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
II

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.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘United States-Carib5 bean Basin Trade Enhancement Act’’.

6 SEC. 2. FINDINGS AND POLICY.

7 (a) FINDINGS.—Congress makes the following find8 ings:
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1 (1) The Caribbean Basin Economic Recovery

2 Act (referred to in this Act as ‘‘CBERA’’) rep3 resents a permanent commitment by the United

4 States to encourage the development of strong demo5 cratic governments and revitalized economies in

6 neighboring countries in the Caribbean Basin.

7 (2) Thirty-four democratically elected leaders

8 agreed at the 1994 Summit of the Americas to con9 clude negotiation of a Free Trade Area of the Amer10 icas (referred to in this Act as ‘‘FTAA’’) by the year

11 2005.

12 (3) The economic security of the countries in

13 the Caribbean Basin will be enhanced by the comple14 tion of the FTAA.

15 (4) Offering temporary benefits to Caribbean

16 Basin countries will enhance trade between the Unit17 ed States and the Caribbean Basin, encourage devel18 opment of trade and investment policies that will fa19 cilitate participation of Caribbean Basin countries in

20 the FTAA, preserve the United States commitment

21 to Caribbean Basin beneficiary countries, help fur22 ther economic development in the Caribbean Basin

23 region, and accelerate the trend toward more open

24 economies in the region.
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1 (5) Promotion of the growth of free enterprise

2 and economic opportunity in the Caribbean Basin

3 will enhance the national security interests of the

4 United States.

5 (6) Increased trade and economic activity be6 tween the United States and Caribbean Basin bene7 ficiary countries will create expanding export oppor8 tunities for United States businesses and workers.

9 (b) POLICY.—It is the policy of the United States

10 to—

11 (1) offer Caribbean Basin beneficiary countries

12 willing to prepare to become a party to the FTAA

13 or a comparable trade agreement, tariff treatment

14 essentially equivalent to that accorded to products of

15 NAFTA countries for certain products not currently

16 eligible for duty-free treatment under the CBERA;

17 and

18 (2) seek the participation of Caribbean Basin

19 beneficiary countries in the FTAA or a trade agree20 ment comparable to the FTAA at the earliest pos21 sible date, with the goal of achieving full participa22 tion in such agreement not later than 2005.

23 SEC. 3. DEFINITIONS.

24 In this Act:
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1 (1) BENEFICIARY COUNTRY.—The term ‘‘bene2 ficiary country’’ has the meaning given the term in

3 section 212(a)(1)(A) of the Caribbean Basin Eco4 nomic Recovery Act (19 U.S.C. 2702(a)(1)(A)).

5 (2) CBTEA.—The term ‘‘CBTEA’’ means the

6 United States-Caribbean Basin Trade Enhancement

7 Act.

8 (3) NAFTA.—The term ‘‘NAFTA’’ means the

9 North American Free Trade Agreement entered into

10 between the United States, Mexico, and Canada on

11 December 17, 1992.

12 (4) NAFTA COUNTRY.—The term ‘‘NAFTA

13 country’’ means any country with respect to which

14 the NAFTA is in force.

15 (5) WTO AND WTO MEMBER.—The terms

16 ‘‘WTO’’ and ‘‘WTO member’’ have the meanings

17 given those terms in section 2 of the Uruguay

18 Round Agreements Act (19 U.S.C. 3501).

19 SEC. 4. TEMPORARY PROVISIONS TO PROVIDE ADDITIONAL

20 TRADE BENEFITS TO CERTAIN BENEFICIARY

21 COUNTRIES.

22 (a) TEMPORARY PROVISIONS.—Section 213(b) of the

23 Caribbean Basin Economic Recovery Act (19 U.S.C.

24 2703(b)) is amended to read as follows:

25 ‘‘(b) IMPORT-SENSITIVE ARTICLES.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

2 through (5), the duty-free treatment provided under

3 this title does not apply to—

4 ‘‘(A) textile and apparel articles which

5 were not eligible articles for purposes of this

6 title on January 1, 1994, as this title was in ef7 fect on that date;

8 ‘‘(B) footwear not designated at the time

9 of the effective date of this title as eligible arti10 cles for the purpose of the generalized system

11 of preferences under title V of the Trade Act of

12 1974;

13 ‘‘(C) tuna, prepared or preserved in any

14 manner, in airtight containers;

15 ‘‘(D) petroleum, or any product derived

16 from petroleum, provided for in headings 2709

17 and 2710 of the HTS;

18 ‘‘(E) watches and watch parts (including

19 cases, bracelets, and straps), of whatever type

20 including, but not limited to, mechanical, quartz

21 digital or quartz analog, if such watches or

22 watch parts contain any material which is the

23 product of any country with respect to which

24 HTS column 2 rates of duty apply; or
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1 ‘‘(F) articles to which reduced rates of

2 duty apply under subsection (h).

