II 

Calendar No. 630 

108TH CONGRESS 

2D SESSION S. 2610 

To implement the United States-Australia Free Trade Agreement. 

IN THE SENATE OF THE UNITED STATES 

JULY 6, 2004 

Mr. GRASSLEY (for himself, Mr. BAUCUS, and Mr. FRIST) (by request) introduced the following bill; which was read twice and referred to the Committee on Finance pursuant to section (b)(3) of Public Law 107–210 

JULY 14, 2004 

Reported by Mr. GRASSLEY, without amendment 

A BILL 

To implement the United States-Australia Free Trade 

Agreement. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘United States-Australia Free Trade Agreement Imple6 mentation Act’’. 
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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Purposes.

Sec. 3. Definitions.

TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING 

TO, THE AGREEMENT 

Sec. 101. Approval and entry into force of the Agreement.

Sec. 102. Relationship of the Agreement to United States and State law.

Sec. 103. Implementing actions in anticipation of entry into force and initial 

regulations.

Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed actions.

Sec. 105. Administration of dispute settlement proceedings.

Sec. 106. Effective dates; effect of termination.

TITLE II—CUSTOMS PROVISIONS 

Sec. 201. Tariff modifications.

Sec. 202. Additional duties on certain agricultural goods.

Sec. 203. Rules of origin. 

Sec. 204. Customs user fees.

Sec. 205. Disclosure of incorrect information.

Sec. 206. Enforcement relating to trade in textile and apparel goods.

Sec. 207. Regulations.

TITLE III—RELIEF FROM IMPORTS 

Sec. 301. Definitions.

Subtitle A—Relief From Imports Benefiting From the Agreement 

Sec. 311. Commencing of action for relief.

Sec. 312. Commission action on petition.

Sec. 313. Provision of relief.

Sec. 314. Termination of relief authority.

Sec. 315. Compensation authority.

Sec. 316. Confidential business information.

Subtitle B—Textile and Apparel Safeguard Measures 

Sec. 321. Commencement of action for relief.

Sec. 322. Determination and provision of relief.

Sec. 323. Period of relief.

Sec. 324. Articles exempt from relief.

Sec. 325. Rate after termination of import relief.

Sec. 326. Termination of relief authority.

Sec. 327. Compensation authority.

Sec. 328. Business confidential information.

Subtitle C—Cases Under Title II of the Trade Act of 1974 

Sec. 331. Findings and action on goods from Australia.
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TITLE IV—PROCUREMENT 

Sec. 401. Eligible products.

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to approve and implement the Free Trade 

4 Agreement between the United States and Australia, 

5 entered into under the authority of section 2103(b) 

6 of the Bipartisan Trade Promotion Authority Act of 

7 2002 (19 U.S.C. 3803(b)); 

8 (2) to strengthen and develop economic rela9 tions between the United States and Australia for 

10 their mutual benefit; 

11 (3) to establish free trade between the 2 nations 

12 through the reduction and elimination of barriers to 

13 trade in goods and services and to investment; and 

14 (4) to lay the foundation for further coopera15 tion to expand and enhance the benefits of such 

16 Agreement. 

17 SEC. 3. DEFINITIONS. 

18 In this Act: 

19 (1) AGREEMENT.—The term ‘‘Agreement’’ 

20 means the United States-Australia Free Trade 

21 Agreement approved by Congress under section 

22 101(a)(1). 

23 (2) HTS.—The term ‘‘HTS’’ means the Har24 monized Tariff Schedule of the United States. 
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1 (3) TEXTILE OR APPAREL GOOD.—The term 

2 ‘‘textile or apparel good’’ means a good listed in the 

3 Annex to the Agreement on Textiles and Clothing 

4 referred to in section 101(d)(4) of the Uruguay 

5 Round Agreements Act (19 U.S.C. 3511(d)(4)). 

6 TITLE I—APPROVAL OF, AND 

7 GENERAL PROVISIONS RE8 LATING TO, THE AGREEMENT 

9 SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE 

10 AGREEMENT. 

11 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

12 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 

13 the Bipartisan Trade Promotion Authority Act of 2002 

14 (19 U.S.C. 3805) and section 151 of the Trade Act of 

15 1974 (19 U.S.C. 2191), Congress approves— 

16 (1) the United States-Australia Free Trade 

17 Agreement entered into on May 18, 2004, with the 

18 Government of Australia and submitted to Congress 

19 on lllll, 2004; and 

20 (2) the statement of administrative action pro21 posed to implement the Agreement that was sub22 mitted to Congress on llllll, 2004. 

23 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

24 AGREEMENT.—At such time as the President determines 

25 that Australia has taken measures necessary to bring it 
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1 into compliance with those provisions of the Agreement 

2 that are to take effect on the date on which the Agreement 

3 enters into force, the President is authorized to exchange 

4 notes with the Government of Australia providing for the 

5 entry into force, on or after January 1, 2005, of the 

6 Agreement with respect to the United States. 

7 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 

8 STATES AND STATE LAW. 

9 (a) RELATIONSHIP OF AGREEMENT TO UNITED

10 STATES LAW.— 

11 (1) UNITED STATES LAW TO PREVAIL IN CON12 FLICT.—No provision of the Agreement, nor the ap13 plication of any such provision to any person or cir14 cumstance, which is inconsistent with any law of the 

15 United States shall have effect. 

16 (2) CONSTRUCTION.—Nothing in this Act shall 

17 be construed— 

18 (A) to amend or modify any law of the 

19 United States, or 

20 (B) to limit any authority conferred under 

21 any law of the United States, 

22 unless specifically provided for in this Act. 

23 (b) RELATIONSHIP OF AGREEMENT TO STATE

24 LAW.— 
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1 (1) LEGAL CHALLENGE.—No State law, or the 

2 application thereof, may be declared invalid as to 

3 any person or circumstance on the ground that the 

4 provision or application is inconsistent with the

5 Agreement, except in an action brought by the 

6 United States for the purpose of declaring such law 

7 or application invalid. 

8 (2) DEFINITION OF STATE LAW.—For purposes 

9 of this subsection, the term ‘‘State law’’ includes— 

10 (A) any law of a political subdivision of a 

11 State; and 

12 (B) any State law regulating or taxing the 

13 business of insurance. 

14 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI15 VATE REMEDIES.—No person other than the United 

16 States— 

17 (1) shall have any cause of action or defense 

18 under the Agreement or by virtue of congressional 

19 approval thereof; or 

20 (2) may challenge, in any action brought under 

21 any provision of law, any action or inaction by any 

22 department, agency, or other instrumentality of the 

23 United States, any State, or any political subdivision 

24 of a State, on the ground that such action or inac25 tion is inconsistent with the Agreement. 
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1 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 

2 ENTRY INTO FORCE AND INITIAL REGULA3 TIONS. 

4 (a) IMPLEMENTING ACTIONS.— 

5 (1) PROCLAMATION AUTHORITY.—After the 

6 date of the enactment of this Act— 

7 (A) the President may proclaim such ac8 tions, and 

9 (B) other appropriate officers of the 

10 United States Government may issue such reg11 ulations, 

12 as may be necessary to ensure that any provision of 

13 this Act, or amendment made by this Act, that takes 

14 effect on the date the Agreement enters into force 

15 is appropriately implemented on such date, but no 

16 such proclamation or regulation may have an effec17 tive date earlier than the date on which the Agree18 ment enters into force. 

19 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

20 ACTIONS.—Any action proclaimed by the President 

21 under the authority of this Act that is not subject 

22 to the consultation and layover provisions under sec23 tion 104, may not take effect before the 15th day 

24 after the date on which the text of the proclamation 

25 is published in the Federal Register. 
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1 (3) WAIVER OF 15-DAY RESTRICTION.—The 15-

2 day restriction in paragraph (2) on the taking effect 

3 of proclaimed actions is waived to the extent that 

4 the application of such restriction would prevent the 

5 taking effect on the date the Agreement enters into 

6 force of any action proclaimed under this section. 

7 (b) INITIAL REGULATIONS.—Initial regulations nec8 essary or appropriate to carry out the actions required by 

9 or authorized under this Act or proposed in the statement 

10 of administrative action submitted under section 

11 101(a)(2) to implement the Agreement shall, to the max12 imum extent feasible, be issued within 1 year after the 

13 date on which the Agreement enters into force. In the case 

14 of any implementing action that takes effect on a date 

15 after the date on which the Agreement enters into force, 

16 initial regulations to carry out that action shall, to the 

17 maximum extent feasible, be issued within 1 year after 

18 such effective date. 

19 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 

20 AND EFFECTIVE DATE OF, PROCLAIMED AC21 TIONS. 

22 If a provision of this Act provides that the implemen23 tation of an action by the President by proclamation is 

24 subject to the consultation and layover requirements of 

25 this section, such action may be proclaimed only if— 
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1 (1) the President has obtained advice regarding 

2 the proposed action from— 

3 (A) the appropriate advisory committees 

4 established under section 135 of the Trade Act 

5 of 1974 (19 U.S.C. 2155); and 

6 (B) the United States International Trade 

7 Commission; 

8 (2) the President has submitted a report to the 

9 Committee on Finance of the Senate and the Com10 mittee on Ways and Means of the House of Rep11 resentatives that sets forth— 

12 (A) the action proposed to be proclaimed 

13 and the reasons therefor; and 

14 (B) the advice obtained under paragraph 

15 (1); 

16 (3) a period of 60 calendar days, beginning on 

17 the first day on which the requirements set forth in 

18 paragraphs (1) and (2) have been met has expired; 

19 and 

20 (4) the President has consulted with such Com21 mittees regarding the proposed action during the pe22 riod referred to in paragraph (3). 
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1 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO2 CEEDINGS. 

3 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—

4 The President is authorized to establish or designate with5 in the Department of Commerce an office that shall be 

6 responsible for providing administrative assistance to pan7 els established under chapter 21 of the Agreement. The 

8 office may not be considered to be an agency for purposes 

9 of section 552 of title 5, United States Code. 

10 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated for each fiscal year after 

12 fiscal year 2004 to the Department of Commerce such 

13 sums as may be necessary for the establishment and oper14 ations of the office under subsection (a) and for the pay15 ment of the United States share of the expenses of panels 

16 established under chapter 21 of the Agreement. 

17 SEC. 106. EFFECTIVE DATES; EFFECT OF TERMINATION. 

18 (a) EFFECTIVE DATES.—Except as provided in sub19 section (b), the provisions of this Act and the amendments 

20 made by this Act take effect on the date on which the 

21 Agreement enters into force. 

22 (b) EXCEPTIONS.—Sections 1 through 3 and this 

23 title take effect on the date of the enactment of this Act. 

24 (c) TERMINATION OF THE AGREEMENT.—On the 

25 date on which the Agreement terminates, the provisions 
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1 of this Act (other than this subsection) and the amend2 ments made by this Act shall cease to be effective.

