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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4759 Enrolled Bill (ENR)]

        H.R.4759

                       One Hundred Eighth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
           the twentieth day of January, two thousand and four

                                 An Act

 
     To implement the United States-Australia Free Trade Agreement.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States-
Australia Free Trade Agreement Implementation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
Sec. 3. Definitions. 

 TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

Sec. 101. Approval and entry into force of the Agreement. 
Sec. 102. Relationship of the Agreement to United States and State law. 
Sec. 103. Implementing actions in anticipation of entry into force and 
          initial regulations. 
Sec. 104. Consultation and layover provisions for, and effective date 
          of, proclaimed actions. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Effective dates; effect of termination. 

                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications. 
Sec. 202. Additional duties on certain agricultural goods. 
Sec. 203. Rules of origin.
Sec. 204. Customs user fees. 
Sec. 205. Disclosure of incorrect information. 
Sec. 206. Enforcement relating to trade in textile and apparel goods. 
Sec. 207. Regulations. 

                     TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions. 

      Subtitle A--Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief. 
Sec. 312. Commission action on petition. 
Sec. 313. Provision of relief. 
Sec. 314. Termination of relief authority. 
Sec. 315. Compensation authority. 
Sec. 316. Confidential business information. 

           Subtitle B--Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief. 
Sec. 322. Determination and provision of relief. 
Sec. 323. Period of relief. 
Sec. 324. Articles exempt from relief. 
Sec. 325. Rate after termination of import relief. 
Sec. 326. Termination of relief authority. 
Sec. 327. Compensation authority. 
Sec. 328. Business confidential information. 

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

Sec. 331. Findings and action on goods from Australia. 

                          TITLE IV--PROCUREMENT

Sec. 401. Eligible products. 

SEC. 2. PURPOSES.

    The purposes of this Act are--
        (1) to approve and implement the Free Trade Agreement between 
    the United States and Australia, entered into under the authority 
    of section 2103(b) of the Bipartisan Trade Promotion Authority Act 
    of 2002 (19 U.S.C. 3803(b));
        (2) to strengthen and develop economic relations between the 
    United States and Australia for their mutual benefit;
        (3) to establish free trade between the 2 nations through the 
    reduction and elimination of barriers to trade in goods and 
    services and to investment; and
        (4) to lay the foundation for further cooperation to expand and 
    enhance the benefits of such Agreement.

SEC. 3. DEFINITIONS.

    In this Act:
        (1) Agreement.--The term ``Agreement'' means the United States-
    Australia Free Trade Agreement approved by Congress under section 
    101(a)(1).
        (2) HTS.--The term ``HTS'' means the Harmonized Tariff Schedule 
    of the United States.
        (3) Textile or apparel good.--The term ``textile or apparel 
    good'' means a good listed in the Annex to the Agreement on 
    Textiles and Clothing referred to in section 101(d)(4) of the 
    Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).

TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

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

    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority 
Act of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 
(19 U.S.C. 2191), Congress approves--
        (1) the United States-Australia Free Trade Agreement entered 
    into on May 18, 2004, with the Government of Australia and 
    submitted to Congress on July 6, 2004; and
        (2) the statement of administrative action proposed to 
    implement the Agreement that was submitted to Congress on July 6, 
    2004.
    (b) Conditions for Entry Into Force of the Agreement.--At such time 
as the President determines that Australia has taken measures necessary 
to bring it into compliance with those provisions of the Agreement that 
are to take effect on the date on which the Agreement enters into 
force, the President is authorized to exchange notes with the 
Government of Australia providing for the entry into force, on or after 
January 1, 2005, of the Agreement with respect to the United States.

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.

    (a) Relationship of Agreement to United States Law.--
        (1) United states law to prevail in conflict.--No provision of 
    the Agreement, nor the application of any such provision to any 
    person or circumstance, which is inconsistent with any law of the 
    United States shall have effect.
        (2) Construction.--Nothing in this Act shall be construed--
            (A) to amend or modify any law of the United States, or
            (B) to limit any authority conferred under any law of the 
        United States,
    unless specifically provided for in this Act.
    (b) Relationship of Agreement to State Law.--
        (1) Legal challenge.--No State law, or the application thereof, 
    may be declared invalid as to any person or circumstance on the 
    ground that the provision or application is inconsistent with the 
    Agreement, except in an action brought by the United States for the 
    purpose of declaring such law or application invalid.
        (2) Definition of state law.--For purposes of this subsection, 
    the term ``State law'' includes--
            (A) any law of a political subdivision of a State; and
            (B) any State law regulating or taxing the business of 
        insurance.
    (c) Effect of Agreement With Respect to Private Remedies.--No 
person other than the United States--
        (1) shall have any cause of action or defense under the 
    Agreement or by virtue of congressional approval thereof; or
        (2) may challenge, in any action brought under any provision of 
    law, any action or inaction by any department, agency, or other 
    instrumentality of the United States, any State, or any political 
    subdivision of a State, on the ground that such action or inaction 
    is inconsistent with the Agreement.