3 ‘‘(2) TRANSITION PERIOD TREATMENT OF CER4 TAIN TEXTILE AND APPAREL ARTICLES.—

5 ‘‘(A) PRODUCTS COVERED.—During the

6 transition period, the preferential treatment de7 scribed in subparagraph (B) shall apply to the

8 following products:

9 ‘‘(i) APPAREL ARTICLES ASSEMBLED

10 IN A CBTEA BENEFICIARY COUNTRY.—Ap11 parel articles assembled in a CBTEA bene12 ficiary country from fabrics wholly formed

13 and cut in the United States, from yarns

14 wholly formed in the United States that

15 are—

16 ‘‘(I) entered under subheading

17 9802.00.80 of the HTS; or

18 ‘‘(II) entered under chapter 61

19 or 62 of the HTS, if, after such as20 sembly, the articles would have quali21 fied for entry under subheading

22 9802.00.80 of the HTS but for the

23 fact that the articles were subjected to

24 stone-washing, enzyme-washing, acid

25 washing, perma-pressing, oven-baking,
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1 bleaching, garment-dyeing, or other

2 similar processes.

3 ‘‘(ii) APPAREL ARTICLES CUT AND AS4 SEMBLED IN A CBTEA BENEFICIARY COUN5 TRY.—Apparel articles cut in a CBTEA

6 beneficiary country from fabric wholly

7 formed in the United States from yarns

8 wholly formed in the United States, if such

9 articles are assembled in such country with

10 thread formed in the United States.

11 ‘‘(iii) HANDLOOMED, HANDMADE, AND

12 FOLKLORE ARTICLES.—A handloomed,

13 handmade, or folklore article of a CBTEA

14 beneficiary country identified under sub15 paragraph (C) that is certified as such by

16 the competent authority of such beneficiary

17 country.

18 ‘‘(B) PREFERENTIAL TREATMENT.—Ex19 cept as provided in subparagraph (E), during

20 the transition period, the articles described in

21 subparagraph (A) shall enter the United States

22 free of duty and free of any quantitative limita23 tions.

24 ‘‘(C) HANDLOOMED, HANDMADE, AND

25 FOLKLORE ARTICLES DEFINED.—For purposes
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1 of subparagraph (A)(iii), the President, after

2 consultation with the CBTEA beneficiary coun3 try concerned, shall determine which, if any,

4 particular textile and apparel goods of the coun5 try shall be treated as being handloomed, hand6 made, or folklore goods of a kind described in

7 section 2.3 (a), (b), or (c) or Appendix 3.1.B.11

8 of the Annex.

9 ‘‘(D) PENALTIES FOR TRANS10 SHIPMENTS.—

11 ‘‘(i) PENALTIES FOR EXPORTERS.—If

12 the President determines, based on suffi13 cient evidence, that an exporter has en14 gaged in transshipment with respect to

15 textile or apparel products from a CBTEA

16 beneficiary country, then the President

17 shall deny all benefits under this title to

18 such exporter, and any successor of such

19 exporter, for a period of 2 years.

20 ‘‘(ii) PENALTIES FOR COUNTRIES.—

21 Whenever the President finds, based on

22 sufficient evidence, that transshipment has

23 occurred, the President shall request that

24 the CBTEA beneficiary country or coun25 tries through whose territory the trans-
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1 shipment has occurred take all necessary

2 and appropriate actions to prevent such

3 transshipment. If the President determines

4 that a country is not taking such actions,

5 the President shall reduce the quantities of

6 textile and apparel articles that may be im7 ported into the United States from such

8 country by the quantity of the trans9 shipped articles multiplied by 3.

