II 

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 

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’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents.

Sec. 2. Purposes.

Sec. 3. Definitions.
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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.

TITLE IV—PROCUREMENT 

Sec. 401. Eligible products. 1 

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 
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1 (1) to approve and implement the Free Trade 

2 Agreement between the United States and Australia, 

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

4 of the Bipartisan Trade Promotion Authority Act of 

5 2002 (19 U.S.C. 3803(b)); 

6 (2) to strengthen and develop economic rela7 tions between the United States and Australia for 

8 their mutual benefit; 

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

10 through the reduction and elimination of barriers to 

11 trade in goods and services and to investment; and 

12 (4) to lay the foundation for further coopera13 tion to expand and enhance the benefits of such 

14 Agreement. 

15 SEC. 3. DEFINITIONS. 

16 In this Act: 

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

18 means the United States-Australia Free Trade 

19 Agreement approved by Congress under section 

20 101(a)(1). 

21 (2) HTS.—The term ‘‘HTS’’ means the Har22 monized Tariff Schedule of the United States. 

23 (3) TEXTILE OR APPAREL GOOD.—The term 

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

25 Annex to the Agreement on Textiles and Clothing 
4 

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

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

3 TITLE I—APPROVAL OF, AND 

4 GENERAL PROVISIONS RE5 LATING TO, THE AGREEMENT 

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

7 AGREEMENT. 

8 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

9 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 

10 the Bipartisan Trade Promotion Authority Act of 2002 

11 (19 U.S.C. 3805) and section 151 of the Trade Act of 

12 1974 (19 U.S.C. 2191), Congress approves— 

13 (1) the United States-Australia Free Trade 

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

15 Government of Australia and submitted to Congress 

16 on lllll, 2004; and 

17 (2) the statement of administrative action pro18 posed to implement the Agreement that was sub19 mitted to Congress on llllll, 2004. 

20 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

21 AGREEMENT.—At such time as the President determines 

22 that Australia has taken measures necessary to bring it 

23 into compliance with those provisions of the Agreement 

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

25 enters into force, the President is authorized to exchange 
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1 notes with the Government of Australia providing for the 

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

3 Agreement with respect to the United States. 

4 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 

5 STATES AND STATE LAW. 

6 (a) RELATIONSHIP OF AGREEMENT TO UNITED

7 STATES LAW.— 

8 (1) UNITED STATES LAW TO PREVAIL IN CON9 FLICT.—No provision of the Agreement, nor the ap10 plication of any such provision to any person or cir11 cumstance, which is inconsistent with any law of the 

12 United States shall have effect. 

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

14 be construed— 

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

16 United States, or 

17 (B) to limit any authority conferred under 

18 any law of the United States, 

19 unless specifically provided for in this Act. 

20 (b) RELATIONSHIP OF AGREEMENT TO STATE

21 LAW.— 

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

23 application thereof, may be declared invalid as to 

24 any person or circumstance on the ground that the 

25 provision or application is inconsistent with the 
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1 Agreement, except in an action brought by the United 

2 States for the purpose of declaring such law or appli3 cation invalid. 

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

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

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

7 State; and 

8 (B) any State law regulating or taxing the 

9 business of insurance. 

10 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI11 VATE REMEDIES.—No person other than the United 

12 States— 

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

14 under the Agreement or by virtue of congressional 

15 approval thereof; or 

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

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

18 department, agency, or other instrumentality of the 

19 United States, any State, or any political subdivision 

20 of a State, on the ground that such action or inac21 tion is inconsistent with the Agreement. 

22 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 

23 ENTRY INTO FORCE AND INITIAL REGULA24 TIONS. 

25 (a) IMPLEMENTING ACTIONS.— 
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1 (1) PROCLAMATION AUTHORITY.—After the 

2 date of the enactment of this Act— 

3 (A) the President may proclaim such ac4 tions, and 

5 (B) other appropriate officers of the 

6 United States Government may issue such reg7 ulations, 

8 as may be necessary to ensure that any provision of 

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

10 effect on the date the Agreement enters into force 

11 is appropriately implemented on such date, but no 

12 such proclamation or regulation may have an effec13 tive date earlier than the date on which the Agree14 ment enters into force. 

15 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

16 ACTIONS.—Any action proclaimed by the President 

17 under the authority of this Act that is not subject 

18 to the consultation and layover provisions under sec19 tion 104, may not take effect before the 15th day 

20 after the date on which the text of the proclamation 

21 is published in the Federal Register. 

22 (3) WAIVER OF 15-DAY RESTRICTION.—The 15- 

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

24 of proclaimed actions is waived to the extent that 

25 the application of such restriction would prevent the 
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1 taking effect on the date the Agreement enters into 

2 force of any action proclaimed under this section. 

3 (b) INITIAL REGULATIONS.—Initial regulations nec4 essary or appropriate to carry out the actions required by 

5 or authorized under this Act or proposed in the statement 

6 of administrative action submitted under section 

7 101(a)(2) to implement the Agreement shall, to the max8 imum extent feasible, be issued within 1 year after the 

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

10 of any implementing action that takes effect on a date 

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

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

13 maximum extent feasible, be issued within 1 year after 

14 such effective date. 

15 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 

16 AND EFFECTIVE DATE OF, PROCLAIMED AC17 TIONS. 

18 If a provision of this Act provides that the implemen19 tation of an action by the President by proclamation is 

20 subject to the consultation and layover requirements of 

21 this section, such action may be proclaimed only if— 

22 (1) the President has obtained advice regarding 

23 the proposed action from— 
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1 (A) the appropriate advisory committees 

2 established under section 135 of the Trade Act 

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

4 (B) the United States International Trade 

5 Commission; 

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

7 Committee on Finance of the Senate and the Com8 mittee on Ways and Means of the House of Rep9 resentatives that sets forth— 

10 (A) the action proposed to be proclaimed 

11 and the reasons therefor; and 

12 (B) the advice obtained under paragraph 

13 (1); 

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

15 the first day on which the requirements set forth in 

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

17 and 

18 (4) the President has consulted with such Com19 mittees regarding the proposed action during the pe20 riod referred to in paragraph (3). 

21 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO22 CEEDINGS. 

23 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.— 

24 The President is authorized to establish or designate with25 in the Department of Commerce an office that shall be 
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1 responsible for providing administrative assistance to pan2 els established under chapter 21 of the Agreement. The 

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

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

5 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated for each fiscal year after 

7 fiscal year 2004 to the Department of Commerce such 

8 sums as may be necessary for the establishment and oper9 ations of the office under subsection (a) and for the pay10 ment of the United States share of the expenses of panels 

11 established under chapter 21 of the Agreement. 

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

13 (a) EFFECTIVE DATES.—Except as provided in sub14 section (b), the provisions of this Act and the amendments 

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

16 Agreement enters into force. 

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

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

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

20 date on which the Agreement terminates, the provisions 

21 of this Act (other than this subsection) and the amend22 ments made by this Act shall cease to be effective. 
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1 TITLE II—CUSTOMS PROVISIONS 

2 SEC. 201. TARIFF MODIFICATIONS. 

3 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

4 AGREEMENT.—The President may proclaim— 

5 (1) such modifications or continuation of any 

6 duty, 

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

8 treatment, or 

9 (3) such additional duties, 

10 as the President determines to be necessary or appropriate 

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

12 2–B of the Agreement. 

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

14 consultation and layover provisions of section 104, the 

15 President may proclaim— 

16 (1) such modifications or continuation of any 

17 duty, 

18 (2) such modifications as the United States 

19 may agree to with Australia regarding the staging of 

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

21 Agreement, 

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

23 treatment, or 

24 (4) such additional duties, 
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1 as the President determines to be necessary or appropriate 

2 to maintain the general level of reciprocal and mutually 

3 advantageous concessions with respect to Australia pro4 vided for by the Agreement. 

5 (c) CONVERSION TO AD VALOREM RATES.—For pur6 poses of subsections (a) and (b), with respect to any good 

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

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

9 compound rate of duty, the President may substitute for 

10 the base rate an ad valorem rate that the President deter11 mines to be equivalent to the base rate. 

12 SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL13 TURAL GOODS. 

14 (a) GENERAL PROVISIONS.— 

15 (1) APPLICABILITY OF SUBSECTION.—This sub16 section applies to additional duties assessed under 

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

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

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

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

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

22 is the lesser of— 

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

24 would have been imposed under the HTS on the 

25 same safeguard good entered, without a claim 
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1 for preferential treatment, at the time the addi2 tional duty is imposed under subsection (b), (c), 

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

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

5 would have been imposed under the HTS on the 

6 same safeguard good entered, without a claim 

7 for preferential treatment, on December 31, 

8 2004. 

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

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

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

12 the rate of duty for that good set out in the Sched13 ule of the United States to Annex 2–B of the Agree14 ment. 

