I

103D CONGRESS

1ST SESSION H. R. 1233

To improve monitoring of the domestic uses made of certain foreign

commodities after importation, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 4, 1993

Mr. PETERSON of Minnesota (for himself, Mr. POMEROY, Mr. WILLIAMS, Mr.

ROSE, Ms. LONG, Mr. MINGE, Mr. KOPETSKI, Mr. LAROCCO, Mr. VOLKMER, Mr. CONDIT, and Mr. SARPALIUS) introduced the following bill;

which was referred to the Committee on Ways and Means

A BILL

To improve monitoring of the domestic uses made of certain

foreign commodities after importation, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. MONITORING OF DOMESTIC USES MADE OF

4 CERTAIN FOREIGN COMMODITIES AFTER IM5 PORTATION.

6 (a) DEFINITIONS.—For purposes of this section:

7 (1) ENTRY.—The term ‘‘entry’’ means the

8 entry into, or the withdrawal from warehouse for
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1 consumption in, the customs territory of the United

2 States.

3 (2) FOREIGN COMMODITY.—The term ‘‘foreign

4 commodity’’ means any of the following, if a product

5 of any foreign country or instrumentality:

6 (A) Wheat provided for in heading 1001 of

7 the Harmonized Tariff Schedule of the United

8 States.

9 (B) Soybeans provided for in heading

10 1201.00.00 of such Schedule.

11 (C) Barley provided for in heading

12 1003.00 of such Schedule.

13 (D) Oats provided for in heading

14 1004.00.00 of such Schedule.

15 (E) Corn provided for in heading 1005 of

16 such Schedule.

17 (3) SECRETARY.—The term ‘‘Secretary’’ means

18 the Secretary of Agriculture.

19 (b) CERTIFICATION REQUIREMENTS REGARDING

20 FOREIGN COMMODITIES.—

21 (1) END-USE CERTIFICATE.—An end-use cer22 tificate that meets the requirements of subsection (c)

23 shall be included in the documentation covering the

24 entry of any foreign commodity.
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1 (2) QUARTERLY REPORTS.—A consignee of any

2 imported foreign commodity shall submit to the Sec3 retary a quarterly report that certifies—

4 (A) what quantity of the foreign commod5 ity covered by an end-use certificate was used

6 by the consignee during the quarter; and

7 (B) that the commodity referred to in

8 paragraph (1) was used by the consignee for

9 the purpose stated in the end-use certificate.

10 (c) END-USE CERTIFICATE AND QUARTERLY RE11 PORT CONTENT.—The end-use certificates and quarterly

12 reports required under subsection (b) shall be in such

13 form, and require such information, as the Secretary con14 siders necessary or appropriate to carry out the purposes

15 of this section, including—

16 (1) in the case of the end-use certificate—

17 (A) the name and address of the importer

18 of record of the foreign commodity;

19 (B) the name and address of the consignee

20 of the commodity;

21 (C) the identification of the country of ori22 gin of the commodity;

23 (D) a description by class and quantity of

24 the commodity covered by the certificate;
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1 (E) the sales price of the commodity in the

2 country of origin, if the Secretary considers

3 such datum necessary to facilitate the enforce4 ment of the trade laws and international agree5 ments of the United States;

6 (F) specification of the purpose for which

7 the consignee will use the commodity; and

8 (G) the identification of the transporter of

9 the commodity from the port of entry to the

10 processing facility of the consignee; and

11 (2) in the case of the quarterly report—

12 (A) the information referred to in subpara13 graphs (A) and (B) of paragraph (1);

14 (B) the identification of the end-use certifi15 cates currently held by the consignee;

16 (C) a statement of the quantity of the for17 eign commodity covered by each of the end-use

18 certificates identified under subparagraph (B)

19 that was used during the quarter; and

20 (D) a statement of the use made during

21 the quarter by the consignee of each quantity

22 referred to in subparagraph (C).

23 (d) REGULATIONS.—The Secretary shall prescribe

24 such requirements regarding the preparation and submis25 sion of the quarterly reports required under subsection
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1 (b)(2) as may be necessary or appropriate to carry out

2 the purposes of this section.

3 (e) PENALTIES.—

4 (1) CUSTOMS PENALTIES.—End-use certificates

5 required under this section shall be treated as any

6 other customs documentation for purposes of apply7 ing the customs laws that prohibit the entry, or the

8 attempt to enter, merchandise by fraud, gross neg9 ligence, or negligence.

10 (2) CIVIL PENALTIES.—Any person who know11 ingly violates any requirement prescribed by the Sec12 retary to carry out this section is punishable by a

13 civil penalty in an amount not to exceed $10,000.

14 (f) ENTRY PROHIBITED UNLESS END-USE CERTIFI15 CATE PRESENTED.—The Commissioner of Customs may

16 not permit the entry of any foreign commodity unless the

17 importer of record presents at the time of entry of the

18 commodity an end-use certificate that complies with the

19 applicable requirements of subsection (c).

20 SEC. 2. SUSPENSION OR DEBARMENT FOR USE OF FOREIGN

21 AGRICULTURAL COMMODITIES IN CERTAIN

22 AGRICULTURAL TRADE PROGRAMS.

23 (a) OPPORTUNITY FOR HEARING.—The Commodity

24 Credit Corporation shall provide a person with an oppor25 tunity for a hearing before suspending or debarring the
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1 person from participation in an agricultural trade program

2 for using a foreign agricultural commodity in violation of

3 the terms and conditions of the program.

4 (b) WAIVER.—

5 (1) IN GENERAL.—The Commodity Credit Cor6 poration may waive the suspension or debarment of

7 a person from participation in an agricultural trade

8 program for using a foreign agricultural commodity

9 in violation of the terms and conditions of the pro10 gram if the person demonstrates, to the satisfaction

11 of the Corporation, that—

12 (A) the use of the commodity was uninten13 tional; and

14 (B) the quantity of the foreign agricultural

15 commodity used was less than 1 percent of the

16 total quantity of the commodity involved in the

17 transaction.

18 (2) OTHER PENALTIES.—Any waiver by the

19 Commodity Credit Corporation of a suspension or

20 debarment of a person under paragraph (1) shall

21 not affect the liability of the person for any other

22 penalty imposed under an agricultural trade pro23 gram for the quantity of the foreign agricultural

24 commodity involved.

Æ