3 TITLE II—CUSTOMS PROVISIONS 

4 SEC. 201. TARIFF MODIFICATIONS. 

5 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

6 AGREEMENT.—The President may proclaim— 

7 (1) such modifications or continuation of any 

8 duty, 

9 (2) such continuation of duty-free or excise 

10 treatment, or 

11 (3) such additional duties, 

12 as the President determines to be necessary or appropriate 

13 to carry out or apply articles 2.3, 2.5, and 2.6, and Annex 

14 2–B of the Agreement. 

15 (b) OTHER TARIFF MODIFICATIONS.—Subject to the 

16 consultation and layover provisions of section 104, the 

17 President may proclaim— 

18 (1) such modifications or continuation of any 

19 duty, 

20 (2) such modifications as the United States 

21 may agree to with Australia regarding the staging of 

22 any duty treatment set forth in Annex 2–B of the 

23 Agreement, 

24 (3) such continuation of duty-free or excise 

25 treatment, or 
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1 (4) such additional duties, 

2 as the President determines to be necessary or appropriate 

3 to maintain the general level of reciprocal and mutually 

4 advantageous concessions with respect to Australia pro5 vided for by the Agreement. 

6 (c) CONVERSION TO AD VALOREM RATES.—For pur7 poses of subsections (a) and (b), with respect to any good 

8 for which the base rate in the Schedule of the United 

9 States to Annex 2–B of the Agreement is a specific or 

10 compound rate of duty, the President may substitute for 

11 the base rate an ad valorem rate that the President deter12 mines to be equivalent to the base rate. 

13 SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL14 TURAL GOODS. 

15 (a) GENERAL PROVISIONS.— 

16 (1) APPLICABILITY OF SUBSECTION.—This sub17 section applies to additional duties assessed under 

18 subsections (b), (c), and (d).

19 (2) APPLICABLE NTR (MFN) RATE OF DUTY.—

20 For purposes of subsections (b), (c), and (d), the 

21 term ‘‘applicable NTR (MFN) rate of duty’’ means, 

22 with respect to a safeguard good, a rate of duty that 

23 is the lesser of— 

24 (A) the column 1 general rate of duty that 

25 would have been imposed under the HTS on the 
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1 same safeguard good entered, without a claim 

2 for preferential treatment, at the time the addi3 tional duty is imposed under subsection (b), (c), 

4 or (d), as the case may be; or 

5 (B) the column 1 general rate of duty that 

6 would have been imposed under the HTS on the 

7 same safeguard good entered, without a claim 

8 for preferential treatment, on December 31, 

9 2004. 

10 (3) SCHEDULE RATE OF DUTY.—For purposes 

11 of subsections (b) and (c), the term ‘‘schedule rate 

12 of duty’’ means, with respect to a safeguard good, 

13 the rate of duty for that good set out in the Sched14 ule of the United States to Annex 2–B of the Agree15 ment.

16 (4) SAFEGUARD GOOD.—In this subsection, the 

17 term ‘‘safeguard good’’ means—

18 (A) a horticulture safeguard good de19 scribed subsection (b)(1)(B); or 

20 (B) a beef safeguard good described in 

21 subsection (c)(1) or subsection (d)(1)(A).

22 (5) EXCEPTIONS.—No additional duty shall be 

23 assessed on a good under subsection (b), (c), or (d) 

24 if, at the time of entry, the good is subject to import 

25 relief under— 
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1 (A) subtitle A of title III of this Act; or 

2 (B) chapter 1 of title II of the Trade Act 

3 of 1974 (19 U.S.C. 2251 et seq.). 

4 (6) TERMINATION.—The assessment of an ad5 ditional duty on a good under subsection (b) or (c), 

6 whichever is applicable, shall cease to apply to that 

7 good on the date on which duty-free treatment must 

8 be provided to that good under the Schedule of the 

9 United States to Annex 2–B of the Agreement. 

10 (7) NOTICE.—Not later than 60 days after the 

11 date on which the Secretary of the Treasury assesses 

12 an additional duty on a good under subsection (b), 

13 (c), or (d), the Secretary shall notify the Govern14 ment of Australia in writing of such action and shall 

15 provide to that Government data supporting the as16 sessment of the additional duty. 

17 (b) ADDITIONAL DUTIES ON HORTICULTURE SAFE18 GUARD GOODS.— 

19 (1) DEFINITIONS.—In this subsection: 

20 (A) F.O.B.—The term ‘‘F.O.B.’’ means 

21 free on board, regardless of the mode of trans22 portation, at the point of direct shipment by the 

23 seller to the buyer. 
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1 (B) HORTICULTURE SAFEGUARD GOOD.—

2 The term ‘‘horticulture safeguard good’’ means 

3 a good— 

4 (i) that qualifies as an originating 

5 good under section 203; 

6 (ii) that is included in the United 

7 States Horticulture Safeguard List set 

8 forth in Annex 3–A of the Agreement; and 

9 (iii) for which a claim for preferential 

10 treatment under the Agreement has been 

11 made. 

12 (C) UNIT IMPORT PRICE.—The ‘‘unit im13 port price’’ of a good means the price of the 

14 good determined on the basis of the F.O.B. im15 port price of the good, expressed in either dol16 lars per kilogram or dollars per liter, whichever 

17 unit of measure is indicated for the good in the 

18 United States Horticulture Safeguard List set 

19 forth in Annex 3–A of the Agreement.

20 (D) TRIGGER PRICE.—The ‘‘trigger price’’ 

21 for a good is the trigger price indicated for that 

22 good in the United States Horticulture Safe23 guard List set forth in Annex 3–A of the 

24 Agreement or any amendment thereto.
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1 (2) ADDITIONAL DUTIES.—In addition to any 

2 duty proclaimed under subsection (a) or (b) of sec3 tion 201, and subject to subsection (a) of this sec4 tion, the Secretary of the Treasury shall assess a

5 duty on a horticulture safeguard good, in the 

6 amount determined under paragraph (3), if the Sec7 retary determines that the unit import price of the 

8 good when it enters the United States is less than 

9 the trigger price for that good.

10 (3) CALCULATION OF ADDITIONAL DUTY.—The 

11 additional duty assessed under this subsection on a 

12 horticulture safeguard good shall be an amount de13 termined in accordance with the following table:

If the excess of the trigger price over 

the unit import price is: 

The additional duty is an 

amount equal to:

Not more than 10 percent of the trigger price 0. 

More than 10 percent but not more than 40 

percent of the trigger price ........................... 30 percent of the excess of the applicable NTR (MFN) rate of duty 

over the schedule rate of duty. 

More than 40 percent but not more than 60 

percent of the trigger price ........................... 50 percent of such excess. 

More than 60 percent but not more than 75 

percent of the trigger price ........................... 70 percent of such excess. 

More than 75 percent of the trigger price ....... 100 percent of such excess. 

14 (c) ADDITIONAL DUTIES ON BEEF SAFEGUARD

15 GOODS BASED ON QUANTITY OF IMPORTS.— 

16 (1) DEFINITION.—In this subsection, the term 

17 ‘‘beef safeguard good’’ means a good— 

18 (A) that qualifies as an originating good 

19 under section 203; 
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1 (B) that is listed in paragraph 3 of Annex 

2 I of the General Notes to the Schedule of the 

3 United States to Annex 2–B of the Agreement; 

4 and 

5 (C) for which a claim for preferential 

6 treatment under the Agreement has been made. 

7 (2) ADDITIONAL DUTIES.—In addition to any 

8 duty proclaimed under subsection (a) or (b) of sec9 tion 201, and subject to subsection (a) of this sec10 tion and paragraphs (4) and (5) of this subsection, 

11 the Secretary of the Treasury shall assess a duty, in 

12 the amount determined under paragraph (3), on a 

13 beef safeguard good imported into the United States 

14 in a calendar year if the Secretary determines that, 

15 prior to such importation, the total volume of beef 

16 safeguard goods imported into the United States in 

17 that calendar year is equal to or greater than 110 

18 percent of the volume set out for beef safeguard 

19 goods in the corresponding year in the table con20 tained in paragraph 3(a) of Annex I of the General 

21 Notes to the Schedule of the United States to Annex 

22 2–B of the Agreement. For purposes of this sub23 section, the years 1 through 19 set out in the table 

24 contained in paragraph 3(a) of such Annex I cor25 respond to the calendar years 2005 through 2023. 
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1 (3) CALCULATION OF ADDITIONAL DUTY.—The 

2 additional duty on a beef safeguard good under this 

3 subsection shall be an amount equal to 75 percent 

4 of the excess of the applicable NTR (MFN) rate of 

5 duty over the schedule rate of duty.

6 (4) WAIVER.—

7 (A) IN GENERAL.—The United States 

8 Trade Representative is authorized to waive the 

9 application of this subsection, if the Trade Rep10 resentative determines that extraordinary mar11 ket conditions demonstrate that the waiver 

12 would be in the national interest of the United 

13 States, after the requirements of subparagraph 

14 (B) are met. 

15 (B) NOTICE AND CONSULTATIONS.—

16 Promptly after receiving a request for a waiver 

17 of this subsection, the Trade Representative 

18 shall notify the Committee on Ways and Means 

19 of the House of Representatives and the Com20 mittee on Finance of the Senate, and may make 

21 the determination provided for in subparagraph 

22 (A) only after consulting with—

23 (i) appropriate private sector advisory 

24 committees established under section 135 
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1 of the Trade Act of 1974 (19 U.S.C. 

2 2155); and 

3 (ii) the Committee on Ways and 

4 Means of the House of Representatives 

5 and the Committee on Finance of the Sen6 ate regarding—

7 (I) the reasons supporting the 

8 determination to grant the waiver; 

9 and 

10 (II) the proposed scope and dura11 tion of the waiver. 

12 (C) NOTIFICATION OF THE SEC13 RETARY OF THE TREASURY AND PUBLICA14 TION.—Upon granting a waiver under this 

15 paragraph, the Trade Representative shall 

16 promptly notify the Secretary of the Treas17 ury of the period in which the waiver will 

18 be in effect, and shall publish notice of the 

19 waiver in the Federal Register. 

20 (5) EFFECTIVE DATES.—This subsection takes 

21 effect on January 1, 2013, and shall not be effective 

22 after December 31, 2022. 

23 (d) ADDITIONAL DUTIES ON BEEF SAFEGUARD

24 GOODS BASED ON PRICE.— 

25 (1) DEFINITIONS.—In this subsection: 
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1 (A) BEEF SAFEGUARD GOOD.—The term 

2 ‘‘beef safeguard good’’ means a good— 

3 (i) that qualifies as an originating 

4 good under section 203; 

5 (ii) that is classified under subheading 

6 0201.10.50, 0201.20.80, 0201.30.80, 

7 0202.10.50, 0202.20.80, or 0202.30.80 of 

8 the HTS; and 

9 (iii) for which a claim for preferential 

10 treatment under the Agreement has been 

11 made.

12 (B) CALENDAR QUARTER.—

13 (i) IN GENERAL.—The term ‘‘calendar 

14 quarter’’ means any 3-month period begin15 ning on January 1, April 1, July 1, or Oc16 tober 1 of a calendar year. 