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

16 term ‘‘safeguard good’’ means— 

17 (A) a horticulture safeguard good de18 scribed subsection (b)(1)(B); or 

19 (B) a beef safeguard good described in 

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

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

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

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

24 relief under— 

25 (A) subtitle A of title III of this Act; or 
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1 (B) chapter 1 of title II of the Trade Act 

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

3 (6) TERMINATION.—The assessment of an ad4 ditional duty on a good under subsection (b) or (c), 

5 whichever is applicable, shall cease to apply to that 

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

7 be provided to that good under the Schedule of the 

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

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

10 date on which the Secretary of the Treasury assesses 

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

12 (c), or (d), the Secretary shall notify the Govern13 ment of Australia in writing of such action and shall 

14 provide to that Government data supporting the as15 sessment of the additional duty. 

16 (b) ADDITIONAL DUTIES ON HORTICULTURE SAFE17 GUARD GOODS.— 

18 (1) DEFINITIONS.—In this subsection: 

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

20 free on board, regardless of the mode of trans21 portation, at the point of direct shipment by the 

22 seller to the buyer. 

23 (B) HORTICULTURE SAFEGUARD GOOD.— 

24 The term ‘‘horticulture safeguard good’’ means 

25 a good— 
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1 (i) that qualifies as an originating 

2 good under section 203; 

3 (ii) that is included in the United 

4 States Horticulture Safeguard List set 

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

6 (iii) for which a claim for preferential 

7 treatment under the Agreement has been 

8 made. 

9 (C) UNIT IMPORT PRICE.—The ‘‘unit im10 port price’’ of a good means the price of the 

11 good determined on the basis of the F.O.B. im12 port price of the good, expressed in either dol13 lars per kilogram or dollars per liter, whichever 

14 unit of measure is indicated for the good in the 

15 United States Horticulture Safeguard List set 

16 forth in Annex 3–A of the Agreement. 

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

18 for a good is the trigger price indicated for that 

19 good in the United States Horticulture Safe20 guard List set forth in Annex 3–A of the 

21 Agreement or any amendment thereto. 

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

23 duty proclaimed under subsection (a) or (b) of sec24 tion 201, and subject to subsection (a) of this sec25 tion, the Secretary of the Treasury shall assess a 
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1 duty on a horticulture safeguard good, in the amount 

2 determined under paragraph (3), if the Secretary de3 termines that the unit import price of the good when 

4 it enters the United States is less than the trigger 

5 price for that good. 

6 (3) CALCULATION OF ADDITIONAL DUTY.—The 

7 additional duty assessed under this subsection on a 

8 horticulture safeguard good shall be an amount de9 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. 

10 (c) ADDITIONAL DUTIES ON BEEF SAFEGUARD

11 GOODS BASED ON QUANTITY OF IMPORTS.— 

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

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

14 (A) that qualifies as an originating good 

15 under section 203; 

16 (B) that is listed in paragraph 3 of Annex 

17 I of the General Notes to the Schedule of the 

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

19 and 
17 

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1 (C) for which a claim for preferential 

2 treatment under the Agreement has been made. 

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

4 duty proclaimed under subsection (a) or (b) of sec5 tion 201, and subject to subsection (a) of this sec6 tion and paragraphs (4) and (5) of this subsection, 

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

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

9 beef safeguard good imported into the United States 

10 in a calendar year if the Secretary determines that, 

11 prior to such importation, the total volume of beef 

12 safeguard goods imported into the United States in 

13 that calendar year is equal to or greater than 110 

14 percent of the volume set out for beef safeguard 

15 goods in the corresponding year in the table con16 tained in paragraph 3(a) of Annex I of the General 

17 Notes to the Schedule of the United States to Annex 

18 2–B of the Agreement. For purposes of this sub19 section, the years 1 through 19 set out in the table 

20 contained in paragraph 3(a) of such Annex I cor21 respond to the calendar years 2005 through 2023. 

22 (3) CALCULATION OF ADDITIONAL DUTY.—The 

23 additional duty on a beef safeguard good under this 

24 subsection shall be an amount equal to 75 percent 
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1 of the excess of the applicable NTR (MFN) rate of 

2 duty over the schedule rate of duty. 

3 (4) WAIVER.— 

4 (A) IN GENERAL.—The United States 

5 Trade Representative is authorized to waive the 

6 application of this subsection, if the Trade Rep7 resentative determines that extraordinary mar8 ket conditions demonstrate that the waiver 

9 would be in the national interest of the United 

10 States, after the requirements of subparagraph 

11 (B) are met. 

12 (B) NOTICE AND CONSULTATIONS.— 

13 Promptly after receiving a request for a waiver 

14 of this subsection, the Trade Representative 

15 shall notify the Committee on Ways and Means 

16 of the House of Representatives and the Com17 mittee on Finance of the Senate, and may make 

18 the determination provided for in subparagraph 

19 (A) only after consulting with— 

20 (i) appropriate private sector advisory 

21 committees established under section 135 

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

23 2155); and 

24 (ii) the Committee on Ways and 

25 Means of the House of Representatives 
19 

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1 and the Committee on Finance of the Sen2 ate regarding— 

3 (I) the reasons supporting the 

4 determination to grant the waiver; 

5 and 

6 (II) the proposed scope and dura7 tion of the waiver. 

8 (C) NOTIFICATION OF THE SEC9 RETARY OF THE TREASURY AND PUBLICA10 TION.—Upon granting a waiver under this 

11 paragraph, the Trade Representative shall 

12 promptly notify the Secretary of the Treas13 ury of the period in which the waiver will 

14 be in effect, and shall publish notice of the 

15 waiver in the Federal Register. 

16 (5) EFFECTIVE DATES.—This subsection takes 

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

18 after December 31, 2022. 

19 (d) ADDITIONAL DUTIES ON BEEF SAFEGUARD

20 GOODS BASED ON PRICE.— 

21 (1) DEFINITIONS.—In this subsection: 

22 (A) BEEF SAFEGUARD GOOD.—The term 

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

24 (i) that qualifies as an originating 

25 good under section 203; 
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1 (ii) that is classified under subheading 

2 0201.10.50, 0201.20.80, 0201.30.80, 

3 0202.10.50, 0202.20.80, or 0202.30.80 of 

4 the HTS; and 

5 (iii) for which a claim for preferential 

6 treatment under the Agreement has been 

7 made. 

8 (B) CALENDAR QUARTER.— 

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

10 quarter’’ means any 3-month period begin11 ning on January 1, April 1, July 1, or Oc12 tober 1 of a calendar year. 

13 (ii) FIRST CALENDAR QUARTER.—The 

14 term ‘‘first calendar quarter’’ means the 

15 calendar quarter beginning on January 1. 

16 (iii) SECOND CALENDAR QUARTER.— 

17 The term ‘‘second calendar quarter’’ 

18 means the calendar quarter beginning on 

19 April 1. 

20 (iv) THIRD CALENDAR QUARTER.— 

21 The term ‘‘third calendar quarter’’ means 

22 the calendar quarter beginning on July 1. 

23 (v) FOURTH CALENDAR QUARTER.— 

24 The term ‘‘fourth calendar quarter’’ means 
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1 the calendar quarter beginning on October 

2 1. 

3 (C) MONTHLY AVERAGE INDEX PRICE.— 

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

5 the simple average, as determined by the Sec6 retary of Agriculture, for a calendar month of 

7 the daily average index prices for Wholesale 

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

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

10 simple average is reported by the Agricultural 

11 Marketing Service of the Department of Agri12 culture in Report LM—XB459 or any equiva13 lent report. 

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

15 ‘‘24-month trigger price’’ means, with respect 

16 to any calendar month, the average of the 

17 monthly average index prices for the 24 pre18 ceding calendar months, multiplied by 0.935. 

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

20 duty proclaimed under subsection (a) or (b) of sec21 tion 201, and subject to subsection (a) of this sec22 tion and paragraphs (4) through (6) of this sub23 section, the Secretary of the Treasury shall assess a 

24 duty, in the amount determined under paragraph 
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1 (3), on a beef safeguard good imported into the 

2 United States if— 

3 (A)(i) the good is imported in the first cal4 endar quarter, second calendar quarter, or third 

5 calendar quarter of a calendar year; and 

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

7 2 calendar months of the preceding calendar 

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

9 or 

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

11 calendar quarter of a calendar year; and 

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

13 any 2 calendar months of the preceding cal14 endar quarter, is less than the 24-month trigger 

15 price; or 

16 (II) the monthly average index price, in 

17 any of the 4 calendar months preceding Janu18 ary 1 of the succeeding calendar year, is less 

19 than the 24-month trigger price. 

20 (3) CALCULATION OF ADDITIONAL DUTY.—The 

21 additional duty on a beef safeguard good under this 

22 subsection shall be an amount equal to 65 percent 

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

24 good. 
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1 (4) LIMITATION.—An additional duty shall be 

2 assessed under this subsection on a beef safeguard 

3 good imported into the United States in a calendar 

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

5 the total quantity of beef safeguard goods imported 

6 into the United States in that calendar year is equal 

7 to or greater than the sum of— 

8 (A) the quantity of goods of Australia eli9 gible to enter the United States in that year 

10 specified in Additional United States Note 3 to 

11 Chapter 2 of the HTS; and 

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

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

14 a quantity that is 0.6 percent greater than the 

15 quantity provided for in the preceding year 

16 under this subparagraph. 

