`[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1278 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 207

105th CONGRESS

  1st Session

                                S. 1278

                          [Report No. 105-105]

_______________________________________________________________________

                                 A BILL

  To extend preferential treatment to certain products imported from 
                       Caribbean Basin countries.

_______________________________________________________________________

                            October 9, 1997

                 Read twice and placed on the calendar





                                                       Calendar No. 207
105th CONGRESS
  1st Session
                                S. 1278

                          [Report No. 105-105]

  To extend preferential treatment to certain products imported from 
                       Caribbean Basin countries.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 9, 1997

    Mr. Roth, from the Committee on Finance, reported the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
  To extend preferential treatment to certain products imported from 
                       Caribbean Basin countries.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States-Caribbean Basin Trade 
Enhancement Act''.

SEC. 2. FINDINGS AND POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) The Caribbean Basin Economic Recovery Act (referred to 
        in this Act as ``CBERA'') represents a permanent commitment by 
        the United States to encourage the development of strong 
        democratic governments and revitalized economies in neighboring 
        countries in the Caribbean Basin.
            (2) Thirty-four democratically elected leaders agreed at 
        the 1994 Summit of the Americas to conclude negotiation of a 
        Free Trade Area of the Americas (referred to in this Act as 
        ``FTAA'') by the year 2005.
            (3) The economic security of the countries in the Caribbean 
        Basin will be enhanced by the completion of the FTAA.
            (4) Offering temporary benefits to Caribbean Basin 
        countries will enhance trade between the United States and the 
        Caribbean Basin, encourage development of trade and investment 
        policies that will facilitate participation of Caribbean Basin 
        countries in the FTAA, preserve the United States commitment to 
        Caribbean Basin beneficiary countries, help further economic 
        development in the Caribbean Basin region, and accelerate the 
        trend toward more open economies in the region.
            (5) Promotion of the growth of free enterprise and economic 
        opportunity in the Caribbean Basin will enhance the national 
        security interests of the United States.
            (6) Increased trade and economic activity between the 
        United States and Caribbean Basin beneficiary countries will 
        create expanding export opportunities for United States 
        businesses and workers.
    (b) Policy.--It is the policy of the United States to--
            (1) offer Caribbean Basin beneficiary countries willing to 
        prepare to become a party to the FTAA or a comparable trade 
        agreement, tariff treatment essentially equivalent to that 
        accorded to products of NAFTA countries for certain products 
        not currently eligible for duty-free treatment under the CBERA; 
        and
            (2) seek the participation of Caribbean Basin beneficiary 
        countries in the FTAA or a trade agreement comparable to the 
        FTAA at the earliest possible date, with the goal of achieving 
        full participation in such agreement not later than 2005.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Beneficiary country.--The term ``beneficiary country'' 
        has the meaning given the term in section 212(a)(1)(A) of the 
        Caribbean Basin Economic Recovery Act (19 U.S.C. 
        2702(a)(1)(A)).
            (2) CBTEA.--The term ``CBTEA'' means the United States-
        Caribbean Basin Trade Enhancement Act.
            (3) NAFTA.--The term ``NAFTA'' means the North American 
        Free Trade Agreement entered into between the United States, 
        Mexico, and Canada on December 17, 1992.
            (4) NAFTA country.--The term ``NAFTA country'' means any 
        country with respect to which the NAFTA is in force.
            (5) WTO and wto member.--The terms ``WTO'' and ``WTO 
        member'' have the meanings given those terms in section 2 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501).

SEC. 4. TEMPORARY PROVISIONS TO PROVIDE ADDITIONAL TRADE BENEFITS TO 
              CERTAIN BENEFICIARY COUNTRIES.