10 ‘‘(iii) TRANSSHIPMENT DESCRIBED.—

11 Transshipment within the meaning of this

12 subparagraph has occurred when pref13 erential treatment for a textile or apparel

14 article under subparagraph (B) has been

15 claimed on the basis of material false in16 formation concerning the country of origin,

17 manufacture, processing, or assembly of

18 the article or any of its components. For

19 purposes of this clause, false information is

20 material if disclosure of the true informa21 tion would mean or would have meant that

22 the article is or was ineligible for pref23 erential treatment under subparagraph

24 (B).

25 ‘‘(E) BILATERAL EMERGENCY ACTIONS.—
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1 ‘‘(i) IN GENERAL.—The President

2 may take bilateral emergency tariff actions

3 of a kind described in section 4 of the

4 Annex with respect to any apparel article

5 imported from a CBTEA beneficiary coun6 try if the application of tariff treatment

7 under subparagraph (B) to such article re8 sults in conditions that would be cause for

9 the taking of such actions under such sec10 tion 4 with respect to a like article de11 scribed in the same 8-digit subheading of

12 the HTS that is imported from Mexico.

13 ‘‘(ii) RULES RELATING TO BILATERAL

14 EMERGENCY ACTION.—For purposes of ap15 plying bilateral emergency action under

16 this subparagraph—

17 ‘‘(I) the requirements of para18 graph (5) of section 4 of the Annex

19 (relating to providing compensation)

20 shall not apply;

21 ‘‘(II) the term ‘transition period’

22 in section 4 of the Annex shall have

23 the meaning given that term in para24 graph (5)(D) of this subsection; and
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1 ‘‘(III) the requirements to con2 sult specified in section 4 of the

3 Annex shall be treated as satisfied if

4 the President requests consultations

5 with the beneficiary country in ques6 tion and the country does not agree to

7 consult within the time period speci8 fied under section 4.

9 ‘‘(3) PREFERENTIAL TARIFF TREATMENT OF

10 CERTAIN OTHER ARTICLES ORIGINATING IN CBTEA

11 BENEFICIARY COUNTRIES.—

12 ‘‘(A) IN GENERAL.—During the transition

13 period, the President shall proclaim a rate of

14 duty, with respect to any article referred to in

15 any of subparagraphs (B) through (F) of para16 graph (1) that is a CBTEA originating good,

17 equal to the lesser of—

18 ‘‘(i) ‘x’, or

19 ‘‘(ii) the amount determined by using

20 the formula ‘.5(x¥y)+y’.

21 For purposes of the preceding sentence, the

22 terms ‘x’ and ‘y’ have the meanings given such

23 terms in subparagraph (C).

24 ‘‘(B) ADDITIONAL REDUCTIONS.—
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1 ‘‘(i) IN GENERAL.—The President

2 may proclaim further reductions in the

3 rate of duty for any article described in

4 subparagraph (A) in accordance with this

5 subparagraph if the President determines

6 that the performance of the country is sat7 isfactory under the criteria listed in para8 graph (5)(B)(ii).

9 ‘‘(ii) RATE OF DUTY.—The rate of

10 duty proclaimed by the President under

11 this subparagraph shall be no less than the

12 lesser of—

13 ‘‘(I) the rate of duty that would

14 apply to the article at the time of im15 portation from the country but for the

16 enactment of the CBTEA, or

17 ‘‘(II) the rate of duty that ap18 plies to a like article of Mexico under

19 Annex 302.2 of NAFTA as imple20 mented pursuant to United States

21 law.

22 ‘‘(C) CERTAIN DEFINITIONS.—For pur23 poses of subparagraph (A), the term ‘x’ means

24 the rate of duty described in subparagraph
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1 (B)(ii)(I) and the term ‘y’ means the rate of

2 duty described in subparagraph (B)(ii)(II).

3 ‘‘(D) EXCEPTION.—Subparagraphs (A)

4 and (B) do not apply to any article accorded

5 duty-free treatment under U.S. Note 2(b) to

6 subchapter II of chapter 98 of the HTS.

7 ‘‘(E) RELATIONSHIP TO DUTY REDUC8 TIONS UNDER SUBSECTION (h).—If at any time

9 during the transition period the rate of duty

10 that would (but for action taken under subpara11 graph (A) or (B)) apply with respect to any ar12 ticle under subsection (h) is a rate of duty that

13 is lower than the rate of duty resulting from

14 such action, then such lower rate of duty shall

15 be applied.