17 (5) WAIVER.— 

18 (A) IN GENERAL.—The United States 

19 Trade Representative is authorized to waive the 

20 application of this subsection, if the Trade Rep21 resentative determines that extraordinary mar22 ket conditions demonstrate that the waiver 

23 would be in the national interest of the United 

24 States, after the requirements of subparagraph 

25 (B) are met. 
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1 (B) NOTICE AND CONSULTATIONS.— 

2 Promptly after receiving a request for a waiver 

3 of this subsection, the Trade Representative 

4 shall notify the Committee on Ways and Means 

5 of the House of Representatives and the Com6 mittee on Finance of the Senate, and may make 

7 the determination provided for in subparagraph 

8 (A) only after consulting with— 

9 (i) appropriate private sector advisory 

10 committees established under section 135 

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

12 2155); and 

13 (ii) the Committee on Ways and 

14 Means of the House of Representatives 

15 and the Committee on Finance of the Sen16 ate regarding— 

17 (I) the reasons supporting the 

18 determination to grant the waiver; 

19 and 

20 (II) the proposed scope and dura21 tion of the waiver. 

22 (C) NOTIFICATION OF THE SEC23 RETARY OF THE TREASURY AND PUBLICA24 TION.—Upon granting a waiver under this 

25 paragraph, the Trade Representative shall 
25 

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1 promptly notify the Secretary of the Treas2 ury of the period in which the waiver will 

3 be in effect, and shall publish notice of the 

4 waiver in the Federal Register. 

5 (6) EFFECTIVE DATE.—This subsection takes 

6 effect on January 1, 2023. 

7 SEC. 203. RULES OF ORIGIN. 

8 (a) APPLICATION AND INTERPRETATION.—In this 

9 section: 

10 (1) TARIFF CLASSIFICATION.—The basis for 

11 any tariff classification is the HTS. 

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

13 section there is a reference to a heading or sub14 heading, such reference shall be a reference to a 

15 heading or subheading of the HTS. 

16 (3) COST OR VALUE.—Any cost or value re17 ferred to in this section shall be recorded and main18 tained in accordance with the generally accepted ac19 counting principles applicable in the territory of the 

20 country in which the good is produced (whether Aus21 tralia or the United States). 

22 (b) ORIGINATING GOODS.—For purposes of this Act 

23 and for purposes of implementing the preferential treat24 ment provided for under the Agreement, a good is an orig25 inating good if— 
26 

•S 2610 IS 

1 (1) the good is a good wholly obtained or pro2 duced entirely in the territory of Australia, the 

3 United States, or both; 

4 (2) the good— 

5 (A) is produced entirely in the territory of 

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

7 (i) each of the nonoriginating mate8 rials used in the production of the good 

9 undergoes an applicable change in tariff 

10 classification specified in Annex 4–A or 

11 Annex 5–A of the Agreement; 

12 (ii) the good otherwise satisfies any 

13 applicable regional value-content require14 ment referred to in Annex 5–A of the 

15 Agreement; or 

16 (iii) the good meets any other require17 ments specified in Annex 4–A or Annex 5– 

18 A of the Agreement; and 

19 (B) the good satisfies all other applicable 

20 requirements of this section; 

21 (3) the good is produced entirely in the terri22 tory of Australia, the United States, or both, exclu23 sively from materials described in paragraph (1) or 

24 (2); or 
27 

•S 2610 IS 

1 (4) the good otherwise qualifies as an origi2 nating good under this section. 

3 (c) DE MINIMIS AMOUNTS OF NONORIGINATING MA4 TERIALS.— 

5 (1) IN GENERAL.—Except as provided in para6 graphs (2) and (3), a good that does not undergo a 

7 change in tariff classification pursuant to Annex 5– 

8 A of the Agreement is an originating good if— 

9 (A) the value of all nonoriginating mate10 rials that— 

11 (i) are used in the production of the 

12 good, and 

13 (ii) do not undergo the required 

14 change in tariff classification, 

15 does not exceed 10 percent of the adjusted 

16 value of the good; 

17 (B) the good meets all other applicable re18 quirements of this section; and 

19 (C) the value of such nonoriginating mate20 rials is included in the value of nonoriginating 

21 materials for any applicable regional value-con22 tent requirement for the good. 

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

24 apply to the following: 
28 

•S 2610 IS 

1 (A) A nonoriginating material provided for 

2 in chapter 4 of the HTS or in subheading 

3 1901.90 that is used in the production of a 

4 good provided for in chapter 4 of the HTS. 

5 (B) 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 subheading 1901.10, 

9 1901.20, or 1901.90, heading 2105, or sub10 heading 2106.90, 2202.90, or 2309.90. 

11 (C) A nonoriginating material provided for 

12 in heading 0805 or any of subheadings 2009.11 

13 through 2009.39 that is used in the production 

14 of a good provided for in any of subheadings 

15 2009.11 through 2009.39, or in subheading 

16 2106.90 or 2202.90. 

17 (D) A nonoriginating material provided for 

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

19 production of a good provided for in any of 

20 headings 1501.00.00 through 1508, or in head21 ing 1512, 1514, or 1515. 

22 (E) A nonoriginating material provided for 

23 in heading 1701 that is used in the production 

24 of a good provided for in any of headings 1701 

25 through 1703. 
29 

•S 2610 IS 

1 (F) A nonoriginating material provided for 

2 in chapter 17 of the HTS or heading 

3 1805.00.00 that is used in the production of a 

4 good provided for in subheading 1806.10. 

5 (G) A nonoriginating material provided for 

6 in any of headings 2203 through 2208 that is 

7 used in the production of a good provided for 

8 in heading 2207 or 2208. 

9 (H) A nonoriginating material used in the 

10 production of a good provided for in any of 

11 chapters 1 through 21 of the HTS unless the 

12 nonoriginating material is provided for in a dif13 ferent subheading than the good for which ori14 gin is being determined under this section. 

15 (3) TEXTILE AND APPAREL GOODS.— 

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

17 subparagraph (B), a textile or apparel good 

18 that is not an originating good because certain 

19 fibers or yarns used in the production of the 

20 component of the good that determines the tar21 iff classification of the good do not undergo an 

22 applicable change in tariff classification set out 

23 in Annex 4–A of the Agreement shall be consid24 ered to be an originating good if the total 

25 weight of all such fibers or yarns in that com-
30 

•S 2610 IS 

1 ponent is not more than 7 percent of the total 

2 weight of that component. 

3 (B) CERTAIN TEXTILE OR APPAREL

4 GOODS.—A textile or apparel good containing 

5 elastomeric yarns in the component of the good 

6 that determines the tariff classification of the 

7 good shall be considered to be an originating 

8 good only if such yarns are wholly formed in 

9 the territory of Australia or the United States. 

10 (C) YARN, FABRIC, OR FIBER.—For pur11 poses of this paragraph, in the case of a textile 

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

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

14 determines the tariff classification of the good’’ 

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

16 group of fibers. 

17 (d) ACCUMULATION.— 

18 (1) ORIGINATING MATERIALS USED IN PRODUC19 TION OF GOODS OF OTHER COUNTRY.—Originating 

20 materials from the territory of Australia or the 

21 United States that are used in the production of a 

22 good in the territory of the other country shall be 

23 considered to originate in the territory of the other 

24 country. 
31 

•S 2610 IS 

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

2 produced in the territory of Australia, the United 

3 States, or both, by 1 or more producers, is an origi4 nating good if the good satisfies the requirements of 

5 subsection (b) and all other applicable requirements 

6 of this section. 

7 (e) REGIONAL VALUE-CONTENT.— 

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

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

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

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

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

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

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

15 paragraph (3). 

16 (2) BUILD-DOWN METHOD.— 

17 (A) IN GENERAL.—The regional value-con18 tent of a good may be calculated on the basis 

19 of the following build-down method: 

AV–VNM

RVC = ———— × 100 

AV

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

21 (i) RVC.—The term ‘‘RVC’’ means 

22 the regional value-content of the good, ex23 pressed as a percentage. 
32 

•S 2610 IS 

1 (ii) AV.—The term ‘‘AV’’ means the 

2 adjusted value of the good. 

3 (iii) VNM.—The term ‘‘VNM’’ means 

4 the value of nonoriginating materials that 

5 are acquired and used by the producer in 

6 the production of the good, but does not 

7 include the value of a material that is self8 produced. 

9 (3) BUILD-UP METHOD.— 

10 (A) IN GENERAL.—The regional value-con11 tent of a good may be calculated on the basis 

12 of the following build-up method: 

VOM

RVC = ———— × 100 

AV

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

14 (i) RVC.—The term ‘‘RVC’’ means 

15 the regional value-content of the good, ex16 pressed as a percentage. 

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

18 adjusted value of the good. 

19 (iii) VOM.—The term ‘‘VOM’’ means 

20 the value of originating materials that are 

21 acquired or self-produced, and used by the 

22 producer in the production of the good. 

23 (4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE

24 GOODS.— 
33 

•S 2610 IS 

1 (A) IN GENERAL.—For purposes of sub2 section (b)(2), the regional value-content of an 

3 automotive good referred to in Annex 5–A of 

4 the Agreement shall be calculated by the im5 porter, exporter, or producer of the good, on the 

6 basis of the following net cost method: 

NC–VNM

RVC = ———— × 100 

NC

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

8 (i) AUTOMOTIVE GOOD.—The term 

9 ‘‘automotive good’’ means a good provided 

10 for in any of subheadings 8407.31 through 

11 8407.34, subheading 8408.20, heading 

12 8409, or in any of headings 8701 through 

13 8708. 