    (a) Temporary Provisions.--Section 213(b) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(b)) is amended to read as 
follows:
    ``(b) Import-Sensitive Articles.--
            ``(1) In general.--Subject to paragraphs (2) through (5), 
        the duty-free treatment provided under this title does not 
        apply to--
                    ``(A) textile and apparel articles which were not 
                eligible articles for purposes of this title on January 
                1, 1994, as this title was in effect on that date;
                    ``(B) footwear not designated at the time of the 
                effective date of this title as eligible articles for 
                the purpose of the generalized system of preferences 
                under title V of the Trade Act of 1974;
                    ``(C) tuna, prepared or preserved in any manner, in 
                airtight containers;
                    ``(D) petroleum, or any product derived from 
                petroleum, provided for in headings 2709 and 2710 of 
                the HTS;
                    ``(E) watches and watch parts (including cases, 
                bracelets, and straps), of whatever type including, but 
                not limited to, mechanical, quartz digital or quartz 
                analog, if such watches or watch parts contain any 
                material which is the product of any country with 
                respect to which HTS column 2 rates of duty apply; or
                    ``(F) articles to which reduced rates of duty apply 
                under subsection (h).
            ``(2) Transition period treatment of certain textile and 
        apparel articles.--
                    ``(A) Products covered.--During the transition 
                period, the preferential treatment described in 
                subparagraph (B) shall apply to the following products:
                            ``(i) Apparel articles assembled in a cbtea 
                        beneficiary country.--Apparel articles 
                        assembled in a CBTEA beneficiary country from 
                        fabrics wholly formed and cut in the United 
                        States, from yarns wholly formed in the United 
                        States that are--
                                    ``(I) entered under subheading 
                                9802.00.80 of the HTS; or
                                    ``(II) entered under chapter 61 or 
                                62 of the HTS, if, after such assembly, 
                                the articles would have qualified for 
                                entry under subheading 9802.00.80 of 
                                the HTS but for the fact that the 
                                articles were subjected to stone-
                                washing, enzyme-washing, acid washing, 
                                perma-pressing, oven-baking, bleaching, 
                                garment-dyeing, or other similar 
                                processes.
                            ``(ii) Apparel articles cut and assembled 
                        in a cbtea beneficiary country.--Apparel 
                        articles cut in a CBTEA beneficiary country 
                        from fabric wholly formed in the United States 
                        from yarns wholly formed in the United States, 
                        if such articles are assembled in such country 
                        with thread formed in the United States.
                            ``(iii) Handloomed, handmade, and folklore 
                        articles.--A handloomed, handmade, or folklore 
                        article of a CBTEA beneficiary country 
                        identified under subparagraph (C) that is 
                        certified as such by the competent authority of 
                        such beneficiary country.
                    ``(B) Preferential treatment.--Except as provided 
                in subparagraph (E), during the transition period, the 
                articles described in subparagraph (A) shall enter the 
                United States free of duty and free of any quantitative 
                limitations.
                    ``(C) Handloomed, handmade, and folklore articles 
                defined.--For purposes of subparagraph (A)(iii), the 
                President, after consultation with the CBTEA 
                beneficiary country concerned, shall determine which, 
                if any, particular textile and apparel goods of the 
                country shall be treated as being handloomed, handmade, 
                or folklore goods of a kind described in section 2.3 
                (a), (b), or (c) or Appendix 3.1.B.11 of the Annex.
                    ``(D) Penalties for transshipments.--
                            ``(i) Penalties for exporters.--If the 
                        President determines, based on sufficient 
                        evidence, that an exporter has engaged in 
                        transshipment with respect to textile or 
                        apparel products from a CBTEA beneficiary 
                        country, then the President shall deny all 
                        benefits under this title to such exporter, and 
                        any successor of such exporter, for a period of 
                        2 years.
                            ``(ii) Penalties for countries.--Whenever 
                        the President finds, based on sufficient 
                        evidence, that transshipment has occurred, the 
                        President shall request that the CBTEA 
                        beneficiary country or countries through whose 
                        territory the transshipment has occurred take 
                        all necessary and appropriate actions to 
                        prevent such transshipment. If the President 