16 ‘‘(4) CUSTOMS PROCEDURES.—

17 ‘‘(A) IN GENERAL.—

18 ‘‘(i) REGULATIONS.—Any importer

19 that claims preferential treatment under

20 paragraph (2) or (3) shall comply with

21 customs procedures similar in all material

22 respects to the requirements of Article

23 502(1) of the NAFTA as implemented

24 pursuant to United States law, in accord-
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1 ance with regulations promulgated by the

2 Secretary of the Treasury.

3 ‘‘(ii) DETERMINATION.—

4 ‘‘(I) IN GENERAL.—In order to

5 qualify for the preferential treatment

6 under paragraph (2) or (3) and for a

7 Certificate of Origin to be valid with

8 respect to any article for which such

9 treatment is claimed, there shall be in

10 effect a determination by the Presi11 dent that each country described in

12 subclause (II)—

13 ‘‘(aa) has implemented and

14 follows, or

15 ‘‘(bb) is making substantial

16 progress toward implementing

17 and following,

18 procedures and requirements similar

19 in all material respects to the relevant

20 procedures and requirements under

21 chapter 5 of the NAFTA.

22 ‘‘(II) COUNTRY DESCRIBED.—A

23 country is described in this subclause

24 if it is a CBTEA beneficiary coun25 try—
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1 ‘‘(aa) from which the article

2 is exported, or

3 ‘‘(bb) in which materials

4 used in the production of the ar5 ticle originate or in which the ar6 ticle or such materials undergo

7 production that contributes to a

8 claim that the article is eligible

9 for preferential treatment.

10 ‘‘(B) CERTIFICATE OF ORIGIN.—The Cer11 tificate of Origin that otherwise would be re12 quired pursuant to the provisions of subpara13 graph (A) shall not be required in the case of

14 an article imported under paragraph (2) or (3)

15 if such Certificate of Origin would not be re16 quired under Article 503 of the NAFTA (as im17 plemented pursuant to United States law), if

18 the article were imported from Mexico.

19 ‘‘(5) DEFINITIONS AND SPECIAL RULES.—For

20 purposes of this subsection—

21 ‘‘(A) ANNEX.—The term ‘the Annex’

22 means Annex 300–B of the NAFTA.

23 ‘‘(B) CBTEA BENEFICIARY COUNTRY.—

24 ‘‘(i) IN GENERAL.—The term

25 ‘CBTEA beneficiary country’ means any
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1 ‘beneficiary country’, as defined by section

2 212(a)(1)(A) of this title, which the Presi3 dent determines has demonstrated a com4 mitment to—

5 ‘‘(I) undertake its obligations

6 under the WTO on or ahead of sched7 ule;

8 ‘‘(II) participate in negotiations

9 toward the completion of the FTAA

10 or a comparable trade agreement; and

11 ‘‘(III) undertake other steps nec12 essary for that country to become a

13 party to the FTAA or a comparable

14 trade agreement.

15 ‘‘(ii) CRITERIA FOR DETERMINA16 TION.—In making the determination under

17 clause (i), the President may consider the

18 criteria in sections 212 (b) and (c) and

19 other appropriate criteria, including—

20 ‘‘(I) the extent to which the

21 country follows accepted rules of

22 international trade provided for under

23 the agreements listed in section

24 101(d) of the Uruguay Round Agree25 ments Act;
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1 ‘‘(II) the extent to which the

2 country provides protection of intellec3 tual property rights—

4 ‘‘(aa) in accordance with

5 standards established in the

6 Agreement on Trade-Related As7 pects of Intellectual Property

8 Rights described in section

9 101(d)(15) of the Uruguay

10 Round Agreements Act;

11 ‘‘(bb) in accordance with

12 standards established in chapter

13 17 of the NAFTA; and

14 ‘‘(cc) by granting the hold15 ers of copyrights the ability to

16 control the importation and sale

17 of products that embody copy18 righted works, extending the pe19 riod set forth in Article 1711(6)

20 of NAFTA for protecting test

21 data for agricultural chemicals to

22 10 years, protecting trademarks

23 regardless of their subsequent

24 designation as geographic indica25 tions, and providing enforcement
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1 against the importation of in2 fringing products at the border;