14 (ii) RVC.—The term ‘‘RVC’’ means 

15 the regional value-content of the auto16 motive good, expressed as a percentage. 

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

18 net cost of the automotive good. 

19 (iv) VNM.—The term ‘‘VNM’’ means 

20 the value of nonoriginating materials that 

21 are acquired and used by the producer in 

22 the production of the automotive good, but 

23 does not include the value of a material 

24 that is self-produced. 
34 

•S 2610 IS 

1 (C) MOTOR VEHICLES.— 

2 (i) BASIS OF CALCULATION.—For 

3 purposes of determining the regional value4 content under subparagraph (A) for an 

5 automotive good that is a motor vehicle 

6 provided for in any of headings 8701 

7 through 8705, an importer, exporter, or 

8 producer may average the amounts cal9 culated under the formula contained in 

10 subparagraph (A), over the producer’s fis11 cal year— 

12 (I) with respect to all motor vehi13 cles in any one of the categories de14 scribed in clause (ii); or 

15 (II) with respect to all motor ve16 hicles in any such category that are 

17 exported to the territory of the United 

18 States or Australia. 

19 (ii) CATEGORIES.—A category is de20 scribed in this clause if it— 

21 (I) is the same model line of 

22 motor vehicles, is in the same class of 

23 vehicles, and is produced in the same 

24 plant in the territory of Australia or 

25 the United States, as the good de-
35 

•S 2610 IS 

1 scribed in clause (i) for which regional 

2 value-content is being calculated; 

3 (II) is the same class of motor 

4 vehicles, and is produced in the same 

5 plant in the territory of Australia or 

6 the United States, as the good de7 scribed in clause (i) for which regional 

8 value-content is being calculated; or 

9 (III) is the same model line of 

10 motor vehicles produced in either the 

11 territory of Australia or the United 

12 States, as the good described in clause 

13 (i) for which regional value-content is 

14 being calculated. 

15 (D) OTHER AUTOMOTIVE GOODS.—For 

16 purposes of determining the regional value-con17 tent under subparagraph (A) for automotive 

18 goods provided for in any of subheadings 

19 8407.31 through 8407.34, in subheading 

20 8408.20, or in heading 8409, 8706, 8707, or 

21 8708, that are produced in the same plant, an 

22 importer, exporter, or producer may— 

23 (i) average the amounts calculated 

24 under the formula contained in subpara25 graph (A) over— 
36 

•S 2610 IS 

1 (I) the fiscal year of the motor 

2 vehicle producer to whom the auto3 motive goods are sold, 

4 (II) any quarter or month, or 

5 (III) its own fiscal year, 

6 if the goods were produced during the fis7 cal year, quarter, or month that is the 

8 basis for the calculation; 

9 (ii) determine the average referred to 

10 in clause (i) separately for such goods sold 

11 to one or more motor vehicle producers; or 

12 (iii) make a separate determination 

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

14 goods that are exported to the territory of 

15 the United States or Australia. 

16 (E) CALCULATING NET COST.—Consistent 

17 with the provisions regarding allocation of costs 

18 set out in generally accepted accounting prin19 ciples, the net cost of the automotive good 

20 under subparagraph (B) shall be calculated 

21 by— 

22 (i) calculating the total cost incurred 

23 with respect to all goods produced by the 

24 producer of the automotive good, sub25 tracting any sales promotion, marketing 
37 

•S 2610 IS 

1 and after-sales service costs, royalties, 

2 shipping and packing costs, and nonallow3 able interest costs that are included in the 

4 total cost of all such goods, and then rea5 sonably allocating the resulting net cost of 

6 those goods to the automotive good; 

7 (ii) calculating the total cost incurred 

8 with respect to all goods produced by that 

9 producer, reasonably allocating the total 

10 cost to the automotive good, and then sub11 tracting any sales promotion, marketing 

12 and after-sales service costs, royalties, 

13 shipping and packing costs, and nonallow14 able interest costs that are included in the 

15 portion of the total cost allocated to the 

16 automotive good; or 

17 (iii) reasonably allocating each cost 

18 that forms part of the total cost incurred 

19 with respect to the automotive good so that 

20 the aggregate of these costs does not in21 clude any sales promotion, marketing and 

22 after-sales service costs, royalties, shipping 

23 and packing costs, or nonallowable interest 

24 costs. 

25 (f) VALUE OF MATERIALS.— 
38 

•S 2610 IS 

1 (1) IN GENERAL.—For the purpose of calcu2 lating the regional value-content of a good under 

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

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

5 material is— 

6 (A) in the case of a material that is im7 ported by the producer of the good, the ad8 justed value of the material; 

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

10 the territory in which the good is produced, the 

11 value, determined in accordance with Articles 1 

12 through 8, article 15, and the corresponding in13 terpretive notes of the Agreement on Implemen14 tation of Article VII of the General Agreement 

15 on Tariffs and Trade 1994 referred to in sec16 tion 101(d)(8) of the Uruguay Round Agree17 ments Act, as set forth in regulations promul18 gated by the Secretary of the Treasury pro19 viding for the application of such Articles in the 

20 absence of an importation; or 

21 (C) in the case of a material that is self22 produced, the sum of— 

23 (i) all expenses incurred in the pro24 duction of the material, including general 

25 expenses; and 
39 

•S 2610 IS 

1 (ii) an amount for profit equivalent to 

2 the profit added in the normal course of 

3 trade. 

4 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

5 MATERIALS.— 

6 (A) ORIGINATING MATERIAL.—The fol7 lowing expenses, if not included in the value of 

8 an originating material calculated under para9 graph (1), may be added to the value of the 

10 originating material: 

11 (i) The costs of freight, insurance, 

12 packing, and all other costs incurred in 

13 transporting the material within or be14 tween the territory of Australia, the United 

15 States, or both, to the location of the pro16 ducer. 

17 (ii) Duties, taxes, and customs broker18 age fees on the material paid in the terri19 tory of Australia, the United States, or 

20 both, other than duties or taxes that are 

21 waived, refunded, refundable, or otherwise 

22 recoverable, including credit against duty 

23 or tax paid or payable. 

24 (iii) The cost of waste and spoilage re25 sulting from the use of the material in the 
40 

•S 2610 IS 

1 production of the good, less the value of 

2 renewable scrap or byproducts. 

3 (B) NONORIGINATING MATERIAL.—The 

4 following expenses, if included in the value of a 

5 nonoriginating material calculated under para6 graph (1), may be deducted from the value of 

7 the nonoriginating material: 

8 (i) The costs of freight, insurance, 

9 packing, and all other costs incurred in 

10 transporting the material within or be11 tween the territory of Australia, the United 

12 States, or both, to the location of the pro13 ducer. 

14 (ii) Duties, taxes, and customs broker15 age fees on the material paid in the terri16 tory of Australia, the United States, or 

17 both, other than duties or taxes that are 

18 waived, refunded, refundable, or otherwise 

19 recoverable, including credit against duty 

20 or tax paid or payable. 

21 (iii) The cost of waste and spoilage re22 sulting from the use of the material in the 

23 production of the good, less the value of 

24 renewable scrap or byproducts. 
41 

•S 2610 IS 

1 (iv) The cost of processing incurred in 

2 the territory of Australia, the United 

3 States, or both, in the production of the 

4 nonoriginating material. 

5 (v) The cost of originating materials 

6 used in the production of the nonorigi7 nating material in the territory of Aus8 tralia, the United States, or both. 

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

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

11 accessories, spare parts, or tools delivered with a 

12 good that form part of the good’s standard acces13 sories, spare parts, or tools shall— 

14 (A) be treated as originating goods if the 

15 good is an originating good; and 

16 (B) be disregarded in determining whether 

17 all the nonoriginating materials used in the pro18 duction of the good undergo the applicable 

19 change in tariff classification set out in Annex 

20 5–A of the Agreement. 

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

22 only if— 

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

24 are not invoiced separately from the good; 
42 

•S 2610 IS 

1 (B) the quantities and value of the acces2 sories, spare parts, or tools are customary for 

3 the good; and 

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

5 value-content requirement, the value of the ac6 cessories, spare parts, or tools is taken into ac7 count as originating or nonoriginating mate8 rials, as the case may be, in calculating the re9 gional value-content of the good. 

10 (h) FUNGIBLE GOODS AND MATERIALS.— 

11 (1) IN GENERAL.— 

12 (A) CLAIM FOR PREFERENTIAL TREAT13 MENT.—A person claiming that a fungible good 

14 or fungible material is an originating good may 

15 base the claim either on the physical segrega16 tion of the fungible good or fungible material or 

17 by using an inventory management method with 

18 respect to the fungible good or fungible mate19 rial. 

20 (B) INVENTORY MANAGEMENT METHOD.— 

21 In this subsection, the term ‘‘inventory manage22 ment method’’ means— 

23 (i) averaging; 

24 (ii) ‘‘last-in, first-out’’; 

25 (iii) ‘‘first-in, first-out’’; or 
43 

•S 2610 IS 

1 (iv) any other method— 

2 (I) recognized in the generally 

3 accepted accounting principles of the 

4 country in which the production is 

5 performed (whether Australia or the 

6 United States); or 

7 (II) otherwise accepted by that 

8 country. 