                        determines that a country is not taking such 
                        actions, the President shall reduce the 
                        quantities of textile and apparel articles that 
                        may be imported into the United States from 
                        such country by the quantity of the 
                        transshipped articles multiplied by 3.
                            ``(iii) Transshipment described.--
                        Transshipment within the meaning of this 
                        subparagraph has occurred when preferential 
                        treatment for a textile or apparel article 
                        under subparagraph (B) has been claimed on the 
                        basis of material false information concerning 
                        the country of origin, manufacture, processing, 
                        or assembly of the article or any of its 
                        components. For purposes of this clause, false 
                        information is material if disclosure of the 
                        true information would mean or would have meant 
                        that the article is or was ineligible for 
                        preferential treatment under subparagraph (B).
                    ``(E) Bilateral emergency actions.--
                            ``(i) In general.--The President may take 
                        bilateral emergency tariff actions of a kind 
                        described in section 4 of the Annex with 
                        respect to any apparel article imported from a 
                        CBTEA beneficiary country if the application of 
                        tariff treatment under subparagraph (B) to such 
                        article results in conditions that would be 
                        cause for the taking of such actions under such 
                        section 4 with respect to a like article 
                        described in the same 8-digit subheading of the 
                        HTS that is imported from Mexico.
                            ``(ii) Rules relating to bilateral 
                        emergency action.--For purposes of applying 
                        bilateral emergency action under this 
                        subparagraph--
                                    ``(I) the requirements of paragraph 
                                (5) of section 4 of the Annex (relating 
                                to providing compensation) shall not 
                                apply;
                                    ``(II) the term `transition period' 
                                in section 4 of the Annex shall have 
                                the meaning given that term in 
                                paragraph (5)(D) of this subsection; 
                                and
                                    ``(III) the requirements to consult 
                                specified in section 4 of the Annex 
                                shall be treated as satisfied if the 
                                President requests consultations with 
                                the beneficiary country in question and 
                                the country does not agree to consult 
                                within the time period specified under 
                                section 4.
            ``(3) Preferential tariff treatment of certain other 
        articles originating in cbtea beneficiary countries.--
                    ``(A) In general.--During the transition period, 
                the President shall proclaim a rate of duty, with 
                respect to any article referred to in any of 
                subparagraphs (B) through (F) of paragraph (1) that is 
                a CBTEA originating good, equal to the lesser of--
                            ``(i) `x', or
                            ``(ii) the amount determined by using the 
                        formula `.5(x-y)+y'.
                For purposes of the preceding sentence, the terms `x' 
                and `y' have the meanings given such terms in 
                subparagraph (C).
                    ``(B) Additional reductions.--
                            ``(i) In general.--The President may 
                        proclaim further reductions in the rate of duty 
                        for any article described in subparagraph (A) 
                        in accordance with this subparagraph if the 
                        President determines that the performance of 
                        the country is satisfactory under the criteria 
                        listed in paragraph (5)(B)(ii).
                            ``(ii) Rate of duty.--The rate of duty 
                        proclaimed by the President under this 
                        subparagraph shall be no less than the lesser 
                        of--
                                    ``(I) the rate of duty that would 
                                apply to the article at the time of 
                                importation from the country but for 
                                the enactment of the CBTEA, or
                                    ``(II) the rate of duty that 
                                applies to a like article of Mexico 
                                under Annex 302.2 of NAFTA as 
                                implemented pursuant to United States 
                                law.
                    ``(C) Certain definitions.--For purposes of 
                subparagraph (A), the term `x' means the rate of duty 
                described in subparagraph (B)(ii)(I) and the term `y' 
                means the rate of duty described in subparagraph 
                (B)(ii)(II).
                    ``(D) Exception.--Subparagraphs (A) and (B) do not 
                apply to any article accorded duty-free treatment under 