3 ‘‘(III) the extent to which the country

4 provides protections to investors and in5 vestments of the United States substan6 tially equivalent to those set forth in chap7 ter 11 of the NAFTA;

8 ‘‘(IV) the extent to which the country

9 provides the United States and other WTO

10 members nondiscriminatory, equitable, and

11 reasonable market access with respect to

12 the products for which benefits are pro13 vided under paragraphs (2) and (3), and in

14 other relevant product sectors as deter15 mined by the President;

16 ‘‘(V) the extent to which the country

17 provides internationally recognized worker

18 rights, including—

19 ‘‘(aa) the right of associa20 tion,

21 ‘‘(bb) the right to organize

22 and bargain collectively,

23 ‘‘(cc) prohibition on the use

24 of any form of coerced or com25 pulsory labor,
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1 ‘‘(dd) a minimum age for

2 the employment of children, and

3 ‘‘(ee) acceptable conditions

4 of work with respect to minimum

5 wages, hours of work, and occu6 pational safety and health;

7 ‘‘(VI) whether the country has

8 met the counter-narcotics certification

9 criteria set forth in section 490 of the

10 Foreign Assistance Act of 1961 (22

11 U.S.C. 2291j) for eligibility for Unit12 ed States assistance;

13 ‘‘(VII) the extent to which the

14 country becomes a party to and imple15 ments the Inter-American Convention

16 Against Corruption, and becomes

17 party to a convention regarding the

18 extradition of its nationals;

19 ‘‘(VIII) the extent to which the

20 country—

21 ‘‘(aa) supports the multilat22 eral and regional objectives of the

23 United States with respect to

24 government procurement, includ25 ing the negotiation of government
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1 procurement provisions as part of

2 the FTAA and conclusion of a

3 WTO transparency agreement as

4 provided in the declaration of the

5 WTO Ministerial Conference held

6 in Singapore on December 9

7 through 13, 1996, and

8 ‘‘(bb) applies transparent

9 and competitive procedures in

10 government procurement equiva11 lent to those contained in the

12 WTO Agreement on Government

13 Procurement (described in sec14 tion 101(d)(17) of the Uruguay

15 Round Agreements Act);

16 ‘‘(IX) the extent to which the

17 country follows the rules on customs

18 valuation set forth in the WTO Agree19 ment on Implementation of Article

20 VII of the GATT 1994 (described in

21 section 101(d)(8) of the Uruguay

22 Round Agreements Act);

23 ‘‘(X) the extent to which the

24 country affords to products of the

25 United States which the President de-
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1 termines to be of commercial impor2 tance to the United States with re3 spect to such country, and on a non4 discriminatory basis to like products

5 of other WTO members, tariff treat6 ment that is no less favorable than

7 the most favorable tariff treatment

8 provided by the country to any other

9 country pursuant to any free trade

10 agreement to which such country is a

11 party, other than the Central Amer12 ican Common Market or the Carib13 bean Community and Common Mar14 ket.

15 ‘‘(C) CBTEA ORIGINATING GOOD.—

16 ‘‘(i) IN GENERAL.—The term

17 ‘CBTEA originating good’ means a good

18 that meets the rules of origin for a good

19 set forth in chapter 4 of the NAFTA as

20 implemented pursuant to United States

21 law.

22 ‘‘(ii) APPLICATION OF CHAPTER 4.—

23 In applying chapter 4 with respect to a

24 CBTEA beneficiary country for purposes

25 of this subsection—
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1 ‘‘(I) no country other than the

2 United States and a CBTEA bene3 ficiary country may be treated as

4 being a party to the NAFTA;

5 ‘‘(II) any reference to trade be6 tween the United States and Mexico

7 shall be deemed to refer to trade be8 tween the United States and a

9 CBTEA beneficiary country;

10 ‘‘(III) any reference to a party

11 shall be deemed to refer to a CBTEA

12 beneficiary country or the United

13 States; and

14 ‘‘(IV) any reference to parties

15 shall be deemed to refer to any com16 bination of CBTEA beneficiary coun17 tries or to the United States and a

18 CBTEA beneficiary country (or any

19 combination thereof).