17 (ii) FIRST CALENDAR QUARTER.—The 

18 term ‘‘first calendar quarter’’ means the 

19 calendar quarter beginning on January 1. 

20 (iii) SECOND CALENDAR QUARTER.—

21 The term ‘‘second calendar quarter’’ 

22 means the calendar quarter beginning on 

23 April 1. 
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1 (iv) THIRD CALENDAR QUARTER.— 

2 The term ‘‘third calendar quarter’’ means 

3 the calendar quarter beginning on July 1. 

4 (v) FOURTH CALENDAR QUARTER.— 

5 The term ‘‘fourth calendar quarter’’ means 

6 the calendar quarter beginning on October 

7 1. 

8 (C) MONTHLY AVERAGE INDEX PRICE.— 

9 The term ‘‘monthly average index price’’ means 

10 the simple average, as determined by the Sec11 retary of Agriculture, for a calendar month of 

12 the daily average index prices for Wholesale 

13 Boxed Beef Cut-Out Value Select 1–3 Central 

14 U.S. 600–750 lbs., or its equivalent, as such 

15 simple average is reported by the Agricultural 

16 Marketing Service of the Department of Agri17 culture in Report LM–XB459 or any equivalent 

18 report. 

19 (D) 24-MONTH TRIGGER PRICE.—The term 

20 ‘‘24-month trigger price’’ means, with respect 

21 to any calendar month, the average of the 

22 monthly average index prices for the 24 pre23 ceding calendar months, multiplied by 0.935. 

24 (2) ADDITIONAL DUTIES.—In addition to any 

25 duty proclaimed under subsection (a) or (b) of sec-
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1 tion 201, and subject to subsection (a) of this sec2 tion and paragraphs (4) through (6) of this sub3 section, the Secretary of the Treasury shall assess a 

4 duty, in the amount determined under paragraph 

5 (3), on a beef safeguard good imported into the 

6 United States if— 

7 (A)(i) the good is imported in the first cal8 endar quarter, second calendar quarter, or third 

9 calendar quarter of a calendar year; and 

10 (ii) the monthly average index price, in any 

11 2 calendar months of the preceding calendar 

12 quarter, is less than the 24-month trigger price; 

13 or 

14 (B)(i) the good is imported in the fourth 

15 calendar quarter of a calendar year; and 

16 (ii)(I) the monthly average index price, in 

17 any 2 calendar months of the preceding cal18 endar quarter, is less than the 24-month trigger 

19 price; or 

20 (II) the monthly average index price, in 

21 any of the 4 calendar months preceding Janu22 ary 1 of the succeeding calendar year, is less 

23 than the 24-month trigger price. 

24 (3) CALCULATION OF ADDITIONAL DUTY.—The 

25 additional duty on a beef safeguard good under this 
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1 subsection shall be an amount equal to 65 percent 

2 of the applicable NTR (MFN) rate of duty for that 

3 good. 

4 (4) LIMITATION.—An additional duty shall be 

5 assessed under this subsection on a beef safeguard 

6 good imported into the United States in a calendar 

7 year only if, prior to the importation of that good, 

8 the total quantity of beef safeguard goods imported 

9 into the United States in that calendar year is equal 

10 to or greater than the sum of— 

11 (A) the quantity of goods of Australia eli12 gible to enter the United States in that year 

13 specified in Additional United States Note 3 to 

14 Chapter 2 of the HTS; and 

15 (B)(i) in 2023, 70,420 metric tons; or 

16 (ii) in 2024, and in each year thereafter, 

17 a quantity that is 0.6 percent greater than the 

18 quantity provided for in the preceding year 

19 under this subparagraph. 

20 (5) WAIVER.—

21 (A) IN GENERAL.—The United States 

22 Trade Representative is authorized to waive the 

23 application of this subsection, if the Trade Rep24 resentative determines that extraordinary mar25 ket conditions demonstrate that the waiver 
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1 would be in the national interest of the United 

2 States, after the requirements of subparagraph 

3 (B) are met. 

4 (B) NOTICE AND CONSULTATIONS.—

5 Promptly after receiving a request for a waiver 

6 of this subsection, the Trade Representative 

7 shall notify the Committee on Ways and Means 

8 of the House of Representatives and the Com9 mittee on Finance of the Senate, and may make 

10 the determination provided for in subparagraph 

11 (A) only after consulting with—

12 (i) appropriate private sector advisory 

13 committees established under section 135 

14 of the Trade Act of 1974 (19 U.S.C. 

15 2155); and 

16 (ii) the Committee on Ways and 

17 Means of the House of Representatives 

18 and the Committee on Finance of the Sen19 ate regarding—

20 (I) the reasons supporting the 

21 determination to grant the waiver; 

22 and 

23 (II) the proposed scope and dura24 tion of the waiver. 
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1 (C) NOTIFICATION OF THE SEC2 RETARY OF THE TREASURY AND PUBLICA3 TION.—Upon granting a waiver under this 

4 paragraph, the Trade Representative shall 

5 promptly notify the Secretary of the Treas6 ury of the period in which the waiver will 

7 be in effect, and shall publish notice of the 

8 waiver in the Federal Register. 

9 (6) EFFECTIVE DATE.—This subsection takes 

10 effect on January 1, 2023. 

11 SEC. 203. RULES OF ORIGIN. 

12 (a) APPLICATION AND INTERPRETATION.—In this 

13 section: 

14 (1) TARIFF CLASSIFICATION.—The basis for 

15 any tariff classification is the HTS. 

16 (2) REFERENCE TO HTS.—Whenever in this 

17 section there is a reference to a heading or sub18 heading, such reference shall be a reference to a 

19 heading or subheading of the HTS. 

20 (3) COST OR VALUE.—Any cost or value re21 ferred to in this section shall be recorded and main22 tained in accordance with the generally accepted ac23 counting principles applicable in the territory of the 

24 country in which the good is produced (whether Aus25 tralia or the United States). 
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1 (b) ORIGINATING GOODS.—For purposes of this Act 

2 and for purposes of implementing the preferential treat3 ment provided for under the Agreement, a good is an orig4 inating good if—

5 (1) the good is a good wholly obtained or pro6 duced entirely in the territory of Australia, the 

7 United States, or both; 

8 (2) the good— 

9 (A) is produced entirely in the territory of 

10 Australia, the United States, or both, and— 

11 (i) each of the nonoriginating mate12 rials used in the production of the good 

13 undergoes an applicable change in tariff 

14 classification specified in Annex 4–A or 

15 Annex 5–A of the Agreement; 

16 (ii) the good otherwise satisfies any 

17 applicable regional value-content require18 ment referred to in Annex 5–A of the 

19 Agreement; or 

20 (iii) the good meets any other require21 ments specified in Annex 4–A or Annex 5–

22 A of the Agreement; and 

23 (B) the good satisfies all other applicable 

24 requirements of this section; 
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1 (3) the good is produced entirely in the terri2 tory of Australia, the United States, or both, exclu3 sively from materials described in paragraph (1) or 

4 (2); or 

5 (4) the good otherwise qualifies as an origi6 nating good under this section. 

7 (c) DE MINIMIS AMOUNTS OF NONORIGINATING MA8 TERIALS.— 

9 (1) IN GENERAL.—Except as provided in para10 graphs (2) and (3), a good that does not undergo a 

11 change in tariff classification pursuant to Annex 5–

12 A of the Agreement is an originating good if— 

13 (A) the value of all nonoriginating mate14 rials that—

15 (i) are used in the production of the 

16 good, and 

17 (ii) do not undergo the required 

18 change in tariff classification, 

19 does not exceed 10 percent of the adjusted 

20 value of the good; 

21 (B) the good meets all other applicable re22 quirements of this section; and 

23 (C) the value of such nonoriginating mate24 rials is included in the value of nonoriginating 
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1 materials for any applicable regional value-con2 tent requirement for the good. 

3 (2) EXCEPTIONS.—Paragraph (1) does not 

4 apply to the following: 

5 (A) A nonoriginating material provided for 

6 in chapter 4 of the HTS or in subheading 

7 1901.90 that is used in the production of a 

8 good provided for in chapter 4 of the HTS. 

9 (B) A nonoriginating material provided for 

10 in chapter 4 of the HTS or in subheading 

11 1901.90 that is used in the production of a 

12 good provided for in subheading 1901.10, 

13 1901.20, or 1901.90, heading 2105, or sub14 heading 2106.90, 2202.90, or 2309.90. 

15 (C) A nonoriginating material provided for 

16 in heading 0805 or any of subheadings 2009.11 

17 through 2009.39 that is used in the production 

18 of a good provided for in any of subheadings 

19 2009.11 through 2009.39, or in subheading 

20 2106.90 or 2202.90. 

21 (D) A nonoriginating material provided for 

22 in chapter 15 of the HTS that is used in the 

23 production of a good provided for in any of 

24 headings 1501.00.00 through 1508, or in head25 ing 1512, 1514, or 1515. 
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1 (E) A nonoriginating material provided for 

2 in heading 1701 that is used in the production 

3 of a good provided for in any of headings 1701 

4 through 1703. 

5 (F) A nonoriginating material provided for 

6 in chapter 17 of the HTS or heading 

7 1805.00.00 that is used in the production of a 

8 good provided for in subheading 1806.10. 

9 (G) A nonoriginating material provided for 

10 in any of headings 2203 through 2208 that is 

11 used in the production of a good provided for 

12 in heading 2207 or 2208. 

13 (H) A nonoriginating material used in the 

14 production of a good provided for in any of 

15 chapters 1 through 21 of the HTS unless the 

16 nonoriginating material is provided for in a dif17 ferent subheading than the good for which ori18 gin is being determined under this section. 

19 (3) TEXTILE AND APPAREL GOODS.— 

20 (A) IN GENERAL.—Except as provided in 

21 subparagraph (B), a textile or apparel good 

22 that is not an originating good because certain 

23 fibers or yarns used in the production of the 

24 component of the good that determines the tar25 iff classification of the good do not undergo an 
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1 applicable change in tariff classification set out 

2 in Annex 4–A of the Agreement shall be consid3 ered to be an originating good if the total 

4 weight of all such fibers or yarns in that com5 ponent is not more than 7 percent of the total 

6 weight of that component. 

7 (B) CERTAIN TEXTILE OR APPAREL

8 GOODS.—A textile or apparel good containing 

9 elastomeric yarns in the component of the good 

10 that determines the tariff classification of the 

11 good shall be considered to be an originating 

12 good only if such yarns are wholly formed in 

13 the territory of Australia or the United States. 

14 (C) YARN, FABRIC, OR FIBER.—For pur15 poses of this paragraph, in the case of a textile 

16 or apparel good that is a yarn, fabric, or group 

17 of fibers, the term ‘‘component of the good that 

18 determines the tariff classification of the good’’ 

19 means all of the fibers in the yarn, fabric, or 

20 group of fibers. 

21 (d) ACCUMULATION.— 

22 (1) ORIGINATING MATERIALS USED IN PRODUC23 TION OF GOODS OF OTHER COUNTRY.—Originating 

24 materials from the territory of Australia or the 

25 United States that are used in the production of a 
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1 good in the territory of the other country shall be 

2 considered to originate in the territory of the other 

3 country.