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND 
              INITIAL REGULATIONS.

    (a) Implementing Actions.--
        (1) Proclamation authority.--After the date of the enactment of 
    this Act--
            (A) the President may proclaim such actions, and
            (B) other appropriate officers of the United States 
        Government may issue such regulations,
    as may be necessary to ensure that any provision of this Act, or 
    amendment made by this Act, that takes effect on the date the 
    Agreement enters into force is appropriately implemented on such 
    date, but no such proclamation or regulation may have an effective 
    date earlier than the date on which the Agreement enters into 
    force.
        (2) Effective date of certain proclaimed actions.--Any action 
    proclaimed by the President under the authority of this Act that is 
    not subject to the consultation and layover provisions under 
    section 104, may not take effect before the 15th day after the date 
    on which the text of the proclamation is published in the Federal 
    Register.
        (3) Waiver of 15-day restriction.--The 15-day restriction in 
    paragraph (2) on the taking effect of proclaimed actions is waived 
    to the extent that the application of such restriction would 
    prevent the taking effect on the date the Agreement enters into 
    force of any action proclaimed under this section.
    (b) Initial Regulations.--Initial regulations necessary or 
appropriate to carry out the actions required by or authorized under 
this Act or proposed in the statement of administrative action 
submitted under section 101(a)(2) to implement the Agreement shall, to 
the maximum extent feasible, be issued within 1 year after the date on 
which the Agreement enters into force. In the case of any implementing 
action that takes effect on a date after the date on which the 
Agreement enters into force, initial regulations to carry out that 
action shall, to the maximum extent feasible, be issued within 1 year 
after such effective date.

SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE 
              OF, PROCLAIMED ACTIONS.

    If a provision of this Act provides that the implementation of an 
action by the President by proclamation is subject to the consultation 
and layover requirements of this section, such action may be proclaimed 
only if--
        (1) the President has obtained advice regarding the proposed 
    action from--
            (A) the appropriate advisory committees established under 
        section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and
            (B) the United States International Trade Commission;
        (2) the President has submitted a report to the Committee on 
    Finance of the Senate and the Committee on Ways and Means of the 
    House of Representatives that sets forth--
            (A) the action proposed to be proclaimed and the reasons 
        therefor; and
            (B) the advice obtained under paragraph (1);
        (3) a period of 60 calendar days, beginning on the first day on 
    which the requirements set forth in paragraphs (1) and (2) have 
    been met has expired; and
        (4) the President has consulted with such Committees regarding 
    the proposed action during the period referred to in paragraph (3).

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

    (a) Establishment or Designation of Office.--The President is 
authorized to establish or designate within the Department of Commerce 
an office that shall be responsible for providing administrative 
assistance to panels established under chapter 21 of the Agreement. The 
office may not be considered to be an agency for purposes of section 
552 of title 5, United States Code.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year after fiscal year 2004 to the 
Department of Commerce such sums as may be necessary for the 
establishment and operations of the office under subsection (a) and for 
the payment of the United States share of the expenses of panels 
established under chapter 21 of the Agreement.

SEC. 106. EFFECTIVE DATES; EFFECT OF TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), the 
provisions of this Act and the amendments made by this Act take effect 
on the date on which the Agreement enters into force.
    (b) Exceptions.--Sections 1 through 3 and this title take effect on 
the date of the enactment of this Act.
    (c) Termination of the Agreement.--On the date on which the 
Agreement terminates, the provisionsof this Act (other than this 
subsection) and the amendments made by this Act shall cease to be 
effective.