20 ‘‘(D) TRANSITION PERIOD.—The term

21 ‘transition period’ means, with respect to a

22 CBTEA beneficiary country, the period that be23 gins on January 1, 1998, and ends on the ear24 lier of—

25 ‘‘(i) December 31, 2000, or
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1 ‘‘(ii) the date on which the FTAA or

2 a comparable trade agreement enters into

3 force with respect to the United States and

4 the CBTEA beneficiary country.

5 ‘‘(E) CBTEA.—The term ‘CBTEA’ means

6 the United States-Caribbean Basin Trade En7 hancement Act.

8 ‘‘(F) FTAA.—The term ‘FTAA’ means

9 the Free Trade Area of the Americas.’’.

10 (b) DETERMINATION REGARDING RETENTION OF

11 DESIGNATION.—Section 212(e) of the Caribbean Basin

12 Economic Recovery Act (19 U.S.C. 2702(e)) is amended—

13 (1) in paragraph (1)—

14 (A) by redesignating subparagraphs (A)

15 and (B) as clauses (i) and (ii), respectively;

16 (B) by inserting ‘‘(A)’’ after ‘‘(1)’’;

17 (C) by striking ‘‘would be barred’’ and all

18 that follows through the end period and insert19 ing: ‘‘no longer satisfies one or more of the con20 ditions for designation as a beneficiary country

21 set forth in subsection (b) or such country fails

22 adequately to meet one or more of the criteria

23 set forth in subsection (c).’’; and

24 (D) by adding at the end the following:
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1 ‘‘(B) The President may, after the require2 ments of subsection (a)(2) and paragraph (2)

3 have been met—

4 ‘‘(i) withdraw or suspend the designa5 tion of any country as a CBTEA bene6 ficiary country, or

7 ‘‘(ii) withdraw, suspend, or limit the

8 application of preferential treatment under

9 section 213(b) (2) and (3) to any article of

10 any country, if, after such designation, the

11 President determines that as a result of

12 changed circumstances, the performance of

13 such country is not satisfactory under the

14 criteria set forth in section 213(b)(5)(B).’’;

15 and

16 (2) by adding after paragraph (2) the following

17 new paragraph:

18 ‘‘(3) If preferential treatment under section

19 213(b) (2) and (3) is withdrawn, suspended, or lim20 ited with respect to a CBTEA beneficiary country,

21 such country shall not be deemed to be a ‘party’ for

22 the purposes of applying section 213(b)(5)(C) to im23 ports of articles for which preferential treatment has

24 been withdrawn, suspended, or limited with respect

25 to such country.’’.
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1 (c) REPORTING REQUIREMENTS.—Section 212(f) of

2 the Caribbean Basin Economic Recovery Act (19 U.S.C.

3 2702(f)) is amended to read as follows:

4 ‘‘(f) REPORTING REQUIREMENTS.—

5 ‘‘(1) IN GENERAL.—Not later than December

6 31, 1997, and at the end of each 3-year period

7 thereafter, the President shall submit to Congress a

8 report regarding the operation of this title, includ9 ing—

10 ‘‘(A) with respect to subsections (b) and

11 (c), the results of a general review of bene12 ficiary countries based on the considerations de13 scribed in such subsections; and

14 ‘‘(B) the performance of each beneficiary

15 country or CBTEA beneficiary country, as the

16 case may be, under the criteria set forth in sec17 tion 213(b)(5)(B)(ii).

18 ‘‘(2) PUBLIC COMMENT.—Before submitting the

19 report described in paragraph (1), the United States

20 Trade Representative shall publish a notice in the

21 Federal Register requesting public comments on

22 whether beneficiary countries are meeting the cri23 teria listed in section 213(b)(5)(B)(i), and on the

24 performance of each beneficiary country or CBTEA
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1 beneficiary country, as the case may be, with respect

2 to the criteria listed in section 213(b)(5)(B)(ii).’’.

3 (d) INTERNATIONAL TRADE COMMISSION RE4 PORTS.—

5 (1) Section 215(a) of the Caribbean Basin Eco6 nomic Recovery Act (19 U.S.C. 2704(a)) is amended

7 to read as follows:

8 ‘‘(a) REPORTING REQUIREMENT.—

9 ‘‘(1) IN GENERAL.—The United States Inter10 national Trade Commission (in this section referred

11 to as the ‘Commission’) shall submit to Congress

12 and the President, biennial reports regarding the

13 economic impact of this title on United States indus14 tries and consumers.