4 (2) MULTIPLE PROCEDURES.—A good that is 

5 produced in the territory of Australia, the United 

6 States, or both, by 1 or more producers, is an origi7 nating good if the good satisfies the requirements of 

8 subsection (b) and all other applicable requirements 

9 of this section. 

10 (e) REGIONAL VALUE-CONTENT.— 

11 (1) IN GENERAL.—For purposes of subsection 

12 (b)(2), the regional value-content of a good referred 

13 to in Annex 5–A of the Agreement, except for goods 

14 to which paragraph (4) applies, shall be calculated 

15 by the importer, exporter, or producer of the good, 

16 on the basis of the build-down method described in 

17 paragraph (2) or the build-up method described in 

18 paragraph (3). 

19 (2) BUILD-DOWN METHOD.— 

20 (A) IN GENERAL.—The regional value-con21 tent of a good may be calculated on the basis 

22 of the following build-down method:

AV–VNM

RVC = ———— × 100

AV

23 (B) DEFINITIONS.—In subparagraph (A): 
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1 (i) RVC.—The term ‘‘RVC’’ means 

2 the regional value-content of the good, ex3 pressed as a percentage. 

4 (ii) AV.—The term ‘‘AV’’ means the 

5 adjusted value of the good. 

6 (iii) VNM.—The term ‘‘VNM’’ means 

7 the value of nonoriginating materials that 

8 are acquired and used by the producer in 

9 the production of the good, but does not 

10 include the value of a material that is self11 produced. 

12 (3) BUILD-UP METHOD.— 

13 (A) IN GENERAL.—The regional value-con14 tent of a good may be calculated on the basis 

15 of the following build-up method:

VOM

RVC = ———— × 100

AV

16 (B) DEFINITIONS.—In subparagraph (A): 

17 (i) RVC.—The term ‘‘RVC’’ means 

18 the regional value-content of the good, ex19 pressed as a percentage. 

20 (ii) AV.—The term ‘‘AV’’ means the 

21 adjusted value of the good. 

22 (iii) VOM.—The term ‘‘VOM’’ means 

23 the value of originating materials that are 
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1 acquired or self-produced, and used by the 

2 producer in the production of the good. 

3 (4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE

4 GOODS.— 

5 (A) IN GENERAL.—For purposes of sub6 section (b)(2), the regional value-content of an 

7 automotive good referred to in Annex 5–A of 

8 the Agreement shall be calculated by the im9 porter, exporter, or producer of the good, on the 

10 basis of the following net cost method:

NC–VNM

RVC = ———— × 100

NC

11 (B) DEFINITIONS.—In subparagraph (A): 

12 (i) AUTOMOTIVE GOOD.—The term 

13 ‘‘automotive good’’ means a good provided 

14 for in any of subheadings 8407.31 through 

15 8407.34, subheading 8408.20, heading 

16 8409, or in any of headings 8701 through 

17 8708. 

18 (ii) RVC.—The term ‘‘RVC’’ means 

19 the regional value-content of the auto20 motive good, expressed as a percentage. 

21 (iii) NC.—The term ‘‘NC’’ means the 

22 net cost of the automotive good. 

23 (iv) VNM.—The term ‘‘VNM’’ means 

24 the value of nonoriginating materials that 
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1 are acquired and used by the producer in 

2 the production of the automotive good, but 

3 does not include the value of a material 

4 that is self-produced. 

5 (C) MOTOR VEHICLES.— 

6 (i) BASIS OF CALCULATION.—For 

7 purposes of determining the regional value8 content under subparagraph (A) for an 

9 automotive good that is a motor vehicle 

10 provided for in any of headings 8701 

11 through 8705, an importer, exporter, or 

12 producer may average the amounts cal13 culated under the formula contained in 

14 subparagraph (A), over the producer’s fis15 cal year—

16 (I) with respect to all motor vehi17 cles in any one of the categories de18 scribed in clause (ii); or 

19 (II) with respect to all motor ve20 hicles in any such category that are 

21 exported to the territory of the United 

22 States or Australia.

23 (ii) CATEGORIES.—A category is de24 scribed in this clause if it— 
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1 (I) is the same model line of 

2 motor vehicles, is in the same class of 

3 vehicles, and is produced in the same 

4 plant in the territory of Australia or 

5 the United States, as the good de6 scribed in clause (i) for which regional 

7 value-content is being calculated; 

8 (II) is the same class of motor 

9 vehicles, and is produced in the same 

10 plant in the territory of Australia or 

11 the United States, as the good de12 scribed in clause (i) for which regional 

13 value-content is being calculated; or 

14 (III) is the same model line of 

15 motor vehicles produced in either the 

16 territory of Australia or the United 

17 States, as the good described in clause 

18 (i) for which regional value-content is 

19 being calculated. 

20 (D) OTHER AUTOMOTIVE GOODS.—For 

21 purposes of determining the regional value-con22 tent under subparagraph (A) for automotive 

23 goods provided for in any of subheadings 

24 8407.31 through 8407.34, in subheading 

25 8408.20, or in heading 8409, 8706, 8707, or 
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1 8708, that are produced in the same plant, an 

2 importer, exporter, or producer may— 

3 (i) average the amounts calculated 

4 under the formula contained in subpara5 graph (A) over—

6 (I) the fiscal year of the motor 

7 vehicle producer to whom the auto8 motive goods are sold, 

9 (II) any quarter or month, or 

10 (III) its own fiscal year, 

11 if the goods were produced during the fis12 cal year, quarter, or month that is the 

13 basis for the calculation; 

14 (ii) determine the average referred to 

15 in clause (i) separately for such goods sold 

16 to one or more motor vehicle producers; or 

17 (iii) make a separate determination 

18 under clause (i) or (ii) for automotive 

19 goods that are exported to the territory of 

20 the United States or Australia. 

21 (E) CALCULATING NET COST.—Consistent 

22 with the provisions regarding allocation of costs 

23 set out in generally accepted accounting prin24 ciples, the net cost of the automotive good 
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1 under subparagraph (B) shall be calculated 

2 by— 

3 (i) calculating the total cost incurred 

4 with respect to all goods produced by the 

5 producer of the automotive good, sub6 tracting any sales promotion, marketing 

7 and after-sales service costs, royalties, 

8 shipping and packing costs, and nonallow9 able interest costs that are included in the 

10 total cost of all such goods, and then rea11 sonably allocating the resulting net cost of 

12 those goods to the automotive good; 

13 (ii) calculating the total cost incurred 

14 with respect to all goods produced by that 

15 producer, reasonably allocating the total 

16 cost to the automotive good, and then sub17 tracting any sales promotion, marketing 

18 and after-sales service costs, royalties, 

19 shipping and packing costs, and nonallow20 able interest costs that are included in the 

21 portion of the total cost allocated to the 

22 automotive good; or 

23 (iii) reasonably allocating each cost 

24 that forms part of the total cost incurred 

25 with respect to the automotive good so that 
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1 the aggregate of these costs does not in2 clude any sales promotion, marketing and 

3 after-sales service costs, royalties, shipping 

4 and packing costs, or nonallowable interest 

5 costs. 

6 (f) VALUE OF MATERIALS.— 

7 (1) IN GENERAL.—For the purpose of calcu8 lating the regional value-content of a good under 

9 subsection (e), and for purposes of applying the de 

10 minimis rules under subsection (c), the value of a 

11 material is— 

12 (A) in the case of a material that is im13 ported by the producer of the good, the ad14 justed value of the material; 

15 (B) in the case of a material acquired in 

16 the territory in which the good is produced, the 

17 value, determined in accordance with Articles 1 

18 through 8, article 15, and the corresponding in19 terpretive notes of the Agreement on Implemen20 tation of Article VII of the General Agreement 

21 on Tariffs and Trade 1994 referred to in sec22 tion 101(d)(8) of the Uruguay Round Agree23 ments Act, as set forth in regulations promul24 gated by the Secretary of the Treasury pro-
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1 viding for the application of such Articles in the 

2 absence of an importation; or 

3 (C) in the case of a material that is self4 produced, the sum of— 

5 (i) all expenses incurred in the pro6 duction of the material, including general 

7 expenses; and 

8 (ii) an amount for profit equivalent to 

9 the profit added in the normal course of 

10 trade. 

11 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

12 MATERIALS.— 

13 (A) ORIGINATING MATERIAL.—The fol14 lowing expenses, if not included in the value of 

15 an originating material calculated under para16 graph (1), may be added to the value of the 

17 originating material: 

18 (i) The costs of freight, insurance, 

19 packing, and all other costs incurred in 

20 transporting the material within or be21 tween the territory of Australia, the United 

22 States, or both, to the location of the pro23 ducer. 

24 (ii) Duties, taxes, and customs broker25 age fees on the material paid in the terri-
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1 tory of Australia, the United States, or 

2 both, other than duties or taxes that are 

3 waived, refunded, refundable, or otherwise 

4 recoverable, including credit against duty 

5 or tax paid or payable. 

6 (iii) The cost of waste and spoilage re7 sulting from the use of the material in the 

8 production of the good, less the value of 

9 renewable scrap or byproducts. 

10 (B) NONORIGINATING MATERIAL.—The 

11 following expenses, if included in the value of a 

12 nonoriginating material calculated under para13 graph (1), may be deducted from the value of 

14 the nonoriginating material: 

15 (i) The costs of freight, insurance, 

16 packing, and all other costs incurred in 

17 transporting the material within or be18 tween the territory of Australia, the United 

19 States, or both, to the location of the pro20 ducer. 

21 (ii) Duties, taxes, and customs broker22 age fees on the material paid in the terri23 tory of Australia, the United States, or 

24 both, other than duties or taxes that are 

25 waived, refunded, refundable, or otherwise 
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1 recoverable, including credit against duty 

2 or tax paid or payable. 

3 (iii) The cost of waste and spoilage re4 sulting from the use of the material in the 

5 production of the good, less the value of 

6 renewable scrap or byproducts.

7 (iv) The cost of processing incurred in 

8 the territory of Australia, the United 

9 States, or both, in the production of the 

10 nonoriginating material. 

11 (v) The cost of originating materials 

12 used in the production of the nonorigi13 nating material in the territory of Aus14 tralia, the United States, or both. 

15 (g) ACCESSORIES, SPARE PARTS, OR TOOLS.— 

16 (1) IN GENERAL.—Subject to paragraph (2), 

17 accessories, spare parts, or tools delivered with a 

18 good that form part of the good’s standard acces19 sories, spare parts, or tools shall— 

20 (A) be treated as originating goods if the 

21 good is an originating good; and 

22 (B) be disregarded in determining whether 

23 all the nonoriginating materials used in the pro24 duction of the good undergo the applicable 
42

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1 change in tariff classification set out in Annex 

2 5–A of the Agreement. 