                U.S. Note 2(b) to subchapter II of chapter 98 of the 
                HTS.
                    ``(E) Relationship to duty reductions under 
                subsection (h).--If at any time during the transition 
                period the rate of duty that would (but for action 
                taken under subparagraph (A) or (B)) apply with respect 
                to any article under subsection (h) is a rate of duty 
                that is lower than the rate of duty resulting from such 
                action, then such lower rate of duty shall be applied.
            ``(4) Customs procedures.--
                    ``(A) In general.--
                            ``(i) Regulations.--Any importer that 
                        claims preferential treatment under paragraph 
                        (2) or (3) shall comply with customs procedures 
                        similar in all material respects to the 
                        requirements of Article 502(1) of the NAFTA as 
                        implemented pursuant to United States law, in 
                        accordance with regulations promulgated by the 
                        Secretary of the Treasury.
                            ``(ii) Determination.--
                                    ``(I) In general.--In order to 
                                qualify for the preferential treatment 
                                under paragraph (2) or (3) and for a 
                                Certificate of Origin to be valid with 
                                respect to any article for which such 
                                treatment is claimed, there shall be in 
                                effect a determination by the President 
                                that each country described in 
                                subclause (II)--
                                            ``(aa) has implemented and 
                                        follows, or
                                            ``(bb) is making 
                                        substantial progress toward 
                                        implementing and following,
                                procedures and requirements similar in 
                                all material respects to the relevant 
                                procedures and requirements under 
                                chapter 5 of the NAFTA.
                                    ``(II) Country described.--A 
                                country is described in this subclause 
                                if it is a CBTEA beneficiary country--
                                            ``(aa) from which the 
                                        article is exported, or
                                            ``(bb) in which materials 
                                        used in the production of the 
                                        article originate or in which 
                                        the article or such materials 
                                        undergo production that 
                                        contributes to a claim that the 
                                        article is eligible for 
                                        preferential treatment.
                    ``(B) Certificate of origin.--The Certificate of 
                Origin that otherwise would be required pursuant to the 
                provisions of subparagraph (A) shall not be required in 
                the case of an article imported under paragraph (2) or 
                (3) if such Certificate of Origin would not be required 
                under Article 503 of the NAFTA (as implemented pursuant 
                to United States law), if the article were imported 
                from Mexico.
            ``(5) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Annex.--The term `the Annex' means Annex 300-
                B of the NAFTA.
                    ``(B) CBTEA beneficiary country.--
                            ``(i) In general.--The term `CBTEA 
                        beneficiary country' means any `beneficiary 
                        country', as defined by section 212(a)(1)(A) of 
                        this title, which the President determines has 
                        demonstrated a commitment to--
                                    ``(I) undertake its obligations 
                                under the WTO on or ahead of schedule;
                                    ``(II) participate in negotiations 
                                toward the completion of the FTAA or a 
                                comparable trade agreement; and
                                    ``(III) undertake other steps 
                                necessary for that country to become a 
                                party to the FTAA or a comparable trade 
                                agreement.
                            ``(ii) Criteria for determination.--In 
                        making the determination under clause (i), the 
                        President may consider the criteria in sections 
                        212 (b) and (c) and other appropriate criteria, 
                        including--
                                    ``(I) the extent to which the 
                                country follows accepted rules of 
                                international trade provided for under 
                                the agreements listed in section 101(d) 
                                of the Uruguay Round Agreements Act;
                                    ``(II) the extent to which the 
                                country provides protection of 
                                intellectual property rights--
                                            ``(aa) in accordance with 
                                        standards established in the 
                                        Agreement on Trade-Related 
