                of such amendment shall be added to the 
                                final candidate list.
                                    (II) Inclusion of individuals.--An 
                                individual may be included in the final 
                                form of an amendment submitted under 
                                subclause (I) only if such individual 
                                was included in the proposed form of 
                                such amendment or if written notice of 
                                the addition of such individual to the 
                                proposed form of such amendment was 
                                submitted to the appropriate 
                                Congressional Committees at least 15 
                                days before the date on which the final 
                                form of such amendment is submitted to 
                                such Committees under subclause (I).
                                    (III) Eligibility for service.--
                                Individuals added to a final candidate 
                                list under subclause (I) shall be 
                                eligible to serve on panels or 
                                committees convened under chapter 19 
                                during the 6-month period beginning on 
                                October 1 of the calendar year in which 
                                such addition occurs.
                                    (IV) Finality of amendment.--No 
                                additions may be made to the final form 
                                of an amendment described in subclause 
                                (I) after the final form of such 
                                amendment is submitted to the 
                                appropriate Congressional Committees 
                                under subclause (I).
            (5) Treatment of responses.--For purposes of applying 
        section 1001 of title 18, United States Code, the written or 
        oral responses of individuals to inquiries of the interagency 
        group established under paragraph (2)(A) or of the Trade 
        Representative regarding their personal and professional 
        qualifications, and financial and other relevant interests, 
        that bear on their suitability for the placements and 
        appointments described in subsection (a)(1), shall be treated 
        as matters within the jurisdiction of an agency of the United 
        States.
    (d) Selection and Appointment.--
            (1) Authority of trade representative.--The Trade 
        Representative is the only officer of the United States 
        Government authorized to act on behalf of the United States 
        Government in making any selection or appointment of an 
        individual to--
                    (A) the rosters described in paragraph 1 of Annex 
                1901.2 and paragraph 1 of Annex 1904.13; or
                    (B) the panels or committees convened under chapter 
                19;
        that is to be made solely or jointly by the United States 
        Government under the terms of the Agreement.
            (2) Restrictions on selection and appointment.--Except as 
        provided in paragraph (3)--
                    (A) the Trade Representative may--
                            (i) select an individual for placement on 
                        the rosters described in paragraph 1 of Annex 
                        1901.2 and paragraph 1 of Annex 1904.13 during 
                        the 1-year period beginning on April 1 of any 
                        calendar year;
                            (ii) appoint an individual to serve as one 
                        of those members of any panel or committee 
                        convened under chapter 19 during such 1-year 
                        period who, under the terms of the Agreement, 
                        are to be appointed solely by the United States 
                        Government; or
                            (iii) act to make a joint appointment with 
                        the Government of a NAFTA country, under the 
                        terms of the Agreement, of any individual who 
                        is a citizen or national of the United States 
                        to serve as any other member of such a panel or 
                        committee;
                only if such individual is on the appropriate final 
                candidate list that was submitted to the appropriate 
                Congressional Committees under subsection (c)(4)(A) 
                during such calendar year or on such list as it may be 
                amended under subsection (c)(4)(C)(iv)(I), or on the 
                list submitted under subsection (b)(3) to the 
                congressional committees referred to in such 
                subsection; and
                    (B) no individual may--
                            (i) be selected by the United States 
                        Government for placement on the rosters 
                        described in paragraph 1 of Annex 1901.2 and 
                        paragraph 1 of Annex 1904.13; or
                            (ii) be appointed solely or jointly by the 
                        United States Government to serve as a member 
                        of a panel or committee convened under chapter 
                        19;
                during the 1-year period beginning on April 1 of any 
                calendar year for which the Trade Representative has 
                not met the requirements of subsection (a), and of 
                subsection (b) or (c) (as the case may be).
            (3) Exceptions.--Notwithstanding subsection (c)(3) (other 
        than subparagraph (B)), (c)(4), or paragraph (2)(A) of this 
        subsection, individuals included on the preliminary candidate 
        lists submitted to the appropriate Congressional Committees 
        under subsection (c)(3)(B) may--
                    (A) be selected by the Trade Representative for 
                placement on the rosters described in paragraph 1 of 
                Annex 1901.2 and paragraph 1 of Annex 1904.13 during 
                the 3-month period beginning on the date on which the 
                Agreement enters into force with respect to the United 
                States; and
                    (B) be appointed solely or jointly by the Trade 
                Representative under the terms of the Agreement to 
                serve as members of panels or committees that are 
                convened under chapter 19 during such 3-month period.
    (e) Transition.--If the Agreement enters into force between the 
United States and a NAFTA country after January 3, 1994, the provisions 
of subsection (c) shall be applied with respect to the calendar year in 
which such entering into force occurs--
            (1) by substituting ``the date that is 30 days after the 
        date on which the Agreement enters into force with respect to 
        the United States'' for ``January 3 of each calendar year'' in 
        subsections (c)(2)(B)(i) and (c)(3)(B)(i); and
            (2) by substituting ``the date that is 3 months after the 
        date on which the Agreement enters into force with respect to 
        the United States'' for ``March 31 of each calendar year'' in 
        subsection (c)(4)(A).
    (f) Immunity.--With the exception of acts described in section 
777(f)(3) of the Tariff Act of 1930 (19 U.S.C. 1677f(f)(3)), 
individuals serving on panels or committees convened pursuant to 
chapter 19, and individuals designated to assist the individuals 
serving on such panels or committees, shall be immune from suit and 
legal process relating to acts performed by such individuals in their 
official capacity and within the scope of their functions as such 
panelists or committee members or assistants to such panelists or 
committee members.
    (g) Regulations.--The administering authority under title VII of 
the Tariff Act of 1930, the International Trade Commission, and the 
Trade Representative may promulgate such regulations as are necessary 
or appropriate to carry out actions in order to implement their 
respective responsibilities under chapter 19. Initial regulations to 
carry out such functions shall be issued before the date on which the 
Agreement enters into force with respect to the United States.
    (h) Report to Congress.--At such time as the final candidate lists 
are submitted under subsection (c)(4)(A) and the final forms of 
amendments are submitted under subsection (c)(4)(C)(iv), the Trade 
Representative shall submit to the Committee on the Judiciary and the 
Committee on Ways and Means of the House of Representatives, and to the 
Committee on Finance and the Committee on the Judiciary of the Senate, 
a report regarding the efforts made to secure the participation of 
judges and former judges on binational panels, extraordinary challenge 
committees, and special committees established under chapter 19.

SEC. 403. TESTIMONY AND PRODUCTION OF PAPERS IN EXTRAORDINARY 
              CHALLENGES.

    (a) Authority of Extraordinary Challenge Committee To Obtain 
Information.--If an extraordinary challenge committee (hereafter in 
this section referred to as the ``committee'') is convened under 
paragraph 13 of article 1904, and the allegations before the committee 
include a matter referred to in paragraph 13(a)(i) of article 1904, for 
the purposes of carrying out its functions and duties under Annex 
1904.13, the committee--
            (1) shall have access to, and the right to copy, any 
        document, paper, or record pertinent to the subject matter 
        under consideration, in the possession of any individual, 
        partnership, corporation, association, organization, or other 
        entity;
            (2) may summon witnesses, take testimony, and administer 
        oaths;
            (3) may require any individual, partnership, corporation, 
        association, organization, or other entity to produce 
        documents, books, or records relating to the matter in 
        question; and
            (4) may require any individual, partnership, corporation, 
        association, organization, or other entity to furnish in 
        writing, in such detail and in such form as the committee may 
        prescribe, information in its possession pertaining to the 
        matter.
Any member of the committee may sign subpoenas, and members of the 
committee, when authorized by the committee, may administer oaths and 
affirmations, examine witnesses, take testimony, and receive evidence.
    (b) Witnesses and Evidence.--The attendance of witnesses who are 
authorized to be summoned, and the production of documentary evidence 
authorized to be ordered, under subsection (a) may be required from any 
place in the United States at any designated place of hearing. In the 
case of disobedience to a subpoena authorized under subsection (a), the 
committee may request the Attorney General of the United States to 
invoke the aid of any district or territorial court of the United 
States in requiring the attendance and testimony of witnesses and the 
production of documentary evidence. Such court, within the jurisdiction 
of which such inquiry is carried on, may, in case of contumacy or 
refusal to obey a subpoena issued to any individual, partnership, 
corporation, association, organization, or other entity, issue an order 
requiring such individual or entity to appear before the committee, or 
to produce documentary evidence if so ordered or to give evidence 
concerning the matter in question. Any failure to obey such order of 
the court may be punished by such court as a contempt thereof.
    (c) Mandamus.--Any court referred to in subsection (b) shall have 
jurisdiction to issue writs of mandamus commanding compliance with the 
provisions of this section or any order of the committee made in 
pursuance thereof.
    (d) Depositions.--The committee may order testimony to be taken by 
deposition at any stage of the committee review. Such deposition may be 
taken before any person designated by the committee and having power to 
administer oaths. Such testimony shall be reduced to writing by the 
person taking the deposition, or under the direction of such person, 
and shall then be subscribed by the deponent. Any individual, 
partnership, corporation, association, organization, or other entity 
may be compelled to appear and be deposed and to produce documentary 
evidence in the same manner as witnesses may be compelled to appear and 
testify and produce documentary evidence before the committee, as 
provided in this section.

SEC. 404. REQUESTS FOR REVIEW OF DETERMINATIONS BY COMPETENT 
              INVESTIGATING AUTHORITIES OF NAFTA COUNTRIES.

    (a) Definitions.--As used in this section:
            (1) Competent investigating authority.--The term 
        ``competent investigating authority'' means the competent 
        investigating authority, as defined in article 1911, of a NAFTA 
        country.
            (2) United states secretary.--The term ``United States 
        Secretary'' means that officer of the United States referred to 
        in article 1908.
    (b) Requests for Review by the United States.--In the case of a 
final determination of a competent investigating authority, requests by 
the United States for binational panel review of such determination 
under article 1904 shall be made by the United States Secretary.
    (c) Requests for Review by a Person.--In the case of a final 
determination of a competent investigating authority, a person, within 
the meaning of paragraph 5 of article 1904, may request a binational 
panel review of such determination by filing such a request with the 
United States Secretary within the time limit provided for in paragraph 
4 of article 1904. The receipt of such request by the United States 
Secretary shall be deemed to be a request for binational panel review 
within the meaning of article 1904. The request for such panel review 
shall be without prejudice to any challenge before a binational panel 
of the basis for a particular request for review.
    (d) Service of Request for Review.--Whenever binational panel 
review of a final determination made by a competent investigating 
authority is requested under this section, the United States Secretary 
shall serve a copy of the request on all persons who would otherwise be 
entitled under the law of the importing country to commence proceedings 
for judicial review of the determination.

SEC. 405. RULES OF PROCEDURE FOR PANELS AND COMMITTEES.

    (a) Rules of Procedure for Binational Panels.--The administering 
authority shall prescribe rules, negotiated in accordance with 
paragraph 14 of article 1904, governing, with respect to binational 
panel reviews--
            (1) requests for such reviews, complaints, other pleadings, 
        and other papers;
            (2) the amendment, filing, and service of such pleadings 
        and papers;
            (3) the joinder, suspension, and termination of such 
        reviews; and
            (4) other appropriate procedural matters.
    (b) Rules of Procedure for Extraordinary Challenge Committees.--The 
administering authority shall prescribe rules, negotiated in accordance 
with paragraph 2 of Annex 1904.13, governing the procedures for reviews 
by extraordinary challenge committees.
    (c) Rules of Procedure for Safeguarding the Panel Review System.--
The administering authority shall prescribe rules, negotiated in 
accordance with Annex 1905.6, governing the procedures for special 
committees described in such Annex.
    (d) Publication of Rules.--The rules prescribed under subsections 
(a), (b), and (c) shall be published in the Federal Register.
    (e) Administering Authority.--As used in this section, the term 
``administering authority'' has the meaning given such term in section 
771(1) of the Tariff Act of 1930 (19 U.S.C. 1677(1)).

SEC. 406. SUBSIDY NEGOTIATIONS.

    In the case of any trade agreement which may be entered into by the 
President with a NAFTA country, the negotiating objectives of the 
United States with respect to subsidies shall include--
            (1) achievement of increased discipline on domestic 
        subsidies provided by a foreign government, including--
                    (A) the provision of capital, loans, or loan 
                guarantees on terms inconsistent with commercial 
                considerations;
                    (B) the provision of goods or services at 
                preferential rates;
                    (C) the granting of funds or forgiveness of debt to 
                cover operating losses sustained by a specific 
                industry; and
                    (D) the assumption of any costs or expenses of 
                manufacture, production, or distribution;
            (2) achievement of increased discipline on export subsidies 
        provided by a foreign government, particularly with respect to 
        agricultural products; and
            (3) maintenance of effective remedies against subsidized 
        imports, including, where appropriate, countervailing duties.

SEC. 407. IDENTIFICATION OF INDUSTRIES FACING SUBSIDIZED IMPORTS.

    (a) Petitions.--Any entity, including a trade association, firm, 
certified or recognized union, or group of workers, that is 
representative of a United States industry and has reason to believe--
            (1) that--
                    (A) as a result of implementation of provisions of 
                the Agreement, the industry is likely to face increased 
                competition from subsidized imports, from a NAFTA 
                country, with which it directly competes; or
                    (B) the industry is likely to face increased 
                competition from subsidized imports with which it 
                directly competes from any other country designated by 
                the President, following consultations with the 
                Congress, as benefiting from a reduction of tariffs or 
                other trade barriers under a trade agreement that 
                enters into force with respect to the United States 
                after January 1, 1994; and
            (2) that the industry is likely to experience a 
        deterioration of its competitive position before more effective 
        rules and disciplines relating to the use of government 
        subsidies have been developed with respect to the country 
        concerned;
may file with the Trade Representative a petition that such industry be 
identified under this section.
    (b) Identification of Industry.--Within 90 days after receipt of a 
petition under subsection (a), the Trade Representative, in 
consultation with the Secretary of Commerce, shall decide whether to 
identify the industry on the basis that there is a reasonable 
likelihood that the industry may face both the subsidization described 
in subsection (a)(1) and the deterioration described in subsection 
(a)(2).
    (c) Action After Identification.--At the request of an entity that 
is representative of an industry identified under subsection (b), the 
Trade Representative shall--
            (1) compile and make available to the industry information 
        under section 308 of the Trade Act of 1974;
            (2) recommend to the President that an investigation by the 
        International Trade Commission be requested under section 332 
        of the Tariff Act of 1930; or
            (3) take actions described in both paragraphs (1) and (2).
The industry may request the Trade Representative to take appropriate 
action to update (as often as annually) any information obtained under 
paragraph (1) or (2), or both, as the case may be, until an agreement 
on more effective rules and disciplines relating to government 
subsidies is reached between the United States and the NAFTA countries.
    (d) Initiation of Action Under Other Law.--
            (1) In general.--The Trade Representative and the Secretary 
        of Commerce shall review information obtained under subsection 
        (c) and consult with the industry identified under subsection 
        (b) with a view to deciding whether any action is appropriate--
                    (A) under section 301 of the Trade Act of 1974, 
                including the initiation of an investigation under 
                section 302(c) of that Act (in the case of the Trade 
                Representative); or
                    (B) under subtitle A of title VII of the Tariff Act 
                of 1930, including the initiation of an investigation 
                under section 702(a) of that Act (in the case of the 
                Secretary of Commerce).
            (2) Criteria for initiation.--In determining whether to 
        initiate any investigation under section 301 of the Trade Act 
        of 1974 or any other trade law, other than title VII of the 
        Tariff Act of 1930, the Trade Representative, after 
        consultation with the Secretary of Commerce--
                    (A) shall seek the advice of the advisory 
                committees established under section 135 of the Trade 
                Act of 1974;
                    (B) shall consult with the Committee on Finance of 
                the Senate and the Committee on Ways and Means of the 
                House of Representatives;
                    (C) shall coordinate with the interagency 
                organization established under section 242 of the Trade 
                Expansion Act of 1962; and
                    (D) may ask the President to request advice from 
                the International Trade Commission.
            (3) Title iii actions.--In the event an investigation is 
        initiated under section 302(c) of the Trade Act of 1974 as a 
        result of a review under this subsection and the Trade 
        Representative, following such investigation (including any 
        applicable dispute settlement proceedings under the Agreement 
        or any other trade agreement), determines to take action under 
        section 301(a) of such Act, the Trade Representative shall give 
        preference to actions that most directly affect the products 
        that benefit from governmental subsidies and were the subject 
        of the investigation, unless there are no significant imports 
        of such products or the Trade Representative otherwise 
        determines that application of the action to other products 
        would be more effective.
    (e) Effect of Decisions.--Any decision, whether positive or 
negative, or any action by the Trade Representative or the Secretary of 
Commerce under this section shall not in any way--
            (1) prejudice the right of any industry to file a petition 
        under any trade law;
            (2) prejudice, affect, or substitute for, any proceeding, 
        investigation, determination, or action by the Secretary of 
        Commerce, the International Trade Commission, or the Trade 
        Representative pursuant to such a petition, or
            (3) prejudice, affect, substitute for, or obviate any 
        proceeding, investigation, or determination under section 301 
        of the Trade Act of 1974, title VII of the Tariff Act of 1930, 
        or any other trade law.
    (f) Standing.--Nothing in this section may be construed to alter in 
any manner the requirements in effect before the date of the enactment 
of this Act for standing under any law of the United States or to add 
any additional requirements for standing under any law of the United 
States.

SEC. 408. TREATMENT OF AMENDMENTS TO ANTIDUMPING AND COUNTERVAILING 
              DUTY LAW.

    Any amendment enacted after the Agreement enters into force with 
respect to the United States that is made to--
            (1) section 303 or title VII of the Tariff Act of 1930, or 
        any successor statute, or
            (2) any other statute which--
                    (A) provides for judicial review of final 
                determinations under such section, title, or successor 
                statute, or
                    (B) indicates the standard of review to be applied,
shall apply to goods from a NAFTA country only to the extent specified 
in the amendment.

            Subtitle B--Conforming Amendments and Provisions

SEC. 411. JUDICIAL REVIEW IN ANTIDUMPING DUTY AND COUNTERVAILING DUTY 
              CASES.

    Section 516A of the Tariff Act of 1930 (19 U.S.C. 1516a) is amended 
as follows:
            (1) Subsection (a)(5) (relating to time limits for 
        commencing review) is amended to read as follows:
            ``(5) Time limits in cases involving merchandise from free 
        trade area countries.--Notwithstanding any other provision of 
        this subsection, in the case of a determination to which the 
        provisions of subsection (g) apply, an action under this 
        subsection may not be commenced, and the time limits for 
        commencing an action under this subsection shall not begin to 
        run, until the day specified in whichever of the following 
        subparagraphs applies:
                    ``(A) For a determination described in paragraph 
                (1)(B) or clause (i), (ii) or (iii) of paragraph 
                (2)(B), the 31st day after the date on which notice of 
                the determination is published in the Federal Register.
                    ``(B) For a determination described in clause (vi) 
                of paragraph (2)(B), the 31st day after the date on 
                which the government of the relevant FTA country 
                receives notice of the determination.
                    ``(C) For a determination with respect to which 
                binational panel review has commenced in accordance 
                with subsection (g)(8), the day after the date as of 
                which--
                            ``(i) the binational panel has dismissed 
                        binational panel review of the determination 
                        for lack of jurisdiction, and
                            ``(ii) any interested party seeking review 
                        of the determination under paragraph (1), (2), 
                        or (3) of this subsection has provided timely 
                        notice under subsection (g)(3)(B).
                If such an interested party files a summons and 
                complaint under this subsection after dismissal by the 
                binational panel, and if a request for an extraordinary 
                challenge committee is made with respect to the 
                decision by the binational panel to dismiss--
                            ``(I) judicial review under this subsection 
                        shall be stayed during consideration by the 
                        committee of the request, and
                            ``(II) the United States Court of 
                        International Trade shall dismiss the action if 
                        the committee vacates or remands the binational 
                        panel decision to dismiss.
                    ``(D) For a determination for which review by the 
                United States Court of International Trade is provided 
                for--
                            ``(i) under subsection (g)(12)(B), the day 
                        after the date of publication in the Federal 
                        Register of notice that article 1904 of the 
                        NAFTA has been suspended, or
                            ``(ii) under subsection (g)(12)(D), the day 
                        after the date that notice of settlement is 
                        published in the Federal Register.''.
            (2) Subsection (b)(3) (relating to the standards of review) 
        is amended--
                    (A) by inserting ``nafta or'' after ``decisions 
                by'' in the heading; and
                    (B) by inserting ``of the NAFTA or'' after 
                ``article 1904''.
            (3) Subsection (f) (relating to definitions) is amended--
                    (A) by amending paragraphs (6) and (7) to read as 
                follows:
            ``(6) United states secretary.--The term `United States 
        Secretary' means--
                    ``(A) the secretary for the United States Section 
                referred to in article 1908 of the NAFTA, and
                    ``(B) the secretary of the United States Section 
                provided for in article 1909 of the Agreement.
            ``(7)  Relevant fta secretary.--The term `relevant FTA 
        Secretary' means the Secretary--
                    ``(A) referred to in article 1908 of the NAFTA, or
                    ``(B) provided for in paragraph 5 of article 1909 
                of the Agreement,
        of the relevant FTA country.''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(8) NAFTA.--The term `NAFTA' means the North American 
        Free Trade Agreement.
            ``(9) Relevant fta country.--The term `relevant FTA 
        country' means the free trade area country to which an 
        antidumping or countervailing duty proceeding pertains.
            ``(10) Free trade area country.--The term `free trade area 
        country' means the following:
                    ``(A) Canada for such time as the NAFTA is in force 
                with respect to, and the United States applies the 
                NAFTA to, Canada.
                    ``(B) Mexico for such time as the NAFTA is in force 
                with respect to, and the United States applies the 
                NAFTA to, Mexico.
                    ``(C) Canada for such time as--
                            ``(i) it is not a free trade area country 
                        under subparagraph (A); and
                            ``(ii) the Agreement is in force with 
                        respect to, and the United States applies the 
                        Agreement to, Canada.''.
            (4) Subsection (g) (relating to review of countervailing 
        and antidumping duty determinations) is amended as follows:
                    (A) The subsection heading is amended by striking 
                out ``Canadian Merchandise'' and inserting ``Free Trade 
                Area Country Merchandise''.
                    (B) Paragraph (1) is amended by striking out 
                ``Canadian merchandise'' and inserting ``free trade 
                area country merchandise''.
                    (C) Paragraph (2) is amended by inserting ``of the 
                NAFTA or'' after ``article 1904''.
                    (D) Paragraph (3)(A) is amended--
                            (i) by striking out ``nor Canada'' and 
                        inserting ``nor the relevant FTA country'' in 
                        each of clauses (i) and (ii);
                            (ii) by inserting ``of the NAFTA or'' 
                        before ``of the Agreement'' in each of clauses 
                        (i) and (iii);
                            (iii) by striking out ``or'' at the end of 
                        clause (iii);
                            (iv) by amending clause (iv)--
                                    (I) by striking out ``under 
                                paragraph (2)(A)''; and
                                    (II) by striking out the period and 
                                inserting a comma; and
                            (v) by adding at the end of subparagraph 
                        (A) the following:
                            ``(v) a determination as to which 
                        binational panel review has terminated pursuant 
                        to paragraph 12 of article 1905 of the NAFTA, 
                        or
                            ``(vi) a determination as to which 
                        extraordinary challenge committee review has 
                        terminated pursuant to paragraph 12 of article 
                        1905 of the NAFTA.''.
                    (E) The first and second sentences of paragraph 
                (3)(B) are amended to read as follows: ``A 
                determination described in subparagraph (A)(i) or (iv) 
                is reviewable under subsection (a) only if the party 
                seeking to commence review has provided timely notice 
                of its intent to commence such review to--
                            ``(i) the United States Secretary and the 
                        relevant FTA Secretary;
                            ``(ii) all interested parties who were 
                        parties to the proceeding in connection with 
                        which the matter arises; and
                            ``(iii) the administering authority or the 
                        Commission, as appropriate.
                Such notice is timely provided if the notice is 
                delivered no later than the date that is 20 days after 
                the date described in subparagraph (A) or (B) of 
                subsection (a)(5) that is applicable to such 
                determination, except that, if the time for requesting 
                binational panel review is suspended under paragraph 
                (8)(A)(ii) of this subsection, any unexpired time for 
                providing notice of intent to commence judicial review 
                shall, during the pendency of any such suspension, also 
                be suspended.''.
                    (F) Paragraph (4)(A) is amended--
                            (i) in the first sentence--
                                    (I) by inserting ``the North 
                                American Free Trade Agreement 
                                Implementation Act implementing the 
                                binational dispute settlement system 
                                under chapter 19 of the NAFTA, or'' 
                                after ``or amendment made by,'';
                                    (II) by inserting a comma before 
                                ``violates'';
                                    (III) by inserting ``only'' after 
                                ``may be brought''; and
                                    (IV) by inserting ``, which shall 
                                have jurisdiction of such action'' 
                                after ``Circuit''; and
                            (ii) by striking the last sentence.
                    (G) Paragraph (5) is amended--
                            (i) by inserting ``of the NAFTA or'' after 
                        ``article 1904'' in each of subparagraphs (A), 
                        (B), and (C)(i);
                            (ii) by striking out ``, the Canadian 
                        Secretary,'' in subparagraph (C)(ii) and 
                        inserting ``, the relevant FTA Secretary,''; 
                        and
                            (iii) by inserting ``of the NAFTA or'' 
                        after ``chapter 19'' in subparagraph (C)(iii).
                    (H) Paragraph (6) is amended by inserting ``of the 
                NAFTA or'' after ``article 1904''.
                    (I) Paragraph (7) is amended--
                            (i) by inserting ``of the nafta or the 
                        agreement'' before the period in the paragraph 
                        heading;
                            (ii) by striking out ``In general.--'' in 
                        the heading to subparagraph (A) and inserting 
                        ``Action upon remand.--''; and
                            (iii) by inserting ``the NAFTA or'' before 
                        ``the Agreement'' in subparagraph (A).
                    (J) Paragraph (8)(A) is amended--
                            (i) by inserting ``(i) General Rule.--'' 
                        before ``An interested party'';
                            (ii) by inserting ``of the NAFTA or'' after 
                        ``article 1904(4)'';
                            (iii) by indenting the text so as to align 
                        it with new clause (ii) (as added by clause 
                        (iv) of this subparagraph); and
                            (iv) by adding at the end the following new 
                        clause:
                            ``(ii) Suspension of time to request 
                        binational panel review under the nafta.--
                        Notwithstanding clause (i), the time for 
                        requesting binational panel review shall be 
                        suspended during the pendency of any stay of 
                        binational panel review that is issued pursuant 
                        to paragraph 11(a) of article 1905 of the 
                        NAFTA.''.
                    (K) Paragraph (8)(B)(ii) is amended by striking out 
                ``Canadian Secretary,'' and inserting ``relevant FTA 
                Secretary,''.
                    (L) Paragraph (8)(C) is amended by striking out 
                ``under article 1904 of the Agreement of a 
                determination'' and inserting ``of a determination 
                under article 1904 of the NAFTA or the Agreement''.
                    (M) Paragraph (9) is amended by inserting ``of the 
                NAFTA or'' after ``chapter 19''.
                    (N) Paragraph (10) is amended by striking out 
                ``Government of Canada'' and all that follows 
                thereafter and inserting ``Government of the relevant 
                FTA country received notice of the determination under 
                paragraph 4 of article 1904 of the NAFTA or the 
                Agreement.''.
                    (O) The following new paragraphs are added at the 
                end:
            ``(11) Suspension and termination of suspension of article 
        1904 of the nafta.--
                    ``(A) Suspension of article 1904.--If a special 
                committee established under article 1905 of the NAFTA 
                issues an affirmative finding, the Trade Representative 
                may, in accordance with paragraph 8(a) or 9, as 
                appropriate, of article 1905 of the NAFTA, suspend the 
                operation of article 1904 of the NAFTA.
                    ``(B) Termination of suspension of article 1904.--
                If a special committee is reconvened and makes an 
                affirmative determination described in paragraph 10(b) 
                of article 1905 of the NAFTA, any suspension of the 
                operation of article 1904 of the NAFTA shall terminate.
            ``(12) Judicial review upon termination of binational panel 
        or committee review under the nafta.--
                    ``(A) Notice of suspension or termination of 
                suspension of article 1904.--
                            ``(i) Upon notification by the Trade 
                        Representative or the Government of a country 
                        described in subsection (f)(10)(A) or (B) that 
                        the operation of article 1904 of the NAFTA has 
                        been suspended in accordance with paragraph 
                        8(a) or 9 of article 1905 of the NAFTA, the 
                        United States Secretary shall publish in the 
                        Federal Register a notice of suspension of 
                        article 1904 of the NAFTA.
                            ``(ii) Upon notification by the Trade 
                        Representative or the Government of a country 
                        described in subsection (f)(10)(A) or (B) that 
                        the suspension of the operation of article 1904 
                        of the NAFTA is terminated in accordance with 
                        paragraph 10 of article 1905 of the NAFTA, the 
                        United States Secretary shall publish in the 
                        Federal Register a notice of termination of 
                        suspension of article 1904 of the NAFTA.
                    ``(B) Transfer of final determinations for judicial 
                review upon suspension of article 1904.--If the 
                operation of article 1904 of the NAFTA is suspended in 
                accordance with paragraph 8(a) or 9 of article 1905 of 
                the NAFTA--
                            ``(i) upon the request of an authorized 
                        person described in subparagraph (C), any final 
                        determination that is the subject of a 
                        binational panel review or an extraordinary 
                        challenge committee review shall be transferred 
                        to the United States Court of International 
                        Trade (in accordance with rules issued by the 
                        Court) for review under subsection (a); or
                            ``(ii) in a case in which--
                                    ``(I) a binational panel review was 
                                completed fewer than 30 days before the 
                                suspension, and
                                    ``(II) extraordinary challenge 
                                committee review has not been 
                                requested,
                        upon the request of an authorized person 
                        described in subparagraph (C) which is made 
                        within 60 days after the completion of the 
                        binational panel review, the final 
                        determination that was the subject of the 
                        binational panel review shall be transferred to 
                        the United States Court of International Trade 
                        (in accordance with rules issued by the Court) 
                        for review under subsection (a).
                    ``(C) Persons authorized to request transfer of 
                final determinations for judicial review.--A request 
                that a final determination be transferred to the Court 
                of International Trade under subparagraph (B) may be 
                made by--
                            ``(i) if the United States made an 
                        allegation under paragraph 1 of article 1905 of 
                        the NAFTA and the operation of article 1904 of 
                        the NAFTA was suspended pursuant to paragraph 
                        8(a) of article 1905 of the NAFTA--
                                    ``(I) the government of the 
                                relevant country described in 
                                subsection (f)(10)(A) or (B),
                                    ``(II) an interested party that was 
                                a party to the panel or committee 
                                review, or
                                    ``(III) an interested party that 
                                was a party to the proceeding in 
                                connection with which panel review was 
                                requested, but only if the time period 
                                for filing notices of appearance in the 
                                panel review has not expired, or
                            ``(ii) if a country described in subsection 
                        (f)(10)(A) or (B) made an allegation under 
                        paragraph 1 of article 1905 of the NAFTA and 
                        the operation of article 1904 of the NAFTA was 
                        suspended pursuant to paragraph 9 of article 
                        1905 of the NAFTA--
                                    ``(I) the government of that 
                                country,
                                    ``(II) an interested party that is 
                                a person of that country and that was a 
                                party to the panel or committee review, 
                                or
                                    ``(III) an interested party that is 
                                a person of that country and that was a 
                                party to the proceeding in connection 
                                with which panel review was requested, 
                                but only if the time period for filing 
                                notices of appearance in the panel 
                                review has not expired.
                    ``(D)(i) Transfer for judicial review upon 
                settlement.--If the Trade Representative achieves a 
                settlement with the government of a country described 
                in subsection (f)(10)(A) or (B) pursuant to paragraph 7 
                of article 1905 of the NAFTA, and referral for judicial 
                review is among the terms of such settlement, any final 
                determination that is the subject of a binational panel 
                review or an extraordinary challenge committee review 
                shall, upon a request described in clause (ii), be 
                transferred to the United States Court of International 
                Trade (in accordance with rules issued by the Court) 
                for review under subsection (a).
                    ``(ii) A request referred to in clause (i) is a 
                request made by--
                            ``(I) the country referred to in clause 
                        (i),
                            ``(II) an interested party that was a party 
                        to the panel or committee review, or
                            ``(III) an interested party that was a 
                        party to the proceeding in connection with 
                        which panel review was requested, but only if 
                        the time for filing notices of appearance in 
                        the panel review has not expired.''.