9 (2) ELECTION OF INVENTORY METHOD.—A 

10 person selecting an inventory management method 

11 under paragraph (1) for a particular fungible good 

12 or fungible material shall continue to use that meth13 od for that fungible good or fungible material 

14 throughout the fiscal year of that person. 

15 (i) PACKAGING MATERIALS AND CONTAINERS FOR

16 RETAIL SALE.—Packaging materials and containers in 

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

18 the good, shall be disregarded in determining whether all 

19 the nonoriginating materials used in the production of the 

20 good undergo the applicable change in tariff classification 

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

22 and, if the good is subject to a regional value-content re23 quirement, the value of such packaging materials and con24 tainers shall be taken into account as originating or non-
44 

•S 2610 IS 

1 originating materials, as the case may be, in calculating 

2 the regional value-content of the good. 

3 (j) PACKING MATERIALS AND CONTAINERS FOR

4 SHIPMENT.—Packing materials and containers for ship5 ment shall be disregarded in determining whether— 

6 (1) the nonoriginating materials used in the 

7 production of a good undergo the applicable change 

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

9 Annex 5–A of the Agreement; and 

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

11 requirement. 

12 (k) INDIRECT MATERIALS.—An indirect material 

13 shall be treated as an originating material without regard 

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

15 registered in the accounting records of the producer of the 

16 good. 

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

18 undergone production necessary to qualify as an origi19 nating good under subsection (b) shall not be considered 

20 to be an originating good if, subsequent to that produc21 tion, the good undergoes further production or any other 

22 operation outside the territory of Australia or the United 

23 States, other than unloading, reloading, or any other oper24 ation necessary to preserve the good in good condition or 
45 

•S 2610 IS 

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

2 United States. 

3 (m) TEXTILE AND APPAREL GOODS CLASSIFIABLE

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

5 set forth in Annex 4–A of the Agreement, textile or ap6 parel goods classifiable as goods put up in sets for retail 

7 sale as provided for in General Rule of Interpretation 3 

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

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

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

11 does not exceed 10 percent of the value of the set deter12 mined for purposes of assessing customs duties. 

13 (n) DEFINITIONS.—In this section: 

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

15 value’’ means the value determined under Articles 1 

16 through 8, Article 15, and the corresponding inter17 pretive notes of the Agreement on Implementation of 

18 Article VII of the General Agreement on Tariffs and 

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

20 Uruguay Round Agreements Act, adjusted to ex21 clude any costs, charges, or expenses incurred for 

22 transportation, insurance, and related services inci23 dent to the international shipment of the good from 

24 the country of exportation to the place of importa25 tion. 
46 

•S 2610 IS 

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

2 ‘‘class of motor vehicles’’ means any one of the fol3 lowing categories of motor vehicles: 

4 (A) Motor vehicles provided for in sub5 heading 8701.20, 8704.10, 8704.22, 8704.23, 

6 8704.32, or 8704.90, or heading 8705 or 8706, 

7 or motor vehicles for the transport of 16 or 

8 more persons provided for in subheading 

9 8702.10 or 8702.90. 

10 (B) Motor vehicles provided for in sub11 heading 8701.10 or any of subheadings 

12 8701.30 through 8701.90. 

13 (C) Motor vehicles for the transport of 15 

14 or fewer persons provided for in subheading 

15 8702.10 or 8702.90, or motor vehicles provided 

16 for in subheading 8704.21 or 8704.31. 

17 (D) Motor vehicles provided for in any of 

18 subheadings 8703.21 through 8703.90. 

19 (3) FUNGIBLE GOOD OR FUNGIBLE MATE20 RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate21 rial’’ means a good or material, as the case may be, 

22 that is interchangeable with another good or mate23 rial for commercial purposes and the properties of 

24 which are essentially identical to such other good or 

25 material. 
47 

•S 2610 IS 

1 (4) GENERALLY ACCEPTED ACCOUNTING PRIN2 CIPLES.—The term ‘‘generally accepted accounting 

3 principles’’ means the recognized consensus or sub4 stantial authoritative support in the territory of Aus5 tralia or the United States, as the case may be, with 

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

7 assets, and liabilities, the disclosure of information, 

8 and the preparation of financial statements. These 

9 standards may encompass broad guidelines of gen10 eral application as well as detailed standards, prac11 tices, and procedures. 

12 (5) GOOD WHOLLY OBTAINED OR PRODUCED

13 ENTIRELY IN THE TERRITORY OF AUSTRALIA, THE

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

15 obtained or produced entirely in the territory of Aus16 tralia, the United States, or both’’ means— 

17 (A) a mineral good extracted in the terri18 tory of Australia, the United States, or both; 

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

20 provided for in the HTS, harvested in the terri21 tory of Australia, the United States, or both; 

22 (C) a live animal born and raised in the 

23 territory of Australia, the United States, or 

24 both; 
48 

•S 2610 IS 

1 (D) a good obtained from hunting, trap2 ping, fishing, or aquaculture conducted in the 

3 territory of Australia, the United States, or 

4 both; 

5 (E) a good (fish, shellfish, and other ma6 rine life) taken from the sea by vessels reg7 istered or recorded with Australia or the United 

8 States and flying the flag of that country; 

9 (F) a good produced exclusively from prod10 ucts referred to in subparagraph (E) on board 

11 factory ships registered or recorded with Aus12 tralia or the United States and flying the flag 

13 of that country; 

14 (G) a good taken by Australia or the 

15 United States or a person of Australia or the 

16 United States from the seabed or beneath the 

17 seabed outside territorial waters, if Australia or 

18 the United States has rights to exploit such 

19 seabed; 

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

21 good is obtained by Australia or the United 

22 States or a person of Australia or the United 

23 States and not processed in the territory of a 

24 country other than Australia or the United 

25 States; 
49 

•S 2610 IS 

1 (I) waste and scrap derived from— 

2 (i) production in the territory of Aus3 tralia, the United States, or both; or 

4 (ii) used goods collected in the terri5 tory of Australia, the United States, or 

6 both, if such goods are fit only for the re7 covery of raw materials; 

8 (J) a recovered good derived in the terri9 tory of Australia or the United States from 

10 goods that have passed their life expectancy, or 

11 are no longer usable due to defects, and utilized 

12 in the territory of that country in the produc13 tion of remanufactured goods; or 

14 (K) a good produced in the territory of 

15 Australia, the United States, or both, exclu16 sively— 

17 (i) from goods referred to in any of 

18 subparagraphs (A) through (I), or 

19 (ii) from the derivatives of goods re20 ferred to in clause (i), 

21 at any stage of production. 

22 (6) INDIRECT MATERIAL.—The term ‘‘indirect 

23 material’’ means a good used in the production, test24 ing, or inspection of a good but not physically incor25 porated into the good, or a good used in the mainte-
50 

•S 2610 IS 

1 nance of buildings or the operation of equipment as2 sociated with the production of a good, including— 

3 (A) fuel and energy; 

4 (B) tools, dies, and molds; 

5 (C) spare parts and materials used in the 

6 maintenance of equipment or buildings; 

7 (D) lubricants, greases, compounding ma8 terials, and other materials used in production 

9 or used to operate equipment or buildings; 

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

11 safety equipment, and supplies; 

12 (F) equipment, devices, and supplies used 

13 for testing or inspecting the good; 

14 (G) catalysts and solvents; and 

15 (H) any other goods that are not incor16 porated into the good but the use of which in 

17 the production of the good can reasonably be 

18 demonstrated to be a part of that production. 

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

20 good that is used in the production of another good. 

21 (8) MATERIAL THAT IS SELF-PRODUCED.—The 

22 term ‘‘material that is self-produced’’ means an orig23 inating material that is produced by a producer of 

24 a good and used in the production of that good. 
51 

•S 2610 IS 

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

2 means a group of motor vehicles having the same 

3 platform or model name. 

4 (10) NONALLOWABLE INTEREST COSTS.—The 

5 term ‘‘nonallowable interest costs’’ means interest 

6 costs incurred by a producer that exceed 700 basis 

7 points above the applicable official interest rate for 

8 comparable maturities of the country (whether Aus9 tralia or the United States). 

10 (11) NONORIGINATING MATERIAL.—The term 

11 ‘‘nonoriginating material’’ means a material that 

12 does not qualify as originating under this section. 

13 (12) PREFERENTIAL TREATMENT.—The term 

14 ‘‘preferential treatment’’ means the customs duty 

15 rate, and the treatment under article 2.12 of the 

16 Agreement, that are applicable to an originating 

17 good pursuant to the Agreement. 

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

19 a person who engages in the production of a good 

20 in the territory of Australia or the United States. 

21 (14) PRODUCTION.—The term ‘‘production’’ 

22 means growing, raising, mining, harvesting, fishing, 

23 trapping, hunting, manufacturing, processing, as24 sembling, or disassembling a good. 
52 

•S 2610 IS 

1 (15) REASONABLY ALLOCATE.—The term ‘‘rea2 sonably allocate’’ means to apportion in a manner 

3 that would be appropriate under generally accepted 

4 accounting principles. 