                                        Aspects of Intellectual 
                                        Property Rights described in 
                                        section 101(d)(15) of the 
                                        Uruguay Round Agreements Act;
                                            ``(bb) in accordance with 
                                        standards established in 
                                        chapter 17 of the NAFTA; and
                                            ``(cc) by granting the 
                                        holders of copyrights the 
                                        ability to control the 
                                        importation and sale of 
                                        products that embody 
                                        copyrighted works, extending 
                                        the period set forth in Article 
                                        1711(6) of NAFTA for protecting 
                                        test data for agricultural 
                                        chemicals to 10 years, 
                                        protecting trademarks 
                                        regardless of their subsequent 
                                        designation as geographic 
                                        indications, and providing 
                                        enforcement against the 
                                        importation of infringing 
                                        products at the border;
                            ``(III) the extent to which the country 
                        provides protections to investors and 
                        investments of the United States substantially 
                        equivalent to those set forth in chapter 11 of 
                        the NAFTA;
                            ``(IV) the extent to which the country 
                        provides the United States and other WTO 
                        members nondiscriminatory, equitable, and 
                        reasonable market access with respect to the 
                        products for which benefits are provided under 
                        paragraphs (2) and (3), and in other relevant 
                        product sectors as determined by the President;
                            ``(V) the extent to which the country 
                        provides internationally recognized worker 
                        rights, including--
                                            ``(aa) the right of 
                                        association,
                                            ``(bb) the right to 
                                        organize and bargain 
                                        collectively,
                                            ``(cc) prohibition on the 
                                        use of any form of coerced or 
                                        compulsory labor,
                                            ``(dd) a minimum age for 
                                        the employment of children, and
                                            ``(ee) acceptable 
                                        conditions of work with respect 
                                        to minimum wages, hours of 
                                        work, and occupational safety 
                                        and health;
                                    ``(VI) whether the country has met 
                                the counter-narcotics certification 
                                criteria set forth in section 490 of 
                                the Foreign Assistance Act of 1961 (22 
                                U.S.C. 2291j) for eligibility for 
                                United States assistance;
                                    ``(VII) the extent to which the 
                                country becomes a party to and 
                                implements the Inter-American 
                                Convention Against Corruption, and 
                                becomes party to a convention regarding 
                                the extradition of its nationals;
                                    ``(VIII) the extent to which the 
                                country--
                                            ``(aa) supports the 
                                        multilateral and regional 
                                        objectives of the United States 
                                        with respect to government 
                                        procurement, including the 
                                        negotiation of government 
                                        procurement provisions as part 
                                        of the FTAA and conclusion of a 
                                        WTO transparency agreement as 
                                        provided in the declaration of 
                                        the WTO Ministerial Conference 
                                        held in Singapore on December 9 
                                        through 13, 1996, and
                                            ``(bb) applies transparent 
                                        and competitive procedures in 
                                        government procurement 
                                        equivalent to those contained 
                                        in the WTO Agreement on 
                                        Government Procurement 
                                        (described in section 
                                        101(d)(17) of the Uruguay Round 
                                        Agreements Act);
                                    ``(IX) the extent to which the 