                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--The 
President may proclaim--
        (1) such modifications or continuation of any duty,
        (2) such continuation of duty-free or excise treatment, or
        (3) such additional duties,
as the President determines to be necessary or appropriate to carry out 
or apply articles 2.3, 2.5, and 2.6, and Annex 2-B of the Agreement.
    (b) Other Tariff Modifications.--Subject to the consultation and 
layover provisions of section 104, the President may proclaim--
        (1) such modifications or continuation of any duty,
        (2) such modifications as the United States may agree to with 
    Australia regarding the staging of any duty treatment set forth in 
    Annex 2-B of the Agreement,
        (3) such continuation of duty-free or excise treatment, or
        (4) such additional duties,
as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
with respect to Australia provided for by the Agreement.
    (c) Conversion to Ad Valorem Rates.--For purposes of subsections 
(a) and (b), with respect to any good for which the base rate in the 
Schedule of the United States to Annex 2-B of the Agreement is a 
specific or compound rate of duty, the President may substitute for the 
base rate an ad valorem rate that the President determines to be 
equivalent to the base rate.

SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.

    (a) General Provisions.--
        (1) Applicability of subsection.--This subsection applies to 
    additional duties assessed under subsections (b), (c), and (d).
        (2) Applicable ntr (mfn) rate of duty.--For purposes of 
    subsections (b), (c), and (d), the term ``applicable NTR (MFN) rate 
    of duty'' means, with respect to a safeguard good, a rate of duty 
    that is the lesser of--
            (A) the column 1 general rate of duty that would have been 
        imposed under the HTS on the same safeguard good entered, 
        without a claim for preferential treatment, at the time the 
        additional duty is imposed under subsection (b), (c), or (d), 
        as the case may be; or
            (B) the column 1 general rate of duty that would have been 
        imposed under the HTS on the same safeguard good entered, 
        without a claim for preferential treatment, on December 31, 
        2004.
        (3) Schedule rate of duty.--For purposes of subsections (b) and 
    (c), the term ``schedule rate of duty'' means, with respect to a 
    safeguard good, the rate of duty for that good set out in the 
    Schedule of the United States to Annex 2-B of the Agreement.
        (4) Safeguard good.--In this subsection, the term ``safeguard 
    good'' means--
            (A) a horticulture safeguard good described subsection 
        (b)(1)(B); or
            (B) a beef safeguard good described in subsection (c)(1) or 
        subsection (d)(1)(A).
        (5) Exceptions.--No additional duty shall be assessed on a good 
    under subsection (b), (c), or (d) if, at the time of entry, the 
    good is subject to import relief under--
            (A) subtitle A of title III of this Act; or
            (B) chapter 1 of title II of the Trade Act of 1974 (19 
        U.S.C. 2251 et seq.).
        (6) Termination.--The assessment of an additional duty on a 
    good under subsection (b) or (c), whichever is applicable, shall 
    cease to apply to that good on the date on which duty-free 
    treatment must be provided to that good under the Schedule of the 
    United States to Annex 2-B of the Agreement.
        (7) Notice.--Not later than 60 days after the date on which the 
    Secretary of the Treasury assesses an additional duty on a good 
    under subsection (b), (c), or (d), the Secretary shall notify the 
    Government of Australia in writing of such action and shall provide 
    to that Government data supporting the assessment of the additional 
    duty.
    (b) Additional Duties on Horticulture Safeguard Goods.--
        (1) Definitions.--In this subsection:
            (A)  F.O.B.--The term ``F.O.B.'' means free on board, 
        regardless of the mode of transportation, at the point of 
        direct shipment by the seller to the buyer.
            (B) Horticulture safeguard good.--The term ``horticulture 
        safeguard good'' means a good--
                (i) that qualifies as an originating good under section 
            203;
                (ii) that is included in the United States Horticulture 
            Safeguard List set forth in Annex 3-A of the Agreement; and
                (iii) for which a claim for preferential treatment 
            under the Agreement has been made.
            (C) Unit import price.--The ``unit import price'' of a good 
        means the price of the good determined on the basis of the 
        F.O.B. import price of the good, expressed in either dollars 
        per kilogram or dollars per liter, whichever unit of measure is 
        indicated for the good in the United States Horticulture 
        Safeguard List set forth in Annex 3-A of the Agreement.
            (D) Trigger price.--The ``trigger price'' for a good is the 
        trigger price indicated for that good in the United States 
        Horticulture Safeguard List set forth in Annex 3-A of the 
        Agreement or any amendment thereto.
        (2) Additional duties.--In addition to any duty proclaimed 
    under subsection (a) or (b) of section 201, and subject to 
    subsection (a) of this section, the Secretary of the Treasury shall 
    assess a duty on a horticulture safeguard good, in the amount 
    determined under paragraph (3), if the Secretary determines that 
    the unit import price of the good when it enters the United States 
    is less than the trigger price for that good.
        (3) Calculation of additional duty.--The additional duty 
    assessed under this subsection on a horticulture safeguard good 
    shall be an amount determined in accordance with the following 
    table:

  

                         If the excess of the         The additional duty is an amount equal to:
                          trigger price over the
                          unit import price is:
 
                         Not more than 10 percent of  0.
                          the trigger price.........
                         More than 10 percent but     30 percent of the excess of the applicable NTR (MFN) rate
                          not more than 40 percent     of duty over the schedule rate of duty.
                          of the trigger price......
                         More than 40 percent but     50 percent of such excess.
                          not more than 60 percent
                          of the trigger price......
                         More than 60 percent but     70 percent of such excess.
                          not more than 75 percent
                          of the trigger price......
                         More than 75 percent of the  100 percent of such excess.
                          trigger price.............
 

    (c) Additional Duties on Beef Safeguard Goods Based on Quantity of 
Imports.--
        (1) Definition.--In this subsection, the term ``beef safeguard 
    good'' means a good--
            (A) that qualifies as an originating good under section 
        203;
            (B) that is listed in paragraph 3 of Annex I of the General 
        Notes to the Schedule of the United States to Annex 2-B of the 
        Agreement; and
            (C) for which a claim for preferential treatment under the 
        Agreement has been made.
        (2) Additional duties.--In addition to any duty proclaimed 
    under subsection (a) or (b) of section 201, and subject to 
    subsection (a) of this section and paragraphs (4) and (5) of this 
    subsection, the Secretary of the Treasury shall assess a duty, in 
    the amount determined under paragraph (3), on a beef safeguard good 
    imported into the United States in a calendar year if the Secretary 
    determines that, prior to such importation, the total volume of 
    beef safeguard goods imported into the United States in that 
    calendar year is equal to or greater than 110 percent of the volume 
    set out for beef safeguard goods in the corresponding year in the 
    table contained in paragraph 3(a) of Annex I of the General Notes 
    to the Schedule of the United States to Annex 2-B of the Agreement. 
    For purposes of this subsection, the years 1 through 19 set out in 
    the table contained in paragraph 3(a) of such Annex I correspond to 
    the calendar years 2005 through 2023.
        (3) Calculation of additional duty.--The additional duty on a 
    beef safeguard good under this subsection shall be an amount equal 
    to 75 percent of the excess of the applicable NTR (MFN) rate of 
    duty over the schedule rate of duty.
        (4) Waiver.--
            (A) In general.--The United States Trade Representative is 
        authorized to waive the application of this subsection, if the 
        Trade Representative determines that extraordinary market 
        conditions demonstrate that the waiver would be in the national 
        interest of the United States, after the requirements of 
        subparagraph (B) are met.
            (B) Notice and consultations.--Promptly after receiving a 
        request for a waiver of this subsection, the Trade 
        Representative shall notify the Committee on Ways and Means of 
        the House of Representatives and the Committee on Finance of 
        the Senate, and may make the determination provided for in 
        subparagraph (A) only after consulting with--
                (i) appropriate private sector advisory committees 
            established under section 135 of the Trade Act of 1974 (19 
            U.S.C. 2155); and
                (ii) the Committee on Ways and Means of the House of 
            Representatives and the Committee on Finance of the Senate 
            regarding--

                    (I) the reasons supporting the determination to 
                grant the waiver; and
                    (II) the proposed scope and duration of the waiver.