3 (2) CONDITIONS.—Paragraph (1) shall apply 

4 only if— 

5 (A) the accessories, spare parts, or tools 

6 are not invoiced separately from the good; 

7 (B) the quantities and value of the acces8 sories, spare parts, or tools are customary for 

9 the good; and 

10 (C) if the good is subject to a regional 

11 value-content requirement, the value of the ac12 cessories, spare parts, or tools is taken into ac13 count as originating or nonoriginating mate14 rials, as the case may be, in calculating the re15 gional value-content of the good. 

16 (h) FUNGIBLE GOODS AND MATERIALS.— 

17 (1) IN GENERAL.— 

18 (A) CLAIM FOR PREFERENTIAL TREAT19 MENT.—A person claiming that a fungible good 

20 or fungible material is an originating good may 

21 base the claim either on the physical segrega22 tion of the fungible good or fungible material or 

23 by using an inventory management method with 

24 respect to the fungible good or fungible mate25 rial. 
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1 (B) INVENTORY MANAGEMENT METHOD.—

2 In this subsection, the term ‘‘inventory manage3 ment method’’ means— 

4 (i) averaging; 

5 (ii) ‘‘last-in, first-out’’; 

6 (iii) ‘‘first-in, first-out’’; or 

7 (iv) any other method— 

8 (I) recognized in the generally 

9 accepted accounting principles of the 

10 country in which the production is 

11 performed (whether Australia or the 

12 United States); or 

13 (II) otherwise accepted by that 

14 country. 

15 (2) ELECTION OF INVENTORY METHOD.—A 

16 person selecting an inventory management method 

17 under paragraph (1) for a particular fungible good 

18 or fungible material shall continue to use that meth19 od for that fungible good or fungible material 

20 throughout the fiscal year of that person. 

21 (i) PACKAGING MATERIALS AND CONTAINERS FOR

22 RETAIL SALE.—Packaging materials and containers in 

23 which a good is packaged for retail sale, if classified with 

24 the good, shall be disregarded in determining whether all 

25 the nonoriginating materials used in the production of the 
44

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1 good undergo the applicable change in tariff classification 

2 set out in Annex 4–A or Annex 5–A of the Agreement, 

3 and, if the good is subject to a regional value-content re4 quirement, the value of such packaging materials and con5 tainers shall be taken into account as originating or non6 originating materials, as the case may be, in calculating 

7 the regional value-content of the good. 

8 (j) PACKING MATERIALS AND CONTAINERS FOR

9 SHIPMENT.—Packing materials and containers for ship10 ment shall be disregarded in determining whether— 

11 (1) the nonoriginating materials used in the 

12 production of a good undergo the applicable change 

13 in tariff classification set out in Annex 4–A or 

14 Annex 5–A of the Agreement; and 

15 (2) the good satisfies a regional value-content 

16 requirement. 

17 (k) INDIRECT MATERIALS.—An indirect material 

18 shall be treated as an originating material without regard 

19 to where it is produced, and its value shall be the cost 

20 registered in the accounting records of the producer of the 

21 good. 

22 (l) THIRD COUNTRY OPERATIONS.—A good that has 

23 undergone production necessary to qualify as an origi24 nating good under subsection (b) shall not be considered 

25 to be an originating good if, subsequent to that produc-
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1 tion, the good undergoes further production or any other 

2 operation outside the territory of Australia or the United 

3 States, other than unloading, reloading, or any other oper4 ation necessary to preserve the good in good condition or 

5 to transport the good to the territory of Australia or the 

6 United States. 

7 (m) TEXTILE AND APPAREL GOODS CLASSIFIABLE

8 AS GOODS PUT UP IN SETS.—Notwithstanding the rules 

9 set forth in Annex 4–A of the Agreement, textile or ap10 parel goods classifiable as goods put up in sets for retail 

11 sale as provided for in General Rule of Interpretation 3 

12 of the HTS shall not be considered to be originating goods 

13 unless each of the goods in the set is an originating good 

14 or the total value of the nonoriginating goods in the set 

15 does not exceed 10 percent of the value of the set deter16 mined for purposes of assessing customs duties. 

17 (n) DEFINITIONS.—In this section: 

18 (1) ADJUSTED VALUE.—The term ‘‘adjusted 

19 value’’ means the value determined under Articles 1 

20 through 8, Article 15, and the corresponding inter21 pretive notes of the Agreement on Implementation of 

22 Article VII of the General Agreement on Tariffs and 

23 Trade 1994 referred to in section 101(d)(8) of the 

24 Uruguay Round Agreements Act, adjusted to ex25 clude any costs, charges, or expenses incurred for 
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1 transportation, insurance, and related services inci2 dent to the international shipment of the good from 

3 the country of exportation to the place of importa4 tion.

5 (2) CLASS OF MOTOR VEHICLES.—The term 

6 ‘‘class of motor vehicles’’ means any one of the fol7 lowing categories of motor vehicles: 

8 (A) Motor vehicles provided for in sub9 heading 8701.20, 8704.10, 8704.22, 8704.23, 

10 8704.32, or 8704.90, or heading 8705 or 8706, 

11 or motor vehicles for the transport of 16 or 

12 more persons provided for in subheading 

13 8702.10 or 8702.90. 

14 (B) Motor vehicles provided for in sub15 heading 8701.10 or any of subheadings 

16 8701.30 through 8701.90. 

17 (C) Motor vehicles for the transport of 15 

18 or fewer persons provided for in subheading 

19 8702.10 or 8702.90, or motor vehicles provided 

20 for in subheading 8704.21 or 8704.31. 

21 (D) Motor vehicles provided for in any of 

22 subheadings 8703.21 through 8703.90. 

23 (3) FUNGIBLE GOOD OR FUNGIBLE MATE24 RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate25 rial’’ means a good or material, as the case may be, 
47

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1 that is interchangeable with another good or mate2 rial for commercial purposes and the properties of 

3 which are essentially identical to such other good or 

4 material. 

5 (4) GENERALLY ACCEPTED ACCOUNTING PRIN6 CIPLES.—The term ‘‘generally accepted accounting 

7 principles’’ means the recognized consensus or sub8 stantial authoritative support in the territory of Aus9 tralia or the United States, as the case may be, with 

10 respect to the recording of revenues, expenses, costs, 

11 assets, and liabilities, the disclosure of information, 

12 and the preparation of financial statements. These 

13 standards may encompass broad guidelines of gen14 eral application as well as detailed standards, prac15 tices, and procedures. 

16 (5) GOOD WHOLLY OBTAINED OR PRODUCED

17 ENTIRELY IN THE TERRITORY OF AUSTRALIA, THE

18 UNITED STATES, OR BOTH.—The term ‘‘good wholly 

19 obtained or produced entirely in the territory of Aus20 tralia, the United States, or both’’ means— 

21 (A) a mineral good extracted in the terri22 tory of Australia, the United States, or both; 

23 (B) a vegetable good, as such goods are 

24 provided for in the HTS, harvested in the terri25 tory of Australia, the United States, or both; 
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1 (C) a live animal born and raised in the 

2 territory of Australia, the United States, or 

3 both; 

4 (D) a good obtained from hunting, trap5 ping, fishing, or aquaculture conducted in the 

6 territory of Australia, the United States, or 

7 both; 

8 (E) a good (fish, shellfish, and other ma9 rine life) taken from the sea by vessels reg10 istered or recorded with Australia or the United 

11 States and flying the flag of that country; 

12 (F) a good produced exclusively from prod13 ucts referred to in subparagraph (E) on board 

14 factory ships registered or recorded with Aus15 tralia or the United States and flying the flag 

16 of that country; 

17 (G) a good taken by Australia or the 

18 United States or a person of Australia or the 

19 United States from the seabed or beneath the 

20 seabed outside territorial waters, if Australia or 

21 the United States has rights to exploit such 

22 seabed; 

23 (H) a good taken from outer space, if such 

24 good is obtained by Australia or the United 

25 States or a person of Australia or the United 
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1 States and not processed in the territory of a 

2 country other than Australia or the United 

3 States; 

4 (I) waste and scrap derived from— 

5 (i) production in the territory of Aus6 tralia, the United States, or both; or 

7 (ii) used goods collected in the terri8 tory of Australia, the United States, or 

9 both, if such goods are fit only for the re10 covery of raw materials; 

11 (J) a recovered good derived in the terri12 tory of Australia or the United States from 

13 goods that have passed their life expectancy, or 

14 are no longer usable due to defects, and utilized 

15 in the territory of that country in the produc16 tion of remanufactured goods; or 

17 (K) a good produced in the territory of 

18 Australia, the United States, or both, exclu19 sively— 

20 (i) from goods referred to in any of 

21 subparagraphs (A) through (I), or 

22 (ii) from the derivatives of goods re23 ferred to in clause (i), 

24 at any stage of production. 
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1 (6) INDIRECT MATERIAL.—The term ‘‘indirect 

2 material’’ means a good used in the production, test3 ing, or inspection of a good but not physically incor4 porated into the good, or a good used in the mainte5 nance of buildings or the operation of equipment as6 sociated with the production of a good, including— 

7 (A) fuel and energy; 

8 (B) tools, dies, and molds; 

9 (C) spare parts and materials used in the 

10 maintenance of equipment or buildings; 

11 (D) lubricants, greases, compounding ma12 terials, and other materials used in production 

13 or used to operate equipment or buildings; 

14 (E) gloves, glasses, footwear, clothing, 

15 safety equipment, and supplies; 

16 (F) equipment, devices, and supplies used 

17 for testing or inspecting the good; 

18 (G) catalysts and solvents; and 

19 (H) any other goods that are not incor20 porated into the good but the use of which in 

21 the production of the good can reasonably be 

22 demonstrated to be a part of that production. 

23 (7) MATERIAL.—The term ‘‘material’’ means a 

24 good that is used in the production of another good. 
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1 (8) MATERIAL THAT IS SELF-PRODUCED.—The 

2 term ‘‘material that is self-produced’’ means an orig3 inating material that is produced by a producer of 

4 a good and used in the production of that good.

5 (9) MODEL LINE.—The term ‘‘model line’’ 

6 means a group of motor vehicles having the same 

7 platform or model name. 

8 (10) NONALLOWABLE INTEREST COSTS.—The 

9 term ‘‘nonallowable interest costs’’ means interest 

10 costs incurred by a producer that exceed 700 basis 

11 points above the applicable official interest rate for 

12 comparable maturities of the country (whether Aus13 tralia or the United States).

14 (11) NONORIGINATING MATERIAL.—The term 

15 ‘‘nonoriginating material’’ means a material that 

16 does not qualify as originating under this section. 

17 (12) PREFERENTIAL TREATMENT.—The term 

18 ‘‘preferential treatment’’ means the customs duty 

19 rate, and the treatment under article 2.12 of the 

20 Agreement, that are applicable to an originating 

21 good pursuant to the Agreement. 

22 (13) PRODUCER.—The term ‘‘producer’’ means 

23 a person who engages in the production of a good 

24 in the territory of Australia or the United States. 
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1 (14) PRODUCTION.—The term ‘‘production’’ 

2 means growing, raising, mining, harvesting, fishing, 

3 trapping, hunting, manufacturing, processing, as4 sembling, or disassembling a good. 