SEC. 412. CONFORMING AMENDMENTS TO OTHER PROVISIONS OF THE TARIFF ACT 
              OF 1930.

    (a) Regulations for Appraisement and Classification; Finality and 
Decision.--Sections 502(b) and 514(b) of the Tariff Act of 1930 (19 
U.S.C. 1502(b) and 1514(b)) are each amended by inserting ``the North 
American Free Trade Agreement or'' before ``the United States-Canada 
Free-Trade Agreement''.
    (b) Definition.--Section 771 of the Tariff Act of 1930 (19 U.S.C. 
1677) is amended--
            (1) by redesignating as paragraph (21) (and placing in 
        numerical sequence) the second paragraph that is designated as 
        paragraph (18) (relating to the definition of the United 
        States-Canada Agreement) in such section; and
            (2) by inserting after paragraph (21) (as redesignated by 
        paragraph (1) of this subsection) the following new paragraph:
            ``(22) NAFTA.--The term `NAFTA' means the North American 
        Free Trade Agreement.''.
    (c) Disclosure of Proprietary Information in Title VII 
Proceedings.--Section 777(f) of the Tariff Act of 1930 (19 U.S.C. 
1677f(f)) is amended--
            (1) by inserting ``the North American Free Trade Agreement 
        or'' before ``the United States-Canada Agreement'' in the 
        heading;
            (2) by inserting ``the NAFTA or'' before ``the United 
        States-Canada Agreement'' each place it appears in paragraph 
        (1)(A);
            (3) in the second sentence of paragraph (1)(A)--
                    (A) by inserting ``or extraordinary challenge 
                committee'' after ``binational panel''; and
                    (B) by inserting ``or committee'' after ``the 
                panel'';
            (4) in paragraph (1)(B)--
                    (A) by inserting ``the NAFTA or'' before ``the 
                Agreement'' in clauses (iii) and (iv); and
                    (B) by striking out ``Government of Canada 
                designated by an authorized agency of Canada'' in 
                clause (iv) and inserting ``Government of a free trade 
                area country (as defined in section 516A(f)(10)) 
                designated by an authorized agency of such country'';
            (5) in paragraph (2) by inserting ``, including any 
        extraordinary challenge,'' after ``binational panel 
        proceeding'';
            (6) in paragraph (3)--
                    (A) by inserting ``or extraordinary challenge 
                committee'' after ``binational panel'', and
                    (B) by inserting ``the NAFTA or'' before ``the 
                United States-Canada Agreement'';
            (7) by striking out ``agency of Canada'' in each of 
        paragraphs (3) and (4) and inserting ``agency of a free trade 
        area country (as defined in section 516A(f)(10))''; and
            (8) in the first sentence of paragraph (4) by inserting ``, 
        except a judge appointed to a binational panel or an 
        extraordinary challenge committee under section 402(b) of the 
        North American Free Trade Agreement Implementation Act,'' after 
        ``Any person''.

SEC. 413. CONSEQUENTIAL AMENDMENT TO FREE-TRADE AGREEMENT ACT OF 1988.

    Section 410(a) of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988 (19 U.S.C. 2112 note) is amended by adding 
at the end the following new sentence: ``In calculating the 7-year 
period referred to in paragraph (1), any time during which Canada is a 
NAFTA country (as defined in section 2(4) of the North American Free 
Trade Agreement Implementation Act) shall be disregarded.''.

SEC. 414. CONFORMING AMENDMENTS TO TITLE 28, UNITED STATES CODE.

    (a) Court of International Trade.--Chapter 95 of title 28, United 
States Code, is amended--
            (1) in section 1581(i) by inserting ``the North American 
        Free Trade Agreement or'' before ``the United States-Canada 
        Free-Trade Agreement'';
            (2) in section 1584--
                    (A) by amending the section heading to read as 
                follows:
``Sec. 1584. Civil actions under the North American Free Trade 
              Agreement or the United States-Canada Free-Trade 
              Agreement''; and
                    (B) by striking out ``777(d)'' and inserting 
                ``777(f)''; and
            (3) in the table of contents for such chapter by amending 
        the entry for section 1584 to read as follows:

``1584. Civil actions under the North American Free Trade Agreement or 
                            the United States-Canada Free-Trade 
                            Agreement.''.
    (b) Particular Proceedings.--Sections 2201(a) and 2643(c)(5) of 
title 28, United States Code, are each amended by striking out 
``Canadian merchandise,'' and inserting ``merchandise of a free trade 
area country (as defined in section 516A(f)(10) of the Tariff Act of 
1930),''.

SEC. 415. EFFECT OF TERMINATION OF NAFTA COUNTRY STATUS.

    (a) In General.--Except as provided in subsection (b), on the date 
on which a country ceases to be a NAFTA country, the provisions of this 
title (other than this section) and the amendments made by this title 
shall cease to have effect with respect to that country.
    (b) Transition Provisions.--
            (1) Proceedings regarding protective orders and 
        undertakings.--If on the date on which a country ceases to be a 
        NAFTA country an investigation or enforcement proceeding 
        concerning the violation of a protective order issued under 
        section 777(f) of the Tariff Act of 1930 (as amended by this 
        subtitle) or an undertaking of the Government of that country 
        is pending, the investigation or proceeding shall continue, and 
        sanctions may continue to be imposed, in accordance with the 
        provisions of such section 777(f).
            (2) Binational panel and extraordinary challenge committee 
        reviews.--If on the date on which a country ceases to be a 
        NAFTA country--
                    (A) a binational panel review under article 1904 of 
                the Agreement is pending, or has been requested; or
                    (B) an extraordinary challenge committee review 
                under article 1904 of the Agreement is pending, or has 
                been requested;
        with respect to a determination which involves a class or kind 
        of merchandise and to which section 516A(g)(2) of the Tariff 
        Act of 1930 applies, such determination shall be reviewable 
        under section 516A(a) of the Tariff Act of 1930. In the case of 
        a determination to which the provisions of this paragraph 
        apply, the time limits for commencing an action under 516A(a) 
        of the Tariff Act of 1930 shall not begin to run until the date 
        on which the Agreement ceases to be in force with respect to 
        that country.

SEC. 416. EFFECTIVE DATE.

    The provisions of this title and the amendments made by this title 
take effect on the date the Agreement enters into force with respect to 
the United States, but shall not apply--
            (1) to any final determination described in paragraph 
        (1)(B), or (2)(B)(i), (ii), or (iii), of section 516A(a) of the 
        Tariff Act of 1930 notice of which is published in the Federal 
        Register before such date, or to a determination described in 
        paragraph (2)(B)(vi) of section 516A(a) of such Act notice of 
        which is received by the Government of Canada or Mexico before 
        such date; or
            (2) to any binational panel review under the United States-
        Canada Free-Trade Agreement, or any extraordinary challenge 
        arising out of any such review, that was commenced before such 
        date.

 TITLE V--NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE AND OTHER PROVISIONS

      Subtitle A--NAFTA Transitional Adjustment Assistance Program

SEC. 501. SHORT TITLE.

    This subtitle may be cited as the ``NAFTA Worker Security Act''.

SEC. 502. ESTABLISHMENT OF NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE 
              PROGRAM.

    Chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et 
seq.) is amended by adding at the end the following new subchapter:

    ``Subchapter D--NAFTA Transitional Adjustment Assistance Program

``SEC. 250. ESTABLISHMENT OF TRANSITIONAL PROGRAM.

    ``(a) Group Eligibility Requirements.--
            ``(1) Criteria.--A group of workers (including workers in 
        any agricultural firm or subdivision of an agricultural firm) 
        shall be certified as eligible to apply for adjustment 
        assistance under this subchapter pursuant to a petition filed 
        under subsection (b) if the Secretary determines that a 
        significant number or proportion of the workers in such 
        workers' firm or an appropriate subdivision of the firm have 
        become totally or partially separated, or are threatened to 
        become totally or partially separated, and either--
                    ``(A) that--
                            ``(i) the sales or production, or both, of 
                        such firm or subdivision have decreased 
                        absolutely,
                            ``(ii) imports from Mexico or Canada of 
                        articles like or directly competitive with 
                        articles produced by such firm or subdivision 
                        have increased, and
                            ``(iii) the increase in imports under 
                        clause (ii) contributed importantly to such 
                        workers' separation or threat of separation and 
                        to the decline in the sales or production of 
                        such firm or subdivision; or
                    ``(B) that there has been a shift in production by 
                such workers' firm or subdivision to Mexico or Canada 
                of articles like or directly competitive with articles 
                which are produced by the firm or subdivision.
            ``(2) Definition of contributed importantly.--The term 
        `contributed importantly', as used in paragraph (1)(A)(iii), 
        means a cause which is important but not necessarily more 
        important than any other cause.
            ``(3) Regulations.--The Secretary shall issue regulations 
        relating to the application of the criteria described in 
        paragraph (1) in making preliminary findings under subsection 
        (b) and determinations under subsection (c).
    ``(b) Preliminary Findings and Basic Assistance.--
            ``(1) Filing of petitions.--A petition for certification of 
        eligibility to apply for adjustment assistance under this 
        subchapter may be filed by a group of workers (including 
        workers in any agricultural firm or subdivision of an 
        agricultural firm) or by their certified or recognized union or 
        other duly authorized representative with the Governor of the 
        State in which such workers' firm or subdivision thereof is 
        located.
            ``(2) Findings and assistance.--Upon receipt of a petition 
        under paragraph (1), the Governor shall--
                    ``(A) notify the Secretary that the Governor has 
                received the petition;
                    ``(B) within 10 days after receiving the petition--
                            ``(i) make a preliminary finding as to 
                        whether the petition meets the criteria 
                        described in subsection (a)(1) (and for 
                        purposes of this clause the criteria described 
                        under subparagraph (A)(iii) of such subsection 
                        shall be disregarded), and
                            ``(ii) transmit the petition, together with 
                        a statement of the finding under clause (i) and 
                        reasons therefor, to the Secretary for action 
                        under subsection (c); and
                    ``(C) if the preliminary finding under subparagraph 
                (B)(i) is affirmative, ensure that rapid response and 
                basic readjustment services authorized under other 
                Federal law are made available to the workers.
    ``(c) Review of Petitions by Secretary; Certifications.--
            ``(1) In general.--The Secretary, within 30 days after 
        receiving a petition under subsection (b), shall determine 
        whether the petition meets the criteria described in subsection 
        (a)(1). Upon a determination that the petition meets such 
        criteria, the Secretary shall issue to workers covered by the 
        petition a certification of eligibility to apply for assistance 
        described in subsection (d).
            ``(2) Denial of certification.--Upon denial of 
        certification with respect to a petition under paragraph (1), 
        the Secretary shall review the petition in accordance with the 
        requirements of subchapter A to determine if the workers may be 
        certified under such subchapter.
    ``(d) Comprehensive Assistance.--Workers covered by certification 
issued by the Secretary under subsection (c) shall be provided, in the 
same manner and to the same extent as workers covered under a 
certification under subchapter A, the following:
            ``(1) Employment services described in section 235.
            ``(2) Training described in section 236, except that 
        notwithstanding the provisions of section 236(a)(2)(A), the 
        total amount of payments for training under this subchapter for 
        any fiscal year shall not exceed $30,000,000.
            ``(3) Trade readjustment allowances described in sections 
        231 through 234, except that--
                    ``(A) the provisions of sections 231(a)(5)(C) and 
                231(c), authorizing the payment of trade readjustment 
                allowances upon a finding that it is not feasible or 
                appropriate to approve a training program for a worker, 
                shall not be applicable to payment of such allowances 
                under this subchapter; and
                    ``(B) notwithstanding the provisions of section 
                233(b), in order for a worker to qualify for trade 
                readjustment allowances under this subchapter, the 
                worker shall be enrolled in a training program approved 
                by the Secretary under section 236(a) by the later of--
                            ``(i) the last day of the 16th week of such 
                        worker's initial unemployment compensation 
                        benefit period, or
                            ``(ii) the last day of the 6th week after 
                        the week in which the Secretary issues a 
                        certification covering such worker.
        In cases of extenuating circumstances relating to enrollment in 
        a training program, the Secretary may extend the time for 
        enrollment for a period not to exceed 30 days .
            ``(4) Job search allowances described in section 237.
            ``(5) Relocation allowances described in section 238.
    ``(e) Administration.--The provisions of subchapter C shall apply 
to the administration of the program under this subchapter in the same 
manner and to the same extent as such provisions apply to the 
administration of the program under subchapters A and B, except that 
the agreement between the Secretary and the States described in section 
239 shall specify the procedures that will be used to carry out the 
certification process under subsection (c) and the procedures for 
providing relevant data by the Secretary to assist the States in making 
preliminary findings under subsection (b).''.

SEC. 503. CONFORMING AMENDMENTS.

    (a) References.--Sections 221(a), 222(a), and 223(a) of the Trade 
Act of 1974 (19 U.S.C. 2271(a), 2272(a), and 2273(a)) are each amended 
by striking out ``assistance under this chapter'' and inserting 
``assistance under this subchapter''.
    (b) Benefit Information.--Section 225(b) of the Trade Act of 1974 
(19 U.S.C. 2275(b)) is amended by inserting ``or subchapter D'' after 
``subchapter A'' each place it appears.
    (c) Nonduplication of Assistance.--Subchapter C of chapter 2 of 
title II of the Trade Act of 1974 is amended by adding at the end the 
following new section:

``SEC. 249A. NONDUPLICATION OF ASSISTANCE.

    ``No worker may receive assistance relating to a separation 
pursuant to certifications under both subchapters A and D of this 
chapter.''.
    (d) Judicial Review.--Section 284(a) of the Trade Act of 1974 (19 
U.S.C. 2395(a)) is amended by inserting ``or section 250(c)'' after 
``section 223''.
    (e) Table of Contents.--The table of contents for chapter 2 of 
title II of the Trade Act of 1974 is amended--
            (1) by inserting after the item relating to section 249 the 
        following new item:

``Sec. 249A. Nonduplication of assistance.'';
        and
            (2) by adding at the end thereof the following new items:
    ``subchapter d--nafta transitional adjustment assistance program
``Sec. 250. Establishment of transitional program.''.

SEC. 504. AUTHORIZATION OF APPROPRIATIONS.

    Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is amended--
            (1) by striking ``There'' and inserting ``(a) In General.--
        There'',
            (2) by inserting ``, other than subchapter D'' after 
        ``chapter'', and
            (3) by adding at the end the following new subsection:
    ``(b) Subchapter D.--There are authorized to be appropriated to the 
Department of Labor, for each of fiscal years 1994, 1995, 1996, 1997, 
and 1998, such sums as may be necessary to carry out the purposes of 
subchapter D of this chapter.''.

SEC. 505. TERMINATION OF TRANSITION PROGRAM.

    Subsection (c) of section 285 of the Trade Act of 1974 (19 U.S.C. 
2271 preceding note) is amended--
            (1) by striking ``No'' and inserting ``(1) Except as 
        provided in paragraph (2), no''; and
            (2) by adding at the end the following new paragraph:
    ``(2)(A) Except as provided in subparagraph (B), no assistance, 
vouchers, allowances, or other payments may be provided under 
subchapter D of chapter 2 after the day that is the earlier of--
            ``(i) September 30, 1998, or
            ``(ii) the date on which legislation, establishing a 
        program providing dislocated workers with comprehensive 
        assistance substantially similar to the assistance provided by 
        such subchapter D, becomes effective.
    ``(B) Notwithstanding subparagraph (A), if, on or before the day 
described in subparagraph (A), a worker--
            ``(i) is certified as eligible to apply for assistance, 
        under subchapter D of chapter 2; and
            ``(ii) is otherwise eligible to receive assistance in 
        accordance with section 250,
such worker shall continue to be eligible to receive such assistance 
for any week for which the worker meets the eligibility requirements of 
such section.''.

SEC. 506. EFFECTIVE DATE.

    (a) In General.--The amendments made by sections 501, 502, 503, 
504, and 505 shall take effect on the date the Agreement enters into 
force with respect to the United States.
    (b) Covered Workers.--
            (1) General rule.--Except as provided in paragraph (2), no 
        worker shall be certified as eligible to receive assistance 
        under subchapter D of chapter 2 of title II of the Trade Act of 
        1974 (as added by this subtitle) whose last total or partial 
        separation from a firm (or appropriate subdivision of a firm) 
        occurred before such date of entry into force.
            (2) Reachback.--Notwithstanding paragraph (1), any worker--
                    (A) whose last total or partial separation from a 
                firm (or appropriate subdivision of a firm) occurs--
                            (i) after the date of the enactment of this 
                        Act, and
                            (ii) before such date of entry into force, 
                        and
                    (B) who would otherwise be eligible to receive 
                assistance under subchapter D of chapter 2 of title II 
                of the Trade Act of 1974,
        shall be eligible to receive such assistance in the same manner 
        as if such separation occurred on or after such date of entry 
        into force.

SEC. 507. TREATMENT OF SELF-EMPLOYMENT ASSISTANCE PROGRAMS.

    (a) General Rule.--Section 3306 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subsection:
    ``(t) Self-Employment Assistance Program.--For the purposes of this 
chapter, the term `self-employment assistance program' means a program 
under which--
            ``(1) individuals who meet the requirements described in 
        paragraph (3) are eligible to receive an allowance in lieu of 
        regular unemployment compensation under the State law for the 
        purpose of assisting such individuals in establishing a 
        business and becoming self-employed;
            ``(2) the allowance payable to individuals pursuant to 
        paragraph (1) is payable in the same amount, at the same 
        interval, on the same terms, and subject to the same 
        conditions, as regular unemployment compensation under the 
        State law, except that--
                    ``(A) State requirements relating to availability 
                for work, active search for work, and refusal to accept 
                work are not applicable to such individuals;
                    ``(B) State requirements relating to disqualifying 
                income are not applicable to income earned from self-
                employment by such individuals; and
                    ``(C) such individuals are considered to be 
                unemployed for the purposes of Federal and State laws 
                applicable to unemployment compensation,
        as long as such individuals meet the requirements applicable 
        under this subsection;
            ``(3) individuals may receive the allowance described in 
        paragraph (1) if such individuals--
                    ``(A) are eligible to receive regular unemployment 
                compensation under the State law, or would be eligible 
                to receive such compensation except for the 
                requirements described in subparagraph (A) or (B) of 
                paragraph (2);
                    ``(B) are identified pursuant to a State worker 
                profiling system as individuals likely to exhaust 
                regular unemployment compensation; and
                    ``(C) are participating in self-employment 
                assistance activities which--
                            ``(i) include entrepreneurial training, 
                        business counseling, and technical assistance; 
                        and
                            ``(ii) are approved by the State agency; 
                        and
                    ``(D) are actively engaged on a full-time basis in 
                activities (which may include training) relating to the 
                establishment of a business and becoming self-employed;
            ``(4) the aggregate number of individuals receiving the 
        allowance under the program does not at any time exceed 5 
        percent of the number of individuals receiving regular 
        unemployment compensation under the State law at such time;
            ``(5) the program does not result in any cost to the 
        Unemployment Trust Fund (established by section 904(a) of the 
        Social Security Act) in excess of the cost that would be 
        incurred by such State and charged to such Fund if the State 
        had not participated in such program; and
            ``(6) the program meets such other requirements as the 
        Secretary of Labor determines to be appropriate.''.
    (b) Conforming Amendments.--
            (1) Section 3304(a)(4) of such Code is amended--
                    (A) in subparagraph (D), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (E), by striking the semicolon 
                and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) amounts may be withdrawn for the payment of 
                allowances under a self-employment assistance program 
                (as defined in section 3306(t));''.
            (2) Section 3306(f) of such Code is amended--
                    (A) in paragraph (3), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(5) amounts may be withdrawn for the payment of 
        allowances under a self-employment assistance program (as 
        defined in subsection (t)).''.
            (3) Section 303(a)(5) of the Social Security Act (42 U.S.C. 
        503(a)(5)) is amended by striking ``; and'' and inserting ``: 
        Provided further, That amounts may be withdrawn for the payment 
        of allowances under a self-employment assistance program (as 
        defined in section 3306(t) of the Internal Revenue Code of 
        1986); and''.
    (c) State Reports.--Any State operating a self-employment program 
authorized by the Secretary of Labor under this section shall report 
annually to the Secretary on the number of individuals who participate 
in the self-employment assistance program, the number of individuals 
who are able to develop and sustain businesses, the operating costs of 
the program, compliance with program requirements, and any other 
relevant aspects of program operations requested by the Secretary.
    (d) Report to Congress.--Not later than 4 years after the date of 
the enactment of this Act, the Secretary of Labor shall submit a report 
to the Congress with respect to the operation of the program authorized 
under this section. Such report shall be based on the reports received 
from the States pursuant to subsection (c) and include such other 
information as the Secretary of Labor determines is appropriate.
    (e) Effective Date; Sunset.--
            (1) Effective date.--The provisions of this section and the 
        amendments made by this section shall take effect on the date 
        of the enactment of this Act.
            (2) Sunset.--The authority provided by this section, and 
        the amendments made by this section, shall terminate 5 years 
        after the date of the enactment of this Act.

   Subtitle B--Provisions Relating to Performance Under the Agreement

SEC. 511. DISCRIMINATORY TAXES.

    It is the sense of the Congress that when a State, province, or 
other governmental entity of a NAFTA country discriminatorily enforces 
sales or other taxes so as to afford protection to domestic production 
or domestic service providers, such enforcement is in violation of the 
terms of the Agreement. When such discriminatory enforcement adversely 
affects United States producers of goods or United States service 
providers, the Trade Representative should pursue all appropriate 
remedies to obtain removal of such discriminatory enforcement, 
including invocation of the provisions of the Agreement.

SEC. 512. REVIEW OF THE OPERATION AND EFFECTS OF THE AGREEMENT.

    (a) Study.--By not later than July 1, 1997, the President shall 
provide to the Congress a comprehensive study on the operation and 
effects of the Agreement. The study shall include an assessment of the 
following factors:
            (1) The net effect of the Agreement on the economy of the 
        United States, including with respect to the United States 
        gross national product, employment, balance of trade, and 
        current account balance.
            (2) The industries (including agricultural industries) in 
        the United States that have significantly increased exports to 
        Mexico or Canada as a result of the Agreement, or in which 
        imports into the United States from Mexico or Canada have 
        increased significantly as a result of the Agreement, and the 
        extent of any change in the wages, employment, or productivity 
        in each such industry as a result of the Agreement.
            (3) The extent to which investment in new or existing 
        production or other operations in the United States has been 
        redirected to Mexico as a result of the Agreement, and the 
        effect on United States employment of such redirection.
            (4) The extent of any increase in investment, including 
        foreign direct investment and increased investment by United 
        States investors, in new or existing production or other 
        operations in the United States as a result of the Agreement, 
        and the effect on United States employment of such investment.
            (5) The extent to which the Agreement has contributed to--
                    (A) improvement in real wages and working 
                conditions in Mexico,
                    (B) effective enforcement of labor and 
                environmental laws in Mexico, and
                    (C) the reduction or abatement of pollution in the 
                region of the United States-Mexico border.
    (b) Scope.--In assessing the factors listed in subsection (a), to 
the extent possible, the study shall distinguish between the 
consequences of the Agreement and events that likely would have 
occurred without the Agreement. In addition, the study shall evaluate 
the effects of the Agreement relative to aggregate economic changes 
and, to the extent possible, relative to the effects of other factors, 
including--
            (1) international competition,
            (2) reductions in defense spending,
            (3) the shift from traditional manufacturing to knowledge 
        and information based economic activity, and
            (4) the Federal debt burden.
    (c) Recommendations of the President.--The study shall include any 
appropriate recommendations by the President with respect to the 
operation and effects of the Agreement, including recommendations with 
respect to the specific factors listed in subsection (a).
    (d) Recommendations of Certain Committees.--The President shall 
provide the study to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate and any 
other committee that has jurisdiction over any provision of United 
States law that was either enacted or amended by the North American 
Free Trade Agreement Implementation Act. Each such committee may hold 
hearings and make recommendations to the President with respect to the 
operation and effects of the Agreement.

SEC. 513. ACTIONS AFFECTING UNITED STATES CULTURAL INDUSTRIES.

    Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) is amended by 
adding at the end the following new subsection:
    ``(f) Special Rule for Actions Affecting United States Cultural 
Industries.--
            ``(1) In general.--By no later than the date that is 30 
        days after the date on which the annual report is submitted to 
        Congressional committees under section 181(b), the Trade 
        Representative shall identify any act, policy, or practice of 
        Canada which--
                    ``(A) affects cultural industries,
                    ``(B) is adopted or expanded after December 17, 
                1992, and
                    ``(C) is actionable under article 2106 of the North 
                American Free Trade Agreement.
            ``(2) Special rules for identifications.--For purposes of 
        section 302(b)(2)(A), an act, policy, or practice identified 
        under this subsection shall be treated as an act, policy, or 
        practice that is the basis for identification of a country 
        under subsection (a)(2), unless the United States has already 
        taken action pursuant to article 2106 of the North American 
        Free Trade Agreement in response to such act, policy, or 
        practice. In deciding whether to identify an act, policy, or 
        practice under paragraph (1), the Trade Representative shall--
                    ``(A) consult with and take into account the views 
                of representatives of the relevant domestic industries, 
                appropriate committees established pursuant to section 
                135, and appropriate officers of the Federal 
                Government, and
                    ``(B) take into account the information from such 
                sources as may be available to the Trade Representative 
                and such information as may be submitted to the Trade 
                Representative by interested persons, including 
                information contained in reports submitted under 
                section 181(b).
            ``(3) Cultural industries.--For purposes of this 
        subsection, the term `cultural industries' means persons 
        engaged in any of the following activities:
                    ``(A) The publication, distribution, or sale of 
                books, magazines, periodicals, or newspapers in print 
                or machine readable form but not including the sole 
                activity of printing or typesetting any of the 
                foregoing.
                    ``(B) The production, distribution, sale, or 
                exhibition of film or video recordings.
                    ``(C) The production, distribution, sale, or 
                exhibition of audio or video music recordings.
                    ``(D) The publication, distribution, or sale of 
                music in print or machine readable form.
                    ``(E) Radio communications in which the 
                transmissions are intended for direct reception by the 
                general public, and all radio, television, and cable 
                broadcasting undertakings and all satellite programming 
                and broadcast network services.''.