                                country follows the rules on customs 
                                valuation set forth in the WTO 
                                Agreement on Implementation of Article 
                                VII of the GATT 1994 (described in 
                                section 101(d)(8) of the Uruguay Round 
                                Agreements Act);
                                    ``(X) the extent to which the 
                                country affords to products of the 
                                United States which the President 
                                determines to be of commercial 
                                importance to the United States with 
                                respect to such country, and on a 
                                nondiscriminatory basis to like 
                                products of other WTO members, tariff 
                                treatment that is no less favorable 
                                than the most favorable tariff 
                                treatment provided by the country to 
                                any other country pursuant to any free 
                                trade agreement to which such country 
                                is a party, other than the Central 
                                American Common Market or the Caribbean 
                                Community and Common Market.
                    ``(C) CBTEA originating good.--
                            ``(i) In general.--The term `CBTEA 
                        originating good' means a good that meets the 
                        rules of origin for a good set forth in chapter 
                        4 of the NAFTA as implemented pursuant to 
                        United States law.
                            ``(ii) Application of chapter 4.--In 
                        applying chapter 4 with respect to a CBTEA 
                        beneficiary country for purposes of this 
                        subsection--
                                    ``(I) no country other than the 
                                United States and a CBTEA beneficiary 
                                country may be treated as being a party 
                                to the NAFTA;
                                    ``(II) any reference to trade 
                                between the United States and Mexico 
                                shall be deemed to refer to trade 
                                between the United States and a CBTEA 
                                beneficiary country;
                                    ``(III) any reference to a party 
                                shall be deemed to refer to a CBTEA 
                                beneficiary country or the United 
                                States; and
                                    ``(IV) any reference to parties 
                                shall be deemed to refer to any 
                                combination of CBTEA beneficiary 
                                countries or to the United States and a 
                                CBTEA beneficiary country (or any 
                                combination thereof).
                    ``(D) Transition period.--The term `transition 
                period' means, with respect to a CBTEA beneficiary 
                country, the period that begins on January 1, 1998, and 
                ends on the earlier of--
                            ``(i) December 31, 2000, or
                            ``(ii) the date on which the FTAA or a 
                        comparable trade agreement enters into force 
                        with respect to the United States and the CBTEA 
                        beneficiary country.
                    ``(E) CBTEA.--The term `CBTEA' means the United 
                States-Caribbean Basin Trade Enhancement Act.
                    ``(F) FTAA.--The term `FTAA' means the Free Trade 
                Area of the Americas.''.
    (b) Determination Regarding Retention of Designation.--Section 
212(e) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(e)) 
is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively;
                    (B) by inserting ``(A)'' after ``(1)'';
                    (C) by striking ``would be barred'' and all that 
                follows through the end period and inserting: ``no 
                longer satisfies one or more of the conditions for 
                designation as a beneficiary country set forth in 
                subsection (b) or such country fails adequately to meet 
                one or more of the criteria set forth in subsection 
                (c).''; and
                    (D) by adding at the end the following:
                    ``(B) The President may, after the requirements of 
                subsection (a)(2) and paragraph (2) have been met--
                            ``(i) withdraw or suspend the designation 
                        of any country as a CBTEA beneficiary country, 
                        or
                            ``(ii) withdraw, suspend, or limit the 
                        application of preferential treatment under 
                        section 213(b) (2) and (3) to any article of 
                        any country, if, after such designation, the 
                        President determines that as a result of 
                        changed circumstances, the performance of such 
                        country is not satisfactory under the criteria 
                        set forth in section 213(b)(5)(B).''; and
            (2) by adding after paragraph (2) the following new 
        paragraph:
            ``(3) If preferential treatment under section 213(b) (2) 
        and (3) is withdrawn, suspended, or limited with respect to a 
        CBTEA beneficiary country, such country shall not be deemed to 