5 (16) RECOVERED GOODS.—The term ‘‘recov6 ered goods’’ means materials in the form of indi7 vidual parts that result from— 

8 (A) the complete disassembly of goods 

9 which have passed their life expectancy, or are 

10 no longer usable due to defects, into individual 

11 parts; and 

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

13 other processing that is necessary for improve14 ment to sound working condition of such indi15 vidual parts. 

16 (17) REMANUFACTURED GOOD.—The term ‘‘re17 manufactured good’’ means an industrial good that 

18 is assembled in the territory of Australia or the 

19 United States, that is classified under chapter 84, 

20 85, or 87 of the HTS or heading 9026, 9031, or 

21 9032, other than a good classified under heading 

22 8418 or 8516 or any of headings 8701 through 

23 8706, and that— 

24 (A) is entirely or partially comprised of re25 covered goods; 
53 

•S 2610 IS 

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

2 meets the same performance standards as, a 

3 like good that is new; and 

4 (C) enjoys a factory warranty similar to a 

5 like good that is new. 

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

7 means all product costs, period costs, and other 

8 costs for a good incurred in the territory of Aus9 tralia, the United States, or both. 

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

11 consumed in the production of goods. 

12 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.— 

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

14 to proclaim, as part of the HTS— 

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

16 and Annex 5–A of the Agreement; and 

17 (B) any additional subordinate category 

18 necessary to carry out this title consistent with 

19 the Agreement. 

20 (2) MODIFICATIONS.— 

21 (A) IN GENERAL.—Subject to the consulta22 tion and layover provisions of section 104, the 

23 President may proclaim modifications to the 

24 provisions proclaimed under the authority of 

25 paragraph (1)(A), other than provisions of 
54 

•S 2610 IS 

1 chapters 50 through 63 of the HTS, as in2 cluded in Annex 4–A of the Agreement. 

3 (B) ADDITIONAL PROCLAMATIONS.—Not4 withstanding subparagraph (A), and subject to 

5 the consultation and layover provisions of sec6 tion 104, the President may proclaim— 

7 (i) modifications to the provisions pro8 claimed under the authority of paragraph 

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

10 agreement with Australia pursuant to arti11 cle 4.2.5 of the Agreement; and 

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

13 beginning on the date of the enactment of 

14 this Act, modifications to correct any typo15 graphical, clerical, or other nonsubstantive 

16 technical error regarding the provisions of 

17 chapters 50 through 63 of the HTS, as in18 cluded in Annex 4–A of the Agreement. 

19 SEC. 204. CUSTOMS USER FEES. 

20 Section 13031(b) of the Consolidated Omnibus Budg21 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is 

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

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

24 (9) or (10) with respect to goods that qualify as origi25 nating goods under section 203 of the United States-Aus-
55 

•S 2610 IS 

1 tralia Free Trade Agreement Implementation Act. Any 

2 service for which an exemption from such fee is provided 

3 by reason of this paragraph may not be funded with 

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

5 SEC. 205. DISCLOSURE OF INCORRECT INFORMATION. 

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

7 1592(c)) is amended— 

8 (1) by redesignating paragraph (8) as para9 graph (9); and 

10 (2) by inserting after paragraph (7) the fol11 lowing new paragraph: 

12 ‘‘(8) PRIOR DISCLOSURE REGARDING CLAIMS

13 UNDER THE UNITED STATES-AUSTRALIA FREE

14 TRADE AGREEMENT.— 

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

16 be subject to penalties under subsection (a) for 

17 making an incorrect claim that a good qualifies 

18 as an originating good under section 203 of the 

19 United States-Australia Free Trade Agreement 

20 Implementation Act if the importer, in accord21 ance with regulations issued by the Secretary of 

22 the Treasury, voluntarily and promptly makes a 

23 corrected declaration and pays any duties 

24 owing. 
56 

•S 2610 IS 

1 ‘‘(B) TIME PERIODS FOR MAKING CORREC2 TIONS.—In the regulations referred to in sub3 paragraph (A), the Secretary of the Treasury is 

4 authorized to prescribe time periods for making 

5 a corrected declaration and paying duties owing 

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

7 shorter than 1 year following the date on which 

8 the importer makes the incorrect claim.’’. 

9 SEC. 206. ENFORCEMENT RELATING TO TRADE IN TEXTILE 

10 AND APPAREL GOODS. 

11 (a) ACTION DURING VERIFICATION.— 

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

13 Treasury requests the Government of Australia to 

14 conduct a verification pursuant to article 4.3 of the 

15 Agreement for purposes of making a determination 

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

17 Secretary to take appropriate action described in 

18 subsection (b) while the verification is being con19 ducted. 

20 (2) DETERMINATION.—A determination under 

21 this paragraph is a determination— 

22 (A) that an exporter or producer in Aus23 tralia is complying with applicable customs 

24 laws, regulations, procedures, requirements, or 
57 

•S 2610 IS 

1 practices affecting trade in textile or apparel 

2 goods; or 

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

4 good exported or produced by such exporter or 

5 producer— 

6 (i) qualifies as an originating good 

7 under section 203 of this Act; or 

8 (ii) is a good of Australia, 

9 is accurate. 

10 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

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

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

13 textile or apparel good exported or produced by the 

14 person that is the subject of a verification under 

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

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

17 for verification was based on a reasonable suspicion 

18 of unlawful activity related to such goods; and 

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

20 textile or apparel good for which a claim has been 

21 made that is the subject of a verification under sub22 section (a)(1) regarding a claim described in sub23 section (a)(2)(B). 

24 (c) ACTION WHEN INFORMATION IS INSUFFI25 CIENT.—If the Secretary of the Treasury determines that 
58 

•S 2610 IS 

1 the information obtained within 12 months after making 

2 a request for a verification under subsection (a)(1) is in3 sufficient to make a determination under subsection 

4 (a)(2), the President may direct the Secretary to take ap5 propriate action described in subsection (d) until such 

6 time as the Secretary receives information sufficient to 

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

8 such earlier date as the President may direct. 

9 (d) APPROPRIATE ACTION DESCRIBED.—Appro10 priate action referred to in subsection (c) includes— 

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

12 person that is the subject of the verification; 

13 (2) denial of preferential tariff treatment under 

14 the Agreement to— 

15 (A) any textile or apparel good exported or 

16 produced by the person that is the subject of a 

17 verification under subsection (a)(1) regarding 

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

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

20 claim has been made that is the subject of a 

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

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

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

24 (A) any textile or apparel good exported or 

25 produced by the person that is the subject of a 
59 

•S 2610 IS 

1 verification under subsection (a)(1) regarding 

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

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

4 claim has been made that is the subject of a 

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

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

7 SEC. 207. REGULATIONS. 

8 The Secretary of the Treasury shall prescribe such 

9 regulations as may be necessary to carry out— 

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

11 and section 204; 

12 (2) amendments to existing law made by the 

13 sections referred to in paragraph (1); and 

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

15 TITLE III—RELIEF FROM 

16 IMPORTS 

17 SEC. 301. DEFINITIONS. 

18 As used in this title: 

19 (1) AUSTRALIAN ARTICLE.—The term ‘‘Aus20 tralian article’’ means an article that qualifies as an 

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

22 (2) AUSTRALIAN TEXTILE OR APPAREL ARTI23 CLE.—The term ‘‘Australian textile or apparel arti24 cle’’ means an article— 
60 

•S 2610 IS 

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

2 Agreement on Textiles and Clothing referred to 

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

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

5 (B) that is an Australian article. 

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

7 means the United States International Trade Com8 mission. 

9 Subtitle A—Relief From Imports 

10 Benefiting From the Agreement 

11 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

12 (a) FILING OF PETITION.— 

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

14 under this subtitle for the purpose of adjusting to 

15 the obligations of the United States under the 

16 Agreement may be filed with the Commission by an 

17 entity, including a trade association, firm, certified 

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

19 representative of an industry. The Commission shall 

20 transmit a copy of any petition filed under this sub21 section to the United States Trade Representative. 

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

23 petition under this subsection may request that pro24 visional relief be provided as if the petition had been 
61 

•S 2610 IS 

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

2 (19 U.S.C. 2252(a)). 

3 (3) CRITICAL CIRCUMSTANCES.—Any allegation 

4 that critical circumstances exist shall be included in 

5 the petition. 

6 (b) INVESTIGATION AND DETERMINATION.—Upon 

7 the filing of a petition under subsection (a), the Commis8 sion, unless subsection (d) applies, shall promptly initiate 

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

10 reduction or elimination of a duty provided for under the 

11 Agreement, an Australian article is being imported into 

12 the United States in such increased quantities, in absolute 

13 terms or relative to domestic production, and under such 

14 conditions that imports of the Australian article constitute 

15 a substantial cause of serious injury or threat thereof to 

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

17 directly competitive with, the imported article. 

18 (c) APPLICABLE PROVISIONS.—The following provi19 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 

20 2252) apply with respect to any investigation initiated 

21 under subsection (b): 

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

23 (b). 

24 (2) Subsection (c). 