SEC. 514. REPORT ON IMPACT OF NAFTA ON MOTOR VEHICLE EXPORTS TO MEXICO.

    (a) Findings.--The Congress makes the following findings:
            (1) Trade in motor vehicles and motor vehicle parts is one 
        of the most restricted areas of trade between the United States 
        and Mexico.
            (2) The elimination of Mexico's restrictive barriers to 
        trade in motor vehicles and motor vehicle parts over a 10-year 
        period under the Agreement should increase substantially United 
        States exports of such products to Mexico.
            (3) The Department of Commerce estimates that the Agreement 
        provides the opportunity to increase United States exports of 
        motor vehicles and motor vehicle parts by $1,000,000,000 during 
        the first year of the Agreement's implementation with the 
        potential for additional increases over the 10-year transition 
        period.
            (4) The United States automotive industry has estimated 
        that United States exports of motor vehicles to Mexico should 
        increase to more than 60,000 units during the first year of the 
        Agreement's implementation, which is substantially above the 
        current level of 4,000 units.
    (b) Trade Representative Report.--No later than July 1, 1995, and 
annually thereafter through 1999, the Trade Representative shall submit 
a report to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives on how effective the 
provisions of the Agreement are with respect to increasing United 
States exports of motor vehicles and motor vehicle parts to Mexico. 
Each report shall identify and determine the following:
            (1) The patterns of trade in motor vehicles and motor 
        vehicle parts between the United States and Mexico during the 
        preceding 12-month period.
            (2) The level of tariff and nontariff barriers that were in 
        force during the preceding 12-month period.
            (3) The amount by which United States exports of motor 
        vehicles and motor vehicle parts to Mexico have increased from 
        the preceding 12-month period as a result of the elimination of 
        Mexican tariff and nontariff barriers under the Agreement.
            (4) Whether any such increase in United States exports 
        meets the levels of new export opportunities anticipated under 
        the Agreement.
            (5) If the anticipated levels of new United States export 
        opportunities are not reached, what actions the Trade 
        Representative is prepared to take to realize the benefits 
        anticipated under the Agreement, including possible initiation 
        of additional negotiations with Mexico for the purpose of 
        seeking modifications of the Agreement.

SEC. 515. CENTER FOR THE STUDY OF WESTERN HEMISPHERIC TRADE.

    (a) Amendment to the CBI.--The Caribbean Basin Economic Recovery 
Act (19 U.S.C. 2701 et seq.) is amended by inserting after section 218 
the following new section:

``SEC. 219. CENTER FOR THE STUDY OF WESTERN HEMISPHERIC TRADE.

    ``(a)  Establishment.--The Commissioner of Customs, after 
consultation with appropriate officials in the State of Texas, is 
authorized and directed to make grants to an institution (or a 
consortium of such institutions) to assist such institution in 
planning, establishing, and operating a Center for the Study of Western 
Hemispheric Trade (hereafter in this section referred to as the 
`Center'). The Commissioner of Customs shall make the first grant not 
later than December 1, 1994, and the Center shall be established not 
later than February 1, 1995.
    ``(b)  Scope of the Center.--The Center shall be a year-round 
program operated by an institution located in the State of Texas (or a 
consortium of such institutions), the purpose of which is to promote 
and study trade between and among Western Hemisphere countries. The 
Center shall conduct activities designed to examine--
            ``(1) the impact of the NAFTA on the economies in, and 
        trade within, the Western Hemisphere,
            ``(2) the negotiation of any future free trade agreements, 
        including possible accessions to the NAFTA; and
            ``(3) adjusting tariffs, reducing nontariff barriers, 
        improving relations among customs officials, and promoting 
        economic relations among countries in the Western Hemisphere.
    ``(c)  Consultation; Selection Criteria.--The Commissioner of 
Customs shall consult with appropriate officials of the State of Texas 
and private sector authorities with respect to selecting, planning, and 
establishing the Center. In selecting the appropriate institution, the 
Commissioner of Customs shall give consideration to--
            ``(1) the institution's ability to carry out the programs 
        and activities described in this section; and
            ``(2) any resources the institution can provide the Center 
        in addition to Federal funds provided under this program.
    ``(d)  Programs and Activities.--The Center shall conduct the 
following activities:
            ``(1) Provide forums for international discussion and 
        debate for representatives from countries in the Western 
        Hemisphere regarding issues which affect trade and other 
        economic relations within the hemisphere, including the impact 
        of the NAFTA on individual economies and the desirability and 
        feasibility of possible accessions to the NAFTA by such 
        countries.
            ``(2) Conduct studies and research projects on subjects 
        which affect Western Hemisphere trade, including tariffs, 
        customs, regional and national economics, business development 
        and finance, production and personnel management, 
        manufacturing, agriculture, engineering, transportation, 
        immigration, telecommunications, medicine, science, urban 
        studies, border demographics, social anthropology, and 
        population.
            ``(3) Publish materials, disseminate information, and 
        conduct seminars and conferences to support and educate 
        representatives from countries in the Western Hemisphere who 
        seek to do business with or invest in other Western Hemisphere 
        countries.
            ``(4) Provide grants, fellowships, endowed chairs, and 
        financial assistance to outstanding scholars and authorities 
        from Western Hemisphere countries.
            ``(5) Provide grants, fellowships, and other financial 
        assistance to qualified graduate students, from Western 
        Hemisphere countries, to study at the Center.
            ``(6) Implement academic exchange programs and other 
        cooperative research and instructional agreements with the 
        complementary North/South Center at the University of Miami at 
        Coral Gables.
    ``(e)  Definitions.--For purposes of this section--
            ``(1) Nafta.--The term `NAFTA' means the North American 
        Free Trade Agreement.
            ``(2)  Western hemisphere countries.--The terms `Western 
        Hemisphere countries', `countries in the Western Hemisphere', 
        and `Western Hemisphere' mean Canada, the United States, 
        Mexico, countries located in South America, beneficiary 
        countries (as defined by section 212), the Commonwealth of 
        Puerto Rico, and the United States Virgin Islands.
    ``(f)  Fees for Seminars and Publications.--Notwithstanding any 
other provision of law, a grant made under this section may provide 
that the Center may charge a reasonable fee for attendance at seminars 
and conferences and for copies of publications, studies, reports, and 
other documents the Center publishes. The Center may waive such fees in 
any case in which it determines imposing a fee would impose a financial 
hardship and the purposes of the Center would be served by granting 
such a waiver.
    ``(g) Duration of Grant.--The Commissioner of Customs is directed 
to make grants to any institution or institutions selected as the 
Center for fiscal years 1994, 1995, 1996, and 1997.
    ``(h) Report.--The Commissioner of Customs shall, no later than 
July 1, 1994, and annually thereafter for years for which grants are 
made, submit a written report to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of Representatives. 
The first report shall include--
            ``(1) a statement identifying the institution or 
        institutions selected as the Center,
            ``(2) the reasons for selecting the institution or 
        institutions as the Center, and
            ``(3) the plan of such institution or institutions for 
        operating the Center.
Each subsequent report shall include information with respect to the 
operations of the Center, the collaboration of the Center with, and 
dissemination of information to, Government policymakers and the 
business community with respect to the study of Western Hemispheric 
trade by the Center, and the plan and efforts of the Center to continue 
operations after grants under this section have expired.''.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 for fiscal year 1994, and such sums as may be 
necessary in the 3 succeeding fiscal years to carry out the purposes of 
section 219 of the Caribbean Basin Economic Recovery Act (as added by 
subsection (a)).

SEC. 516. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
provisions of this subtitle shall take effect on the date the Agreement 
enters into force with respect to the United States.
    (b) Exception.--Section 515 shall take effect on the date of the 
enactment of this Act.

                          Subtitle C--Funding

                       PART 1--CUSTOMS USER FEES

SEC. 521. FEES FOR CERTAIN CUSTOMS SERVICES.

    (a) In General.--Section 13031 of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c) is amended--
            (1) by amending paragraph (5) of subsection (a) to read as 
        follows:
            ``(5)(A) For fiscal years 1994, 1995, 1996, and 1997, for 
        the arrival of each passenger aboard a commercial vessel or 
        commercial aircraft from outside the customs territory of the 
        United States, $6.50.
            ``(B) For fiscal year 1998 and each fiscal year thereafter, 
        for the arrival of each passenger aboard a commercial vessel or 
        commercial aircraft from a place outside the United States 
        (other than a place referred to in subsection (b)(1)(A) of this 
        section), $5.''
            (2) by adding at the end of paragraph (1) of subsection 
        (b), the following flush sentence:
        ``Subparagraph (A) shall not apply to fiscal years 1994, 1995, 
        1996, and 1997.'',
            (3) in subsection (f)--
                    (A) in paragraph (1), by striking ``except'' and 
                all that follows through the end period and inserting: 
                ``except--
                    ``(A) the portion of such fees that is required 
                under paragraph (3) for the direct reimbursement of 
                appropriations, and
                    ``(B) the portion of such fees that is determined 
                by the Secretary to be excess fees under paragraph 
                (5).'',
                    (B) in paragraph (3)(A), by striking the first 
                parenthetical and inserting ``(other than the fees 
                under subsection (a) (9) and (10) and the excess fees 
                determined by the Secretary under paragraph (5))'',
                    (C) in paragraph (4), by striking ``under 
                subsection (a)'' and inserting ``under subsection (a) 
                (other than the excess fees determined by the Secretary 
                under paragraph (5))'', and
                    (D) by adding at the end thereof the following new 
                paragraph:
            ``(5) At the close of each of fiscal years 1994, 1995, 
        1996, and 1997, the Secretary of the Treasury shall determine 
        the amount of the fees collected under paragraph (5)(A) of 
        subsection (a) for that fiscal year that exceeds the amount of 
        such fees that would have been collected for such fiscal year 
        if the fees that were in effect on the day before the effective 
        date of this paragraph applied to such fiscal year. The amount 
        of the excess fees determined under the preceding sentence 
        shall be deposited in the Customs User Fee Account and shall be 
        available for reimbursement of inspectional costs (including 
        passenger processing costs) not otherwise reimbursed under this 
        section, and shall be available only to the extent provided in 
        appropriations Acts.'', and
            (4) in paragraph (3) of subsection (j), by striking 
        ``September 30, 1998'' and inserting ``September 30, 2003''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date the Agreement enters into force with respect to the 
United States.

                PART 2--INTERNAL REVENUE CODE AMENDMENTS

SEC. 522. AUTHORITY TO DISCLOSE CERTAIN TAX INFORMATION TO THE UNITED 
              STATES CUSTOMS SERVICE.

    (a) In General.--Subsection (l) of section 6103 of the Internal 
Revenue Code of 1986 (relating to confidentiality and disclosure of 
returns and return information) is amended by adding at the end thereof 
the following new paragraph:
            ``(14) Disclosure of return information to united states 
        customs service.--The Secretary may, upon written request from 
        the Commissioner of the United States Customs Service, disclose 
        to officers and employees of the Department of the Treasury 
        such return information with respect to taxes imposed by 
        chapters 1 and 6 as the Secretary may prescribe by regulations, 
        solely for the purpose of, and only to the extent necessary 
        in--
                    ``(A) ascertaining the correctness of any entry in 
                audits as provided for in section 509 of the Tariff Act 
                of 1930 (19 U.S.C. 1509), or
                    ``(B) other actions to recover any loss of revenue, 
                or to collect duties, taxes, and fees, determined to be 
                due and owing pursuant to such audits.''
    (b) Conforming Amendments.--Paragraphs (3)(A) and (4) of section 
6103(p) of such Code are each amended by striking ``or (13)'' each 
place it appears and inserting ``(13), or (14)''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date the Agreement enters into force with 
        respect to the United States.
            (2) Regulations.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of the Treasury or his 
        delegate shall issue temporary regulations to carry out section 
        6103(l)(14) of the Internal Revenue Code of 1986, as added by 
        this section.

SEC. 523. USE OF ELECTRONIC FUND TRANSFER SYSTEM FOR COLLECTION OF 
              CERTAIN TAXES.

    (a) General Rule.--Section 6302 of the Internal Revenue Code of 
1986 (relating to mode or time of collection) is amended by 
redesignating subsection (h) as subsection (i) and by inserting after 
subsection (g) the following new subsection:
    ``(h) Use of Electronic Fund Transfer System for Collection of 
Certain Taxes.--
            ``(1) Establishment of system.--
                    ``(A) In general.--The Secretary shall prescribe 
                such regulations as may be necessary for the 
                development and implementation of an electronic fund 
                transfer system which is required to be used for the 
                collection of depository taxes. Such system shall be 
                designed in such manner as may be necessary to ensure 
                that such taxes are credited to the general account of 
                the Treasury on the date on which such taxes would 
                otherwise have been required to be deposited under the 
                Federal tax deposit system.
                    ``(B) Exemptions.--The regulations prescribed under 
                subparagraph (A) may contain such exemptions as the 
                Secretary may deem appropriate.
            ``(2) Phase-in requirements.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the regulations referred to in 
                paragraph (1)--
                            ``(i) shall contain appropriate procedures 
                        to assure that an orderly conversion from the 
                        Federal tax deposit system to the electronic 
                        fund transfer system is accomplished, and
                            ``(ii) may provide for a phase-in of such 
                        electronic fund transfer system by classes of 
                        taxpayers based on the aggregate undeposited 
                        taxes of such taxpayers at the close of 
                        specified periods and any other factors the 
                        Secretary may deem appropriate.
                    ``(B) Phase-in requirements.--The phase-in of the 
                electronic fund transfer system shall be designed in 
                such manner as may be necessary to ensure that--
                            ``(i) during each fiscal year beginning 
                        after September 30, 1993, at least the 
                        applicable required percentage of the total 
                        depository taxes imposed by chapters 21, 22, 
                        and 24 shall be collected by means of 
                        electronic fund transfer, and
                            ``(ii) during each fiscal year beginning 
                        after September 30, 1993, at least the 
                        applicable required percentage of the total 
                        other depository taxes shall be collected by 
                        means of electronic fund transfer.
                    ``(C) Applicable required percentage.--
                            ``(i) In the case of the depository taxes 
                        imposed by chapters 21, 22, and 24, the 
                        applicable required percentage is--
                                    ``(I) 3 percent for fiscal year 
                                1994,
                                    ``(II) 16.9 percent for fiscal year 
                                1995,
                                    ``(III) 20.1 percent for fiscal 
                                year 1996,
                                    ``(IV) 58.3 percent for fiscal 
                                years 1997 and 1998, and
                                    ``(V) 94 percent for fiscal year 
                                1999 and all fiscal years thereafter.
                            ``(ii) In the case of other depository 
                        taxes, the applicable required percentage is--
                                    ``(I) 3 percent for fiscal year 
                                1994,
                                    ``(II) 20 percent for fiscal year 
                                1995,
                                    ``(III) 30 percent for fiscal year 
                                1996,
                                    ``(IV) 60 percent for fiscal years 
                                1997 and 1998, and
                                    ``(V) 94 percent for fiscal year 
                                1999 and all fiscal years thereafter.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Depository tax.--The term `depository tax' 
                means any tax if the Secretary is authorized to require 
                deposits of such tax.
                    ``(B) Electronic fund transfer.--The term 
                `electronic fund transfer' means any transfer of funds, 
                other than a transaction originated by check, draft, or 
                similar paper instrument, which is initiated through an 
                electronic terminal, telephonic instrument, or computer 
                or magnetic tape so as to order, instruct, or authorize 
                a financial institution or other financial intermediary 
                to debit or credit an account.
            ``(4) Coordination with other electronic fund transfer 
        requirements.--
                    ``(A) Coordination with certain excise taxes.--In 
                determining whether the requirements of subparagraph 
                (B) of paragraph (2) are met, taxes required to be paid 
                by electronic fund transfer under sections 5061(e) and 
                5703(b) shall be disregarded.
                    ``(B) Additional requirement.--Under regulations, 
                any tax required to be paid by electronic fund transfer 
                under section 5061(e) or 5703(b) shall be paid in such 
                a manner as to ensure that the requirements of the 
                second sentence of paragraph (1)(A) of this subsection 
                are satisfied.''
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date the Agreement enters into force with 
        respect to the United States.
            (2) Regulations.--Not later than 210 days after the date of 
        enactment of this Act, the Secretary of the Treasury or his 
        delegate shall prescribe temporary regulations under section 
        6302(h) of the Internal Revenue Code of 1986 (as added by this 
        section).

      Subtitle D--Implementation of NAFTA Supplemental Agreements

          PART 1--AGREEMENTS RELATING TO LABOR AND ENVIRONMENT

SEC. 531. AGREEMENT ON LABOR COOPERATION.

    (a) Commission for Labor Cooperation.--
            (1) Membership.--The United States is authorized to 
        participate in the Commission for Labor Cooperation in 
        accordance with the North American Agreement on Labor 
        Cooperation.
            (2) Contributions to budget.--There are authorized to be 
        appropriated to the President (or such agency as the President 
        may designate) $2,000,000 for each of fiscal years 1994 and 
        1995 for United States contributions to the annual budget of 
        the Commission for Labor Cooperation pursuant to Article 43 of 
        the North American Agreement on Labor Cooperation. Funds 
        authorized to be appropriated for such contributions by this 
        paragraph are in addition to any funds otherwise available for 
        such contributions. Funds authorized to be appropriated by this 
        paragraph are authorized to be made available until expended.
    (b) Definitions.--As used in this section--
            (1) the term ``Commission for Labor Cooperation'' means the 
        commission established by Part Three of the North American 
        Agreement on Labor Cooperation; and
            (2) the term ``North American Agreement on Labor 
        Cooperation'' means the North American Agreement on Labor 
        Cooperation Between the Government of the United States of 
        America, the Government of Canada, and the Government of the 
        United Mexican States (signed at Mexico City, Washington, and 
        Ottawa on September 8, 9, 12, and 14, 1993).

SEC. 532. AGREEMENT ON ENVIRONMENTAL COOPERATION.

    (a) Commission for Environmental Cooperation.--
            (1) Membership.--The United States is authorized to 
        participate in the Commission for Environmental Cooperation in 
        accordance with the North American Agreement on Environmental 
        Cooperation.
            (2) Contributions to budget.--There are authorized to be 
        appropriated to the President (or such agency as the President 
        may designate) $5,000,000 for each of fiscal years 1994 and 
        1995 for United States contributions to the annual budget of 
        the Commission for Environmental Cooperation pursuant to 
        Article 43 of the North American Agreement on Environmental 
        Cooperation. Funds authorized to be appropriated for such 
        contributions by this paragraph are in addition to any funds 
        otherwise available for such contributions. Funds authorized to 
        be appropriated by this paragraph are authorized to be made 
        available until expended.
    (b) Definitions.--As used in this section--
            (1) the term ``Commission for Environmental Cooperation'' 
        means the commission established by Part Three of the North 
        American Agreement on Environmental Cooperation; and
            (2) the term ``North American Agreement on Environmental 
        Cooperation'' means the North American Agreement on 
        Environmental Cooperation Between the Government of the United 
        States of America, the Government of Canada, and the Government 
        of the United Mexican States (signed at Mexico City, 
        Washington, and Ottawa on September 8, 9, 12, and 14, 1993).

SEC. 533. AGREEMENT ON BORDER ENVIRONMENT COOPERATION COMMISSION.

    (a) Border Environment Cooperation Commission.--
            (1) Membership.--The United States is authorized to 
        participate in the Border Environment Cooperation Commission in 
        accordance with the Border Environment Cooperation Agreement.
            (2) Contributions to the commission budget.--There are 
        authorized to be appropriated to the President (or such agency 
        as the President may designate) $5,000,000 for fiscal year 1994 
        and each fiscal year thereafter for United States contributions 
        to the budget of the Border Environment Cooperation Commission 
        pursuant to section 7 of Article III of Chapter I of the Border 
        Environment Cooperation Agreement. Funds authorized to be 
        appropriated for such contributions by this paragraph are in 
        addition to any funds otherwise available for such 
        contributions. Funds authorized to be appropriated by this 
        paragraph are authorized to be made available until expended.
    (b) Civil Actions Involving the Commission.--For the purpose of any 
civil action which may be brought within the United States by or 
against the Border Environment Cooperation Commission in accordance 
with the Border Environment Cooperation Agreement (including an action 
brought to enforce an arbitral award against the Commission), the 
Commission shall be deemed to be an inhabitant of the Federal judicial 
district in which its principal office within the United States, or its 
agent appointed for the purpose of accepting service or notice of 
service, is located. Any such action to which the Commission is a party 
shall be deemed to arise under the laws of the United States, and the 
district courts of the United States (including the courts enumerated 
in section 460 of title 28, United States Code) shall have original 
jurisdiction of any such action. When the Commission is a defendant in 
any action in a State court, it may at any time before trial remove the 
action into the appropriate district court of the United States by 
following the procedure for removal provided in section 1446 of title 
28, United States Code.
    (c) Definitions.--As used in this section--
            (1) the term ``Border Environment Cooperation Agreement'' 
        means the November 1993 Agreement Between the Government of the 
        United States of America and the Government of the United 
        Mexican States Concerning the Establishment of a Border 
        Environment Cooperation Commission and a North American 
        Development Bank;
            (2) the terms ``Border Environment Cooperation Commission'' 
        and ``Commission'' mean the commission established pursuant to 
        Chapter I of the Border Environment Cooperation Agreement; and
            (3) the term ``United States'' means the United States, its 
        territories and possessions, and the Commonwealth of Puerto 
        Rico.

     PART 2--NORTH AMERICAN DEVELOPMENT BANK AND RELATED PROVISIONS

SEC. 541. NORTH AMERICAN DEVELOPMENT BANK.

    (a) Acceptance of Membership.--The President is hereby authorized 
to accept membership for the United States in the North American 
Development Bank (hereafter in this part referred to as the ``Bank'') 
provided for in Chapter II of the Border Environment Cooperation 
Agreement (hereafter in this part referred to as the ``Cooperation 
Agreement'').
    (b) Subscription of Stock.--
            (1) Subscription authority.--
                    (A) In general.--The Secretary of the Treasury may 
                subscribe on behalf of the United States up to 150,000 
                shares of the capital stock of the Bank.
                    (B) Effectiveness of subscription.--Except as 
                provided in paragraph (3), any such subscription shall 
                be effective only to such extent or in such amounts as 
                are provided in advance in appropriations Acts.
            (2) Limitations on authorization of appropriations.--For 
        payment by the Secretary of the Treasury of the subscription of 
        the United States for shares described in paragraph (1), there 
        are authorized to be appropriated $1,500,000,000 ($225,000,000 
        of which may be used for paid-in capital and $1,275,000,000 of 
        which may be used for callable capital) without fiscal year 
        limitation.
            (3) Funding; limitation on callable capital 
        subscriptions.--
                    (A) Funding.--For fiscal year 1995, the Secretary 
                of the Treasury shall pay to the Bank out of any sums 
                in the Treasury not otherwise appropriated the sum of 
                $56,250,000 for the paid-in portion of the United 
                States share of the capital stock of the Bank, 10 
                percent of which may be transferred by the Bank to the 
                President pursuant to section 543 to pay for the cost 
                of direct and guaranteed Federal loans.
                    (B) Limitation on callable capital subscriptions.--
                For fiscal year 1995, the Secretary of the Treasury 
                shall subscribe to the callable capital portion of the 
                United States share of the capital stock of the Bank in 
                an amount not to exceed $318,750,000.
            (4) Disposition of net income distributed by the 
        facility.--Any payment made to the United States by the Bank as 
        a distribution of net income shall be covered into the Treasury 
        as a miscellaneous receipt.
    (c) Compensation of Board Members.--No person shall be entitled to 
receive any salary or other compensation from the Bank or the United 
States for services as a Board member.
    (d) Applicability of Bretton Woods Agreements Act.--The provisions 
of section 4 of the Bretton Woods Agreements Act shall apply with 
respect to the Bank to the same extent as with respect to the 
International Bank for Reconstruction and Development and the 
International Monetary Fund.
    (e) Restrictions.--Unless authorized by law, neither the President 
nor any person or agency shall, on behalf of the United States--
            (1) subscribe to additional shares of stock of the Bank;
            (2) vote for or agree to any amendment of the Cooperation 
        Agreement which increases the obligations of the United States, 
        or which changes the purpose or functions of the Bank; or
            (3) make a loan or provide other financing to the Bank.
    (f) Federal Reserve Banks as Depositories.--Any Federal Reserve 
bank that is requested to do so by the Bank shall act as its depository 
or as its fiscal agent, and the Board of Governors of the Federal 
Reserve System shall supervise and direct the carrying out of these 
functions by the Federal Reserve banks.
    (g) Jurisdiction of United States Courts and Enforcement of 
Arbitral Awards.--For the purpose of any civil action which may be 
brought within the United States, its territories or possessions, or 
the Commonwealth of Puerto Rico, by or against the Bank in accordance 
with the Cooperation Agreement, including an action brought to enforce 
an arbitral award against the Bank, the Bank shall be deemed to be an 
inhabitant of the Federal judicial district in which its principal 
office within the United States or its agency appointed for the purpose 
of accepting service or notice of service is located, and any such 
action to which the Bank shall be a party shall be deemed to arise 
under the laws of the United States, and the district courts of the 
United States, including the courts enumerated in section 460 of title 
28, United States Code, shall have original jurisdiction of any such 
action. When the Bank is a defendant in any action in a State court, it 
may at any time before trial remove the action into the appropriate 
district court of the United States by following the procedure for 
removal provided in section 1446 of title 28, United States Code.
    (h) Exemption From Securities Laws for Certain Securities Issued by 
the Bank; Reports Required.--
            (1) Exemptions from limitations and restrictions on the 
        power of national banking associations to deal in and 
        underwrite investment securities of the bank.--The seventh 
        sentence of the seventh undesignated paragraph of section 5136 
        of the Revised Statutes of the United States (12 U.S.C. 24), is 
        amended by inserting ``the North American Development Bank,'' 
        after ``Inter-American Development Bank,''.
            (2) Exemption from securities laws for certain securities 
        issued by the bank; reports required.--Any securities issued by 
        the Bank (including any guarantee by the Bank, whether or not 
        limited in scope) in connection with the raising of funds for 
        inclusion in the Bank's capital resources as defined in Section 
        4 of Article II of Chapter II of the Cooperation Agreement, and 
        any securities guaranteed by the Bank as to both the principal 
        and interest to which the commitment in Section 3(d) of Article 
        II of Chapter II of the Cooperation Agreement is expressly 
        applicable, shall be deemed to be exempted securities within 
        the meaning of section 3(a)(2) of the Securities Act of 1933 
        (15 U.S.C. 77c), and section 3(a)(12) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78c). The Bank shall file with 
        the Securities and Exchange Commission such annual and other 
        reports with regard to such securities as the Commission shall 
        determine to be appropriate in view of the special character of 
        the Bank and its operations and necessary in the public 
        interest or for the protection of investors.
            (3) Authority of securities and exchange commission to 
        suspend exemption; reports to the congress.--The Securities and 
        Exchange Commission, acting in consultation with the National 
        Advisory Council on International Monetary and Financial 
        Problems, is authorized to suspend the provisions of paragraph 
        (2) at any time as to any or all securities issued or 
        guaranteed by the Bank during the period of such suspension. 
        The Commission shall include in its annual reports to Congress 
        such information as it shall deem advisable with regard to the 
        operations and effect of this subsection and in connection 
        therewith shall include any views submitted for such purpose by 
        any association of dealers registered with the Commission.

SEC. 542. STATUS, IMMUNITIES, AND PRIVILEGES.

    Article VIII of Chapter II of the Cooperation Agreement shall have 
full force and effect in the United States, its territories and 
possessions, and the Commonwealth of Puerto Rico, upon entry into force 
of the Cooperation Agreement.

SEC. 543. COMMUNITY ADJUSTMENT AND INVESTMENT PROGRAM.