        be a `party' for the purposes of applying section 213(b)(5)(C) 
        to imports of articles for which preferential treatment has 
        been withdrawn, suspended, or limited with respect to such 
        country.''.
    (c) Reporting Requirements.--Section 212(f) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2702(f)) is amended to read as 
follows:
    ``(f) Reporting Requirements.--
            ``(1) In general.--Not later than December 31, 1997, and at 
        the end of each 3-year period thereafter, the President shall 
        submit to Congress a report regarding the operation of this 
        title, including--
                    ``(A) with respect to subsections (b) and (c), the 
                results of a general review of beneficiary countries 
                based on the considerations described in such 
                subsections; and
                    ``(B) the performance of each beneficiary country 
                or CBTEA beneficiary country, as the case may be, under 
                the criteria set forth in section 213(b)(5)(B)(ii).
            ``(2) Public comment.--Before submitting the report 
        described in paragraph (1), the United States Trade 
        Representative shall publish a notice in the Federal Register 
        requesting public comments on whether beneficiary countries are 
        meeting the criteria listed in section 213(b)(5)(B)(i), and on 
        the performance of each beneficiary country or 
CBTEA beneficiary country, as the case may be, with respect to the 
criteria listed in section 213(b)(5)(B)(ii).''.
    (d) International Trade Commission Reports.--
            (1) Section 215(a) of the Caribbean Basin Economic Recovery 
        Act (19 U.S.C. 2704(a)) is amended to read as follows:
    ``(a) Reporting Requirement.--
            ``(1) In general.--The United States International Trade 
        Commission (in this section referred to as the `Commission') 
        shall submit to Congress and the President, biennial reports 
        regarding the economic impact of this title on United States 
        industries and consumers.
            ``(2) First report.--The first report shall be submitted 
        not later than September 30 of the year following the year in 
        which the United States-Caribbean Basin Trade Enhancement Act 
        is enacted. No report shall be required under this section 
        after September 30, 2005.
            ``(3) Treatment of puerto rico, etc.--For purposes of this 
        section, industries in the Commonwealth of Puerto Rico and the 
        insular possessions of the United States are considered to be 
        United States industries.''.
            (2) Section 206(a) of the Andean Trade Preference Act (19 
        U.S.C. 3204(a)) is amended to read as follows:
    ``(a) Reporting Requirements.--
            ``(1) In general.--The United States International Trade 
        Commission (in this section referred to as the `Commission') 
        shall submit to Congress and the President, biennial reports 
        regarding the economic impact of this title on United States 
        industries and consumers, and, in conjunction with other 
        agencies, the effectiveness of this title in promoting drug-
        related crop eradication and crop substitution efforts of the 
        beneficiary countries.
            ``(2) Submission.--During the period that this title is in 
        effect, the report required by paragraph (1) shall be submitted 
        on September 30 of each year that the report required by 
        section 215 of the Caribbean Basin Economic Recovery Act is not 
        submitted.
            ``(3) Treatment of puerto rico, etc.--For purposes of this 
        section, industries in the Commonwealth of Puerto Rico and the 
        insular possessions of the United States are considered to be 
        United States industries.''.
    (e) Technical and Conforming Amendments.--
            (1) In general.--
                    (A) Section 211 of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2701) is amended by inserting 
                ``(or other preferential treatment)'' after 
                ``treatment''.
                    (B) Section 213(a)(1) of the Caribbean Basin 
                Economic Recovery Act (19 U.S.C. 2703(a)(1)) is amended 
                by inserting ``and except as provided in subsection (b) 
                (2) and (3),'' after ``Tax Reform Act of 1986,''.
            (2) Definitions.--Section 212(a)(1) of the Caribbean Basin 
        Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended by 
        adding at the end the following new subparagraphs:
                    ``(D) The term `NAFTA' means the North American 
                Free Trade Agreement entered into between the United 
                States, Mexico, and Canada on December 17, 1992.
                    ``(E) The terms `WTO' and `WTO member' have the 
                meanings given those terms in section 2 of the Uruguay 
                Round Agreements Act (19 U.S.C. 3501).''.

SEC. 5. ADEQUATE AND EFFECTIVE PROTECTION FOR INTELLECTUAL PROPERTY 
              RIGHTS.

    Section 212(c) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2702(c)) is amended by adding at the end the following flush 
sentence:
``Notwithstanding any other provision of law, the President may 
determine that a country is not providing adequate and effective 
protection of intellectual property rights under paragraph (9), even if 
the country is in compliance with the country's obligations under the 
Agreement on Trade-Related Aspects of Intellectual Property Rights 
described in section 101(d)(15) of the Uruguay Round Agreements Act (19 
U.S.C. 3511(d)(15)).''.

SEC. 6. FEES FOR CERTAIN CUSTOMS SERVICES.

    Section 13031(b)(1)(C) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(1)(C)) is amended by 
striking ``to fiscal years'' and all that follows through ``1997'' and 
inserting ``before April 1, 2000''.`