25 (3) Subsection (d). 
62 

•S 2610 IS 

1 (4) Subsection (i). 

2 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No 

3 investigation may be initiated under this section with re4 spect to any Australian article if, after the date on which 

5 the Agreement enters into force, import relief has been 

6 provided with respect to that Australian article under this 

7 subtitle. 

8 SEC. 312. COMMISSION ACTION ON PETITION. 

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

10 days if critical circumstances have been alleged) after the 

11 date on which an investigation is initiated under section 

12 311(b) with respect to a petition, the Commission shall 

13 make the determination required under that section. 

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

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

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

17 1330(d) (1), (2), and (3)) shall be applied with respect 

18 to determinations and findings made under this section 

19 as if such determinations and findings were made under 

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

21 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

22 DETERMINATION AFFIRMATIVE.—If the determination 

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

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

25 may consider a determination of the Commission to be an 
63 

•S 2610 IS 

1 affirmative determination as provided for under paragraph 

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

3 1330(d)), the Commission shall find, and recommend to 

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

5 the amount of import relief that is necessary to remedy 

6 or prevent the injury found by the Commission in the de7 termination and to facilitate the efforts of the domestic 

8 industry to make a positive adjustment to import competi9 tion. The import relief recommended by the Commission 

10 under this subsection shall be limited to that described in 

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

12 who voted in the affirmative under subsection (a) are eligi13 ble to vote on the proposed action to remedy or prevent 

14 the injury found by the Commission. Members of the Com15 mission who did not vote in the affirmative may submit, 

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

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

18 or prevent the injury. 

19 (d) REPORT TO PRESIDENT.—Not later than the 

20 date that is 30 days after the date on which a determina21 tion is made under subsection (a) with respect to an inves22 tigation, the Commission shall submit to the President a 

23 report that includes— 
64 

•S 2610 IS 

1 (1) the determination made under subsection 

2 (a) and an explanation of the basis for the deter3 mination; 

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

5 affirmative, any findings and recommendations for 

6 import relief made under subsection (c) and an ex7 planation of the basis for each recommendation; and 

8 (3) any dissenting or separate views by mem9 bers of the Commission regarding the determination 

10 and recommendation referred to in paragraphs (1) 

11 and (2). 

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

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

14 promptly make public such report (with the exception of 

15 information which the Commission determines to be con16 fidential) and shall cause a summary thereof to be pub17 lished in the Federal Register. 

18 SEC. 313. PROVISION OF RELIEF. 

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

20 30 days after the date on which the President receives the 

21 report of the Commission in which the Commission’s de22 termination under section 312(a) is affirmative, or which 

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

24 President considers to be affirmative under paragraph (1) 

25 of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 
65 

•S 2610 IS 

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

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

3 of such determination to the extent that the President de4 termines necessary to remedy or prevent the injury found 

5 by the Commission and to facilitate the efforts of the do6 mestic industry to make a positive adjustment to import 

7 competition. 

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

9 provide import relief under this section if the President 

10 determines that the provision of the import relief will not 

11 provide greater economic and social benefits than costs. 

12 (c) NATURE OF RELIEF.— 

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

14 provisional relief) that the President is authorized to 

15 provide under this section with respect to imports of 

16 an article is as follows: 

17 (A) The suspension of any further reduc18 tion provided for under Annex 2–B of the 

19 Agreement in the duty imposed on such article. 

20 (B) An increase in the rate of duty im21 posed on such article to a level that does not 

22 exceed the lesser of— 

23 (i) the column 1 general rate of duty 

24 imposed under the HTS on like articles at 

25 the time the import relief is provided; or 
66 

•S 2610 IS 

1 (ii) the column 1 general rate of duty 

2 imposed under the HTS on like articles on 

3 the day before the date on which the 

4 Agreement enters into force. 

5 (C) In the case of a duty applied on a sea6 sonal basis to such article, an increase in the 

7 rate of duty imposed on the article to a level 

8 that does not exceed the lesser of— 

9 (i) the column 1 general rate of duty 

10 imposed under the HTS on like articles for 

11 the immediately preceding corresponding 

12 season; or 

13 (ii) the column 1 general rate of duty 

14 imposed under the HTS on like articles on 

15 the day before the date on which the 

16 Agreement enters into force. 

17 (2) PROGRESSIVE LIBERALIZATION.—If the pe18 riod for which import relief is provided under this 

19 section is greater than 1 year, the President shall 

20 provide for the progressive liberalization (described 

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

22 regular intervals during the period in which the re23 lief is in effect. 

24 (d) PERIOD OF RELIEF.— 
67 

•S 2610 IS 

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

2 any import relief that the President provides under 

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

4 years. 

5 (2) EXTENSION.— 

6 (A) IN GENERAL.—Subject to subpara7 graph (C), the President, after receiving an af8 firmative determination from the Commission 

9 under subparagraph (B), may extend the effec10 tive period of any import relief provided under 

11 this section if the President determines that— 

12 (i) the import relief continues to be 

13 necessary to remedy or prevent serious in14 jury and to facilitate adjustment by the do15 mestic industry to import competition; and 

16 (ii) there is evidence that the industry 

17 is making a positive adjustment to import 

18 competition. 

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

20 petition on behalf of the industry concerned 

21 that is filed with the Commission not earlier 

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

23 than the date which is 6 months, before the 

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

25 terminate, the Commission shall conduct an in-
68 

•S 2610 IS 

1 vestigation to determine whether action under 

2 this section continues to be necessary to remedy 

3 or prevent serious injury and whether there is 

4 evidence that the industry is making a positive 

5 adjustment to import competition. 

6 (ii) The Commission shall publish notice of 

7 the commencement of any proceeding under 

8 this subparagraph in the Federal Register and 

9 shall, within a reasonable time thereafter, hold 

10 a public hearing at which the Commission shall 

11 afford interested parties and consumers an op12 portunity to be present, to present evidence, 

13 and to respond to the presentations of other 

14 parties and consumers, and otherwise to be 

15 heard. 

16 (iii) The Commission shall transmit to the 

17 President a report on its investigation and de18 termination under this subparagraph not later 

19 than 60 days before the action under subsection 

20 (a) is to terminate, unless the President speci21 fies a different date. 

22 (C) PERIOD OF IMPORT RELIEF.—Any im23 port relief provided under this section, including 

24 any extensions thereof, may not, in the aggre25 gate, be in effect for more than 4 years. 
69 

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1 (e) RATE AFTER TERMINATION OF IMPORT RE2 LIEF.—When import relief under this section is termi3 nated with respect to an article— 

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

5 termination and on or before December 31 of the 

6 year in which such termination occurs shall be the 

7 rate that, according to the Schedule of the United 

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

9 staged elimination of the tariff, would have been in 

10 effect 1 year after the provision of relief under sub11 section (a); and 

12 (2) the rate of duty for that article after De13 cember 31 of the year in which termination occurs 

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

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

16 duty for that article set out in the Schedule of 

17 the United States to Annex 2–B of the Agree18 ment; or 

19 (B) the rate of duty resulting from the 

20 elimination of the tariff in equal annual stages 

21 ending on the date set out in the Schedule of 

22 the United States to Annex 2–B of the Agree23 ment for the elimination of the tariff. 
70 

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

2 relief may be provided under this section on any article 

3 that— 

4 (1) is subject to— 

5 (A) import relief under subtitle B; or 

6 (B) an assessment of additional duty 

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

8 or 

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

10 subtitle after the date on which the Agreement en11 ters into force. 

12 SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

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

14 import relief may be provided under this subtitle after the 

15 date that is 10 years after the date on which the Agree16 ment enters into force. 

17 (b) EXCEPTION.—If an article for which relief is pro18 vided under this subtitle is an article for which the period 

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

20 States to Annex 2–B of the Agreement, is greater than 

21 10 years, no relief under this subtitle may be provided for 

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

23 (c) PRESIDENTIAL DETERMINATION.—Import relief 

24 may be provided under this subtitle in the case of an Aus25 tralian article after the date on which such relief would, 
71 

•S 2610 IS 

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

2 (b), if the President determines that Australia has con3 sented to such relief. 

4 SEC. 315. COMPENSATION AUTHORITY. 

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

6 (19 U.S.C. 2133), any import relief provided by the Presi7 dent under section 313 shall be treated as action taken 

8 under chapter 1 of title II of such Act. 

9 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

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

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

12 (1) by striking ‘‘and’’; and 

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

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

15 Trade Agreement Implementation Act’’. 

16 Subtitle B—Textile and Apparel 

17 Safeguard Measures 

18 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 

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

20 the purpose of adjusting to the obligations of the United 

21 States under the Agreement may be filed with the Presi22 dent by an interested party. Upon the filing of a request, 

23 the President shall review the request to determine, from 

24 information presented in the request, whether to com25 mence consideration of the request. 
72 

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1 (b) ALLEGATION OF CRITICAL CIRCUMSTANCES.—An 

2 interested party filing a request under this section may— 

3 (1) allege that critical circumstances exist such 

4 that delay in the provision of relief would cause 

5 damage that would be difficult to repair; and 

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

7 be provided on a provisional basis. 