    (a) The President.--(1) The President may enter into an agreement 
with the Bank that facilitates implementation by the President of a 
program for community adjustment and investment in support of the 
Agreement pursuant to chapter II of the Cooperation Agreement 
(hereafter in this section referred to as the ``community adjustment 
and investment program'').
    (2) The President may receive from the Bank 10 percent of the paid-
in capital actually paid to the Bank by the United States for the 
President to carry out, without further appropriations, through Federal 
agencies and their loan and loan guarantee programs, the community 
adjustment and investment program, pursuant to an agreement between the 
President and the Bank.
    (3) The President may select one or more Federal agencies that make 
loans or guarantees the repayment of loans to assist in carrying out 
the community adjustment and investment program, and may transfer the 
funds received from the Bank to such agency or agencies for the purpose 
of assisting in carrying out the community adjustment and investment 
program.
    (4)(A) Each Federal agency selected by the President to assist in 
carrying out the community adjustment and investment program shall use 
the funds transferred to it by the President from the Bank to pay for 
the costs of direct and guaranteed loans, as defined in section 502 of 
the Congressional Budget Act of 1974, and, as appropriate, other costs 
associated with such loans, all subject to the restrictions and 
limitations that apply to such agency's existing loan or loan guarantee 
program.
    (B) Funds transferred to an agency under subparagraph (A) shall be 
in addition to the amount of funds authorized in any appropriations Act 
to be expended by that agency for its loan or loan guarantee program.
    (5) The President shall--
            (A) establish guidelines for the loans and loan guarantees 
        to be made under the community adjustment and investment 
        program;
            (B) endorse the grants made by the Bank for the community 
        adjustment and investment program, as provided in Article I, 
        section 1(b), and Article III, section 11(a), of Chapter II of 
        the Cooperation Agreement; and
            (C) endorse any loans or guarantees made by the Bank for 
        the community adjustment and investment program, as provided in 
        Article I, section 1(b), and Article III, section 6(a) and (c) 
        of Chapter II of the Cooperation Agreement.
    (b) Advisory Committee.--
            (1) Establishment.--The President shall establish an 
        advisory committee to be known as the Community Adjustment and 
        Investment Program Advisory Committee (in this section referred 
        to as the ``Advisory Committee'') in accordance with the 
        provisions of the Federal Advisory Committee Act.
            (2) Membership.--
                    (A) In general.--The Advisory Committee shall 
                consist of 9 members of the public, appointed by the 
                President, who, collectively, represent--
                            (i) community groups whose constituencies 
                        include low-income families;
                            (ii) any scientific, professional, 
                        business, nonprofit, or public interest 
                        organization or association which is neither 
                        affiliated with, nor under the direction of, a 
                        government;
                            (iii) for-profit business interests; and
                            (iv) other appropriate entities with 
                        relevant expertise.
                    (B) Representation.--Each of the categories 
                described in clauses (i) through (iv) of subparagraph 
                (A) shall be represented by no fewer than 1 and no more 
                than 3 members of the Advisory Committee.
            (3) Function.--It shall be the function of the Advisory 
        Committee--
                    (A) to provide advice to the President regarding 
                the implementation of the community adjustment and 
                investment program, including advice on the guidelines 
                to be established by the President for the loans and 
                loan guarantees to be made pursuant to subsection 
                (a)(4), advice on identifying the needs for adjustment 
                assistance and investment in support of the goals and 
                objectives of the Agreement, taking into account 
                economic and geographic considerations, and advice on 
                such other matters as may be requested by the 
                President; and
                    (B) to review on a regular basis the operation of 
                the community adjustment and investment program and 
                provide the President with the conclusions of its 
                review.
            (4) Terms of members.--
                    (A) In general.--Each member of the Advisory 
                Committee shall serve at the pleasure of the President.
                    (B) Chairperson.--The President shall appoint a 
                chairperson from among the members of the Advisory 
                Committee.
                    (C) Meetings.--The Advisory Committee shall meet at 
                least annually and at such other times as requested by 
                the President or the chairperson. A majority of the 
                members of the Advisory Committee shall constitute a 
                quorum.
                    (D) Reimbursement for expenses.--The members of the 
                Advisory Committee may receive reimbursement for 
                travel, per diem, and other necessary expenses incurred 
                in the performance of their duties, in accordance with 
                the Federal Advisory Committee Act.
                    (E) Staff and facilities.--The Advisory Committee 
                may utilize the facilities and services of employees of 
                any Federal agency without cost to the Advisory 
                Committee, and any such agency is authorized to provide 
                services as requested by the Committee.
    (c) Ombudsman.--The President shall appoint an ombudsman to provide 
the public with an opportunity to participate in the carrying out of 
the community adjustment and investment program.
            (1) Function.--It shall be the function of the ombudsman--
                    (A) to establish procedures for receiving comments 
                from the general public on the operation of the 
                community adjustment and investment program, to receive 
                such comments, and to provide the President with 
                summaries of the public comments; and
                    (B) to perform an independent inspection and 
                programmatic audit of the operation of the community 
                adjustment and investment program and to provide the 
                President with the conclusions of its investigation and 
                audit.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to the President, or such agency as the 
        President may designate, $25,000 for fiscal year 1995 and for 
        each fiscal year thereafter, for the costs of the ombudsman.
    (d) Reporting Requirement.--The President shall submit to the 
appropriate congressional committees an annual report on the community 
adjustment and investment program (if any) that is carried out pursuant 
to this section. Each report shall state the amount of the loans made 
or guaranteed during the 12-month period ending on the day before the 
date of the report.

SEC. 544. DEFINITION.

    For purposes of this part, the term ``Border Environment 
Cooperation Agreement'' (referred to in this part as the ``Cooperation 
Agreement'') means the November 1993 Agreement Between the Government 
of the United States of America and the Government of the United 
Mexican States Concerning the Establishment of a Border Environment 
Cooperation Commission and a North American Development Bank.

                    TITLE VI--CUSTOMS MODERNIZATION

SEC. 601. REFERENCE.

    Whenever in subtitle A, B, or C an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a part, section, subsection, 
or other provision, the reference shall be considered to be made a 
part, section, subsection, or other provision of the Tariff Act of 1930 
(19 U.S.C. 1202 et seq.).

            Subtitle A--Improvements in Customs Enforcement

SEC. 611. PENALTIES FOR VIOLATIONS OF ARRIVAL, REPORTING, ENTRY, AND 
              CLEARANCE REQUIREMENTS.

    Section 436 (19 U.S.C. 1436) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``433'' in paragraph (1) and 
                inserting ``431, 433, or 434 of this Act or section 
                4197 of the Revised Statutes of the United States (46 
                U.S.C. App. 91)'',
                    (B) by amending paragraph (2) to read as follows:
            ``(2) to present or transmit, electronically or otherwise, 
        any forged, altered, or false document, paper, information, 
        data or manifest to the Customs Service under section 431(e), 
        433(d), or 434 of this Act or section 4197 of the Revised 
        Statutes of the United States (46 U.S.C. App. 91) without 
        revealing the facts; or'', and
                    (C) by amending paragraph (3) to read as follows:
            ``(3) to fail to make entry or to obtain clearance as 
        required by section 434 or 644 of this Act, section 4197 of the 
        Revised Statutes of the United States (46 U.S.C. App. 91), or 
        section 1109 of the Federal Aviation Act of 1958 (49 U.S.C. 
        App. 1509); or''; and
            (2) by striking out ``and entry'' in the section heading 
        and inserting ``entry, and clearance''.

SEC. 612. FAILURE TO DECLARE.

    Section 497(a) (19 U.S.C. 1497(a)) is amended--
            (1) by inserting ``or transmitted'' after ``made'' in 
        paragraph (1)(A); and
            (2) by amending paragraph (2)(A) to read as follows:
                    ``(A) if the article is a controlled substance, 
                either $500 or an amount equal to 1,000 percent of the 
                value of the article, whichever amount is greater; 
                and''.

SEC. 613. CUSTOMS TESTING LABORATORIES; DETENTION OF MERCHANDISE.

    (a) Amendment.--Section 499 (19 U.S.C. 1499) is amended to read as 
follows:

``SEC. 499. EXAMINATION OF MERCHANDISE.

    ``(a) Entry Examination.--
            ``(1) In general.--Imported merchandise that is required by 
        law or regulation to be inspected, examined, or appraised shall 
        not be delivered from customs custody (except under such bond 
        or other security as may be prescribed by the Secretary to 
        assure compliance with all applicable laws, regulations, and 
        instructions which the Secretary or the Customs Service is 
        authorized to enforce) until the merchandise has been 
        inspected, appraised, or examined and is reported by the 
        Customs Service to have been truly and correctly invoiced and 
        found to comply with the requirements of the laws of the United 
        States.
            ``(2) Examination.--The Customs Service--
                    ``(A) shall designate the packages or quantities of 
                merchandise covered by any invoice or entry which are 
                to be opened and examined for the purpose of 
                appraisement or otherwise;
                    ``(B) shall order such packages or quantities to be 
                sent to such place as is designated by the Secretary by 
                regulation for such purpose;
                    ``(C) may require such additional packages or 
                quantities as the Secretary considers necessary for 
                such purpose; and
                    ``(D) shall inspect a sufficient number of 
                shipments, and shall examine a sufficient number of 
                entries, to ensure compliance with the laws enforced by 
                the Customs Service.
            ``(3) Unspecified articles.--If any package contains any 
        article not specified in the invoice or entry and, in the 
        opinion of the Customs Service, the article was omitted from 
        the invoice or entry--
                    ``(A) with fraudulent intent on the part of the 
                seller, shipper, owner, agent, importer of record, or 
                entry filer, the contents of the entire package in 
                which such article is found shall be subject to 
                seizure; or
                    ``(B) without fraudulent intent, the value of the 
                article shall be added to the entry and the duties, 
                fees, and taxes thereon paid accordingly.
            ``(4) Deficiency.--If a deficiency is found in quantity, 
        weight, or measure in the examination of any package, the 
        person finding the deficiency shall make a report thereof to 
        the Customs Service. The Customs Service shall make allowance 
        for the deficiency in the liquidation of duties.
            ``(5) Information required for release.--If an examination 
        is conducted, any information required for release shall be 
        provided, either electronically or in paper form, to the 
        Customs Service at the port of examination. The absence of such 
        information does not limit the authority of the Customs Service 
        to conduct an examination.
    ``(b) Testing Laboratories.--
            ``(1) Accreditation of private testing laboratories.--The 
        Customs Service shall establish and implement a procedure, 
        under regulations promulgated by the Secretary, for accrediting 
        private laboratories within the United States which may be used 
        to perform tests (that would otherwise be performed by Customs 
        Service laboratories) to establish the characteristics, 
        quantities, or composition of imported merchandise. Such 
        regulations--
                    ``(A) shall establish the conditions required for 
                the laboratories to receive and maintain accreditation 
                for purposes of this subsection;
                    ``(B) shall establish the conditions regarding the 
                suspension and revocation of accreditation, which may 
                include the imposition of a monetary penalty not to 
                exceed $100,000 and such penalty is in addition to the 
                recovery, from a gauger or laboratory accredited under 
                paragraph (1), of any loss of revenue that may have 
                occurred, but the Customs Service--
                            ``(i) may seek to recover lost revenue only 
                        in cases where the gauger or laboratory 
                        intentionally falsified the analysis or gauging 
                        report in collusion with the importer; and
                            ``(ii) shall neither assess penalties nor 
                        seek to recover lost revenue because of a good 
                        faith difference of professional opinion; and
                    ``(C) may provide for the imposition of a 
                reasonable charge for accreditation and periodic 
                reaccreditation.
        The collection of any charge for accreditation and 
        reaccreditation under this section is not prohibited by section 
        13031(e)(6) of the Consolidated Omnibus Budget Reconciliation 
        Act of 1985 (19 U.S.C. 58c(e)(6)).
            ``(2) Appeal of adverse accreditation decisions.--A 
        laboratory applying for accreditation, or that is accredited, 
        under this section may contest any decision or order of the 
        Customs Service denying, suspending, or revoking accreditation, 
        or imposing a monetary penalty, by commencing an action in 
        accordance with chapter 169 of title 28, United States Code, in 
        the Court of International Trade within 60 days after issuance 
        of the decision or order.
            ``(3) Testing by accredited laboratories.--When requested 
        by an importer of record of merchandise, the Customs Service 
        shall authorize the release to the importer of a representative 
        sample of the merchandise for testing, at the expense of the 
        importer, by a laboratory accredited under paragraph (1). The 
        testing results from a laboratory accredited under paragraph 
        (1) that are submitted by an importer of record with respect to 
        merchandise in an entry shall, in the absence of testing 
        results obtained from a Customs Service laboratory, be accepted 
        by the Customs Service if the importer of record certifies that 
        the sample tested was taken from the merchandise in the entry. 
        Nothing in this subsection shall be construed to limit in any 
        way or preclude the authority of the Customs Service to test or 
        analyze any sample or merchandise independently.
            ``(4) Availability of testing procedure, methodologies, and 
        information.--Testing procedures and methodologies used by the 
        Customs Service, and information resulting from any testing 
        conducted by the Customs Service, shall be made available as 
        follows:
                    ``(A) Testing procedures and methodologies shall be 
                made available upon request to any person unless the 
                procedures or methodologies are--
                            ``(i) proprietary to the holder of a 
                        copyright or patent related to such procedures 
                        or methodologies, or
                            ``(ii) developed by the Customs Service for 
                        enforcement purposes.
                    ``(B) Information resulting from testing shall be 
                made available upon request to the importer of record 
                and any agent thereof unless the information reveals 
                information which is--
                            ``(i) proprietary to the holder of a 
                        copyright or patent; or
                            ``(ii) developed by the Customs Service for 
                        enforcement purposes.
            ``(5) Miscellaneous provisions.--For purposes of this 
        subsection--
                    ``(A) any reference to a private laboratory 
                includes a reference to a private gauger; and
                    ``(B) accreditation of private laboratories extends 
                only to the performance of functions by such 
                laboratories that are within the scope of those 
                responsibilities for determinations of the elements 
                relating to admissibility, quantity, composition, or 
                characteristics of imported merchandise that are vested 
                in, or delegated to, the Customs Service.
    ``(c) Detentions.--Except in the case of merchandise with respect 
to which the determination of admissibility is vested in an agency 
other than the Customs Service, the following apply:
            ``(1) In general.--Within the 5-day period (excluding 
        weekends and holidays) following the date on which merchandise 
        is presented for customs examination, the Customs Service shall 
        decide whether to release or detain the merchandise. 
        Merchandise which is not released within such 5-day period 
        shall be considered to be detained merchandise.
            ``(2) Notice of detention.--The Customs Service shall issue 
        a notice to the importer or other party having an interest in 
        detained merchandise no later than 5 days, excluding weekends 
        and holidays, after the decision to detain the merchandise is 
        made. The notice shall advise the importer or other interested 
        party of--
                    ``(A) the initiation of the detention;
                    ``(B) the specific reason for the detention;
                    ``(C) the anticipated length of the detention;
                    ``(D) the nature of the tests or inquiries to be 
                conducted; and
                    ``(E) the nature of any information which, if 
                supplied to the Customs Service, may accelerate the 
                disposition of the detention.
            ``(3) Testing results.--Upon request by the importer or 
        other party having an interest in detained merchandise, the 
        Customs Service shall provide the party with copies of the 
        results of any testing conducted by the Customs Service on the 
        merchandise and a description of the testing procedures and 
        methodologies (unless such procedures or methodologies are 
        proprietary to the holder of a copyright or patent or were 
        developed by the Customs Service for enforcement purposes). The 
        results and test description shall be in sufficient detail to 
        permit the duplication and analysis of the testing and the 
        results.
            ``(4) Seizure and forfeiture.--If otherwise provided by 
        law, detained merchandise may be seized and forfeited.
            ``(5) Effect of failure to make determination.--
                    ``(A) The failure by the Customs Service to make a 
                final determination with respect to the admissibility 
                of detained merchandise within 30 days after the 
                merchandise has been presented for customs examination, 
                or such longer period if specifically authorized by 
                law, shall be treated as a decision of the Customs 
                Service to exclude the merchandise for purposes of 
                section 514(a)(4).
                    ``(B) For purposes of section 1581 of title 28, 
                United States Code, a protest against the decision to 
                exclude the merchandise which has not been allowed or 
                denied in whole or in part before the 30th day after 
                the day on which the protest was filed shall be treated 
                as having been denied on such 30th day.
                    ``(C) Notwithstanding section 2639 of title 28, 
                United States Code, once an action respecting a 
                detention is commenced, unless the Customs Service 
                establishes by a preponderance of the evidence that an 
                admissibility decision has not been reached for good 
                cause, the court shall grant the appropriate relief 
                which may include, but is not limited to, an order to 
                cancel the detention and release the merchandise.''.
    (b) Existing Laboratories.--Accreditation under section 499(b) of 
the Tariff Act of 1930 (as added by subsection (a)) is not required for 
any private laboratory (including any gauger) that was accredited or 
approved by the Customs Service as of the day before the date of the 
enactment of this Act; but any such laboratory is subject to 
reaccreditation under the provisions of such section and the 
regulations promulgated thereunder.

SEC. 614. RECORDKEEPING.

    Section 508 (19 U.S.C. 1508) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Requirements.--Any--
            ``(1) owner, importer, consignee, importer of record, entry 
        filer, or other party who--
                    ``(A) imports merchandise into the customs 
                territory of the United States, files a drawback claim, 
                or transports or stores merchandise carried or held 
                under bond, or
                    ``(B) knowingly causes the importation or 
                transportation or storage of merchandise carried or 
                held under bond into or from the customs territory of 
                the United States;
            ``(2) agent of any party described in paragraph (1); or
            ``(3) person whose activities require the filing of a 
        declaration or entry, or both;
shall make, keep, and render for examination and inspection records 
(which for purposes of this section include, but are not limited to, 
statements, declarations, documents and electronically generated or 
machine readable data) which--
            ``(A) pertain to any such activity, or to the information 
        contained in the records required by this Act in connection 
        with any such activity; and
            ``(B) are normally kept in the ordinary course of 
        business.''; and
            (2) by amending subsection (c) to read as follows:
    ``(c) Period of Time.--The records required by subsections (a) and 
(b) shall be kept for such period of time, not to exceed 5 years from 
the date of entry or exportation, as appropriate, as the Secretary 
shall prescribe; except that records for any drawback claim shall be 
kept until the 3rd anniversary of the date of payment of the claim.''.

SEC. 615. EXAMINATION OF BOOKS AND WITNESSES.

    Section 509 (19 U.S.C. 1509) is amended as follows:
            (1) Subsection (a) is amended--
                    (A) by striking out ``and taxes'' wherever it 
                appears and inserting ``, fees and taxes'';
                    (B) by amending paragraph (1) to read as follows:
            ``(1) examine, or cause to be examined, upon reasonable 
        notice, any record (which for purposes of this section, 
        includes, but is not limited to, any statement, declaration, 
        document, or electronically generated or machine readable data) 
        described in the notice with reasonable specificity, which may 
        be relevant to such investigation or inquiry, except that--
                    ``(A) if such record is required by law or 
                regulation for the entry of the merchandise (whether or 
                not the Customs Service required its presentation at 
                the time of entry) it shall be provided to the Customs 
                Service within a reasonable time after demand for its 
                production is made, taking into consideration the 
                number, type, and age of the item demanded; and
                    ``(B) if a person of whom demand is made under 
                subparagraph (A) fails to comply with the demand, the 
                person may be subject to penalty under subsection 
                (g);'';
                    (C) by amending that part of paragraph (2) that 
                precedes subparagraph (D) to read as follows:
            ``(2) summon, upon reasonable notice--
                    ``(A) the person who--
                            ``(i) imported, or knowingly caused to be 
                        imported, merchandise into the customs 
                        territory of the United States,
                            ``(ii) exported merchandise, or knowingly 
                        caused merchandise to be exported, to Canada,
                            ``(iii) transported or stored merchandise 
                        that was or is carried or held under customs 
                        bond, or knowingly caused such transportation 
                        or storage, or
                            ``(iv) filed a declaration, entry, or 
                        drawback claim with the Customs Service;
                    ``(B) any officer, employee, or agent of any person 
                described in subparagraph (A);
                    ``(C) any person having possession, custody or care 
                of records relating to the importation or other 
                activity described in subparagraph (A); or''; and
                    (D) by striking out the comma at the end of 
                subparagraph (D) and inserting a semicolon.
            (2) Subsections (b) and (c) are redesignated as subsections 
        (c) and (d), respectively.
            (3) The following new subsection is inserted after 
        subsection (a):
    ``(b) Regulatory Audit Procedures.--
            ``(1) In conducting a regulatory audit under this section 
        (which does not include a quantity verification for a customs 
        bonded warehouse or general purpose foreign trade zone), the 
        Customs Service auditor shall provide the person being audited, 
        in advance of the audit, with a reasonable estimate of the time 
        to be required for the audit. If in the course of an audit it 
        becomes apparent that additional time will be required, the 
        Customs Service auditor shall immediately provide a further 
        estimate of such additional time.
            ``(2) Before commencing an audit, the Customs Service 
        auditor shall inform the party to be audited of his right to an 
        entry conference at which time the purpose will be explained 
        and an estimated termination date set. Upon completion of on-
        site audit activities, the Customs Service auditor shall 
        schedule a closing conference to explain the preliminary 
        results of the audit.
            ``(3) Except as provided in paragraph (5), if the estimated 
        or actual termination date for an audit passes without the 
        Customs Service auditor providing a closing conference to 
        explain the results of the audit, the person being audited may 
        petition in writing for such a conference to the appropriate 
        regional commissioner, who, upon receipt of such a request, 
        shall provide for such a conference to be held within 15 days 
        after the date of receipt.
            ``(4) Except as provided in paragraph (5), the Customs 
        Service auditor shall complete the formal written audit report 
        within 90 days following the closing conference unless the 
        appropriate regional commissioner provides written notice to 
        the person being audited of the reason for any delay and the 
        anticipated completion date. After application of any exemption 
        contained in section 552 of title 5, United States Code, a copy 
        of the formal written audit report shall be sent to the person 
        audited no later than 30 days following completion of the 
        report.
            ``(5) Paragraphs (3) and (4) shall not apply after the 
        Customs Service commences a formal investigation with respect 
        to the issue involved.''.
            (4) Subsection (d) (as redesignated by paragraph (2)) is 
        amended--
                    (A) by striking out ``statements, declarations, or 
                documents'' in paragraph (1)(A) and inserting 
                ``those'';
                    (B) by inserting ``, unless such customhouse broker 
                is the importer of record on an entry'' after 
                ``broker'' in paragraph (1)(C)(i);
                    (C) by striking out ``import'' in each of 
                paragraphs (2)(B) and (4)(B);
                    (D) by inserting ``described in section 508'' after 
                ``transactions'' in each of paragraphs (2)(B) and 
                (4)(B); and
                    (E) by inserting ``, fees,'' after ``duties'' in 
                paragraph (4)(A).
            (5) The following new subsections are added at the end 
        thereof:
    ``(e) List of Records and Information.--The Customs Service shall 
identify and publish a list of the records or entry information that is 
required to be maintained and produced under subsection (a)(1)(A).
    ``(f) Recordkeeping Compliance Program.--
            ``(1) In general.--After consultation with the importing 
        community, the Customs Service shall by regulation establish a 
        recordkeeping compliance program which the parties listed in 
        section 508(a) may participate in after being certified by the 
        Customs Service under paragraph (2). Participation in the 
        recordkeeping compliance program by recordkeepers is voluntary.
            ``(2) Certification.--A recordkeeper may be certified as a 
        participant in the recordkeeping compliance program after 
        meeting the general recordkeeping requirements established 
        under the program or after negotiating an alternative program 
        suited to the needs of the recordkeeper and the Customs 
        Service. Certification requirements shall take into account the 
        size and nature of the importing business and the volume of 
        imports. In order to be certified, the recordkeeper must be 
        able to demonstrate that it--
                    ``(A) understands the legal requirements for 
                recordkeeping, including the nature of the records 
                required to be maintained and produced and the time 
                periods involved;
                    ``(B) has in place procedures to explain the 
                recordkeeping requirements to those employees who are 
                involved in the preparation, maintenance, and 
                production of required records;
                    ``(C) has in place procedures regarding the 
                preparation and maintenance of required records, and 
                the production of such records to the Customs Service;
                    ``(D) has designated a dependable individual or 
                individuals to be responsible for recordkeeping 
                compliance under the program and whose duties include 
                maintaining familiarity with the recordkeeping 
                requirements of the Customs Service;
                    ``(E) has a record maintenance procedure approved 
                by the Customs Service for original records, or, if 
                approved by the Customs Service, for alternative 
                records or recordkeeping formats other than the 
                original records; and
                    ``(F) has procedures for notifying the Customs 
                Service of occurrences of variances to, and violations 
                of, the requirements of the recordkeeping compliance 
                program or the negotiated alternative programs, and for 
                taking corrective action when notified by the Customs 
                Service of violations or problems regarding such 
                program.
    ``(g) Penalties.--
            ``(1) Definition.--For purposes of this subsection, the 
        term `information' means any record, statement, declaration, 
        document, or electronically stored or transmitted information 
        or data referred to in subsection (a)(1)(A).
            ``(2) Effects of failure to comply with demand.--Except as 
        provided in paragraph (4), if a person fails to comply with a 
        lawful demand for information under subsection (a)(1)(A) the 
        following provisions apply:
                    ``(A) If the failure to comply is a result of the 
                willful failure of the person to maintain, store, or 
                retrieve the demanded information, such person shall be 
                subject to a penalty, for each release of merchandise, 
                not to exceed $100,000, or an amount equal to 75 
                percent of the appraised value of the merchandise, 
                whichever amount is less.
                    ``(B) If the failure to comply is a result of the 
                negligence of the person in maintaining, storing, or 
                retrieving the demanded information, such person shall 
                be subject to a penalty, for each release of 
                merchandise, not to exceed $10,000, or an amount equal 
                to 40 percent of the appraised value of the 
                merchandise, whichever amount is less.
                    ``(C) In addition to any penalty imposed under 
                subparagraph (A) or (B) regarding demanded information, 
                if such information related to the eligibility of 
                merchandise for a column 1 special rate of duty under 
                title I, the entry of such merchandise--
                            ``(i) if unliquidated, shall be liquidated 
                        at the applicable column 1 general rate of 
                        duty; or
                            ``(ii) if liquidated within the 2-year 
                        period preceding the date of the demand, shall 
                        be reliquidated, notwithstanding the time 
                        limitation in section 514 or 520, at the 
                        applicable column 1 general rate of duty;
                except that any liquidation or reliquidation under 
                clause (i) or (ii) shall be at the applicable column 2 
                rate of duty if the Customs Service demonstrates that 
                the merchandise should be dutiable at such rate.
            ``(3) Avoidance of penalty.--No penalty may be assessed 
        under this subsection if the person can show--
                    ``(A) that the loss of the demanded information was 
                the result of an act of God or other natural casualty 
                or disaster beyond the fault of such person or an agent 
                of the person;
                    ``(B) on the basis of other evidence satisfactory 
                to the Customs Service, that the demand was 
                substantially complied with; or
                    ``(C) the information demanded was presented to and 
                retained by the Customs Service at the time of entry or 
                submitted in response to an earlier demand.
            ``(4) Penalties not exclusive.--Any penalty imposed under 
        this subsection shall be in addition to any other penalty 
        provided by law except for--
                    ``(A) a penalty imposed under section 592 for a 
                material omission of the demanded information, or
                    ``(B) disciplinary action taken under section 641.
            ``(5) Remission or mitigation.--A penalty imposed under 
        this section may be remitted or mitigated under section 618.
            ``(6) Customs summons.--Nothing in this subsection shall 
        limit or preclude the Customs Service from issuing, or seeking 
        the enforcement of, a customs summons.
            ``(7) Alternatives to penalties.--
                    ``(A) In general.--When a recordkeeper who--
                            ``(i) has been certified as a participant 
                        in the recordkeeping compliance program under 
                        subsection (f); and
                            ``(ii) is generally in compliance with the 
                        appropriate procedures and requirements of the 
                        program;
                does not produce a demanded record or information for a 
                specific release or provide the information by 
                acceptable alternative means, the Customs Service, in 
                the absence of willfulness or repeated violations, 
                shall issue a written notice of the violation to the 
                recordkeeper in lieu of a monetary penalty. Repeated 
                violations by the recordkeeper may result in the 
                issuance of penalties and removal of certification 
                under the program until corrective action, satisfactory 
                to the Customs Service, is taken.
                    ``(B) Contents of notice.--A notice of violation 
                issued under subparagraph (A) shall--
                            ``(i) state that the recordkeeper has 
                        violated the recordkeeping requirements;
                            ``(ii) indicate the record or information 
                        which was demanded; and
                            ``(iii) warn the recordkeeper that future 
                        failures to produce demanded records or 
                        information may result in the imposition of 
                        monetary penalties.
                    ``(C) Response to notice.--Within a reasonable time 
                after receiving written notice under subparagraph (A), 
                the recordkeeper shall notify the Customs Service of 
                the steps it has taken to prevent a recurrence of the 
                violation.
                    ``(D) Regulations.--The Secretary shall promulgate 
                regulations to implement this paragraph. Such 
                regulations may specify the time periods for compliance 
                with a demand for information and provide guidelines 
                which define repeated violations for purposes of this 
                paragraph. Any penalty issued for a recordkeeping 
                violation shall take into account the degree of 
                compliance compared to the total number of 
                importations, the nature of the demanded records and 
                the recordkeeper's cooperation.''.

SEC. 616. JUDICIAL ENFORCEMENT.

    The second sentence of section 510(a) (19 U.S.C. 1510(a)) is 
amended by inserting ``and such court may assess a monetary penalty'' 
after ``as a contempt thereof''.

SEC. 617. REVIEW OF PROTESTS.