5 (15) REASONABLY ALLOCATE.—The term ‘‘rea6 sonably allocate’’ means to apportion in a manner 

7 that would be appropriate under generally accepted 

8 accounting principles. 

9 (16) RECOVERED GOODS.—The term ‘‘recov10 ered goods’’ means materials in the form of indi11 vidual parts that result from— 

12 (A) the complete disassembly of goods 

13 which have passed their life expectancy, or are 

14 no longer usable due to defects, into individual 

15 parts; and 

16 (B) the cleaning, inspecting, or testing, or 

17 other processing that is necessary for improve18 ment to sound working condition of such indi19 vidual parts. 

20 (17) REMANUFACTURED GOOD.—The term ‘‘re21 manufactured good’’ means an industrial good that 

22 is assembled in the territory of Australia or the 

23 United States, that is classified under chapter 84, 

24 85, or 87 of the HTS or heading 9026, 9031, or 

25 9032, other than a good classified under heading 
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1 8418 or 8516 or any of headings 8701 through 

2 8706, and that— 

3 (A) is entirely or partially comprised of re4 covered goods; 

5 (B) has a similar life expectancy to, and 

6 meets the same performance standards as, a 

7 like good that is new; and 

8 (C) enjoys a factory warranty similar to a 

9 like good that is new. 

10 (18) TOTAL COST.—The term ‘‘total cost’’ 

11 means all product costs, period costs, and other 

12 costs for a good incurred in the territory of Aus13 tralia, the United States, or both. 

14 (19) USED.—The term ‘‘used’’ means used or 

15 consumed in the production of goods. 

16 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.— 

17 (1) IN GENERAL.—The President is authorized 

18 to proclaim, as part of the HTS— 

19 (A) the provisions set out in Annex 4–A 

20 and Annex 5–A of the Agreement; and 

21 (B) any additional subordinate category 

22 necessary to carry out this title consistent with 

23 the Agreement. 

24 (2) MODIFICATIONS.— 
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1 (A) IN GENERAL.—Subject to the consulta2 tion and layover provisions of section 104, the 

3 President may proclaim modifications to the 

4 provisions proclaimed under the authority of 

5 paragraph (1)(A), other than provisions of 

6 chapters 50 through 63 of the HTS, as in7 cluded in Annex 4–A of the Agreement. 

8 (B) ADDITIONAL PROCLAMATIONS.—Not9 withstanding subparagraph (A), and subject to 

10 the consultation and layover provisions of sec11 tion 104, the President may proclaim— 

12 (i) modifications to the provisions pro13 claimed under the authority of paragraph 

14 (1)(A) as are necessary to implement an 

15 agreement with Australia pursuant to arti16 cle 4.2.5 of the Agreement; and 

17 (ii) before the end of the 1-year period 

18 beginning on the date of the enactment of 

19 this Act, modifications to correct any typo20 graphical, clerical, or other nonsubstantive 

21 technical error regarding the provisions of 

22 chapters 50 through 63 of the HTS, as in23 cluded in Annex 4–A of the Agreement. 
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1 SEC. 204. CUSTOMS USER FEES. 

2 Section 13031(b) of the Consolidated Omnibus Budg3 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is 

4 amended by adding after paragraph (13) the following: 

5 ‘‘(14) No fee may be charged under subsection (a) 

6 (9) or (10) with respect to goods that qualify as origi7 nating goods under section 203 of the United States-Aus8 tralia Free Trade Agreement Implementation Act. Any 

9 service for which an exemption from such fee is provided 

10 by reason of this paragraph may not be funded with 

11 money contained in the Customs User Fee Account.’’. 

12 SEC. 205. DISCLOSURE OF INCORRECT INFORMATION. 

13 Section 592(c) of the Tariff Act of 1930 (19 U.S.C. 

14 1592(c)) is amended— 

15 (1) by redesignating paragraph (8) as para16 graph (9); and 

17 (2) by inserting after paragraph (7) the fol18 lowing new paragraph: 

19 ‘‘(8) PRIOR DISCLOSURE REGARDING CLAIMS

20 UNDER THE UNITED STATES-AUSTRALIA FREE

21 TRADE AGREEMENT.— 

22 ‘‘(A) IN GENERAL.—An importer shall not 

23 be subject to penalties under subsection (a) for 

24 making an incorrect claim that a good qualifies 

25 as an originating good under section 203 of the 

26 United States-Australia Free Trade Agreement 
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1 Implementation Act if the importer, in accord2 ance with regulations issued by the Secretary of 

3 the Treasury, voluntarily and promptly makes a 

4 corrected declaration and pays any duties 

5 owing.

6 ‘‘(B) TIME PERIODS FOR MAKING CORREC7 TIONS.—In the regulations referred to in sub8 paragraph (A), the Secretary of the Treasury is 

9 authorized to prescribe time periods for making 

10 a corrected declaration and paying duties owing 

11 under subparagraph (A), if such periods are not 

12 shorter than 1 year following the date on which 

13 the importer makes the incorrect claim.’’. 

14 SEC. 206. ENFORCEMENT RELATING TO TRADE IN TEXTILE 

15 AND APPAREL GOODS. 

16 (a) ACTION DURING VERIFICATION.—

17 (1) IN GENERAL.—If the Secretary of the 

18 Treasury requests the Government of Australia to 

19 conduct a verification pursuant to article 4.3 of the 

20 Agreement for purposes of making a determination 

21 under paragraph (2), the President may direct the 

22 Secretary to take appropriate action described in 

23 subsection (b) while the verification is being con24 ducted.
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1 (2) DETERMINATION.—A determination under 

2 this paragraph is a determination—

3 (A) that an exporter or producer in Aus4 tralia is complying with applicable customs 

5 laws, regulations, procedures, requirements, or 

6 practices affecting trade in textile or apparel 

7 goods; or 

8 (B) that a claim that a textile or apparel 

9 good exported or produced by such exporter or 

10 producer— 

11 (i) qualifies as an originating good 

12 under section 203 of this Act; or 

13 (ii) is a good of Australia, 

14 is accurate.

15 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

16 action under subsection (a)(1) includes— 

17 (1) suspension of liquidation of the entry of any 

18 textile or apparel good exported or produced by the 

19 person that is the subject of a verification under 

20 subsection (a)(1) regarding compliance described in 

21 subsection (a)(2)(A), in a case in which the request 

22 for verification was based on a reasonable suspicion 

23 of unlawful activity related to such goods; and 

24 (2) suspension of liquidation of the entry of a 

25 textile or apparel good for which a claim has been 
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1 made that is the subject of a verification under sub2 section (a)(1) regarding a claim described in sub3 section (a)(2)(B).

4 (c) ACTION WHEN INFORMATION IS INSUFFI5 CIENT.—If the Secretary of the Treasury determines that 

6 the information obtained within 12 months after making 

7 a request for a verification under subsection (a)(1) is in8 sufficient to make a determination under subsection 

9 (a)(2), the President may direct the Secretary to take ap10 propriate action described in subsection (d) until such 

11 time as the Secretary receives information sufficient to 

12 make a determination under subsection (a)(2) or until 

13 such earlier date as the President may direct.

14 (d) APPROPRIATE ACTION DESCRIBED.—Appro15 priate action referred to in subsection (c) includes— 

16 (1) publication of the name and address of the 

17 person that is the subject of the verification; 

18 (2) denial of preferential tariff treatment under 

19 the Agreement to— 

20 (A) any textile or apparel good exported or 

21 produced by the person that is the subject of a 

22 verification under subsection (a)(1) regarding 

23 compliance described in subsection (a)(2)(A); or 

24 (B) a textile or apparel good for which a 

25 claim has been made that is the subject of a 
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1 verification under subsection (a)(1) regarding a 

2 claim described in subsection (a)(2)(B); and 

3 (3) denial of entry into the United States of— 

4 (A) any textile or apparel good exported or 

5 produced by the person that is the subject of a 

6 verification under subsection (a)(1) regarding 

7 compliance described in subsection (a)(2)(A); or 

8 (B) a textile or apparel good for which a 

9 claim has been made that is the subject of a 

10 verification under subsection (a)(1) regarding a 

11 claim described in subsection (a)(2)(B). 

12 SEC. 207. REGULATIONS. 

13 The Secretary of the Treasury shall prescribe such 

14 regulations as may be necessary to carry out— 

15 (1) subsections (a) through (n) of section 203 

16 and section 204; 

17 (2) amendments to existing law made by the 

18 sections referred to in paragraph (1); and 

19 (3) proclamations issued under section 203(o). 

20 TITLE III—RELIEF FROM 

21 IMPORTS 

22 SEC. 301. DEFINITIONS. 

23 As used in this title: 
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1 (1) AUSTRALIAN ARTICLE.—The term ‘‘Aus2 tralian article’’ means an article that qualifies as an 

3 originating good under section 203(b) of this Act. 

4 (2) AUSTRALIAN TEXTILE OR APPAREL ARTI5 CLE.—The term ‘‘Australian textile or apparel arti6 cle’’ means an article— 

7 (A) that is listed in the Annex to the 

8 Agreement on Textiles and Clothing referred to 

9 in section 101(d)(4) of the Uruguay Round 

10 Agreements Act (19 U.S.C. 3511(d)(4)); and 

11 (B) that is an Australian article. 

12 (3) COMMISSION.—The term ‘‘Commission’’ 

13 means the United States International Trade Com14 mission. 

15 Subtitle A—Relief From Imports 

16 Benefiting From the Agreement 

17 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

18 (a) FILING OF PETITION.— 

19 (1) IN GENERAL.—A petition requesting action 

20 under this subtitle for the purpose of adjusting to 

21 the obligations of the United States under the 

22 Agreement may be filed with the Commission by an 

23 entity, including a trade association, firm, certified 

24 or recognized union, or group of workers, that is 

25 representative of an industry. The Commission shall 
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1 transmit a copy of any petition filed under this sub2 section to the United States Trade Representative. 

3 (2) PROVISIONAL RELIEF.—An entity filing a 

4 petition under this subsection may request that pro5 visional relief be provided as if the petition had been

6 filed under section 202(a) of the Trade Act of 1974 

7 (19 U.S.C. 2252(a)). 

8 (3) CRITICAL CIRCUMSTANCES.—Any allegation 

9 that critical circumstances exist shall be included in 

10 the petition. 

11 (b) INVESTIGATION AND DETERMINATION.—Upon 

12 the filing of a petition under subsection (a), the Commis13 sion, unless subsection (d) applies, shall promptly initiate 

14 an investigation to determine whether, as a result of the 

15 reduction or elimination of a duty provided for under the 

16 Agreement, an Australian article is being imported into 

17 the United States in such increased quantities, in absolute 

18 terms or relative to domestic production, and under such 

19 conditions that imports of the Australian article constitute 

20 a substantial cause of serious injury or threat thereof to 

21 the domestic industry producing an article that is like, or 

22 directly competitive with, the imported article. 

23 (c) APPLICABLE PROVISIONS.—The following provi24 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 
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1 2252) apply with respect to any investigation initiated 

2 under subsection (b): 

3 (1) Paragraphs (1)(B) and (3) of subsection 

4 (b). 