8 (c) PUBLICATION OF REQUEST.—If the President de9 termines that the request under subsection (a) provides 

10 the information necessary for the request to be considered, 

11 the President shall cause to be published in the Federal 

12 Register a notice of commencement of consideration of the 

13 request, and notice seeking public comments regarding the 

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

15 and the dates by which comments and rebuttals must be 

16 received. 

17 SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 

18 (a) DETERMINATION.— 

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

20 made under section 321(c), the President shall de21 termine whether, as a result of the reduction or 

22 elimination of a duty under the Agreement, an Aus23 tralian textile or apparel article is being imported 

24 into the United States in such increased quantities, 

25 in absolute terms or relative to the domestic market 
73 

•S 2610 IS 

1 for that article, and under such conditions as to 

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

3 domestic industry producing an article that is like, 

4 or directly competitive with, the imported article. 

5 (2) SERIOUS DAMAGE.—In making a deter6 mination under paragraph (1), the President— 

7 (A) shall examine the effect of increased 

8 imports on the domestic industry, as reflected 

9 in changes in such relevant economic factors as 

10 output, productivity, utilization of capacity, in11 ventories, market share, exports, wages, em12 ployment, domestic prices, profits, and invest13 ment, none of which is necessarily decisive; and 

14 (B) shall not consider changes in tech15 nology or consumer preference as factors sup16 porting a determination of serious damage or 

17 actual threat thereof. 

18 (b) PROVISION OF RELIEF.— 

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

20 subsection (a) is affirmative, the President may pro21 vide relief from imports of the article that is the 

22 subject of such determination, as described in para23 graph (2), to the extent that the President deter24 mines necessary to remedy or prevent the serious 
74 

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1 damage and to facilitate adjustment by the domestic 

2 industry to import competition. 

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

4 President is authorized to provide under this sub5 section with respect to imports of an article is an in6 crease in the rate of duty imposed on the article to 

7 a level that does not exceed the lesser of— 

8 (A) the column 1 general rate of duty im9 posed under the HTS on like articles at the 

10 time the import relief is provided; or 

11 (B) the column 1 general rate of duty im12 posed under the HTS on like articles on the 

13 day before the date on which the Agreement en14 ters into force. 

15 (c) CRITICAL CIRCUMSTANCES.— 

16 (1) PRESIDENTIAL DETERMINATION.—When a 

17 request filed under section 321(a) contains an alle18 gation of critical circumstances and a request for 

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

20 shall, not later than 60 days after the request is 

21 filed, determine, on the basis of available informa22 tion, whether— 

23 (A) there is clear evidence that— 

24 (i) imports from Australia have in25 creased as the result of the reduction or 
75 

•S 2610 IS 

1 elimination of a customs duty under the 

2 Agreement; and 

3 (ii) such imports are causing serious 

4 damage, or actual threat thereof, to the 

5 domestic industry producing an article like 

6 or directly competitive with the imported 

7 article; and 

8 (B) delay in taking action under this sub9 title would cause damage to that industry that 

10 would be difficult to repair. 

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

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

13 paragraph (1) are affirmative, the President shall 

14 determine the extent of provisional relief that is nec15 essary to remedy or prevent the serious damage. The 

16 nature of the provisional relief available shall be the 

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

18 after making affirmative determinations under sub19 paragraphs (A) and (B) of paragraph (1), the Presi20 dent, if the President considers provisional relief to 

21 be warranted, shall provide, for a period not to ex22 ceed 200 days, such provisional relief that the Presi23 dent considers necessary to remedy or prevent the 

24 serious damage. 
76 

•S 2610 IS 

1 (3) SUSPENSION OF LIQUIDATION.—If provi2 sional relief is provided under paragraph (2), the 

3 President shall order the suspension of liquidation of 

4 all imported articles subject to the affirmative deter5 minations under subparagraphs (A) and (B) of para6 graph (1) that are entered, or withdrawn from ware7 house for consumption, on or after the date of the 

8 determinations. 

9 (4) TERMINATION OF PROVISIONAL RELIEF.— 

10 (A) IN GENERAL.—Any provisional relief 

11 implemented under this subsection with respect 

12 to an imported article shall terminate on the 

13 day on which— 

14 (i) the President makes a negative de15 termination under subsection (a) regarding 

16 serious damage or actual threat thereof by 

17 imports of such article; 

18 (ii) action described in subsection (b) 

19 takes effect with respect to such article; 

20 (iii) a decision by the President not to 

21 take any action under subsection (b) with 

22 respect to such article becomes final; or 

23 (iv) the President determines that, be24 cause of changed circumstances, such relief 

25 is no longer warranted. 
77 

•S 2610 IS 

1 (B) SUSPENSION OF LIQUIDATION.—Any 

2 suspension of liquidation ordered under para3 graph (3) with respect to an imported article 

4 shall terminate on the day on which provisional 

5 relief is terminated under subparagraph (A) 

6 with respect to the article. 

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

8 the imposition of, a duty that is provided under 

9 subsection (b) on an imported article is dif10 ferent from a duty increase or imposition that 

11 was provided for such an article under this sub12 section, then the entry of any such article for 

13 which liquidation was suspended under para14 graph (3) shall be liquidated at whichever of 

15 such rates of duty is lower. 

16 (D) RATE OF DUTY IF PROVISIONAL RE17 LIEF.—If provisional relief is provided under 

18 this subsection with respect to an imported arti19 cle and neither a duty increase nor a duty im20 position is provided under subsection (b) for 

21 such article, the entry of any such article for 

22 which liquidation was suspended under para23 graph (3) shall be liquidated at the rate of duty 

24 that applied before the provisional relief was 

25 provided. 
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1 SEC. 323. PERIOD OF RELIEF. 

2 (a) IN GENERAL.—Subject to subsection (b), the im3 port relief that the President provides under subsections 

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

5 in effect for more than 2 years. 

6 (b) EXTENSION.— 

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

8 the President may extend the effective period of any 

9 import relief provided under this subtitle for a pe10 riod of not more than 2 years, if the President de11 termines that— 

12 (A) the import relief continues to be nec13 essary to remedy or prevent serious damage 

14 and to facilitate adjustment by the domestic in15 dustry to import competition; and 

16 (B) there is evidence that the industry is 

17 making a positive adjustment to import com18 petition. 

19 (2) LIMITATION.—Any relief provided under 

20 this subtitle, including any extensions thereof, may 

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

22 years. 

23 SEC. 324. ARTICLES EXEMPT FROM RELIEF. 

24 The President may not provide import relief under 

25 this subtitle with respect to any article if— 
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1 (1) import relief previously has been provided 

2 under this subtitle with respect to that article; or 

3 (2) the article is subject to import relief 

4 under— 

5 (A) subtitle A; or 

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

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

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

9 When import relief under this subtitle is terminated 

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

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

12 the provision of such relief, on the date the relief termi13 nates. 

14 SEC. 326. TERMINATION OF RELIEF AUTHORITY. 

15 No import relief may be provided under this subtitle 

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

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

18 pursuant to the Agreement. 

19 SEC. 327. COMPENSATION AUTHORITY. 

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

21 (19 U.S.C. 2133), any import relief provided by the Presi22 dent under this subtitle shall be treated as action taken 

23 under chapter 1 of title II of such Act. 
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1 SEC. 328. BUSINESS CONFIDENTIAL INFORMATION. 

2 The President may not release information which is 

3 submitted in a proceeding under this subtitle and which 

4 the President considers to be confidential business infor5 mation unless the party submitting the confidential busi6 ness information had notice, at the time of submission, 

7 that such information would be released, or such party 

8 subsequently consents to the release of the information. 

9 To the extent a party submits confidential business infor10 mation to the President in a proceeding under this sub11 title, the party also shall submit a nonconfidential version 

12 of the information, in which the confidential business in13 formation is summarized or, if necessary, deleted. 

14 Subtitle C—Cases Under Title II of 

15 the Trade Act of 1974 

16 SEC. 331. FINDINGS AND ACTION ON GOODS FROM AUS17 TRALIA. 

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

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

20 1974 (19 U.S.C. 2251 et seq.), the Commission makes an 

21 affirmative determination (or a determination which the 

22 President may treat as an affirmative determination under 

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

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

25 the President at the time such injury determination is sub26 mitted to the President) whether imports of the article 
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1 from Australia are a substantial cause of serious injury 

2 or threat thereof. 

3 (b) PRESIDENTIAL DETERMINATION REGARDING

4 AUSTRALIAN IMPORTS.—In determining the nature and 

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

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

7 whether imports from Australia are a substantial cause 

8 of the serious injury or threat thereof found by the Com9 mission and, if such determination is in the negative, may 

10 exclude from such action imports from Australia. 

11 TITLE IV—PROCUREMENT 

12 SEC. 401. ELIGIBLE PRODUCTS. 

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

14 1979 (19 U.S.C. 2518(4)(A)) is amended— 

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

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

17 (ii) and inserting ‘‘; or’’; and 

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

19 clause: 

20 ‘‘(iii) a party to a free trade agree21 ment that entered into force with respect 

22 to the United States after December 31, 

23 2003, and before January 2, 2005, a prod24 uct or service of that country or instru25 mentality which is covered under the free 
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1 trade agreement for procurement by the 

2 United States.’’. 

Æ