    Section 515 (19 U.S.C. 1515) is amended by inserting at the end the 
following new subsections:
    ``(c) If a protesting party believes that an application for 
further review was erroneously or improperly denied or was denied 
without authority for such action, it may file with the Commissioner of 
Customs a written request that the denial of the application for 
further review be set aside. Such request must be filed within 60 days 
after the date of the notice of the denial. The Commissioner of Customs 
may review such request and, based solely on the information before the 
Customs Service at the time the application for further review was 
denied, may set aside the denial of the application for further review 
and void the denial of protest, if appropriate. If the Commissioner of 
Customs fails to act within 60 days after the date of the request, the 
request shall be considered denied. All denials of protests are 
effective from the date of original denial for purposes of section 2636 
of title 28, United States Code. If an action is commenced in the Court 
of International Trade that arises out of a protest or an application 
for further review, all administrative action pertaining to such 
protest or application shall terminate and any administrative action 
taken subsequent to the commencement of the action is null and void.
    ``(d) If a protest is timely and properly filed, but is denied 
contrary to proper instructions, the Customs Service may on its own 
initiative, or pursuant to a written request by the protesting party 
filed with the appropriate district director within 90 days after the 
date of the protest denial, void the denial of the protest.''.

SEC. 618. REPEAL OF PROVISION RELATING TO RELIQUIDATION ON ACCOUNT OF 
              FRAUD.

    Section 521 (19 U.S.C. 1521) is repealed.

SEC. 619. PENALTIES RELATING TO MANIFESTS.

    Section 584 (19 U.S.C. 1584) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``appropriate customs officer'' 
                wherever it appears and inserting ``Customs Service'',
                    (B) by striking out ``officer demanding the same'' 
                in paragraph (1) and inserting ``officer (whether of 
                the Customs Service or the Coast Guard) demanding the 
                same'', and
                    (C) by inserting ``(electronically or otherwise)'' 
                after ``submission'' in the last sentence of paragraph 
                (1); and
            (2) by amending subsection (b)--
                    (A) by striking out ``the appropriate customs 
                officer'', ``he'' (except in paragraph (1)(F)), and 
                ``such officer'' wherever they appear and inserting 
                ``the Customs Service'',
                    (B) by striking out ``written'' wherever it appears 
                (other than paragraph (1)(F)),
                    (C) by inserting ``or electronically transmit'' 
                after ``issue'' wherever it appears, and
                    (D) by striking out ``his intention'' in the first 
                sentence of paragraph (1) and inserting ``intent''.

SEC. 620. UNLAWFUL UNLADING OR TRANSSHIPMENT.

    Section 586 (19 U.S.C. 1586) is amended--
            (1) by inserting ``, or of a hovering vessel which has 
        received or delivered merchandise while outside the territorial 
        sea,'' after ``from a foreign port or place'' wherever it 
        appears; and
            (2) by amending subsection (f)--
                    (A) by striking out ``the appropriate customs 
                officer of the'' and ``the appropriate customs officer 
                within the'' and inserting ``the Customs Service at 
                the''; and
                    (B) by striking out ``the appropriate customs 
                officer is'' and inserting ``the Customs Service is''.

SEC. 621. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEGLIGENCE; PRIOR 
              DISCLOSURE.

    Section 592 (19 U.S.C. 1592) is amended--
            (1) by inserting ``or electronically transmitted data or 
        information'' after ``document'' in subsection (a)(1)(A)(i);
            (2) by inserting ``The mere nonintentional repetition by an 
        electronic system of an initial clerical error does not 
        constitute a pattern of negligent conduct.'' at the end of 
        subsection (a)(2);
            (3) by amending subsection (b)--
                    (A) by amending the first sentence of paragraph 
                (1)(A)--
                            (i) by striking out ``the appropriate 
                        customs officer'' and inserting ``the Customs 
                        Service'',
                            (ii) by striking out ``he'' and inserting 
                        ``it'', and
                            (iii) by striking out ``his'' and inserting 
                        ``its'', and
                    (B) by amending paragraph (2)--
                            (i) by striking out ``the appropriate 
                        customs officer'' wherever it appears and 
                        inserting ``the Customs Service'',
                            (ii) by striking out ``such officer'' 
                        wherever it appears and inserting ``the Customs 
                        Service'', and
                            (iii) by striking out ``he'' wherever it 
                        appears and inserting ``it'';
            (4) by amending subsection (c)(4)--
                    (A) by striking ``time of disclosure or within 
                thirty days, or such longer period as the appropriate 
                customs officer may provide, after notice by the 
                appropriate customs officer of his'' in subparagraph 
                (A)(i) and by striking out ``time of disclosure in 30 
                days, or such longer period as the appropriate customs 
                officer may provide, after notice by the appropriate 
                customs officer of his'' in subparagraph (B), and 
                inserting in each place ``time of disclosure, or within 
                30 days (or such longer period as the Customs Service 
                may provide) after notice by the Customs Service of 
                its''; and
                    (B) by inserting after the last sentence the 
                following: ``For purposes of this section, a formal 
                investigation of a violation is considered to be 
                commenced with regard to the disclosing party and the 
                disclosed information on the date recorded in writing 
                by the Customs Service as the date on which facts and 
                circumstances were discovered or information was 
                received which caused the Customs Service to believe 
                that a possibility of a violation of subsection (a) 
                existed.''; and
            (5) by amending subsection (d)--
                    (A) by striking out ``the appropriate customs 
                officer'' and inserting ``the Customs Service'',
                    (B) by striking out ``duties'' wherever it appears 
                and inserting ``duties, taxes, or fees'', and
                    (C) by inserting ``, Taxes or Fees'' after 
                ``Duties'' in the sideheading.

SEC. 622. PENALTIES FOR FALSE DRAWBACK CLAIMS.

    (a) Amendment.--Part V of title IV is amended by inserting after 
section 593 the following new section:

``SEC. 593A. PENALTIES FOR FALSE DRAWBACK CLAIMS.

    ``(a) Prohibition.--
            ``(1) General rule.--No person, by fraud, or negligence--
                    ``(A) may seek, induce or affect, or attempt to 
                seek, induce, or affect, the payment or credit to that 
                person or others of any drawback claim by means of--
                            ``(i) any document, written or oral 
                        statement, or electronically transmitted data 
                        or information, or act which is material and 
                        false, or
                            ``(ii) any omission which is material; or
                    ``(B) may aid or abet any other person to violate 
                subparagraph (A).
            ``(2) Exception.--Clerical errors or mistakes of fact are 
        not violations of paragraph (1) unless they are part of a 
        pattern of negligent conduct. The mere nonintentional 
        repetition by an electronic system of an initial clerical error 
        does not constitute a pattern of negligent conduct.
    ``(b) Procedures.--
            ``(1) Prepenalty notice.--
                    ``(A) In general.--If the Customs Service has 
                reasonable cause to believe that there has been a 
                violation of subsection (a) and determines that further 
                proceedings are warranted, the Customs Service shall 
                issue to the person concerned a written notice of 
                intent to issue a claim for a monetary penalty. Such 
                notice shall--
                            ``(i) identify the drawback claim;
                            ``(ii) set forth the details relating to 
                        the seeking, inducing, or affecting, or the 
                        attempted seeking, inducing, or affecting, or 
                        the aiding or procuring of, the drawback claim;
                            ``(iii) specify all laws and regulations 
                        allegedly violated;
                            ``(iv) disclose all the material facts 
                        which establish the alleged violation;
                            ``(v) state whether the alleged violation 
                        occurred as a result of fraud or negligence;
                            ``(vi) state the estimated actual or 
                        potential loss of revenue due to the drawback 
                        claim, and, taking into account all 
                        circumstances, the amount of the proposed 
                        monetary penalty; and
                            ``(vii) inform such person that he shall 
                        have a reasonable opportunity to make 
                        representations, both oral and written, as to 
                        why a claim for a monetary penalty should not 
                        be issued in the amount stated.
                    ``(B) Exceptions.--The Customs Service may not 
                issue a prepenalty notice if the amount of the penalty 
                in the penalty claim issued under paragraph (2) is 
                $1,000 or less. In such cases, the Customs Service may 
                proceed directly with a penalty claim.
                    ``(C) Prior approval.--No prepenalty notice in 
                which the alleged violation occurred as a result of 
                fraud shall be issued without the prior approval of 
                Customs Headquarters.
            ``(2) Penalty claim.--After considering representations, if 
        any, made by the person concerned pursuant to the notice issued 
        under paragraph (1), the Customs Service shall determine 
        whether any violation of subsection (a), as alleged in the 
        notice, has occurred. If the Customs Service determines that 
        there was no violation, the Customs Service shall promptly 
        issue a written statement of the determination to the person to 
        whom the notice was sent. If the Customs Service determines 
        that there was a violation, Customs shall issue a written 
        penalty claim to such person. The written penalty claim shall 
        specify all changes in the information provided under clauses 
        (i) through (vii) of paragraph (1)(A). Such person shall have a 
        reasonable opportunity under section 618 to make 
        representations, both oral and written, seeking remission or 
        mitigation of the monetary penalty. At the conclusion of any 
        proceeding under section 618, the Customs Service shall provide 
        to the person concerned a written statement which sets forth 
        the final determination, and the findings of fact and 
        conclusions of law on which such determination is based.
    ``(c) Maximum Penalties.--
            ``(1) Fraud.--A fraudulent violation of subsection (a) of 
        this section is punishable by a civil penalty in an amount not 
        to exceed 3 times the actual or potential loss of revenue.
            ``(2) Negligence.--
                    ``(A) In general.--A negligent violation of 
                subsection (a) is punishable by a civil penalty in an 
                amount not to exceed 20 percent of the actual or 
                potential loss of revenue for the 1st violation.
                    ``(B) Repetitive violations.--If the Customs 
                Service determines that a repeat negligent violation 
                occurs relating to the same issue, the penalty amount 
                for the 2d violation shall be in an amount not to 
                exceed 50 percent of the total actual or potential loss 
                of revenue. The penalty amount for each succeeding 
                repetitive negligent violation shall be in an amount 
                not to exceed the actual or potential loss of revenue. 
                If the same party commits a nonrepetitive violation, 
                that violation shall be subject to a penalty not to 
                exceed 20 percent of the actual or potential loss of 
                revenue.
            ``(3) Prior disclosure.--
                    ``(A) In general.--Subject to subparagraph (B), if 
                the person concerned discloses the circumstances of a 
                violation of subsection (a) before, or without 
                knowledge of the commencement of, a formal 
                investigation of such violation, the monetary penalty 
                assessed under this subsection may not exceed--
                            ``(i) if the violation resulted from fraud, 
                        an amount equal to the actual or potential 
                        revenue of which the United States is or may be 
                        deprived as a result of overpayment of the 
                        claim; or
                            ``(ii) if the violation resulted from 
                        negligence, an amount equal to the interest 
                        computed on the basis of the prevailing rate of 
                        interest applied under section 6621 of the 
                        Internal Revenue Code of 1986 on the amount of 
                        actual revenue of which the United States is or 
                        may be deprived during the period that--
                                    ``(I) begins on the date of the 
                                overpayment of the claim; and
                                    ``(II) ends on the date on which 
                                the person concerned tenders the amount 
                                of the overpayment.
                    ``(B) Condition affecting penalty limitations.--The 
                limitations in subparagraph (A) on the amount of the 
                monetary penalty to be assessed under subsection (c) 
                apply only if the person concerned tenders the amount 
                of the overpayment made on the claim at the time of 
                disclosure, or within 30 days (or such longer period as 
                the Customs Service may provide), after notice by the 
                Customs Service of its calculation of the amount of the 
                overpayment.
                    ``(C) Burden of proof.--The person asserting lack 
                of knowledge of the commencement of a formal 
                investigation has the burden of proof in establishing 
                such lack of knowledge.
            ``(4) Commencement of investigation.--For purposes of this 
        section, a formal investigation of a violation is considered to 
        be commenced with regard to the disclosing party and the 
        disclosed information on the date recorded in writing by the 
        Customs Service as the date on which facts and circumstances 
        were discovered or information was received which caused the 
        Customs Service to believe that a possibility of a violation of 
        subsection (a) existed.
            ``(5) Exclusivity.--Penalty claims under this section shall 
        be the exclusive civil remedy for any drawback related 
        violation of subsection (a).
    ``(d) Deprivation of Lawful Revenue.--Notwithstanding section 514, 
if the United States has been deprived of lawful duties and taxes 
resulting from a violation of subsection (a), the Customs Service shall 
require that such duties and taxes be restored whether or not a 
monetary penalty is assessed.
    ``(e) Drawback Compliance Program.--
            ``(1) In general.--After consultation with the drawback 
        trade community, the Customs Service shall establish a drawback 
        compliance program in which claimants and other parties in 
        interest may participate after being certified by the Customs 
        Service under paragraph (2). Participation in the drawback 
        compliance program is voluntary.
            ``(2) Certification.--A party may be certified as a 
        participant in the drawback compliance program after meeting 
        the general requirements established under the program or after 
        negotiating an alternative program suited to the needs of the 
        party and the Customs Service. Certification requirements shall 
        take into account the size and nature of the party's drawback 
        program and the volume of claims. In order to be certified, the 
        participant must be able to demonstrate that it--
                    ``(A) understands the legal requirements for filing 
                claims, including the nature of the records required to 
                be maintained and produced and the time periods 
                involved;
                    ``(B) has in place procedures to explain the 
                Customs Service requirements to those employees that 
                are involved in the preparation of claims, and the 
                maintenance and production of required records;
                    ``(C) has in place procedures regarding the 
                preparation of claims and maintenance of required 
                records, and the production of such records to the 
                Customs Service;
                    ``(D) has designated a dependable individual or 
                individuals to be responsible for compliance under the 
                program and whose duties include maintaining 
                familiarity with the drawback requirements of the 
                Customs Service;
                    ``(E) has a record maintenance procedure approved 
                by the Customs Service for original records, or, if 
                approved by the Customs Service, for alternate records 
                or recordkeeping formats other than the original 
                records; and
                    ``(F) has procedures for notifying the Customs 
                Service of variances to, and violations of, the 
                requirements of the drawback compliance program or any 
                negotiated alternative programs, and for taking 
                corrective action when notified by the Customs Service 
                for violations or problems regarding such program.
    ``(f) Alternatives to Penalties.--
            ``(1) In general.--When a party that--
                    ``(A) has been certified as a participant in the 
                drawback compliance program under subsection (e); and
                    ``(B) is generally in compliance with the 
                appropriate procedures and requirements of the program;
        commits a violation of subsection (a), the Customs Service, 
        shall, in the absence of fraud or repeated violations, and in 
        lieu of a monetary penalty, issue a written notice of the 
        violation to the party. Repeated violations by a party may 
        result in the issuance of penalties and removal of 
        certification under the program until corrective action, 
        satisfactory to the Customs Service, is taken.
            ``(2) Contents of notice.--A notice of violation issued 
        under paragraph (1) shall--
                    ``(A) state that the party has violated subsection 
                (a);
                    ``(B) explain the nature of the violation; and
                    ``(C) warn the party that future violations of 
                subsection (a) may result in the imposition of monetary 
                penalties.
            ``(3) Response to notice.--Within a reasonable time after 
        receiving written notice under paragraph (1), the party shall 
        notify the Customs Service of the steps it has taken to prevent 
        a recurrence of the violation.
    ``(g) Repetitive Violations.--
            ``(1) A party who has been issued a written notice under 
        subsection (f)(1) and subsequently commits a repeat negligent 
        violation involving the same issue is subject to the following 
        monetary penalties:
                    ``(A) 2d violation.--An amount not to exceed 20 
                percent of the loss of revenue.
                    ``(B) 3rd violation.--An amount not to exceed 50 
                percent of the loss of revenue.
                    ``(C) 4th and subsequent violations.--An amount not 
                to exceed 100 percent of the loss of revenue.
            ``(2) If a party that has been certified as a participant 
        in the drawback compliance program under subsection (e) commits 
        an alleged violation which was not repetitive, the party shall 
        be issued a `warning letter', and, for any subsequent 
        violation, shall be subject to the same maximum penalty amounts 
        stated in paragraph (1).
    ``(h) Regulation.--The Secretary shall promulgate regulations and 
guidelines to implement this section. Such regulations shall specify 
that for purposes of subsection (g), a repeat negligent violation 
involving the same issue shall be treated as a repetitive violation for 
a maximum period of 3 years.
    ``(i) Court of International Trade Proceedings.--Notwithstanding 
any other provision of law, in any proceeding commenced by the United 
States in the Court of International Trade for the recovery of any 
monetary penalty claimed under this section--
            ``(1) all issues, including the amount of the penalty, 
        shall be tried de novo;
            ``(2) if the monetary penalty is based on fraud, the United 
        States shall have the burden of proof to establish the alleged 
        violation by clear and convincing evidence; and
            ``(3) if the monetary penalty is based on negligence, the 
        United States shall have the burden of proof to establish the 
        act or omission constituting the violation, and the alleged 
        violator shall have the burden of providing evidence that the 
        act or omission did not occur as a result of negligence.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
to drawback claims filed on and after the nationwide operational 
implementation of an automated drawback selectivity program by the 
Customs Service. The Customs Service shall publish notice of this date 
in the Customs Bulletin.

SEC. 623. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC INFORMATION.

    Section 625 (19 U.S.C. 1625) is amended to read as follows:

``SEC. 625. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC INFORMATION.

    ``(a) Publication.--Within 90 days after the date of issuance of 
any interpretive ruling (including any ruling letter, or internal 
advice memorandum) or protest review decision under this chapter with 
respect to any customs transaction, the Secretary shall have such 
ruling or decision published in the Customs Bulletin or shall otherwise 
make such ruling or decision available for public inspection.
    ``(b) Appeals.--A person may appeal an adverse interpretive ruling 
and any interpretation of any regulation prescribed to implement such 
ruling to a higher level of authority within the Customs Service for de 
novo review. Upon a reasonable showing of business necessity, any such 
appeal shall be considered and decided no later than 60 days following 
the date on which the appeal is filed. The Secretary shall issue 
regulations to implement this subsection.
    ``(c) Modification and Revocation.--A proposed interpretive ruling 
or decision which would--
            ``(1) modify (other than to correct a clerical error) or 
        revoke a prior interpretive ruling or decision which has been 
        in effect for at least 60 days; or
            ``(2) have the effect of modifying the treatment previously 
        accorded by the Customs Service to substantially identical 
        transactions;
shall be published in the Customs Bulletin. The Secretary shall give 
interested parties an opportunity to submit, during not less than the 
30-day period after the date of such publication, comments on the 
correctness of the proposed ruling or decision. After consideration of 
any comments received, the Secretary shall publish a final ruling or 
decision in the Customs Bulletin within 30 days after the closing of 
the comment period. The final ruling or decision shall become effective 
60 days after the date of its publication.
    ``(d) Publication of Customs Decisions That Limit Court 
Decisions.--A decision that proposes to limit the application of a 
court decision shall be published in the Customs Bulletin together with 
notice of opportunity for public comment thereon prior to a final 
decision.
    ``(e) Public Information.--The Secretary may make available in 
writing or through electronic media, in an efficient, comprehensive and 
timely manner, all information, including directives, memoranda, 
electronic messages and telexes which contain instructions, 
requirements, methods or advice necessary for importers and exporters 
to comply with the Customs laws and regulations. All information which 
may be made available pursuant to this subsection shall be subject to 
any exemption from disclosure provided by section 552 of title 5, 
United States Code.''.

SEC. 624. SEIZURE AUTHORITY.

    Section 596(c) (19 U.S.C. 1595a(c)) is amended to read as follows:
    ``(c) Merchandise which is introduced or attempted to be introduced 
into the United States contrary to law shall be treated as follows:
            ``(1) The merchandise shall be seized and forfeited if it--
                    ``(A) is stolen, smuggled, or clandestinely 
                imported or introduced;
                    ``(B) is a controlled substance, as defined in the 
                Controlled Substances Act (21 U.S.C. 801 et seq.), and 
                is not imported in accordance with applicable law; or
                    ``(C) is a contraband article, as defined in 
                section 1 of the Act of August 9, 1939 (49 U.S.C. App. 
                781).
            ``(2) The merchandise may be seized and forfeited if--
                    ``(A) its importation or entry is subject to any 
                restriction or prohibition which is imposed by law 
                relating to health, safety, or conservation and the 
                merchandise is not in compliance with the applicable 
                rule, regulation, or statute;
                    ``(B) its importation or entry requires a license, 
                permit or other authorization of an agency of the 
                United States Government and the merchandise is not 
                accompanied by such license, permit, or authorization;
                    ``(C) it is merchandise or packaging in which 
                copyright, trademark, or trade name protection 
                violations are involved (including, but not limited to, 
                violations of section 42, 43, or 45 of the Act of July 
                5, 1946 (15 U.S.C. 1124, 1125, or 1127), section 506 or 
                509 of title 17, United States Code, or section 2318 or 
                2320 of title 18, United States Code);
                    ``(D) it is trade dress merchandise involved in the 
                violation of a court order citing section 43 of such 
                Act of July 5, 1946 (15 U.S.C. 1125);
                    ``(E) it is merchandise which is marked 
                intentionally in violation of section 304; or
                    ``(F) it is merchandise for which the importer has 
                received written notices that previous importations of 
                identical merchandise from the same supplier were found 
                to have been marked in violation of section 304.
            ``(3) If the importation or entry of the merchandise is 
        subject to quantitative restrictions requiring a visa, permit, 
        license, or other similar document, or stamp from the United 
        States Government or from a foreign government or issuing 
        authority pursuant to a bilateral or multilateral agreement, 
        the merchandise shall be subject to detention in accordance 
        with section 499 unless the appropriate visa, license, permit, 
        or similar document or stamp is presented to the Customs 
        Service; but if the visa, permit, license, or similar document 
        or stamp which is presented in connection with the importation 
        or entry of the merchandise is counterfeit, the merchandise may 
        be seized and forfeited.
            ``(4) If the merchandise is imported or introduced contrary 
        to a provision of law which governs the classification or value 
        of merchandise and there are no issues as to the admissibility 
        of the merchandise into the United States, it shall not be 
        seized except in accordance with section 592.
            ``(5) In any case where the seizure and forfeiture of 
        merchandise are required or authorized by this section, the 
        Secretary may--
                    ``(A) remit the forfeiture under section 618, or
                    ``(B) permit the exportation of the merchandise, 
                unless its release would adversely affect health, 
                safety, or conservation or be in contravention of a 
                bilateral or multilateral agreement or treaty.''.

            Subtitle B--National Customs Automation Program

SEC. 631. NATIONAL CUSTOMS AUTOMATION PROGRAM.

    Part I of title IV is amended--
            (1) by striking out

                         ``PART I--DEFINITIONS

        and inserting

     ``PART I--DEFINITIONS AND NATIONAL CUSTOMS AUTOMATION PROGRAM

                      ``Subpart A--Definitions'';

        and
            (2) by inserting after section 402 the following:

            ``Subpart B--National Customs Automation Program

``SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.

    ``(a) Establishment.--The Secretary shall establish the National 
Customs Automation Program (hereinafter in this subpart referred to as 
the `Program') which shall be an automated and electronic system for 
processing commercial importations and shall include the following 
existing and planned components:
            ``(1) Existing components:
                    ``(A) The electronic entry of merchandise.
                    ``(B) The electronic entry summary of required 
                information.
                    ``(C) The electronic transmission of invoice 
                information.
                    ``(D) The electronic transmission of manifest 
                information.
                    ``(E) Electronic payments of duties, fees, and 
                taxes.
                    ``(F) The electronic status of liquidation and 
                reliquidation.
                    ``(G) The electronic selection of high risk entries 
                for examination (cargo selectivity and entry summary 
                selectivity).
            ``(2) Planned components:
                    ``(A) The electronic filing and status of protests.
                    ``(B) The electronic filing (including remote 
                filing under section 414) of entry information with the 
                Customs Service at any location.
                    ``(C) The electronic filing of import activity 
                summary statements and reconciliation.
                    ``(D) The electronic filing of bonds.
                    ``(E) The electronic penalty process.
                    ``(F) The electronic filing of drawback claims, 
                records, or entries.
                    ``(G) Any other component initiated by the Customs 
                Service to carry out the goals of this subpart.
    ``(b) Participation in Program.--The Secretary shall by regulation 
prescribe the eligibility criteria for participation in the Program. 
Participation in the Program is voluntary.

``SEC. 412. PROGRAM GOALS.

    ``The goals of the Program are to ensure that all regulations and 
rulings that are administered or enforced by the Customs Service are 
administered and enforced in a manner that--
            ``(1) is uniform and consistent;
            ``(2) is as minimally intrusive upon the normal flow of 
        business activity as practicable; and
            ``(3) improves compliance.

``SEC. 413. IMPLEMENTATION AND EVALUATION OF PROGRAM.

    ``(a) Overall Program Plan.--
            ``(1) In general.--Before the 180th day after the date of 
        the enactment of this Act, the Secretary shall develop and 
        transmit to the Committees an overall plan for the Program. The 
        overall Program plan shall set forth--
                    ``(A) a general description of the ultimate 
                configuration of the Program;
                    ``(B) a description of each of the existing 
                components of the Program listed in section 411(a)(1); 
                and
                    ``(C) estimates regarding the stages on which 
                planned components of the Program listed in section 
                411(a)(2) will be brought on-line.
            ``(2) Additional information.--In addition to the 
        information required under paragraph (1), the overall Program 
        plan shall include a statement regarding--
                    ``(A) the extent to which the existing components 
                of the Program currently meet, and the planned 
                components will meet, the Program goals set forth in 
                section 412; and
                    ``(B) the effects that the existing components are 
                currently having, and the effects that the planned 
                components will likely have, on--
                            ``(i) importers, brokers, and other users 
                        of the Program, and
                            ``(ii) Customs Service occupations, 
                        operations, processes, and systems.
    ``(b) Implementation Plan, Testing, and Evaluation.--
            ``(1) Implementation plan.--For each of the planned 
        components of the Program listed in section 411(a)(2), the 
        Secretary shall--
                    ``(A) develop an implementation plan;
                    ``(B) test the component in order to assess its 
                viability;
                    ``(C) evaluate the component in order to assess its 
                contribution toward achieving the program goals; and
                    ``(D) transmit to the Committees the implementation 
                plan, the testing results, and an evaluation report.
        In developing an implementation plan under subparagraph (A) and 
        evaluating components under subparagraph (C), the Secretary 
        shall publish a request for comments in the Customs Bulletin 
        and shall consult with the trade community, including 
        importers, brokers, shippers, and other affected parties.
            ``(2) Implementation.--
                    ``(A) The Secretary may implement on a permanent 
                basis any Program component referred to in paragraph 
                (1) on or after the date which is 30 days after 
                paragraph (1)(D) is complied with.
                    ``(B) For purposes of subparagraph (A), the 30 days 
                shall be computed by excluding--
                            ``(i) the days either House is not in 
                        session because of an adjournment of more than 
                        3 days to a day certain or an adjournment of 
                        the Congress sine die, and
                            ``(ii) any Saturday and Sunday, not 
                        excluded under clause (i), when either House is 
                        not in session.
            ``(3) Evaluation and report.--The Secretary shall--
                    ``(A) develop a user satisfaction survey of parties 
                participating in the Program;
                    ``(B) evaluate the results of the user satisfaction 
                survey on a biennial basis (fiscal years) and transmit 
                a report to the Committees on the evaluation by no 
                later than the 90th day after the close of each 2d 
                fiscal year;
                    ``(C) with respect to the existing Program 
                component listed in section 411(a)(1)(G) transmit to 
                the Committees--
                            ``(i) a written evaluation of such 
                        component before the 180th day after the date 
                        of the enactment of this section and before the 
                        implementation of the planned Program 
                        components listed in section 411(a)(2) (B) and 
                        (C), and
                            ``(ii) a report on such component for each 
                        of the 3 full fiscal years occurring after the 
                        date of the enactment of this section, which 
                        report shall be transmitted not later than the 
                        90th day after the close of each such year; and
                    ``(D) not later than the 90th day after the close 
                of fiscal year 1994, and annually thereafter through 
                fiscal year 2000, transmit to the Committees a written 
                evaluation with respect to the implementation and 
                effect on users of each of the planned Program 
                components listed in section 411(a)(2).
        In carrying out the provisions of this paragraph, the Secretary 
        shall publish requests for comments in the Customs Bulletin and 
        shall consult with the trade community, including importers, 
        brokers, shippers, and other affected parties.
    ``(c) Committees.--For purposes of this section, the term 
`Committees' means the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate.

``SEC. 414. REMOTE LOCATION FILING.