                (C) Notification of the secretary of the treasury and 
            publication.--Upon granting a waiver under this paragraph, 
            the Trade Representative shall promptly notify the 
            Secretary of the Treasury of the period in which the waiver 
            will be in effect, and shall publish notice of the waiver 
            in the Federal Register.
        (5) Effective dates.--This subsection takes effect on January 
    1, 2013, and shall not be effective after December 31, 2022.
    (d) Additional Duties on Beef Safeguard Goods Based on Price.--
        (1) Definitions.--In this subsection:
            (A) Beef safeguard good.--The term ``beef safeguard good'' 
        means a good--
                (i) that qualifies as an originating good under section 
            203;
                (ii) that is classified under subheading 0201.10.50, 
            0201.20.80, 0201.30.80, 0202.10.50, 0202.20.80, or 
            0202.30.80 of the HTS; and
                (iii) for which a claim for preferential treatment 
            under the Agreement has been made.
            (B) Calendar quarter.--
                (i) In general.--The term ``calendar quarter'' means 
            any 3-month period beginning on January 1, April 1, July 1, 
            or October 1 of a calendar year.
                (ii) First calendar quarter.--The term ``first calendar 
            quarter'' means the calendar quarter beginning on January 
            1.
                (iii) Second calendar quarter.--The term ``second 
            calendar quarter'' means the calendar quarter beginning on 
            April 1.
                (iv) Third calendar quarter.--The term ``third calendar 
            quarter'' means the calendar quarter beginning on July 1.
                (v) Fourth calendar quarter.--The term ``fourth 
            calendar quarter'' means the calendar quarter beginning on 
            October 1.
            (C) Monthly average index price.--The term ``monthly 
        average index price'' means the simple average, as determined 
        by the Secretary of Agriculture, for a calendar month of the 
        daily average index prices for Wholesale Boxed Beef Cut-Out 
        Value Select 1-3 Central U.S. 600-750 lbs., or its equivalent, 
        as such simple average is reported by the Agricultural 
        Marketing Service of the Department of Agriculture in Report 
        LM-XB459 or any equivalent report.
            (D) 24-month trigger price.--The term ``24-month trigger 
        price'' means, with respect to any calendar month, the average 
        of the monthly average index prices for the 24 preceding 
        calendar months, multiplied by 0.935.
        (2) Additional duties.--In addition to any duty proclaimed 
    under subsection (a) or (b) of section 201, and subject to 
    subsection (a) of this section and paragraphs (4) through (6) of 
    this subsection, the Secretary of the Treasury shall assess a duty, 
    in the amount determined under paragraph (3), on a beef safeguard 
    good imported into the United States if--
            (A)(i) the good is imported in the first calendar quarter, 
        second calendar quarter, or third calendar quarter of a 
        calendar year; and
            (ii) the monthly average index price, in any 2 calendar 
        months of the preceding calendar quarter, is less than the 24-
        month trigger price; or
            (B)(i) the good is imported in the fourth calendar quarter 
        of a calendar year; and
            (ii)(I) the monthly average index price, in any 2 calendar 
        months of the preceding calendar quarter, is less than the 24-
        month trigger price; or
            (II) the monthly average index price, in any of the 4 
        calendar months preceding January 1 of the succeeding calendar 
        year, is less than the 24-month trigger price.
        (3) Calculation of additional duty.--The additional duty on a 
    beef safeguard good under this subsection shall be an amount equal 
    to 65 percent of the applicable NTR (MFN) rate of duty for that 
    good.
        (4) Limitation.--An additional duty shall be assessed under 
    this subsection on a beef safeguard good imported into the United 
    States in a calendar year only if, prior to the importation of that 
    good, the total quantity of beef safeguard goods imported into the 
    United States in that calendar year is equal to or greater than the 
    sum of--
            (A) the quantity of goods of Australia eligible to enter 
        the United States in that year specified in Additional United 
        States Note 3 to Chapter 2 of the HTS; and
            (B)(i) in 2023, 70,420 metric tons; or
            (ii) in 2024, and in each year thereafter, a quantity that 
        is 0.6 percent greater than the quantity provided for in the 
        preceding year under this subparagraph.
        (5) Waiver.--
            (A) In general.--The United States Trade Representative is 
        authorized to waive the application of this subsection, if the 
        Trade Representative determines that extraordinary market 
        conditions demonstrate that the waiver would be in the national 
        interest of the United States, after the requirements of 
        subparagraph (B) are met.
            (B) Notice and consultations.--Promptly after receiving a 
        request for a waiver of this subsection, the Trade 
        Representative shall notify the Committee on Ways and Means of 
        the House of Representatives and the Committee on Finance of 
        the Senate, and may make the determination provided for in 
        subparagraph (A) only after consulting with--
                (i) appropriate private sector advisory committees 
            established under section 135 of the Trade Act of 1974 (19 
            U.S.C. 2155); and
                (ii) the Committee on Ways and Means of the House of 
            Representatives and the Committee on Finance of the Senate 
            regarding--

                    (I) the reasons supporting the determination to 
                grant the waiver; and
                    (II) the proposed scope and duration of the waiver.

                (C) Notification of the secretary of the treasury and 
            publication.--Upon granting a waiver under this paragraph, 
            the Trade Representative shall promptly notify the 
            Secretary of the Treasury of the period in which the waiver 
            will be in effect, and shall publish notice of the waiver 
            in the Federal Register.
        (6) Effective date.--This subsection takes effect on January 1, 
    2023.

SEC. 203. RULES OF ORIGIN.