5 (2) Subsection (c). 

6 (3) Subsection (d). 

7 (4) Subsection (i). 

8 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No 

9 investigation may be initiated under this section with re10 spect to any Australian article if, after the date on which 

11 the Agreement enters into force, import relief has been 

12 provided with respect to that Australian article under this 

13 subtitle. 

14 SEC. 312. COMMISSION ACTION ON PETITION. 

15 (a) DETERMINATION.—Not later than 120 days (180 

16 days if critical circumstances have been alleged) after the 

17 date on which an investigation is initiated under section 

18 311(b) with respect to a petition, the Commission shall 

19 make the determination required under that section. 

20 (b) APPLICABLE PROVISIONS.—For purposes of this 

21 subtitle, the provisions of paragraphs (1), (2), and (3) of 

22 section 330(d) of the Tariff Act of 1930 (19 U.S.C. 

23 1330(d) (1), (2), and (3)) shall be applied with respect 

24 to determinations and findings made under this section 
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1 as if such determinations and findings were made under 

2 section 202 of the Trade Act of 1974 (19 U.S.C. 2252). 

3 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

4 DETERMINATION AFFIRMATIVE.—If the determination 

5 made by the Commission under subsection (a) with respect 

6 to imports of an article is affirmative, or if the President 

7 may consider a determination of the Commission to be an 

8 affirmative determination as provided for under paragraph 

9 (1) of section 330(d) of the Tariff Act of 1930) (19 U.S.C. 

10 1330(d)), the Commission shall find, and recommend to 

11 the President in the report required under subsection (d), 

12 the amount of import relief that is necessary to remedy 

13 or prevent the injury found by the Commission in the de14 termination and to facilitate the efforts of the domestic 

15 industry to make a positive adjustment to import competi16 tion. The import relief recommended by the Commission 

17 under this subsection shall be limited to that described in 

18 section 313(c). Only those members of the Commission 

19 who voted in the affirmative under subsection (a) are eligi20 ble to vote on the proposed action to remedy or prevent 

21 the injury found by the Commission. Members of the Com22 mission who did not vote in the affirmative may submit, 

23 in the report required under subsection (d), separate views 

24 regarding what action, if any, should be taken to remedy 

25 or prevent the injury. 
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1 (d) REPORT TO PRESIDENT.—Not later than the 

2 date that is 30 days after the date on which a determina3 tion is made under subsection (a) with respect to an inves4 tigation, the Commission shall submit to the President a 

5 report that includes— 

6 (1) the determination made under subsection 

7 (a) and an explanation of the basis for the deter8 mination; 

9 (2) if the determination under subsection (a) is 

10 affirmative, any findings and recommendations for 

11 import relief made under subsection (c) and an ex12 planation of the basis for each recommendation; and 

13 (3) any dissenting or separate views by mem14 bers of the Commission regarding the determination 

15 and recommendation referred to in paragraphs (1) 

16 and (2). 

17 (e) PUBLIC NOTICE.—Upon submitting a report to 

18 the President under subsection (d), the Commission shall 

19 promptly make public such report (with the exception of 

20 information which the Commission determines to be con21 fidential) and shall cause a summary thereof to be pub22 lished in the Federal Register. 

23 SEC. 313. PROVISION OF RELIEF. 

24 (a) IN GENERAL.—Not later than the date that is 

25 30 days after the date on which the President receives the 
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1 report of the Commission in which the Commission’s de2 termination under section 312(a) is affirmative, or which 

3 contains a determination under section 312(a) that the 

4 President considers to be affirmative under paragraph (1) 

5 of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 

6 1330(d)(1)), the President, subject to subsection (b), shall 

7 provide relief from imports of the article that is the subject 

8 of such determination to the extent that the President de9 termines necessary to remedy or prevent the injury found 

10 by the Commission and to facilitate the efforts of the do11 mestic industry to make a positive adjustment to import 

12 competition. 

13 (b) EXCEPTION.—The President is not required to 

14 provide import relief under this section if the President 

15 determines that the provision of the import relief will not 

16 provide greater economic and social benefits than costs. 

17 (c) NATURE OF RELIEF.— 

18 (1) IN GENERAL.—The import relief (including 

19 provisional relief) that the President is authorized to 

20 provide under this section with respect to imports of 

21 an article is as follows: 

22 (A) The suspension of any further reduc23 tion provided for under Annex 2–B of the 

24 Agreement in the duty imposed on such article. 
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1 (B) An increase in the rate of duty im2 posed on such article to a level that does not 

3 exceed the lesser of— 

4 (i) the column 1 general rate of duty 

5 imposed under the HTS on like articles at 

6 the time the import relief is provided; or

7 (ii) the column 1 general rate of duty 

8 imposed under the HTS on like articles on 

9 the day before the date on which the 

10 Agreement enters into force. 

11 (C) In the case of a duty applied on a sea12 sonal basis to such article, an increase in the 

13 rate of duty imposed on the article to a level 

14 that does not exceed the lesser of— 

15 (i) the column 1 general rate of duty 

16 imposed under the HTS on like articles for 

17 the immediately preceding corresponding 

18 season; or 

19 (ii) the column 1 general rate of duty 

20 imposed under the HTS on like articles on 

21 the day before the date on which the 

22 Agreement enters into force. 

23 (2) PROGRESSIVE LIBERALIZATION.—If the pe24 riod for which import relief is provided under this 

25 section is greater than 1 year, the President shall 
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1 provide for the progressive liberalization (described 

2 in article 9.2.7 of the Agreement) of such relief at 

3 regular intervals during the period in which the re4 lief is in effect. 

5 (d) PERIOD OF RELIEF.— 

6 (1) IN GENERAL.—Subject to paragraph (2), 

7 any import relief that the President provides under 

8 this section may not be in effect for more than 2 

9 years. 

10 (2) EXTENSION.— 

11 (A) IN GENERAL.—Subject to subpara12 graph (C), the President, after receiving an af13 firmative determination from the Commission 

14 under subparagraph (B), may extend the effec15 tive period of any import relief provided under 

16 this section if the President determines that— 

17 (i) the import relief continues to be 

18 necessary to remedy or prevent serious in19 jury and to facilitate adjustment by the do20 mestic industry to import competition; and 

21 (ii) there is evidence that the industry 

22 is making a positive adjustment to import 

23 competition. 

24 (B) ACTION BY COMMISSION.—(i) Upon a 

25 petition on behalf of the industry concerned 
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1 that is filed with the Commission not earlier 

2 than the date which is 9 months, and not later 

3 than the date which is 6 months, before the 

4 date any action taken under subsection (a) is to 

5 terminate, the Commission shall conduct an in6 vestigation to determine whether action under 

7 this section continues to be necessary to remedy 

8 or prevent serious injury and whether there is 

9 evidence that the industry is making a positive 

10 adjustment to import competition. 

11 (ii) The Commission shall publish notice of 

12 the commencement of any proceeding under 

13 this subparagraph in the Federal Register and 

14 shall, within a reasonable time thereafter, hold 

15 a public hearing at which the Commission shall 

16 afford interested parties and consumers an op17 portunity to be present, to present evidence, 

18 and to respond to the presentations of other 

19 parties and consumers, and otherwise to be 

20 heard. 

21 (iii) The Commission shall transmit to the 

22 President a report on its investigation and de23 termination under this subparagraph not later 

24 than 60 days before the action under subsection 
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1 (a) is to terminate, unless the President speci2 fies a different date. 

3 (C) PERIOD OF IMPORT RELIEF.—Any im4 port relief provided under this section, including 

5 any extensions thereof, may not, in the aggre6 gate, be in effect for more than 4 years. 

7 (e) RATE AFTER TERMINATION OF IMPORT RE8 LIEF.—When import relief under this section is termi9 nated with respect to an article— 

10 (1) the rate of duty on that article after such 

11 termination and on or before December 31 of the 

12 year in which such termination occurs shall be the 

13 rate that, according to the Schedule of the United 

14 States to Annex 2–B of the Agreement for the 

15 staged elimination of the tariff, would have been in 

16 effect 1 year after the provision of relief under sub17 section (a); and 

18 (2) the rate of duty for that article after De19 cember 31 of the year in which termination occurs 

20 shall be, at the discretion of the President, either— 

21 (A) the applicable NTR (MFN) rate of 

22 duty for that article set out in the Schedule of 

23 the United States to Annex 2–B of the Agree24 ment; or 
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1 (B) the rate of duty resulting from the 

2 elimination of the tariff in equal annual stages 

3 ending on the date set out in the Schedule of 

4 the United States to Annex 2–B of the Agree5 ment for the elimination of the tariff. 

6 (f) ARTICLES EXEMPT FROM RELIEF.—No import 

7 relief may be provided under this section on any article 

8 that— 

9 (1) is subject to— 

10 (A) import relief under subtitle B; or 

11 (B) an assessment of additional duty 

12 under subsection (b), (c), or (d) of section 202; 

13 or 

14 (2) has been subject to import relief under this 

15 subtitle after the date on which the Agreement en16 ters into force. 

17 SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

18 (a) GENERAL RULE.—Subject to subsection (b), no 

19 import relief may be provided under this subtitle after the 

20 date that is 10 years after the date on which the Agree21 ment enters into force. 

22 (b) EXCEPTION.—If an article for which relief is pro23 vided under this subtitle is an article for which the period 

24 for tariff elimination, set out in the Schedule of the United 

25 States to Annex 2–B of the Agreement, is greater than 
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1 10 years, no relief under this subtitle may be provided for 

2 that article after the date on which such period ends. 

3 (c) PRESIDENTIAL DETERMINATION.—Import relief 

4 may be provided under this subtitle in the case of an Aus5 tralian article after the date on which such relief would,

6 but for this subsection, terminate under subsection (a) or 

7 (b), if the President determines that Australia has con8 sented to such relief. 

9 SEC. 315. COMPENSATION AUTHORITY. 

10 For purposes of section 123 of the Trade Act of 1974 

11 (19 U.S.C. 2133), any import relief provided by the Presi12 dent under section 313 shall be treated as action taken 

13 under chapter 1 of title II of such Act. 

14 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

15 Section 202(a)(8) of the Trade Act of 1974 (19 

16 U.S.C. 2252(a)(8)) is amended in the first sentence—

17 (1) by striking ‘‘and’’; and 

18 (2) by inserting before the period at the end

19 ‘‘, and title III of the United States-Australia Free 

20 Trade Agreement Implementation Act’’. 

21 Subtitle B—Textile and Apparel 

22 Safeguard Measures 

23 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 

24 (a) IN GENERAL.—A request under this subtitle for 

25 the purpose of adjusting to the obligations of the United 
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1 States under the Agreement may be filed with the Presi2 dent by an interested party. Upon the filing of a request, 

3 the President shall review the request to determine, from 

4 information presented in the request, whether to com5 mence consideration of the request. 