    ``(a) Core Entry Information.--
            ``(1) In general.--A Program participant may file 
        electronically an entry of merchandise with the Customs Service 
        from a location other than the district designated in the entry 
        for examination (hereafter in this section referred to as a 
        `remote location') if--
                    ``(A) the Customs Service is satisfied that the 
                participant has the capabilities referred to in 
                paragraph (2)(A) regarding such method of filing; and
                    ``(B) the participant elects to file from the 
                remote location.
            ``(2) Requirements.--
                    ``(A) In general.--In order to qualify for filing 
                from a remote location, a Program participant must have 
                the capability to provide, on an entry-by-entry basis, 
                for the following:
                            ``(i) The electronic entry of merchandise.
                            ``(ii) The electronic entry summary of 
                        required information.
                            ``(iii) The electronic transmission of 
                        invoice information (when required by the 
                        Customs Service).
                            ``(iv) The electronic payment of duties, 
                        fees, and taxes.
                            ``(v) Such other electronic capabilities 
                        within the existing or planned components of 
                        the Program as the Secretary shall by 
                        regulation require.
                    ``(B) Restriction on exemption from requirements.--
                The Customs Service may not permit any exemption or 
                waiver from the requirements established by this 
                section for participation in remote entry filing.
            ``(3) Conditions on filing under this section.--The 
        Secretary may prohibit a Program participant from participating 
        in remote location filing, and may remove a Program participant 
        from participation in remote location filing, if the 
        participant--
                    ``(i) fails to meet all the compliance requirements 
                and operational standards of remote location filing; or
                    ``(ii) fails to adhere to all applicable laws and 
                regulations.
            ``(4) Alternative filing.--Any Program participant that is 
        eligible to file entry information electronically from a remote 
        location but chooses not to do so in the case of any entry must 
        file any paper documentation for the entry at the designated 
        location referred to in subsection (d).
    ``(b) Additional Entry Information.--
            ``(1) In general.--A Program participant that is eligible 
        under subsection (a) to file entry information from a remote 
        location may, if the Customs Service is satisfied that the 
        participant meets the requirements under paragraph (2), also 
        electronically file from the remote location additional 
        information that is required by the Customs Service to be 
        presented before the acceptance of entry summary information 
        and at the time of acceptance of entry summary information.
            ``(2) Requirements.--The Secretary shall publish, and 
        periodically update, a list of those capabilities within the 
        existing and planned components of the Program that a Program 
        participant must have for purposes of this subsection.
            ``(3) Filing of additional information.--
                    ``(A) If information electronically acceptable.--A 
                Program participant that is eligible under paragraph 
                (1) to file additional information from a remote 
                location shall electronically file all such information 
                that the Customs Service can accept electronically.
                    ``(B) Alternative filing.--If the Customs Service 
                cannot accept additional information electronically, 
                the Program participant shall file the paper 
                documentation with respect to the information at the 
                appropriate filing location.
                    ``(C) Appropriate location.--For purposes of 
                subparagraph (B), the `appropriate location' is--
                            ``(i) before January 1, 1999, a designated 
                        location; and
                            ``(ii) after December 31, 1998--
                                    ``(I) if the paper documentation is 
                                required for release, a designated 
                                location; or
                                    ``(II) if the paper documentation 
                                is not required for release, a remote 
                                location designated by the Customs 
                                Service or a designated location.
                    ``(D) Other.--A Program participant that is 
                eligible under paragraph (1) to file additional 
                information electronically from a remote location but 
                chooses not to do so must file the paper documentation 
                with respect to the information at a designated 
                location.
    ``(c) Post-Entry Summary Information.--A Program participant that 
is eligible to file electronically entry information under subsection 
(a) and additional information under subsection (b) from a remote 
location may file at any remote location designated by the Customs 
Service any information required by the Customs Service after entry 
summary.
    ``(d) Definitions.--As used in this section:
            ``(1) The term `designated location' means a customs office 
        located in the customs district designated by the entry filer 
        for purposes of customs examination of the merchandise.
            ``(2) The term `Program participant' means, with respect to 
        an entry of merchandise, any party entitled to make the entry 
        under section 484(a)(2)(B).''.

SEC. 632. DRAWBACK AND REFUNDS.

    (a) Amendments.--Section 313 (19 U.S.C. 1313) is amended as 
follows:
            (1) Subsection (a) is amended--
                    (A) by inserting ``or destruction under customs 
                supervision'' after ``Upon the exportation'';
                    (B) by inserting ``provided that those articles 
                have not been used prior to such exportation or 
                destruction,'' after ``manufactured or produced in the 
                United States with the use of imported merchandise,'';
                    (C) by inserting ``or destruction'' after 
                ``refunded upon the exportation''; and
                    (D) by striking out ``wheat imported after ninety 
                days after the date of the enactment of this Act'' and 
                inserting ``imported wheat''.
            (2) Subsection (b) is amended--
                    (A) by striking out ``duty-free or domestic 
                merchandise'' and inserting ``any other merchandise 
                (whether imported or domestic)'';
                    (B) by inserting ``, or destruction under customs 
                supervision,'' after ``there shall be allowed upon the 
                exportation'';
                    (C) by inserting ``or destroyed'' after 
                ``notwithstanding the fact that none of the imported 
                merchandise may actually have been used in the 
                manufacture or production of the exported'';
                    (D) by inserting ``, but only if those articles 
                have not been used prior to such exportation or 
                destruction'' after ``an amount of drawback equal to 
                that which would have been allowable had the 
                merchandise used therein been imported''; and
                    (E) by inserting ``or destruction under customs 
                supervision'' after ``but the total amount of drawback 
                allowed upon the exportation''.
            (3) Subsection (c) is amended to read as follows:
    ``(c) Merchandise Not Conforming to Sample or Specifications.--Upon 
the exportation, or destruction under the supervision of the Customs 
Service, of merchandise--
            ``(1) not conforming to sample or specifications, shipped 
        without the consent of the consignee, or determined to be 
        defective as of the time of importation;
            ``(2) upon which the duties have been paid;
            ``(3) which has been entered or withdrawn for consumption; 
        and
            ``(4) which, within 3 years after release from the custody 
        of the Customs Service, has been returned to the custody of the 
        Customs Service for exportation or destruction under the 
        supervision of the Customs Service;
the full amount of the duties paid upon such merchandise, less 1 
percent, shall be refunded as drawback.''.
            (4) Subsection (j) is amended to read as follows:
    ``(j) Unused Merchandise Drawback.--
            ``(1) If imported merchandise, on which was paid any duty, 
        tax, or fee imposed under Federal law because of its 
        importation--
                    ``(A) is, before the close of the 3-year period 
                beginning on the date of importation--
                            ``(i) exported, or
                            ``(ii) destroyed under customs supervision; 
                        and
                    ``(B) is not used within the United States before 
                such exportation or destruction;
        then upon such exportation or destruction 99 percent of the 
        amount of each duty, tax, or fee so paid shall be refunded as 
        drawback. The exporter (or destroyer) has the right to claim 
        drawback under this paragraph, but may endorse such right to 
        the importer or any intermediate party.
            ``(2) If there is, with respect to imported merchandise on 
        which was paid any duty, tax, or fee imposed under Federal law 
        because of its importation, any other merchandise (whether 
        imported or domestic), that--
                    ``(A) is commercially interchangeable with such 
                imported merchandise;
                    ``(B) is, before the close of the 3-year period 
                beginning on the date of importation of the imported 
                merchandise, either exported or destroyed under customs 
                supervision; and
                    ``(C) before such exportation or destruction--
                            ``(i) is not used within the United States, 
                        and
                            ``(ii) is in the possession of, including 
                        ownership while in bailment, in leased 
                        facilities, in transit to, or in any other 
                        manner under the operational control of, the 
                        party claiming drawback under this paragraph, 
                        if that party--
                                    ``(I) is the importer of the 
                                imported merchandise, or
                                    ``(II) received from the person who 
                                imported and paid any duty due on the 
                                imported merchandise a certificate of 
                                delivery transferring to the party the 
                                imported merchandise, commercially 
                                interchangeable merchandise, or any 
                                combination of imported and 
                                commercially interchangeable 
                                merchandise (and any such transferred 
                                merchandise, regardless of its origin, 
                                will be treated as the imported 
                                merchandise and any retained 
                                merchandise will be treated as domestic 
                                merchandise);
                then upon the exportation or destruction of such other 
                merchandise the amount of each such duty, tax, and fee 
                paid regarding the imported merchandise shall be 
                refunded as drawback, but in no case may the total 
                drawback on the imported merchandise, whether available 
                under this paragraph or any other provision of law or 
                any combination thereof, exceed 99 percent of that 
                duty, tax, or fee.
            ``(3) The performing of any operation or combination of 
        operations (including, but not limited to, testing, cleaning, 
        repacking, inspecting, sorting, refurbishing, freezing, 
        blending, repairing, reworking, cutting, slitting, adjusting, 
        replacing components, relabeling, disassembling, and 
        unpacking), not amounting to manufacture or production for 
        drawback purposes under the preceding provisions of this 
        section on--
                    ``(A) the imported merchandise itself in cases to 
                which paragraph (1) applies, or
                    ``(B) the commercially interchangeable merchandise 
                in cases to which paragraph (2) applies,
        shall not be treated as a use of that merchandise for purposes 
        of applying paragraph (1)(B) or (2)(C).''.
            (5) Subsection (l) is amended by striking out ``the fixing 
        of a time limit within which drawback entries or entries for 
        refund under any of the provisions of this section or section 
        309(b) shall be filed and completed,'' and inserting ``the 
        authority for the electronic submission of drawback entries''.
            (6) Subsection (p) is amended to read as follows:
    ``(p) Substitution of Finished Petroleum Derivatives.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, if--
                    ``(A) an article (hereafter referred to in this 
                subsection as the `exported article') of the same kind 
                and quality as a qualified article is exported;
                    ``(B) the requirements set forth in paragraph (2) 
                are met; and
                    ``(C) a drawback claim is filed regarding the 
                exported article;
        the amount of the duties paid on, or attributable to, such 
        qualified article shall be refunded as drawback to the drawback 
        claimant.
            ``(2) Requirements.--The requirements referred to in 
        paragraph (1) are as follows:
                    ``(A) The exporter of the exported article--
                            ``(i) manufactured or produced the 
                        qualified article in a quantity equal to or 
                        greater than the quantity of the exported 
                        article,
                            ``(ii) purchased or exchanged, directly or 
                        indirectly, the qualified article from a 
                        manufacturer or producer described in 
                        subsection (a) or (b) in a quantity equal to or 
                        greater than the quantity of the exported 
                        article,
                            ``(iii) imported the qualified article in a 
                        quantity equal to or greater than the quantity 
                        of the exported article, or
                            ``(iv) purchased or exchanged, directly or 
                        indirectly, an imported qualified article from 
                        an importer in a quantity equal to or greater 
                        than the quantity of the exported article.
                    ``(B) In the case of the requirement described in 
                subparagraph (A)(ii), the manufacturer or producer 
                produced the qualified article in a quantity equal to 
                or greater than the quantity of the exported article.
                    ``(C) In the case of the requirement of 
                subparagraph (A)(i) or (A)(ii), the exported article is 
                exported during the period that the qualified article 
                described in subparagraph (A)(i) or (A)(ii) (whichever 
                is applicable) is manufactured or produced, or within 
                180 days after the close of such period.
                    ``(D) In the case of the requirement of 
                subparagraph (A)(i) or (A)(ii), the specific petroleum 
                refinery or production facility which made the 
                qualified article concerned is identified.
                    ``(E) In the case of the requirement of 
                subparagraph (A)(iii) or (A)(iv), the exported article 
                is exported within 180 days after the date of entry of 
                an imported qualified article described in subparagraph 
                (A)(iii) or (A)(iv) (whichever is applicable).
                    ``(F) Except as otherwise specifically provided in 
                this subsection, the drawback claimant complies with 
                all requirements of this section, including providing 
                certificates which establish the drawback eligibility 
                of articles for which drawback is claimed.
                    ``(G) The manufacturer, producer, importer, 
                exporter, and drawback claimant of the qualified 
                article and the exported article maintain all records 
                required by regulation.
            ``(3) Definition of qualified article, etc.--For purposes 
        of this subsection--
                    ``(A) The term `qualified article' means an 
                article--
                            ``(i) described in--
                                    ``(I) headings 2707, 2708, 2710, 
                                2711, 2712, 2713, 2714, 2715, 2901, and 
                                2902 of the Harmonized Tariff Schedule 
                                of the United States, or
                                    ``(II) headings 3901 through 3914 
                                of such Schedule (as such headings 
                                apply to liquids, pastes, powders, 
                                granules, and flakes), and
                            ``(ii) which is--
                                    ``(I) manufactured or produced as 
                                described in subsection (a) or (b) from 
                                crude petroleum or a petroleum 
                                derivative, or
                                    ``(II) imported duty-paid.
                    ``(B) An exported article is of the same kind and 
                quality as the qualified article for which it is 
                substituted under this subsection if it is a product 
                that is commercially interchangeable with or referred 
                to under the same eight-digit classification of the 
                Harmonized Tariff Schedule of the United States as the 
                qualified article.
                    ``(C) The term `drawback claimant' means the 
                exporter of the exported article or the refiner, 
                producer, or importer of such article. Any person 
                eligible to file a drawback claim under this 
                subparagraph may designate another person to file such 
                claim.
            ``(4) Limitation on drawback.--The amount of drawback 
        payable under this subsection shall not exceed the amount of 
        drawback that would be attributable to the article--
                    ``(A) manufactured or produced under subsection (a) 
                or (b) by the manufacturer or producer described in 
                clause (i) or (ii) of paragraph (2)(A), or
                    ``(B) imported under clause (iii) or (iv) of 
                paragraph (2)(A).''.
            (7) The following new subsections are inserted after 
        subsection (p):
    ``(q) Packaging Material.--Packaging material, when used on or for 
articles or merchandise exported or destroyed under subsection (a), 
(b), (c), or (j), shall be eligible under such subsection for refund, 
as drawback, of 99 percent of any duty, tax, or fee imposed under 
Federal law on the importation of such material.
    ``(r) Filing Drawback Claims.--
            ``(1) A drawback entry and all documents necessary to 
        complete a drawback claim, including those issued by the 
        Customs Service, shall be filed or applied for, as applicable, 
        within 3 years after the date of exportation or destruction of 
        the articles on which drawback is claimed, except that any 
        landing certificate required by regulation shall be filed 
        within the time limit prescribed in such regulation. Claims not 
        completed within the 3-year period shall be considered 
        abandoned. No extension will be granted unless it is 
        established that the Customs Service was responsible for the 
        untimely filing.
            ``(2) A drawback entry for refund filed pursuant to any 
        subsection of this section shall be deemed filed pursuant to 
        any other subsection of this section should it be determined 
        that drawback is not allowable under the entry as originally 
        filed but is allowable under such other subsection.
    ``(s) Designation of Merchandise by Successor.--
            ``(1) For purposes of subsection (b), a drawback successor 
        may designate imported merchandise used by the predecessor 
        before the date of succession as the basis for drawback on 
        articles manufactured by the drawback successor after the date 
        of succession.
            ``(2) For purposes of subsection (j)(2), a drawback 
        successor may designate--
                    ``(A) imported merchandise which the predecessor, 
                before the date of succession, imported; or
                    ``(B) imported merchandise, commercially 
                interchangeable merchandise, or any combination of 
                imported and commercially interchangeable merchandise 
                for which the successor received, before the date of 
                succession, from the person who imported and paid any 
                duty due on the imported merchandise a certificate of 
                delivery transferring to the successor such 
                merchandise;
        as the basis for drawback on merchandise possessed by the 
        drawback successor after the date of succession.
            ``(3) For purposes of this subsection, the term `drawback 
        successor' means an entity to which another entity (in this 
        subsection referred to as the `predecessor') has transferred by 
        written agreement, merger, or corporate resolution--
                    ``(A) all or substantially all of the rights, 
                privileges, immunities, powers, duties, and liabilities 
                of the predecessor; or
                    ``(B) the assets and other business interests of a 
                division, plant, or other business unit of such 
                predecessor, but only if in such transfer the value of 
                the transferred realty, personalty, and intangibles 
                (other than drawback rights, inchoate or otherwise) 
                exceeds the value of all transferred drawback rights, 
                inchoate or otherwise.
            ``(4) No drawback shall be paid under this subsection until 
        either the predecessor or the drawback successor (who shall 
        also certify that it has the predecessor's records) certifies 
        that--
                    ``(A) the transferred merchandise was not and will 
                not be claimed by the predecessor, and
                    ``(B) the predecessor did not and will not issue 
                any certificate to any other person that would enable 
                that person to claim drawback.
    ``(t) Drawback Certificates.--Any person who issues a certificate 
which would enable another person to claim drawback shall be subject to 
the recordkeeping provisions of this chapter, with the retention period 
beginning on the date that such certificate is issued.
    ``(u) Eligibility of Entered or Withdrawn Merchandise.--Imported 
merchandise that has not been regularly entered or withdrawn for 
consumption shall not satisfy any requirement for use, exportation, or 
destruction under this section.
    ``(v) Multiple Drawback Claims.--Merchandise that is exported or 
destroyed to satisfy any claim for drawback shall not be the basis of 
any other claim for drawback; except that appropriate credit and 
deductions for claims covering components or ingredients of such 
merchandise shall be made in computing drawback payments.''.
    (b) Application of Amendment to Finished Petroleum Derivatives.--
Notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) 
or any other provision of law, the amendment made by paragraph (6) of 
subsection (a) shall apply to--
            (1) claims filed or liquidated on or after January 1, 1988, 
        and
            (2) claims that are unliquidated, under protest, or in 
        litigation on the date of the enactment of this Act.

SEC. 633. EFFECTIVE DATE OF RATES OF DUTY.

    Section 315 (19 U.S.C. 1315) is amended--
            (1) by striking out ``appropriate customs officer in the 
        form and manner prescribed by regulations of the Secretary of 
        the Treasury,'' in the first sentence of subsection (a) and 
        inserting ``Customs Service by written, electronic or such 
        other means as the Secretary by regulation shall prescribe,'';
            (2) by striking out ``customs custody'' in the first 
        sentence of subsection (b) and inserting ``custody of the 
        Customs Service''; and
            (3) by striking out ``paragraph 813'' in subsection (c) and 
        inserting ``chapter 98 of the Harmonized Tariff Schedule of the 
        United States''.

SEC. 634. DEFINITIONS.

    Section 401 (19 U.S.C. 1401) is amended--
            (1) by amending subsection (k) to read as follows:
    ``(k) The term `hovering vessel' means--
            ``(1) any vessel which is found or kept off the coast of 
        the United States within or without the customs waters, if, 
        from the history, conduct, character, or location of the 
        vessel, it is reasonable to believe that such vessel is being 
        used or may be used to introduce or promote or facilitate the 
        introduction or attempted introduction of merchandise into the 
        United States in violation of the laws of the United States; 
        and
            ``(2) any vessel which has visited a vessel described in 
        paragraph (1).''; and
            (2) by inserting at the end thereof the following new 
        subsections:
    ``(n) The term `electronic transmission' means the transfer of data 
or information through an authorized electronic data interchange system 
consisting of, but not limited to, computer modems and computer 
networks.
    ``(o) The term `electronic entry' means the electronic transmission 
to the Customs Service of--
            ``(1) entry information required for the entry of 
        merchandise, and
            ``(2) entry summary information required for the 
        classification and appraisement of the merchandise, the 
        verification of statistical information, and the determination 
        of compliance with applicable law.
    ``(p) The term `electronic data interchange system' means any 
established mechanism approved by the Commissioner of Customs through 
which information can be transferred electronically.
    ``(q) The term `National Customs Automation Program' means the 
program established under section 411.
    ``(r) The term `import activity summary statement' refers to data 
or information transmitted electronically to the Customs Service, in 
accordance with such regulations as the Secretary prescribes, at the 
end of a specified period of time which enables the Customs Service to 
assess properly the duties, taxes and fees on merchandise imported 
during that period, collect accurate statistics and determine whether 
any other applicable requirement of law (other than a requirement 
relating to release from customs custody) is met.
    ``(s) The term `reconciliation' means an electronic process, 
initiated at the request of an importer, under which the elements of an 
entry, other than those elements related to the admissibility of the 
merchandise, that are undetermined at the time of entry summary are 
provided to the Customs Service at a later time. A reconciliation is 
treated as an entry for purposes of liquidation, reliquidation, and 
protest.''.

SEC. 635. MANIFESTS.

    Section 431 (19 U.S.C. 1431) is amended--
            (1) by amending subsections (a) and (b) to read as follows:
    ``(a) In General.--Every vessel required to make entry under 
section 434 or obtain clearance under section 4197 of the Revised 
Statutes of the United States (46 U.S.C. App. 91) shall have a manifest 
that complies with the requirements prescribed under subsection (d).
    ``(b) Production of Manifest.--Any manifest required by the Customs 
Service shall be signed, produced, delivered or electronically 
transmitted by the master or person in charge of the vessel, aircraft, 
or vehicle, or by any other authorized agent of the owner or operator 
of the vessel, aircraft, or vehicle in accordance with the requirements 
prescribed under subsection (d). A manifest may be supplemented by bill 
of lading data supplied by the issuer of such bill. If any irregularity 
of omission or commission occurs in any way in respect to any manifest 
or bill of lading data, the owner or operator of the vessel, aircraft 
or vehicle, or any party responsible for such irregularity, shall be 
liable for any fine or penalty prescribed by law with respect to such 
irregularity. The Customs Service may take appropriate action against 
any of the parties.''; and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Regulations.--
            ``(1) In general.--The Secretary shall by regulation--
                    ``(A) specify the form for, and the information and 
                data that must be contained in, the manifest required 
                by subsection (a);
                    ``(B) allow, at the option of the individual 
                producing the manifest and subject to paragraph (2), 
                letters and documents shipments to be accounted for by 
                summary manifesting procedures;
                    ``(C) prescribe the manner of production for, and 
                the delivery for electronic transmittal of, the 
                manifest required by subsection (a); and
                    ``(D) prescribe the manner for supplementing 
                manifests with bill of lading data under subsection 
                (b).
            ``(2) Letters and documents shipments.--For purposes of 
        paragraph (1)(B)--
                    ``(A) the Customs Service may require with respect 
                to letters and documents shipments--
                            ``(i) that they be segregated by country of 
                        origin, and
                            ``(ii) additional examination procedures 
                        that are not necessary for individually 
                        manifested shipments;
                    ``(B) standard letter envelopes and standard 
                document packs shall be segregated from larger document 
                shipments for purposes of customs inspections; and
                    ``(C) the term `letters and documents' means--
                            ``(i) data described in General Headnote 
                        4(c) of the Harmonized Tariff Schedule of the 
                        United States,
                            ``(ii) securities and similar evidences of 
                        value described in heading 4907 of such 
                        Schedule, but not monetary instruments defined 
                        pursuant to chapter 53 of title 31, United 
                        States Code, and
                            ``(iii) personal correspondence, whether on 
                        paper, cards, photographs, tapes, or other 
                        media.''.

SEC. 636. INVOICE CONTENTS.

    Section 481 (19 U.S.C. 1481) is amended--
            (1) by amending subsection (a)--
                    (A) by amending the matter preceding paragraph (1) 
                to read as follows: ``In General.--All invoices of 
                merchandise to be imported into the United States and 
                any electronic equivalent thereof considered acceptable 
                by the Secretary in regulations prescribed under this 
                section shall set forth, in written, electronic, or 
                such other form as the Secretary shall prescribe, the 
                following:'',
                    (B) by amending paragraph (3) to read as follows:
            ``(3) A detailed description of the merchandise, including 
        the commercial name by which each item is known, the grade or 
        quality, and the marks, numbers, or symbols under which sold by 
        the seller or manufacturer in the country of exportation, 
        together with the marks and numbers of the packages in which 
        the merchandise is packed;'', and
                    (C) by amending paragraph (10) to read as follows:
            ``(10) Any other fact that the Secretary may by regulation 
        require as being necessary to a proper appraisement, 
        examination and classification of the merchandise.'';
            (2) by amending subsection (c) to read as follows:
    ``(c) Importer Provision of Information.--Any information required 
to be set forth on an invoice may alternatively be provided by any of 
the parties qualifying as an `importer of record' under section 
484(a)(2)(B) by such means, in such form or manner, and within such 
time as the Secretary shall by regulation prescribe.''; and
            (3) by inserting before the period at the end of subsection 
        (d) the following: ``and may allow for the submission or 
        electronic transmission of partial invoices, electronic 
        equivalents of invoices, bills, or other documents or parts 
        thereof, required under this section''.

SEC. 637. ENTRY OF MERCHANDISE.

    (a) Amendments to Section 484.--Section 484 (19 U.S.C. 1484) is 
amended to read as follows:

``SEC. 484. ENTRY OF MERCHANDISE.

    ``(a) Requirement and Time.--
            ``(1) Except as provided in sections 490, 498, 552, 553, 
        and 336(j), one of the parties qualifying as `importer of 
        record' under paragraph (2)(B), either in person or by an agent 
        authorized by the party in writing, shall, using reasonable 
        care--
                    ``(A) make entry therefor by filing with the 
                Customs Service--
                            ``(i) such documentation or, pursuant to an 
                        electronic data interchange system, such 
                        information as is necessary to enable the 
                        Customs Service to determine whether the 
                        merchandise may be released from customs 
                        custody, and
                            ``(ii) notification whether an import 
                        activity summary statement will be filed; and
                    ``(B) complete the entry by filing with the Customs 
                Service the declared value, classification and rate of 
                duty applicable to the merchandise, and such other 
                documentation or, pursuant to an electronic data 
                interchange system, such other information as is 
                necessary to enable the Customs Service to--
                            ``(i) properly assess duties on the 
                        merchandise,
                            ``(ii) collect accurate statistics with 
                        respect to the merchandise, and
                            ``(iii) determine whether any other 
                        applicable requirement of law (other than a 
                        requirement relating to release from customs 
                        custody) is met.
            ``(2)(A) The documentation or information required under 
        paragraph (1) with respect to any imported merchandise shall be 
        filed or transmitted in such manner and within such time 
        periods as the Secretary shall by regulation prescribe. Such 
        regulations shall provide for the filing of import activity 
        summary statements, covering entries or warehouse withdrawals 
        made during a calendar month, within such time period as is 
        prescribed in regulations but not to exceed the 20th day 
        following such calendar month.
            ``(B) When an entry of merchandise is made under this 
        section, the required documentation or information shall be 
        filed or electronically transmitted either by the owner or 
        purchaser of the merchandise or, when appropriately designated 
        by the owner, purchaser, or consignee of the merchandise, a 
        person holding a valid license under section 641. When a 
        consignee declares on entry that he is the owner or purchaser 
        of merchandise the Customs Service may, without liability, 
        accept the declaration. For the purposes of this Act, the 
        importer of record must be one of the parties who is eligible 
        to file the documentation or information required by this 
        section.
            ``(C) The Secretary, in prescribing regulations to carry 
        out this subsection, shall establish procedures which insure 
        the accuracy and timeliness of import statistics, particularly 
        statistics relevant to the classification and valuation of 
        imports. Corrections of errors in such statistical data shall 
        be transmitted immediately to the Director of the Bureau of the 
        Census, who shall make corrections in the statistics maintained 
        by the Bureau. The Secretary shall also provide, to the maximum 
        extent practicable, for the protection of the revenue, the 
        enforcement of laws governing the importation and exportation 
        of merchandise, the facilitation of the commerce of the United 
        States, and the equal treatment of all importers of record of 
        imported merchandise.
    ``(b) Reconciliation.--
            ``(1) In general.--A party that electronically transmits an 
        entry summary or import activity summary statement may at the 
        time of filing such summary or statement notify the Customs 
        Service of his intention to file a reconciliation pursuant to 
        such regulations as the Secretary may prescribe. Such 
        reconciliation must be filed by the importer of record within 
        such time period as is prescribed by regulation but no later 
        than 15 months following the filing of the entry summary or 
        import activity summary statement; except that the prescribed 
        time period for reconciliation issues relating to the 
        assessment of antidumping and countervailing duties shall 
        require filing no later than 90 days after the Customs Service 
        advises the importer that a period of review for antidumping or 
        countervailing duty purposes has been completed. Before filing 
        a reconciliation, an importer of record shall post bond or 
        other security pursuant to such regulations as the Secretary 
        may prescribe.
            ``(2) Regulations regarding ad/cv duties.--The Secretary 
        shall prescribe, in consultation with the Secretary of 
        Commerce, such regulations as are necessary to adapt the 
        reconciliation process for use in the collection of antidumping 
        and countervailing duties.
    ``(c) Release of Merchandise.--The Customs Service may permit the 
entry and release of merchandise from customs custody in accordance 
with such regulations as the Secretary may prescribe. No officer of the 
Customs Service shall be liable to any person with respect to the 
delivery of merchandise released from customs custody in accordance 
with such regulations.
    ``(d) Signing and Contents.--Entries shall be signed by the 
importer of record, or his agent, unless filed pursuant to an 
electronic data interchange system. If electronically filed, each 
transmission of data shall be certified by an importer of record or his 
agent, one of whom shall be resident in the United States for purposes 
of receiving service of process, as being true and correct to the best 
of his knowledge and belief, and such transmission shall be binding in 
the same manner and to the same extent as a signed document. The entry 
shall set forth such facts in regard to the importation as the 
Secretary may require and shall be accompanied by such invoices, bills 
of lading, certificates, and documents, or their electronically 
submitted equivalents, as are required by regulation.
    ``(e) Production of Invoice.--The Secretary may provide by 
regulation for the production of an invoice, parts thereof, or the 
electronic equivalents thereof, in such manner and form, and under such 
terms and conditions, as the Secretary considers necessary.
    ``(f) Statistical Enumeration.--The Secretary, the Secretary of 
Commerce, and the United States International Trade Commission shall 
establish from time to time for statistical purposes an enumeration of 
articles in such detail as in their judgment may be necessary, 
comprehending all merchandise imported into the United States and 
exported from the United States, and shall seek, in conjunction with 
statistical programs for domestic production and programs for achieving 
international harmonization of trade statistics, to establish the 
comparability thereof with such enumeration of articles. All import 
entries and export declarations shall include or have attached thereto 
an accurate statement specifying, in terms of such detailed 
enumeration, the kinds and quantities of all merchandise imported and 
exported and the value of the total quantity of each kind of article.
    ``(g) Statement of Cost of Production.--Under such regulations as 
the Secretary may prescribe, the Customs Service may require a verified 
statement from the manufacturer or producer showing the cost of 
producing the imported merchandise, if the Customs Service considers 
such verification necessary for the appraisement of such merchandise.
    ``(h) Admissibility of Data Electronically Transmitted.--Any entry 
or other information transmitted by means of an authorized electronic 
data interchange system shall be admissible in any and all 
administrative and judicial proceedings as evidence of such entry or 
information.''.
    (b) Amendment to Section 771.--Section 771 (19 U.S.C. 1677) is 
amended by adding at the end the following new paragraph:
            ``(23) Entry.--The term `entry' includes, in appropriate 
        circumstances as determined by the administering authority, a 
        reconciliation entry created under a reconciliation process, 
        defined in section 401(s), that is initiated by an importer. 
        The liability of an importer under an antidumping or 
        countervailing duty proceeding for entries of merchandise 
        subject to the proceeding will attach to the corresponding 
        reconciliation entry or entries. Suspension of liquidation of 
        the reconciliation entry or entries, for the purpose of 
        enforcing this title, is equivalent to the suspension of 
        liquidation of the corresponding individual entries; but the 
        suspension of liquidation of the reconciliation entry or 
        entries for such purpose does not preclude liquidation for any 
        other purpose.''.