15 ‘‘(2) FIRST REPORT.—The first report shall be

16 submitted not later than September 30 of the year

17 following the year in which the United States-Carib18 bean Basin Trade Enhancement Act is enacted. No

19 report shall be required under this section after Sep20 tember 30, 2005.

21 ‘‘(3) TREATMENT OF PUERTO RICO, ETC.—For

22 purposes of this section, industries in the Common23 wealth of Puerto Rico and the insular possessions of

24 the United States are considered to be United States

25 industries.’’.
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1 (2) Section 206(a) of the Andean Trade Pref2 erence Act (19 U.S.C. 3204(a)) is amended to read

3 as follows:

4 ‘‘(a) REPORTING REQUIREMENTS.—

5 ‘‘(1) IN GENERAL.—The United States Inter6 national Trade Commission (in this section referred

7 to as the ‘Commission’) shall submit to Congress

8 and the President, biennial reports regarding the

9 economic impact of this title on United States indus10 tries and consumers, and, in conjunction with other

11 agencies, the effectiveness of this title in promoting

12 drug-related crop eradication and crop substitution

13 efforts of the beneficiary countries.

14 ‘‘(2) SUBMISSION.—During the period that this

15 title is in effect, the report required by paragraph

16 (1) shall be submitted on September 30 of each year

17 that the report required by section 215 of the Carib18 bean Basin Economic Recovery Act is not submitted.

19 ‘‘(3) TREATMENT OF PUERTO RICO, ETC.—For

20 purposes of this section, industries in the Common21 wealth of Puerto Rico and the insular possessions of

22 the United States are considered to be United States

23 industries.’’.

24 (e) TECHNICAL AND CONFORMING AMENDMENTS.—

25 (1) IN GENERAL.—
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1 (A) Section 211 of the Caribbean Basin

2 Economic Recovery Act (19 U.S.C. 2701) is

3 amended by inserting ‘‘(or other preferential

4 treatment)’’ after ‘‘treatment’’.

5 (B) Section 213(a)(1) of the Caribbean

6 Basin Economic Recovery Act (19 U.S.C.

7 2703(a)(1)) is amended by inserting ‘‘and ex8 cept as provided in subsection (b) (2) and (3),’’

9 after ‘‘Tax Reform Act of 1986,’’.

10 (2) DEFINITIONS.—Section 212(a)(1) of the

11 Caribbean Basin Economic Recovery Act (19 U.S.C.

12 2702(a)(1)) is amended by adding at the end the

13 following new subparagraphs:

14 ‘‘(D) The term ‘NAFTA’ means the North

15 American Free Trade Agreement entered into

16 between the United States, Mexico, and Canada

17 on December 17, 1992.

18 ‘‘(E) The terms ‘WTO’ and ‘WTO mem19 ber’ have the meanings given those terms in

20 section 2 of the Uruguay Round Agreements

21 Act (19 U.S.C. 3501).’’.
29

•S 1278 PCS

1 SEC. 5. ADEQUATE AND EFFECTIVE PROTECTION FOR IN2 TELLECTUAL PROPERTY RIGHTS.

3 Section 212(c) of the Caribbean Basin Economic Re4 covery Act (19 U.S.C. 2702(c)) is amended by adding at

5 the end the following flush sentence:

6 ‘‘Notwithstanding any other provision of law, the Presi7 dent may determine that a country is not providing ade8 quate and effective protection of intellectual property

9 rights under paragraph (9), even if the country is in com10 pliance with the country’s obligations under the Agree11 ment on Trade-Related Aspects of Intellectual Property

12 Rights described in section 101(d)(15) of the Uruguay

13 Round Agreements Act (19 U.S.C. 3511(d)(15)).’’.

14 SEC. 6. FEES FOR CERTAIN CUSTOMS SERVICES.

15 Section 13031(b)(1)(C) of the Consolidated Omnibus

16 Budget Reconciliation Act of 1985 (19 U.S.C.

17 58c(b)(1)(C)) is amended by striking ‘‘to fiscal years’’ and

18 all that follows through ‘‘1997’’ and inserting ‘‘before

19 April 1, 2000’’.