6 (b) ALLEGATION OF CRITICAL CIRCUMSTANCES.—An 

7 interested party filing a request under this section may—

8 (1) allege that critical circumstances exist such 

9 that delay in the provision of relief would cause 

10 damage that would be difficult to repair; and 

11 (2) based on such allegation, request that relief 

12 be provided on a provisional basis. 

13 (c) PUBLICATION OF REQUEST.—If the President de14 termines that the request under subsection (a) provides 

15 the information necessary for the request to be considered, 

16 the President shall cause to be published in the Federal 

17 Register a notice of commencement of consideration of the 

18 request, and notice seeking public comments regarding the 

19 request. The notice shall include a summary of the request 

20 and the dates by which comments and rebuttals must be 

21 received. 

22 SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 

23 (a) DETERMINATION.— 

24 (1) IN GENERAL.—If a positive determination is 

25 made under section 321(c), the President shall de-
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1 termine whether, as a result of the reduction or 

2 elimination of a duty under the Agreement, an Aus3 tralian textile or apparel article is being imported 

4 into the United States in such increased quantities, 

5 in absolute terms or relative to the domestic market 

6 for that article, and under such conditions as to 

7 cause serious damage, or actual threat thereof, to a 

8 domestic industry producing an article that is like, 

9 or directly competitive with, the imported article. 

10 (2) SERIOUS DAMAGE.—In making a deter11 mination under paragraph (1), the President— 

12 (A) shall examine the effect of increased 

13 imports on the domestic industry, as reflected 

14 in changes in such relevant economic factors as 

15 output, productivity, utilization of capacity, in16 ventories, market share, exports, wages, em17 ployment, domestic prices, profits, and invest18 ment, none of which is necessarily decisive; and 

19 (B) shall not consider changes in tech20 nology or consumer preference as factors sup21 porting a determination of serious damage or 

22 actual threat thereof. 

23 (b) PROVISION OF RELIEF.— 

24 (1) IN GENERAL.—If a determination under 

25 subsection (a) is affirmative, the President may pro-
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1 vide relief from imports of the article that is the 

2 subject of such determination, as described in para3 graph (2), to the extent that the President deter4 mines necessary to remedy or prevent the serious 

5 damage and to facilitate adjustment by the domestic 

6 industry to import competition. 

7 (2) NATURE OF RELIEF.—The relief that the 

8 President is authorized to provide under this sub9 section with respect to imports of an article is an in10 crease in the rate of duty imposed on the article to 

11 a level that does not exceed the lesser of— 

12 (A) the column 1 general rate of duty im13 posed under the HTS on like articles at the 

14 time the import relief is provided; or 

15 (B) the column 1 general rate of duty im16 posed under the HTS on like articles on the 

17 day before the date on which the Agreement en18 ters into force. 

19 (c) CRITICAL CIRCUMSTANCES.— 

20 (1) PRESIDENTIAL DETERMINATION.—When a 

21 request filed under section 321(a) contains an alle22 gation of critical circumstances and a request for 

23 provisional relief under section 321(b), the President 

24 shall, not later than 60 days after the request is 
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1 filed, determine, on the basis of available informa2 tion, whether— 

3 (A) there is clear evidence that— 

4 (i) imports from Australia have in5 creased as the result of the reduction or 

6 elimination of a customs duty under the 

7 Agreement; and 

8 (ii) such imports are causing serious 

9 damage, or actual threat thereof, to the 

10 domestic industry producing an article like 

11 or directly competitive with the imported 

12 article; and 

13 (B) delay in taking action under this sub14 title would cause damage to that industry that 

15 would be difficult to repair. 

16 (2) EXTENT OF PROVISIONAL RELIEF.—If the 

17 determinations under subparagraphs (A) and (B) of 

18 paragraph (1) are affirmative, the President shall 

19 determine the extent of provisional relief that is nec20 essary to remedy or prevent the serious damage. The 

21 nature of the provisional relief available shall be the 

22 relief described in subsection (b)(2). Within 30 days 

23 after making affirmative determinations under sub24 paragraphs (A) and (B) of paragraph (1), the Presi25 dent, if the President considers provisional relief to 
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1 be warranted, shall provide, for a period not to ex2 ceed 200 days, such provisional relief that the Presi3 dent considers necessary to remedy or prevent the 

4 serious damage.

5 (3) SUSPENSION OF LIQUIDATION.—If provi6 sional relief is provided under paragraph (2), the 

7 President shall order the suspension of liquidation of 

8 all imported articles subject to the affirmative deter9 minations under subparagraphs (A) and (B) of para10 graph (1) that are entered, or withdrawn from ware11 house for consumption, on or after the date of the 

12 determinations. 

13 (4) TERMINATION OF PROVISIONAL RELIEF.— 

14 (A) IN GENERAL.—Any provisional relief 

15 implemented under this subsection with respect 

16 to an imported article shall terminate on the 

17 day on which— 

18 (i) the President makes a negative de19 termination under subsection (a) regarding 

20 serious damage or actual threat thereof by 

21 imports of such article; 

22 (ii) action described in subsection (b) 

23 takes effect with respect to such article; 
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1 (iii) a decision by the President not to 

2 take any action under subsection (b) with 

3 respect to such article becomes final; or 

4 (iv) the President determines that, be5 cause of changed circumstances, such relief 

6 is no longer warranted. 

7 (B) SUSPENSION OF LIQUIDATION.—Any 

8 suspension of liquidation ordered under para9 graph (3) with respect to an imported article 

10 shall terminate on the day on which provisional 

11 relief is terminated under subparagraph (A) 

12 with respect to the article. 

13 (C) RATES OF DUTY.—If an increase in, or 

14 the imposition of, a duty that is provided under 

15 subsection (b) on an imported article is dif16 ferent from a duty increase or imposition that 

17 was provided for such an article under this sub18 section, then the entry of any such article for 

19 which liquidation was suspended under para20 graph (3) shall be liquidated at whichever of 

21 such rates of duty is lower. 

22 (D) RATE OF DUTY IF PROVISIONAL RE23 LIEF.—If provisional relief is provided under 

24 this subsection with respect to an imported arti25 cle and neither a duty increase nor a duty im-
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1 position is provided under subsection (b) for 

2 such article, the entry of any such article for 

3 which liquidation was suspended under para4 graph (3) shall be liquidated at the rate of duty 

5 that applied before the provisional relief was 

6 provided. 

7 SEC. 323. PERIOD OF RELIEF. 

8 (a) IN GENERAL.—Subject to subsection (b), the im9 port relief that the President provides under subsections 

10 (b) and (c) of section 322 may not, in the aggregate, be 

11 in effect for more than 2 years.

12 (b) EXTENSION.— 

13 (1) IN GENERAL.—Subject to paragraph (2), 

14 the President may extend the effective period of any 

15 import relief provided under this subtitle for a pe16 riod of not more than 2 years, if the President de17 termines that— 

18 (A) the import relief continues to be nec19 essary to remedy or prevent serious damage 

20 and to facilitate adjustment by the domestic in21 dustry to import competition; and 

22 (B) there is evidence that the industry is 

23 making a positive adjustment to import com24 petition. 
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1 (2) LIMITATION.—Any relief provided under 

2 this subtitle, including any extensions thereof, may 

3 not, in the aggregate, be in effect for more than 4 

4 years. 

5 SEC. 324. ARTICLES EXEMPT FROM RELIEF. 

6 The President may not provide import relief under 

7 this subtitle with respect to any article if— 

8 (1) import relief previously has been provided 

9 under this subtitle with respect to that article; or 

10 (2) the article is subject to import relief 

11 under— 

12 (A) subtitle A; or 

13 (B) chapter 1 of title II of the Trade Act 

14 of 1974 (19 U.S.C. 2251 et seq.). 

15 SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF. 

16 When import relief under this subtitle is terminated 

17 with respect to an article, the rate of duty on that article 

18 shall be the rate that would have been in effect, but for 

19 the provision of such relief, on the date the relief termi20 nates. 

21 SEC. 326. TERMINATION OF RELIEF AUTHORITY. 

22 No import relief may be provided under this subtitle 

23 with respect to any article after the date that is 10 years 

24 after the date on which duties on the article are eliminated 

25 pursuant to the Agreement. 
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1 SEC. 327. COMPENSATION AUTHORITY. 

2 For purposes of section 123 of the Trade Act of 1974 

3 (19 U.S.C. 2133), any import relief provided by the Presi4 dent under this subtitle shall be treated as action taken 

5 under chapter 1 of title II of such Act. 

6 SEC. 328. BUSINESS CONFIDENTIAL INFORMATION. 

7 The President may not release information which is 

8 submitted in a proceeding under this subtitle and which 

9 the President considers to be confidential business infor10 mation unless the party submitting the confidential busi11 ness information had notice, at the time of submission, 

12 that such information would be released, or such party 

13 subsequently consents to the release of the information. 

14 To the extent a party submits confidential business infor15 mation to the President in a proceeding under this sub16 title, the party also shall submit a nonconfidential version 

17 of the information, in which the confidential business in18 formation is summarized or, if necessary, deleted. 

19 Subtitle C—Cases Under Title II of 

20 the Trade Act of 1974 

21 SEC. 331. FINDINGS AND ACTION ON GOODS FROM AUS22 TRALIA. 

23 (a) EFFECT OF IMPORTS.—If, in any investigation 

24 initiated under chapter 1 of title II of the Trade Act of 

25 1974 (19 U.S.C. 2251 et seq.), the Commission makes an 

26 affirmative determination (or a determination which the 
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1 President may treat as an affirmative determination under 

2 such chapter by reason of section 330(d) of the Tariff Act 

3 of 1930), the Commission shall also find (and report to 

4 the President at the time such injury determination is sub5 mitted to the President) whether imports of the article 

6 from Australia are a substantial cause of serious injury 

7 or threat thereof. 

8 (b) PRESIDENTIAL DETERMINATION REGARDING

9 AUSTRALIAN IMPORTS.—In determining the nature and 

10 extent of action to be taken under chapter 1 of title II 

11 of the Trade Act of 1974, the President shall determine 

12 whether imports from Australia are a substantial cause 

13 of the serious injury or threat thereof found by the Com14 mission and, if such determination is in the negative, may 

15 exclude from such action imports from Australia. 

16 TITLE IV—PROCUREMENT 

17 SEC. 401. ELIGIBLE PRODUCTS. 

18 Section 308(4)(A) of the Trade Agreements Act of 

19 1979 (19 U.S.C. 2518(4)(A)) is amended—

20 (1) by striking ‘‘or’’ at the end of clause (i); 

21 (2) by striking the period at the end of clause 

22 (ii) and inserting ‘‘; or’’; and 

23 (3) by adding at the end the following new 

24 clause: 
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1 ‘‘(iii) a party to a free trade agree2 ment that entered into force with respect 

3 to the United States after December 31, 

4 2003, and before January 2, 2005, a prod5 uct or service of that country or instru6 mentality which is covered under the free 

7 trade agreement for procurement by the 

8 United States.’’. 

Calendar No. 630

108TH CONGRESS 

2D SESSION S. 2610

A BILL

To implement the United States-Australia Free 

Trade Agreement. 

JUNE 14, 2004

Reported without amendment