SEC. 638. APPRAISEMENT AND OTHER PROCEDURES.

    Section 500 (19 U.S.C. 1500) is amended--
            (1) by striking out ``The appropriate customs officer'' and 
        inserting ``The Customs Service'';
            (2) by striking out ``appraise'' in subsection (a) and 
        inserting ``fix the final appraisement of'';
            (3) by striking out ``ascertain the'' in subsection (b) and 
        inserting ``fix the final'';
            (4) by amending subsection (c)--
                    (A) by inserting ``final'' after ``fix the'', and
                    (B) by inserting ``, taxes, and fees'' after 
                ``duties'' wherever it appears; and
            (5) by amending subsections (d) and (e) to read as follows:
            ``(d) liquidate the entry and reconciliation, if any, of 
        such merchandise; and
            ``(e) give or transmit, pursuant to an electronic data 
        interchange system, notice of such liquidation to the importer, 
        his consignee, or agent in such form and manner as the 
        Secretary shall by regulation prescribe.''.

SEC. 639. VOLUNTARY RELIQUIDATIONS.

    Section 501 (19 U.S.C. 1501) is amended--
            (1) by striking out ``the appropriate customs officer on 
        his own initiative'' and inserting ``the Customs Service'';
            (2) by inserting ``or transmitted'' after ``given'' 
        wherever it appears; and
            (3) by amending the section heading to read as follows:

``SEC. 501. VOLUNTARY RELIQUIDATIONS BY THE CUSTOMS SERVICE.''.

SEC. 640. APPRAISEMENT REGULATIONS.

    Section 502 (19 U.S.C. 1502) is amended--
            (1) by amending subsection (a)--
                    (A) by inserting ``(including regulations 
                establishing procedures for the issuance of binding 
                rulings prior to the entry of the merchandise 
                concerned)'' after ``law'',
                    (B) by striking out ``ports of entry, and'' 
                inserting ``ports of entry. The Secretary'',
                    (C) by inserting ``or classifying'' after 
                ``appraising'' wherever it appears, and
                    (D) by striking out ``such port'' and inserting 
                ``any port, and may direct any customs officer at any 
                port to review entries of merchandise filed at any 
                other port''; and
            (2) by striking out subsection (b) and redesignating 
        subsection (c) as subsection (b).

SEC. 641. LIMITATION ON LIQUIDATION.

    Section 504 (19 U.S.C. 1504) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``Except as provided in 
                subsection (b),'' and inserting ``Unless an entry is 
                extended under subsection (b) or suspended as required 
                by statute or court order,'',
                    (B) by striking out ``or'' at the end of paragraph 
                (2),
                    (C) by inserting ``or'' after the semicolon at the 
                end of paragraph (3), and
                    (D) by inserting the following new paragraph after 
                paragraph (3):
            ``(4) if a reconciliation is filed, or should have been 
        filed, the date of the filing under section 484 or the date the 
        reconciliation should have been filed;''; and
            (2) by amending subsections (b), (c), and (d) to read as 
        follows:
    ``(b) Extension.--The Secretary may extend the period in which to 
liquidate an entry if--
            ``(1) the information needed for the proper appraisement or 
        classification of the merchandise, or for insuring compliance 
        with applicable law, is not available to the Customs Service; 
        or
            ``(2) the importer of record requests such extension and 
        shows good cause therefor.
The Secretary shall give notice of an extension under this subsection 
to the importer of record and the surety of such importer of record. 
Notice shall be in such form and manner (which may include electronic 
transmittal) as the Secretary shall by regulation prescribe. Any entry 
the liquidation of which is extended under this subsection shall be 
treated as having been liquidated at the rate of duty, value, quantity, 
and amount of duty asserted at the time of entry by the importer of 
record at the expiration of 4 years from the applicable date specified 
in subsection (a).
    ``(c) Notice of Suspension.--If the liquidation of any entry is 
suspended, the Secretary shall by regulation require that notice of the 
suspension be provided, in such manner as the Secretary considers 
appropriate, to the importer of record and to any authorized agent and 
surety of such importer of record.
    ``(d) Removal of Suspension.--When a suspension required by statute 
or court order is removed, the Customs Service shall liquidate the 
entry within 6 months after receiving notice of the removal from the 
Department of Commerce, other agency, or a court with jurisdiction over 
the entry. Any entry not liquidated by the Customs Service within 6 
months after receiving such notice shall be treated as having been 
liquidated at the rate of duty, value, quantity, and amount of duty 
asserted at the time of entry by the importer of record.''.

SEC. 642. PAYMENT OF DUTIES AND FEES.

    (a) Amendment to Section 505.--Section 505 (U.S.C. 1505) is amended 
to read as follows:

``SEC. 505. PAYMENT OF DUTIES AND FEES.

    ``(a) Deposit of Estimated Duties, Fees, and Interest.--Unless 
merchandise is entered for warehouse or transportation, or under bond, 
the importer of record shall deposit with the Customs Service at the 
time of making entry, or at such later time as the Secretary may 
prescribe by regulation, the amount of duties and fees estimated to be 
payable thereon. Such regulations may provide that estimated duties and 
fees shall be deposited before or at the time an import activity 
summary statement is filed. If an import activity summary statement is 
filed, the estimated duties and fees shall be deposited together with 
interest, at a rate determined by the Secretary, accruing from the 
first date of the month the statement is required to be filed until the 
date such statement is actually filed.
    ``(b) Collection or Refund of Duties, Fees, and Interest Due Upon 
Liquidation or Reliquidation.--The Customs Service shall collect any 
increased or additional duties and fees due, together with interest 
thereon, or refund any excess moneys deposited, together with interest 
thereon, as determined on a liquidation or reliquidation. Duties, fees, 
and interest determined to be due upon liquidation or reliquidation are 
due 30 days after issuance of the bill for such payment. Refunds of 
excess moneys deposited, together with interest thereon, shall be paid 
within 30 days of liquidation or reliquidation.
    ``(c) Interest.--Interest assessed due to an underpayment of 
duties, fees, or interest shall accrue, at a rate determined by the 
Secretary, from the date the importer of record is required to deposit 
estimated duties, fees, and interest to the date of liquidation or 
reliquidation of the applicable entry or reconciliation. Interest on 
excess moneys deposited shall accrue, at a rate determined by the 
Secretary, from the date the importer of record deposits estimated 
duties, fees, and interest to the date of liquidation or reliquidation 
of the applicable entry or reconciliation.
    ``(d) Delinquency.--If duties, fees, and interest determined to be 
due or refunded are not paid in full within the 30-day period specified 
in subsection (b), any unpaid balance shall be considered delinquent 
and bear interest by 30-day periods, at a rate determined by the 
Secretary, from the date of liquidation or reliquidation until the full 
balance is paid. No interest shall accrue during the 30-day period in 
which payment is actually made.''.
    (b) Conforming Amendment.--Subsection (d) of section 520 (19 U.S.C. 
1520(d)) is repealed.

SEC. 643. ABANDONMENT AND DAMAGE.

    Section 506 (19 U.S.C. 1506) is amended--
            (1) by striking out ``the appropriate customs officer'' and 
        ``such customs officer'' wherever they appear and inserting 
        ``the Customs Service'';
            (2) by amending paragraph (1)--
                    (A) by striking out ``not sent to the appraiser's 
                stores for'' and inserting ``released without an'',
                    (B) by striking out ``of the examination packages 
                or quantities of merchandise'',
                    (C) by striking out ``the appraiser's stores'' and 
                inserting ``the Customs Service'', and
                    (D) by inserting ``or entry'' after ``invoice'', 
                and
            (3) by amending paragraph (2)--
                    (A) by inserting ``, electronically or otherwise,'' 
                after ``files'', and
                    (B) by striking out ``written''.

SEC. 644. CUSTOMS OFFICER'S IMMUNITY.

    Section 513 (19 U.S.C. 1513) is amended to read as follows:

``SEC. 513. CUSTOMS OFFICER'S IMMUNITY.

    ``No customs officer shall be liable in any way to any person for 
or on account of--
            ``(1) any ruling or decision regarding the appraisement or 
        the classification of any imported merchandise or regarding the 
        duties, fees, and taxes charged thereon,
            ``(2) the collection of any dues, charges, duties, fees, 
        and taxes on or on account of any imported merchandise, or
            ``(3) any other matter or thing as to which any person 
        might under this Act be entitled to protest or appeal from the 
        decision of such officer.''.

SEC. 645. PROTESTS.

    Section 514 (19 U.S.C. 1514) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``appropriate customs officer'' 
                in the text preceding paragraph (1) and inserting 
                ``Customs Service'',
                    (B) by inserting ``or reconciliation as to the 
                issues contained therein,'' after ``entry,'' in 
                paragraph (5),
                    (C) by striking out ``and'' and inserting ``or'' at 
                the end of paragraph (6),
                    (D) by striking out the comma at the end of 
                paragraph (7) and inserting a semicolon, and
                    (E) by striking out ``appropriate customs officer, 
                who'' in the text following paragraph (7) and inserting 
                ``Customs Service, which'';
            (2) by amending subsection (b) by striking out 
        ``appropriate customs officer'' and inserting ``Customs 
        Service'';
            (3) by amending the first sentence of subsection (c)(1) to 
        read as follows: ``A protest of a decision made under 
        subsection (a) shall be filed in writing, or transmitted 
        electronically pursuant to an electronic data interchange 
        system, in accordance with regulations prescribed by the 
        Secretary. A protest must set forth distinctly and 
        specifically--
                    ``(A) each decision described in subsection (a) as 
                to which protest is made;
                    ``(B) each category of merchandise affected by each 
                decision set forth under paragraph (1);
                    ``(C) the nature of each objection and the reasons 
                therefor; and
                    ``(D) any other matter required by the Secretary by 
                regulation.'';
            (4) by redesignating paragraph (2) of subsection (c) as 
        paragraph (3) and by striking out ``such customs officer'' in 
        such redesignated paragraph and inserting ``the Customs 
        Service'';
            (5) by designating the last sentence of paragraph (1) of 
        subsection (c) as paragraph (2);
            (6) by striking out ``customs officer'' in subsection (d) 
        and inserting ``Customs Service''; and
            (7) by amending the section heading to read as follows:

``SEC. 514. PROTEST AGAINST DECISIONS OF THE CUSTOMS SERVICE.''.

SEC. 646. REFUNDS AND ERRORS.

    Section 520 (19 U.S.C. 1520) is amended--
            (1) by inserting ``or reconciliation'' after ``entry'' in 
        paragraphs (1) and (4) of subsection (a); and
            (2) by amending subsection (c)--
                    (A) by striking out ``appropriate customs officer'' 
                wherever it appears and inserting ``Customs Service'',
                    (B) by inserting ``or reconciliation'' after 
                ``reliquidate an entry'', and
                    (C) by inserting ``, whether or not resulting from 
                or contained in electronic transmission,'' after 
                ``inadvertence'' the first place it appears in 
                paragraph (1).

SEC. 647. BONDS AND OTHER SECURITY.

    Section 623 (19 U.S.C. 1623) is amended--
            (1) by inserting ``and the manner in which the bond may be 
        filed with or, pursuant to an authorized electronic data 
        interchange system, transmitted to the Customs Service'' after 
        ``form of such bond'' in subsection (b)(1); and
            (2) by inserting at the end of subsection (d) the following 
        new sentence: ``Any bond transmitted to the Customs Service 
        pursuant to an authorized electronic data interchange system 
        shall have the same force and effect and be binding upon the 
        parties thereto as if such bond were manually executed, signed, 
        and filed.''.

SEC. 648. CUSTOMHOUSE BROKERS.

    Section 641 (19 U.S.C. 1641) is amended--
            (1) by adding at the end of subsection (a)(2) the following 
        new sentence: ``It also includes the preparation of documents 
        or forms in any format and the electronic transmission of 
        documents, invoices, bills, or parts thereof, intended to be 
        filed with the Customs Service in furtherance of such 
        activities, whether or not signed or filed by the preparer, or 
        activities relating to such preparation, but does not include 
        the mere electronic transmission of data received for 
        transmission to Customs.'';
            (2) by amending subsection (c)(1) to read as follows:
            ``(1) In general.--Each person granted a customs broker's 
        license under subsection (b) shall be issued, in accordance 
        with such regulations as the Secretary shall prescribe, either 
        or both of the following:
                    ``(A) A national permit for the conduct of such 
                customs business as the Secretary prescribes by 
                regulation.
                    ``(B) A permit for each customs district in which 
                that person conducts customs business and, except as 
                provided in paragraph (2), regularly employs at least 1 
                individual who is licensed under subsection (b)(2) to 
                exercise responsible supervision and control over the 
                customs business conducted by that person in that 
                district.'';
            (3) by inserting at the end of subsection (c) the following 
        new paragraph:
            ``(4) Appointment of subagents.--Notwithstanding subsection 
        (c)(1), upon the implementation by the Secretary under section 
        413(b)(2) of the component of the National Customs Automation 
        Program referred to in section 411(a)(2)(B), a licensed broker 
        may appoint another licensed broker holding a permit in a 
        customs district to act on its behalf as its subagent in that 
        district if such activity relates to the filing of information 
        that is permitted by law or regulation to be filed 
        electronically. A licensed broker appointing a subagent 
        pursuant to this paragraph shall remain liable for any and all 
        obligations arising under bond and any and all duties, taxes, 
        and fees, as well as any other liabilities imposed by law, and 
        shall be precluded from delegating to a subagent such 
        liability.'';
            (4) by amending subsection (d)(2)(B)--
                    (A) by striking out ``appropriate customs officer'' 
                and inserting ``Customs Service'' in the first and 
                third sentences,
                    (B) by striking out ``he'' and inserting ``it'' in 
                the third sentence,
                    (C) by striking out ``15 days'' and inserting ``30 
                days'' in the third sentence,
                    (D) by striking out ``the appropriate customs 
                officer and the customs broker; they'' and inserting 
                ``the Customs Service and the customs broker; which'' 
                in the sixth sentence,
                    (E) by striking out ``his'' and inserting ``the'' 
                in the seventh sentence, and
                    (F) by striking out ``for his decision'' and 
                inserting ``for the decision'' in the eighth sentence; 
                and
            (5) by amending subsection (f) by striking out ``United 
        States Customs Service.'' and inserting ``Customs Service. The 
        Secretary may not prohibit customs brokers from limiting their 
        liability to other persons in the conduct of customs business. 
        For purposes of this subsection or any other provision of this 
        Act pertaining to recordkeeping, all data required to be 
        retained by a customs broker may be kept on microfilm, optical 
        disc, magnetic tapes, disks or drums, video files or any other 
        electrically generated medium. Pursuant to such regulations as 
        the Secretary shall prescribe, the conversion of data to such 
        storage medium may be accomplished at any time subsequent to 
        the relevant customs transaction and the data may be retained 
        in a centralized basis according to such broker's business 
        system.''.

SEC. 649. CONFORMING AMENDMENTS.

    (a) Place of Entry and Unlading.--Section 447 (19 U.S.C. 1447) is 
amended by striking out ``the appropriate customs officer shall 
consider'' and inserting ``the Customs Service considers''.
    (b) Unlading.--Section 449 (19 U.S.C. 1449) is amended by striking 
out ``appropriate customs officer of such port issues a permit for the 
unlading of such merchandise or baggage,'' and inserting ``Customs 
Service issues a permit for the unlading of such merchandise or baggage 
at such port,''.

     Subtitle C--Miscellaneous Amendments to the Tariff Act of 1930

SEC. 651. ADMINISTRATIVE EXEMPTIONS.

    Section 321 (19 U.S.C. 1321) is amended--
            (1) by amending subsection (a)(1)--
                    (A) by striking out ``of less than $10'' and 
                inserting ``of an amount specified by the Secretary by 
                regulation, but not less than $20,'',
                    (B) by inserting ``, fees,'' after ``duties'' 
                wherever it appears, and
                    (C) by striking out ``and'' at the end thereof;
            (2) by amending subsection (a)(2)--
                    (A) by striking out ``shall not exceed--'' and 
                inserting ``shall not exceed an amount specified by the 
                Secretary by regulation, but not less than--'',
                    (B) by striking out ``$50'' and ``$100'' in 
                subparagraph (A) and inserting ``$100'' and ``$200'', 
                respectively,
                    (C) by striking out ``$25'' in subparagraph (B) and 
                inserting ``$200'',
                    (D) by striking out ``$5'' in subparagraph (C) and 
                inserting ``$200'', and
                    (E) by striking the period at the end thereof and 
                inserting ``; and'', and
            (3) by inserting a new paragraph (3) at the end of 
        subsection (a) to read as follows:
            ``(3) waive the collection of duties, fees, and taxes due 
        on entered merchandise when such duties, fees, or taxes are 
        less than $20 or such greater amount as may be specified by the 
        Secretary by regulation.''; and
            (4) by amending subsection (b)--
                    (A) by striking out ``to diminish any dollar amount 
                specified in subsection (a) and''; and
                    (B) by striking out ``such subsection'' wherever it 
                appears and inserting ``subsection (a)''.

SEC. 652. REPORT OF ARRIVAL.

    Section 433 (19 U.S.C. 1433) is amended--
            (1) by amending subsection (a)(1)--
                    (A) by striking out ``or'' at the end of 
                subparagraph (B),
                    (B) by inserting ``or'' after the semicolon at the 
                end of subparagraph (C), and
                    (C) by adding after subparagraph (C) the following:
                    ``(D) any vessel which has visited a hovering 
                vessel or received merchandise while outside the 
                territorial sea;'';
            (2) by striking out ``present to customs officers such'' in 
        subsection (d) and inserting ``present, or transmit pursuant to 
        an electronic data interchange system, to the Customs Service 
        such information, data,''; and
            (3) by amending subsection (e) to read as follows:
    ``(e) Prohibition on Departures and Discharge.--Unless otherwise 
authorized by law, a vessel, aircraft or vehicle after arriving in the 
United States or Virgin Islands may, but only in accordance with 
regulations prescribed by the Secretary--
            ``(1) depart from the port, place, or airport of arrival; 
        or
            ``(2) discharge any passenger or merchandise (including 
        baggage).''.

SEC. 653. ENTRY OF VESSELS.

    Section 434 (19 U.S.C. 1434) amended to read as follows:

``SEC. 434. ENTRY; VESSELS.

    ``(a) Formal Entry.--Within 24 hours (or such other period of time 
as may be provided under subsection (c)(2)) after the arrival at any 
port or place in the United States of--
            ``(1) any vessel from a foreign port or place;
            ``(2) any foreign vessel from a domestic port;
            ``(3) any vessel of the United States having on board 
        bonded merchandise or foreign merchandise for which entry has 
        not been made; or
            ``(4) any vessel which has visited a hovering vessel or has 
        delivered or received merchandise while outside the territorial 
        sea;
the master of the vessel shall, unless otherwise provided by law, make 
formal entry at the nearest customs facility or such other place as the 
Secretary may prescribe by regulation.
    ``(b) Preliminary Entry.--The Secretary may by regulation permit 
the master to make preliminary entry of the vessel with the Customs 
Service in lieu of formal entry or before formal entry is made. In 
permitting preliminary entry, the Customs Service shall board a 
sufficient number of vessels to ensure compliance with the laws it 
enforces.
    ``(c) Regulations.--The Secretary may by regulation--
            ``(1) prescribe the manner and format in which entry under 
        subsection (a) or subsection (b), or both, must be made, and 
        such regulations may provide that any such entry may be made 
        electronically pursuant to an electronic data interchange 
        system;
            ``(2) provide that--
                    ``(A) formal entry must be made within a greater or 
                lesser time than 24 hours after arrival, but in no case 
                more than 48 hours after arrival, and
                    ``(B) formal entry may be made before arrival; and
            ``(3) authorize the Customs Service to permit entry or 
        preliminary entry of any vessel to be made at a place other 
        than a designated port of entry, under such conditions as may 
        be prescribed.''.

SEC. 654. UNLAWFUL RETURN OF FOREIGN VESSEL PAPERS.

    Section 438 (19 U.S.C. 1438) is amended--
            (1) by striking out ``section 435'' and inserting ``section 
        434'';
            (2) by inserting ``, or regulations issued thereunder,'' 
        after ``of this Act''; and
            (3) by striking out ``the appropriate customs officer of 
        the port where such vessel has been entered.'' and inserting 
        ``the Customs Service in the port in which such vessel has 
        entered.''.

SEC. 655. VESSELS NOT REQUIRED TO ENTER.

    Section 441 (19 U.S.C. 1441) is amended--
            (1) by amending the text preceding paragraph (1) to read as 
        follows: ``The following vessels shall not be required to make 
        entry under section 434 or to obtain clearance under section 
        4197 of the Revised Statutes of the United States (46 U.S.C. 
        App. 91):'';
            (2) by amending paragraph (3) to read as follows:
    ``(3) Any vessel carrying passengers on excursion from the United 
States Virgin Islands to the British Virgin Islands and returning, if--
            ``(A) the vessel does not in any way violate the customs or 
        navigation laws of the United States;
            ``(B) the vessel has not visited any hovering vessel; and
            ``(C) the master of the vessel, if there is on board any 
        article required by law to be entered, reports the article to 
        the Customs Service immediately upon arrival.'';
            (3) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively, and inserting after paragraph (3) 
        the following:
    ``(4) Any United States documented vessel with recreational 
endorsement or any undocumented United States pleasure vessel not 
engaged in trade, if--
            ``(A) the vessel complies with the reporting requirements 
        of section 433, and with the customs and navigation laws of the 
        United States;
            ``(B) the vessel has not visited any hovering vessel; and
            ``(C) the master of, and any other person on board, the 
        vessel, if the master or such person has on board any article 
        required by law to be entered or declared, reports such article 
        to the Customs Service immediately upon arrival;'';
            (4) by amending paragraph (6) (as so redesignated) by 
        striking out ``enrolled and licensed to engage in the foreign 
        and coasting trade in the northern, northeastern, and 
        northwestern frontiers'' and inserting ``documented under 
        chapter 121 of title 46, United States Code, with a Great Lakes 
        endorsement''; and
            (5) by amending the section heading to read as follows:

``SEC. 441. EXCEPTIONS TO VESSEL ENTRY AND CLEARANCE REQUIREMENTS.''.

SEC. 656. UNLADING.

    Section 448(a) (19 U.S.C. 1448(a)) is amended--
            (1) by amending the first sentence--
                    (A) by striking out ``enter)'' and inserting 
                ``enter or clear)'',
                    (B) by striking out ``or vehicle arriving from a 
                foreign port or place'' and inserting ``required to 
                make entry under section 434, or vehicle required to 
                report arrival under section 433,'',
                    (C) by inserting ``or transmitted pursuant to an 
                electronic data interchange system'' after ``issued'', 
                and
                    (D) by striking out the colon after ``officer'' and 
                the proviso and inserting a period;
            (2) by amending the second sentence--
                    (A) by striking out ``, preliminary or 
                otherwise,'', and
                    (B) by inserting ``, electronically pursuant to an 
                authorized electronic data interchange system or 
                otherwise,'' after ``may issue a permit'';
            (3) by striking out the last sentence and inserting the 
        following: ``The owner or master of any vessel or vehicle, or 
        agent thereof, shall notify the Customs Service of any 
        merchandise or baggage so unladen for which entry is not made 
        within the time prescribed by law or regulation. The Secretary 
        shall by regulation prescribe administrative penalties not to 
        exceed $1,000 for each bill of lading for which notice is not 
        given. Any such administrative penalty shall be subject to 
        mitigation and remittance under section 618. Such unentered 
        merchandise or baggage shall be the responsibility of the 
        master or person in charge of the importing vessel or vehicle, 
        or agent thereof, until it is removed from the carrier's 
        control in accordance with section 490.''; and
            (4) by striking out ``the appropriate customs officer'' and 
        ``such customs officer'' wherever they appear and inserting 
        ``the Customs Service''.

SEC. 657. DECLARATIONS.

    Section 485 (19 U.S.C. 1485) is amended--
            (1) by amending subsection (a)--
                    (A) by inserting ``or transmit electronically'' 
                after ``file'', and
                    (B) by inserting ``and manner'' after ``form'';
            (2) by amending subsection (d)--
                    (A) by striking out ``A importer'' and inserting 
                ``An importer'', and
                    (B) by striking out ``a importer'' and inserting 
                ``an importer''; and
            (3) by inserting after subsection (f) the following new 
        subsection:
    ``(g) Exported Merchandise Returned as Undeliverable.--With respect 
to any importation of merchandise to which General Headnote 4(e) of the 
Harmonized Tariff Schedule of the United States applies, any person who 
gained any benefit from, or met any obligation to, the United States as 
a result of the prior exportation of such merchandise shall, in 
accordance with regulations prescribed by the Secretary, within a 
reasonable time inform the Customs Service of the return of the 
merchandise.''.

SEC. 658. GENERAL ORDERS.

    Section 490 (19 U.S.C. 1490) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Incomplete Entry.--
            ``(1) Whenever--
                    ``(A) the entry of any imported merchandise is not 
                made within the time provided by law or by regulation 
                prescribed by the Secretary;
                    ``(B) the entry of imported merchandise is 
                incomplete because of failure to pay the estimated 
                duties, fees, or interest;
                    ``(C) in the opinion of the Customs Service, the 
                entry of imported merchandise cannot be made for want 
                of proper documents or other cause; or
                    ``(D) the Customs Service believes that any 
                merchandise is not correctly and legally invoiced;
        the carrier (unless subject to subsection (c)) shall notify the 
        bonded warehouse of such unentered merchandise.
            ``(2) After notification under paragraph (1), the bonded 
        warehouse shall arrange for the transportation and storage of 
        the merchandise at the risk and expense of the consignee. The 
        merchandise shall remain in the bonded warehouse until--
                    ``(A) entry is made or completed and the proper 
                documents are produced;
                    ``(B) the information and data necessary for entry 
                are transmitted to the Customs Service pursuant to an 
                authorized electronic data interchange system; or
                    ``(C) a bond is given for the production of 
                documents or the transmittal of data.'';
            (2) by amending subsection (b)--
                    (A) by amending the heading for subsection (b) to 
                read as follows:
    ``(b) Request for Possession by Customs.--'', and
                    (B) by striking out ``appropriate customs officer'' 
                and inserting ``Customs Service''; and
            (3) by adding at the end the following new subsection:
    ``(c) Government Merchandise.--Any imported merchandise that--
            ``(1) is described in any of paragraphs (1) through (4) of 
        subsection (a); and
            ``(2) is consigned to, or owned by, the United States 
        Government;
shall be stored and disposed of in accordance with such rules and 
procedures as the Secretary shall by regulation prescribe.''.

SEC. 659. UNCLAIMED MERCHANDISE.

    Section 491 (19 U.S.C. 1491) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``customs custody for one 
                year'' in the first sentence and inserting ``in a 
                bonded warehouse pursuant to section 490 for 6 
                months'',
                    (B) by striking out ``public store or bonded 
                warehouse for a period of one year'' in the second 
                sentence and inserting ``pursuant to section 490 in a 
                bonded warehouse for 6 months'',
                    (C) by striking out ``estimated duties and 
                storage'' in the first sentence and inserting 
                ``estimated duties, taxes, fees, interest, storage,'',
                    (D) by inserting ``taxes, fees, interest,'' after 
                ``duties,'' wherever it appears, and
                    (E) by striking out ``duties'' in the last sentence 
                and inserting ``duties, taxes, interest, and fees''; 
                and
            (2) by redesignating subsection (b) as subsection (e) and 
        inserting after subsection (a) the following new subsections:
    ``(b) Notice of Title Vesting in the United States.--At the end of 
the 6-month period referred to in subsection (a), the Customs Service 
may, in lieu of sale of the merchandise, provide notice to all known 
interested parties that the title to such merchandise shall be 
considered to vest in the United States free and clear of any liens or 
encumbrances, on the 30th day after the date of the notice unless, 
before such 30th day--
            ``(1) the subject merchandise is entered or withdrawn for 
        consumption; and
            ``(2) payment is made of all duties, taxes, fees, transfer 
        and storage charges, and other expenses that may have accrued 
        thereon.
    ``(c) Retention, Transfer, Destruction, or Other Disposition.--If 
title to any merchandise vests in the United States by operation of 
subsection (b), such merchandise may be retained by the Customs Service 
for official use, transferred to any other Federal agency or to any 
State or local agency, destroyed, or otherwise disposed of in 
accordance with such regulations as the Secretary shall prescribe. All 
transfer and storage charges or expenses accruing on retained or 
transferred merchandise shall be paid by the receiving agency.
    ``(d) Petition.--Whenever any party, having lost a substantial 
interest in merchandise by virtue of title vesting in the United States 
under subsection (b), can establish such title or interest to the 
satisfaction of the Secretary within 30 days after the day on which 
title vests in the United States under subsection (b), or can establish 
to the satisfaction of the Secretary that the party did not receive 
notice under subsection (b), the Secretary may, upon receipt of a 
timely and proper petition and upon finding that the facts and 
circumstances warrant, pay such party out of the Treasury of the United 
States the amount the Secretary believes the party would have received 
under section 493 had the merchandise been sold and a proper claim 
filed. The decision of the Secretary with respect to any such petition 
is final and conclusive on all parties.''; and
            (3) by amending subsection (e) (as so redesignated) by 
        striking out ``appropriate customs officer'' in paragraph (3) 
        and inserting ``Customs Service''.

SEC. 660. DESTRUCTION OF MERCHANDISE.

    Section 492 (19 U.S.C. 1492) is amended--
            (1) by inserting ``, retained for official use, or 
        otherwise disposed of'' after ``destroyed''; and
            (2) by striking out ``appropriate customs officer'' and 
        inserting ``Customs Service''.

SEC. 661. PROCEEDS OF SALE.

    Section 493 (19 U.S.C. 1493) is amended--
            (1) by inserting ``taxes, and fees,'' after ``duties,'';
            (2) by striking out ``by the appropriate customs officer''; 
        and
            (3) by striking out ``such customs officer'' and inserting 
        ``the Customs Service''.

SEC. 662. ENTRY UNDER REGULATIONS.

    Section 498(a) (19 U.S.C. 1498(a)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) Merchandise, when--
                    ``(A) the aggregate value of the shipment does not 
                exceed an amount specified by the Secretary by 
                regulation, but not more than $2,500; or
                    ``(B) different commercial facilitation and risk 
                considerations that may vary for different classes or 
                kinds of merchandise or different classes of 
                transactions may dictate;''; and
            (2) by striking out ``$10,000'' in paragraph (2) and 
        inserting ``such amounts as the Secretary may prescribe''.

SEC. 663. AMERICAN TRADEMARKS.

    Section 526(e)(3) (19 U.S.C. 1526(e)(3)) is amended--
            (1) by striking out ``1 year'' and inserting ``90 days''; 
        and
            (2) by striking out ``appropriate customs officers'' and 
        inserting ``the Customs Service''.

SEC. 664. SIMPLIFIED RECORDKEEPING FOR MERCHANDISE TRANSPORTED BY 
              PIPELINE.

    Part IV of title IV is amended by inserting after section 553 the 
following new section:

``SEC. 553A. RECORDKEEPING FOR MERCHANDISE TRANSPORTED BY PIPELINE.

    ``Merchandise in Customs custody that is transported by pipeline 
may be accounted for on a quantitative basis, based on the bill of 
lading, or equivalent document of receipt, issued by the pipeline 
carrier. Unless the Customs Service has reasonable cause to suspect 
fraud, the Customs Service may accept the bill of lading, or equivalent 
document of receipt, issued by the pipeline carrier to the shipper and 
accepted by the consignee to maintain identity. The shipper, pipeline 
operator, and consignee shall be subject to the recordkeeping 
requirements of sections 508 and 509.''.

SEC. 665. ENTRY FOR WAREHOUSE.

    Section 557(a) (19 U.S.C. 1557(a)) is amended--
            (1) by designating the first 2 sentences of such subsection 
        as paragraph (1);
            (2) by striking out in such paragraph (1) (as so 
        designated) ``: Provided, That the total period of time for 
        which such merchandise may remain in bonded warehouse shall not 
        exceed 5 years from the date of importation.'' and inserting 
        the following: ``; except that--
            ``(A) the total period of time for which such merchandise 
        may remain in bonded warehouse shall not exceed 5 years from 
        the date of importation; and
            ``(B) turbine fuel may be withdrawn for use under section 
        309 without the payment of duty if an amount equal to the 
        quantity of fuel withdrawn is shown to be used within 30 days 
        after the day of withdrawal, but duties (together with interest 
        payable from the date of the withdrawal at the rate of interest 
        established under section 6621 of title 26, United States Code) 
        shall be deposited by the 40th day after the day of withdrawal 
        on fuel that was withdrawn in excess of the quantity shown to 
        have been so used during such 30-day period.''; and
            (3) by designating the remaining sentences of such 
        subsection as paragraph (2).

SEC. 666. CARTAGE.

    The first sentence of section 565 (19 U.S.C. 1565) is amended to 
read as follows: ``The cartage of merchandise entered for warehouse 
shall be done by--
            ``(1) cartmen appointed and licensed by the Customs 
        Service; or
            ``(2) carriers designated under section 551 to carry bonded 
        merchandise;
who shall give bond, in a penal sum to be fixed by the Customs Service, 
for the protection of the Government against any loss of, or damage to, 
the merchandise while being so carted.''.

SEC. 667. SEIZURE.

    Section 612 (19 U.S.C. 1612) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``the appropriate customs 
                officer'', ``such officer'' and ``the customs officer'' 
                wherever they appear and inserting ``the Customs 
                Service'', and
                    (B) by striking out ``the appraiser's return and 
                his'' and inserting ``its''; and
            (2) by amending subsection (b) to read as follows:
    ``(b) If the Customs Service determines that the expense of keeping 
the vessel, vehicle, aircraft, merchandise, or baggage is 
disproportionate to the value thereof, the Customs Service may promptly 
order the destruction or other appropriate disposition of such property 
under regulations prescribed by the Secretary. No customs officer shall 
be liable for the destruction or other disposition of property made 
pursuant to this section.''.

SEC. 668. LIMITATION ON ACTIONS.

    Section 621 (19 U.S.C. 1621) is amended--
            (1) by inserting ``any duty under section 592(d), 593A(d), 
        or'' before ``any pecuniary penalty''; and
            (2) by striking out ``discovered:'' and all that follows 
        thereafter and inserting the following: ``discovered; except 
        that--
            ``(1) in the case of an alleged violation of section 592 or 
        593A, no suit or action (including a suit or action for 
        restoration of lawful duties under subsection (d) of such 
        sections) may be instituted unless commenced within 5 years 
        after the date of the alleged violation or, if such violation 
        arises out of fraud, within 5 years after the date of discovery 
        of fraud, and
            ``(2) the time of the absence from the United States of the 
        person subject to the penalty or forfeiture, or of any 
        concealment or absence of the property, shall not be reckoned 
        within the 5-year period of limitation.''.

SEC. 669. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

    The Tariff Act of 1930 is amended by inserting after section 528 
the following new section:

``SEC. 529. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

    ``The Customs Service shall be reimbursed from the fees collected 
for the cost and expense, administrative and otherwise, incurred in 
collecting any fees on behalf of any government agency for any 
reason.''.

SEC. 670. AUTHORITY TO SETTLE CLAIMS.

    The Tariff Act of 1930 is amended by inserting after section 629 
the following new section:

``SEC. 630. AUTHORITY TO SETTLE CLAIMS.

    ``(a) In General.--With respect to a claim that cannot be settled 
under chapter 171 of title 28, United States Code, the Secretary may 
settle, for not more than $50,000 in any one case, a claim for damage 
to, or loss of, privately owned property caused by an investigative or 
law enforcement officer (as defined in section 2680(h) of title 28, 
United States Code) who is employed by the Customs Service and acting 
within the scope of his or her employment.
    ``(b) Limitations.--The Secretary may not pay a claim under 
subsection (a) that--
            ``(1) concerns commercial property;
            ``(2) is presented to the Secretary more than 1 year after 
        it occurs; or
            ``(3) is presented by an officer or employee of the United 
        States Government and arose within the scope of employment.
    ``(c) Final Settlement.--A claim may be paid under this section 
only if the claimant accepts the amount of settlement in complete 
satisfaction of the claim.''.

SEC. 671. USE OF PRIVATE COLLECTION AGENCIES.

    The Tariff Act of 1930 is amended by inserting after section 630 
the following new section:

``SEC. 631. USE OF PRIVATE COLLECTION AGENCIES.

    ``(a) In General.--Notwithstanding any other provision of law, the 
Secretary, under such terms and conditions as the Secretary considers 
appropriate, shall enter into contracts and incur obligations with one 
or more persons for collection services to recover indebtedness arising 
under the customs laws and owed the United States Government, but only 
after the Customs Service has exhausted all administrative efforts, 
including all claims against applicable surety bonds, to collect the 
indebtedness.
    ``(b) Contract Requirements.--Any contract entered into under 
subsection (a) shall provide that--
            ``(1) the Secretary retains the authority to resolve a 
        dispute, compromise a claim, end collection action, and refer a 
        matter to the Attorney General to bring a civil action; and
            ``(2) the person is subject to--
                    ``(A) section 552a of title 5, United States Code, 
                to the extent provided in subsection (m) of such 
                section; and
                    ``(B) laws and regulations of the United States 
                Government and State governments related to debt 
                collection practices.''.

 Subtitle D--Miscellaneous Provisions and Consequential and Conforming 
                        Amendments to Other Laws

SEC. 681. AMENDMENTS TO THE HARMONIZED TARIFF SCHEDULE.

    (a) Return Shipments.--General Note 4 of the Harmonized Tariff 
Schedule of the United States is amended--
            (1) by striking out ``and'' at the end of subdivision (c);
            (2) by inserting ``and'' after ``1930,'' in subdivision 
        (d);
            (3) by inserting after subdivision (d) the following:
            ``(e) articles exported from the United States which are 
        returned within 45 days after such exportation from the United 
        States as undeliverable and which have not left the custody of 
        the carrier or foreign customs service,''; and
            (4) by adding at the end the following new sentence: ``No 
        exportation referred to in subdivision (e) may be treated as 
        satisfying any requirement for exportation in order to receive 
        a benefit from, or meet an obligation to, the United States as 
        a result of such exportation.''.
    (b) Entry Not Required for Locomotives and Railway Freight Cars.--
            (1) The Notes to chapter 86 of such Schedule are amended by 
        inserting after note 3 the following new note:
``4. Railway locomotives (provided for in headings 8601 and 8602) and 
railway freight cars (provided for in heading 8606) on which no duty is 
owed are not subject to the entry or release requirements for imported 
merchandise set forth in sections 448 and 484 of the Tariff Act of 
1930. The Secretary of the Treasury may by regulation establish 
appropriate reporting requirements, including the requirement that a 
bond be posted to ensure compliance.''.
            (2) The U.S. Notes to subchapter V of chapter 99 of such 
        Schedule are amended by inserting after note 8 the following 
        new note:
``9. Railway freight cars provided for in subheadings 9905.86.05 and 
9905.86.10 are not subject to the entry or release requirements for 
imported merchandise set forth in sections 448 and 484 of the Tariff 
Act of 1930. The Secretary of the Treasury may by regulation establish 
appropriate reporting requirements, including the requirement that a 
bond be posted to ensure compliance.''.
    (c) Instruments of International Traffic.--The U.S. Notes to 
subchapter III of chapter 98 of such Schedule is amended by inserting 
after note 3 the following new note:
``4. Instruments of international traffic, such as containers, lift 
vans, rail cars and locomotives, truck cabs and trailers, etc. are 
exempt from formal entry procedures but are required to be accounted 
for when imported and exported into and out of the United States, 
respectively, through the manifesting procedures required for all 
international carriers by the United States Customs Service. Fees 
associated with the importation of such instruments of international 
traffic shall be reported and paid on a periodic basis as required by 
regulations issued by the Secretary of the Treasury and in accordance 
with 1956 Customs Convention on Containers (20 UST 30; TIAS 6634).''.

SEC. 682. CUSTOMS PERSONNEL AIRPORT WORK SHIFT REGULATION.

    Section 13031(g) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(g)) is amended--
            (1) by striking out ``In addition to the regulations 
        required under paragraph (2), the'' and inserting ``The'';
            (2) by striking out paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).

SEC. 683. USE OF HARBOR MAINTENANCE TRUST FUND AMOUNTS FOR 
              ADMINISTRATIVE EXPENSES.

    (a) In General.--Paragraph (3) of section 9505(c) of the Internal 
Revenue Code of 1986 (relating to expenditures from Harbor Maintenance 
Trust Fund) is amended to read as follows:
            ``(3) for the payment of all expenses of administration 
        incurred by the Department of the Treasury, the Army Corps of 
        Engineers, and the Department of Commerce related to the 
        administration of subchapter A of chapter 36 (relating to 
        harbor maintenance tax), but not in excess of $5,000,000 for 
        any fiscal year.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to fiscal years beginning after the date of the enactment of this 
Act.

SEC. 684. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

    (a) Amendments Relating to Accreditation of Private Laboratories.--
Title 28 of the United States Code is amended as follows:
            (1) Section 1581(g) is amended by--
                    (A) striking out ``and'' at the end of paragraph 
                (1);
                    (B) by striking out the period at the end of 
                paragraph (2) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) any decision or order of the Customs Service to deny, 
        suspend, or revoke accreditation of a private laboratory under 
        section 499(b) of the Tariff Act of 1930.''.
            (2) Section 2631(g) is amended by inserting at the end the 
        following new paragraph:
    ``(3) A civil action to review any decision or order of the Customs 
Service to deny, suspend, or revoke accreditation of a private 
laboratory under section 499(b) of the Tariff Act of 1930 may be 
commenced in the Court of International Trade by the person whose 
accreditation was denied, suspended, or revoked.''.
            (3) Section 2636 is amended--
                    (A) by redesignating subsection (h) as subsection 
                (i); and
                    (B) by inserting after subsection (g) the following 
                new subsection:
    ``(h) A civil action contesting the denial, suspension, or 
revocation by the Customs Service of a private laboratory's 
accreditation under section 499(b) of the Tariff Act of 1930 is barred 
unless commenced in accordance with the rules of the Court of 
International Trade within 60 days after the date of the decision or 
order of the Customs Service.''.
            (4) Section 2640 is amended--
                    (A) by redesignating subsection (d) as subsection 
                (e); and
                    (B) by inserting after subsection (c) the following 
                new subsection:
    ``(d) In any civil action commenced to review any order or decision 
of the Customs Service under section 499(b) of the Tariff Act of 1930, 
the court shall review the action on the basis of the record before the 
Customs Service at the time of issuing such decision or order.''.
            (5) Section 2642 is amended by inserting before the period 
        the following: ``or laboratories accredited by the Customs 
        Service under section 499(b) of the Tariff Act of 1930''.
    (b) Application of Subsection (a) Amendments.--For purposes of 
applying the amendments made by subsection (a), any decision or order 
of the Customs Service denying, suspending, or revoking the 
accreditation of a private laboratory on or after the date of the 
enactment of this Act and before regulations to implement section 
499(b) of the Tariff Act of 1930 are issued shall be treated as having 
been denied, suspended, or revoked under such section 499(b).
    (c) Jurisdiction of Court.--Section 1582(1) of title 28, United 
States Code, is amended by inserting ``593A,'' after ``592,''.
    (d) Filing of Official Documents.--Section 2635(a) of title 28, 
United States Code, is amended to read as follows:
    ``(a) In any action commenced in the Court of International Trade 
contesting the denial of a protest under section 515 of the Tariff Act 
of 1930 or the denial of a petition under section 516 of such Act, the 
Customs Service, as prescribed by the rules of the court, shall file 
with the clerk of the court, as part of the official record, any 
document, paper, information or data relating to the entry of 
merchandise and the administrative determination that is the subject of 
the protest or petition.''.

SEC. 685. TREASURY FORFEITURE FUND.

    Section 9703 of title 31, United States Code (as added by Public 
Law 102-393), is amended--
            (1) by redesignating subparagraphs (E), (F), (G), (H), and 
        (I) of subsection (a)(2) as subparagraphs (F), (G), (H), (I), 
        and (J), respectively;
            (2) by inserting after subparagraph (D) of subsection 
        (a)(2) the following new subparagraph:
                    ``(E) the payment of claims against employees of 
                the Customs Service settled by the Secretary under 
                section 630 of the Tariff Act of 1930;''; and
            (3) by striking out ``shall'' the first place it appears in 
        subsection (e) and inserting ``may''.

SEC. 686. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED STATES.

    (a) Technical Amendments.--The Revised Statutes of the United 
States are amended as follows:
            (1) Section 2793 (19 U.S.C. 288, 46 U.S.C. App. 111, 123) 
        is amended--
                    (A) by striking out ``Enrolled or licensed vessels 
                engaged in the foreign and coasting trade on the 
                northern, northeastern, and northwestern frontiers of 
                the United States,'' and inserting ``Documented vessels 
                with a coastwise, Great Lakes endorsement,''; and
                    (B) by striking out the first semicolon and all the 
                text that follows thereafter and inserting a period.
            (2) Section 3126 (19 U.S.C. 293) is amended--
                    (A) by striking out ``Any vessel, on being duly 
                registered in pursuance of the laws of the United 
                States,'' and inserting ``Any United States documented 
                vessel with a registry or coastwise endorsement, or 
                both'' and
                    (B) by striking out all the text occurring after 
                the first sentence.
            (3) Section 3127 (19 U.S.C. 294) is amended by striking out 
        ``in registered vessels'' and inserting ``a United States 
        documented vessel with a registry or coastwise endorsement, or 
        both,''.
            (4) Section 4136 (46 U.S.C. App. 14) is amended by striking 
        out--
                    (A) ``The Secretary of Commerce may issue a 
                register or enrollment'' and inserting ``The Secretary 
                of Transportation may issue a certificate of 
                documentation with a coastwise endorsement''; and
                    (B) ``Secretary of Commerce,'' and inserting 
                ``Secretary of Transportation,''.
            (5) Section 4336 (46 U.S.C. App. 277) is amended--
                    (A) by striking out ``register or enrollment or 
                license of any vessel'' and inserting ``certificate of 
                documentation of any documented vessel''; and
                    (B) by striking out ``Secretary of the Treasury is 
                not required to have its register or enrollment or 
                license'' and inserting ``Secretary of Transportation 
                is not required to have its certificate of 
                documentation''.
    (b) Clearance Requirements.--Section 4197 of such Revised Statutes 
(46 U.S.C. App. 91) is amended to read as follows:

``SEC. 4197. CLEARANCE; VESSELS.

    ``(a) When Required; Vessels of the United States.--Except as 
otherwise provided by law, any vessel of the United States shall obtain 
clearance from the Customs Service before proceeding from a port or 
place in the United States--
            ``(1) for a foreign port or place;
            ``(2) for another port or place in the United States if the 
        vessel has on board bonded merchandise or foreign merchandise 
        for which entry has not been made; or
            ``(3) outside the territorial sea to visit a hovering 
        vessel or to receive merchandise while outside the territorial 
        sea.
    ``(b) When Required; Other Vessels.--Except as otherwise provided 
by law, any vessel that is not a vessel of the United States shall 
obtain clearance from the Customs Service before proceeding from a port 
or place in the United States--
            ``(1) for a foreign port or place;
            ``(2) for another port or place in the United States; or
            ``(3) outside the territorial sea to visit a hovering 
        vessel or to receive or deliver merchandise while outside the 
        territorial sea.
    ``(c) Regulations.--The Secretary of the Treasury may by 
regulation--
            ``(1) prescribe the manner in which clearance under this 
        section is to be obtained, including the documents, data or 
        information which shall be submitted or transmitted, pursuant 
        to an authorized data interchange system, to obtain the 
        clearance;
            ``(2) permit the Customs Service to grant clearance for a 
        vessel under this section before all requirements for clearance 
        are complied with, but only if the owner or operator of the 
        vessel files a bond in an amount set by the Secretary of the 
        Treasury conditioned upon the compliance by the owner or 
        operator with all specified requirements for clearance within a 
        time period (not exceeding 4 business days) established by the 
        Secretary of the Treasury; and
            ``(3) authorize the Customs Service to permit clearance of 
        any vessel to be obtained at a place other than a designated 
        port of entry, under such conditions as he may prescribe.''.

SEC. 687. AMENDMENTS TO TITLE 18, UNITED STATES CODE.

    Section 965(a) of title 18, United States Code, is amended--
            (1) by striking out ``sections 91, 92, and 94 of Title 46'' 
        and inserting ``section 431 of the Tariff Act of 1930 (19 
        U.S.C. 1431) and section 4197 of the Revised Statutes of the 
        United States (46 U.S.C. App. 91),'';
            (2) by striking out ``the collector of customs for the 
        district wherein such vessel is then located'' and inserting 
        ``the Customs Service''; and
            (3) by striking out ``the collector like'' and inserting in 
        lieu thereof ``the Customs Service like''.

SEC. 688. AMENDMENT TO THE ACT TO PREVENT POLLUTION FROM SHIPS.

    Section 9(e) of the Act to Prevent Pollution from Ships (94 Stat. 
2301, 33 U.S.C. 1908(e)) is amended by striking out ``shall refuse or 
revoke'' and all of the text following thereafter and inserting ``shall 
refuse or revoke the clearance required by section 4197 of the Revised 
Statutes of the United States (46 U.S.C. App. 91). Clearance may be 
granted upon the filing of a bond or other surety satisfactory to the 
Secretary.''.

SEC. 689. MISCELLANEOUS TECHNICAL AMENDMENTS.

    (a) Act of October 3, 1913.--The Act of October 3, 1913, is 
amended--
            (1) in section IV, J, subsection 1 (19 U.S.C. 128) by 
        striking out ``registered as a vessel of the United States,'' 
        and inserting ``documented under chapter 121 of title 46, 
        United States Code,''; and
            (2) in section IV, J, subsection 3 (19 U.S.C. 131)--
                    (A) by striking out ``vessels of the United 
                States'' and inserting ``United States documented 
                vessels''; and
                    (B) by striking out ``registered as a vessel of the 
                United States.'' and inserting ``documented under 
                chapter 121 of title 46, United States Code.''.
    (b) Act of August 5, 1935.--Section 4 of the Act of August 5, 1935 
(19 U.S.C. 1704) is amended--
            (1) by striking out ``whenever the collector of customs of 
        the district in which any vessel is, or is sought to be, 
        registered, enrolled, licensed, or numbered,'' and inserting 
        ``when the Secretary of Transportation'';
            (2) by striking out ``such collector'' and inserting ``the 
        Secretary of Transportation'';
            (3) by striking out ``said collector shall revoke the 
        registry, enrollment, license, or number of such vessel'' and 
        inserting ``the Secretary of Transportation shall revoke any 
        endorsement on the vessel's certificate of documentation or 
        number (when the Secretary is the authority issuing the number 
        under chapter 123 of title 46, United States Code)''; and
            (4) by striking out ``Such collector and all persons'' and 
        inserting ``The Secretary of Transportation and all persons''.
    (c) Act of November 6, 1966.--Sections 2(e) and 3(e) of the Act of 
November 6, 1966 (46 U.S.C. App. 817d(e) and 817e(e)) are each 
amended--
            (1) by striking out ``The collector of customs at'' and 
        inserting ``At''; and
            (2) by inserting ``, the Customs Service'' after 
        ``subsection (a) of this section''.

SEC. 690. REPEAL OF OBSOLETE PROVISIONS OF LAW.

    (a) Revised Statutes.--The following provisions of the Revised 
Statutes of the United States are repealed:
            (1) So much of section 2792 as is codified at 19 U.S.C. 289 
        and 46 U.S.C. App. 110 and 112 (as in effect on the date of the 
        enactment of this Act).
            (2) Section 3111 (19 U.S.C. 282).
            (3) Section 3118 (19 U.S.C. 286).
            (4) Section 3119 (19 U.S.C. 287).
            (5) Section 3122 (19 U.S.C. 290).
            (6) Section 3124 (19 U.S.C. 291).
            (7) Section 3125 (19 U.S.C. 292).
            (8) Section 4198 (46 U.S.C. App. 94).
            (9) Section 4199 (46 U.S.C. App. 93).
            (10) Section 4201 (46 U.S.C. App. 96).
            (11) Section 4207.
            (12) Section 4208 (46 U.S.C. App. 102).
            (13) Section 4213 (46 U.S.C. App. 101).
            (14) So much of section 4221 as is codified at 46 U.S.C. 
        App. 113 (as in effect on the date of the enactment of this 
        Act).
            (15) Section 4222 (46 U.S.C. App. 126).
            (16) Sections 4306, 4307, and 4308 (46 U.S.C. App. 351 
        through 353).
            (17) Section 4332 (46 U.S.C. App. 274).
            (18) Section 4348 (46 U.S.C. App. 293).
            (19) Section 4358 (46 U.S.C. App. 306).
            (20) Section 4361 (46 U.S.C. App. 307).
            (21) Sections 4362 through 4369 (46 U.S.C. App. 308 through 
        315).
            (22) Sections 4573 through 4576 (46 U.S.C. App. 674 through 
        677).
    (b) Tariff Act of 1930.--The following sections of the Tariff Act 
of 1930 are repealed:
            (1) Section 432 (19 U.S.C. 1432).
            (2) Section 435 (19 U.S.C. 1435).
            (3) Section 437 (19 U.S.C. 1437).
            (4) Section 439 (19 U.S.C. 1439).
            (5) Section 440 (19 U.S.C. 1440).
            (6) Sections 443, 444, and 445 (19 U.S.C. 1443, 1444, and 
        1445).
            (7) Section 465 (19 U.S.C. 1465).
            (8) Section 482 (19 U.S.C. 1482).
            (9) Section 583 (19 U.S.C. 1583).
            (10) Section 585 (19 U.S.C. 1585).
    (c) Miscellaneous Provisions.--The following provisions are 
repealed:
            (1) Section 1 of the Act of February 10, 1900 (46 U.S.C. 
        App. 131).
            (2) Section 2 of the Act of April 29, 1908 (46 U.S.C. App. 
        127).
            (3) Section 1 of the Act of July 1, 1916 (46 U.S.C. App. 
        130).
            (4) Sections 1 and 2 of the Act of July 3, 1926 (46 U.S.C. 
        App. 293a and 293b).
            (5) The last undesignated paragraph of section 201 of the 
        Act of August 5, 1935 (19 U.S.C. 1432a), is repealed.
            (6) The Act of June 16, 1937 (19 U.S.C. 1435b).
            (7) The Act of May 4, 1934 (46 U.S.C. App. 91a).
            (8) Section 1403(b) of the Water Resources Development Act 
        of 1986 (Public Law 99-662; 26 U.S.C. 4461 note).

SEC. 691. REPORTS TO CONGRESS.

    (a) Antidumping and Countervailing Duty Collections.--The 
Commissioner of Customs shall before the 60th day of each fiscal year 
after fiscal year 1994 submit to Congress a report regarding the 
collection during the preceding fiscal year of duties imposed under the 
antidumping and countervailing duty laws.
    (b) CES Fee Report.--
            (1) Amendment.--Section 9501(c) of the Omnibus Budget 
        Reconciliation Act of 1987 (19 U.S.C. 3 note) is amended by 
        adding at the end the following new paragraph:
            ``(3) The Commissioner of Customs is authorized to obtain 
        from the operators of centralized cargo examination stations 
        information regarding the fees paid to them for the provision 
        of services at these stations.''.
            (2) Report.--Within 9 months after the date of the 
        enactment of this subsection, the Commissioner of Customs shall 
        submit to the Committees referred to in section 9501(c) of the 
        Omnibus Budget Reconciliation Act of 1987, a report setting 
        forth--
                    (A) an estimate of the aggregate amount of fees 
                paid to operators of centralized cargo examination 
                stations during fiscal year 1993; and
                    (B) the variations, if any, among customs districts 
                with respect to the amounts of the fees charged for 
                centralized cargo examination station services.
    (c) Compliance With Customs Laws.--Section 123 of the Customs and 
Trade Act of 1990 (19 U.S.C. 2083) is amended--
            (1) by redesignating subsection (d) as subsection (e), and
            (2) by inserting after subsection (c) the following:
    ``(d) Compliance Program.--The Commissioner of Customs shall--
            ``(1) devise and implement a methodology for estimating the 
        level of compliance with the laws administered by the Customs 
        Service; and
            ``(2) include as an additional part of the report required 
        to be submitted under subsection (a) for each of fiscal years 
        1994, 1995, and 1996, an evaluation of the extent to which such 
        compliance was obtained during the 12-month period preceding 
        the 60th day before each such fiscal year.''.
    (d) Courier Services Compliance Report.--The Commissioner of 
Customs shall initiate a compliance review of certain courier services 
which may not be eligible for benefits under the regulations of the 
Customs Service prescribed in part 128 of title 19 of the Code of 
Federal Regulations and shall submit a report to Congress on the 
results of such review within 1 year after the date of the enactment of 
this Act.

SEC. 692. EFFECTIVE DATE.

    This title takes effect on the date of the enactment of this Act.

            Passed the House of Representatives November 17, 1993.

            Attest:






                                                                 Clerk.

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