    (a) Application and Interpretation.--In this section:
        (1) Tariff classification.--The basis for any tariff 
    classification is the HTS.
        (2) Reference to hts.--Whenever in this section there is a 
    reference to a heading or subheading, such reference shall be a 
    reference to a heading or subheading of the HTS.
        (3) Cost or value.--Any cost or value referred to in this 
    section shall be recorded and maintained in accordance with the 
    generally accepted accounting principles applicable in the 
    territory of the country in which the good is produced (whether 
    Australia or the United States).
    (b) Originating Goods.--For purposes of this Act and for purposes 
of implementing the preferential treatment provided for under the 
Agreement, a good is an originating good if--
        (1) the good is a good wholly obtained or produced entirely in 
    the territory of Australia, the United States, or both;
        (2) the good--
            (A) is produced entirely in the territory of Australia, the 
        United States, or both, and--
                (i) each of the nonoriginating materials used in the 
            production of the good undergoes an applicable change in 
            tariff classification specified in Annex 4-A or Annex 5-A 
            of the Agreement;
                (ii) the good otherwise satisfies any applicable 
            regional value-content requirement referred to in Annex 5-A 
            of the Agreement; or
                (iii) the good meets any other requirements specified 
            in Annex 4-A or Annex 5-A of the Agreement; and
            (B) the good satisfies all other applicable requirements of 
        this section;
        (3) the good is produced entirely in the territory of 
    Australia, the United States, or both, exclusively from materials 
    described in paragraph (1) or (2); or
        (4) the good otherwise qualifies as an originating good under 
    this section.
    (c) De Minimis Amounts of Nonoriginating Materials.--
        (1) In general.--Except as provided in paragraphs (2) and (3), 
    a good that does not undergo a change in tariff classification 
    pursuant to Annex 5-A of the Agreement is an originating good if--
            (A) the value of all nonoriginating materials that--
                (i) are used in the production of the good, and
                (ii) do not undergo the required change in tariff 
            classification,
        does not exceed 10 percent of the adjusted value of the good;
            (B) the good meets all other applicable requirements of 
        this section; and
            (C) the value of such nonoriginating materials is included 
        in the value of nonoriginating materials for any applicable 
        regional value-content requirement for the good.
        (2) Exceptions.--Paragraph (1) does not apply to the following:
            (A) A nonoriginating material provided for in chapter 4 of 
        the HTS or in subheading 1901.90 that is used in the production 
        of agood provided for in chapter 4 of the HTS.
            (B) A nonoriginating material provided for in chapter 4 of 
        the HTS or in subheading 1901.90 that is used in the production 
        of a good provided for in subheading 1901.10, 1901.20, or 
        1901.90, heading 2105, or subheading 2106.90, 2202.90, or 
        2309.90.
            (C) A nonoriginating material provided for in heading 0805 
        or any of subheadings 2009.11 through 2009.39 that is used in 
        the production of a good provided for in any of subheadings 
        2009.11 through 2009.39, or in subheading 2106.90 or 2202.90.
            (D) A nonoriginating material provided for in chapter 15 of 
        the HTS that is used in the production of a good provided for 
        in any of headings 1501.00.00 through 1508, or in heading 1512, 
        1514, or 1515.
            (E) A nonoriginating material provided for in heading 1701 
        that is used in the production of a good provided for in any of 
        headings 1701 through 1703.
            (F) A nonoriginating material provided for in chapter 17 of 
        the HTS or heading 1805.00.00 that is used in the production of 
        a good provided for in subheading 1806.10.
            (G) A nonoriginating material provided for in any of 
        headings 2203 through 2208 that is used in the production of a 
        good provided for in heading 2207 or 2208.
            (H) A nonoriginating material used in the production of a 
        good provided for in any of chapters 1 through 21 of the HTS 
        unless the nonoriginating material is provided for in a 
        different subheading than the good for which origin is being 
        determined under this section.
        (3) Textile and apparel goods.--
            (A) In general.--Except as provided in subparagraph (B), a 
        textile or apparel good that is not an originating good because 
        certain fibers or yarns used in the production of the component 
        of the good that determines the tariff classification of the 
        good do not undergo an applicable change in tariff 
        classification set out in Annex 4-A of the Agreement shall be 
        considered to be an originating good if the total weight of all 
        such fibers or yarns in that component is not more than 7 
        percent of the total weight of that component.
            (B) Certain textile or apparel goods.--A textile or apparel 
        good containing elastomeric yarns in the component of the good 
        that determines the tariff classification of the good shall be 
        considered to be an originating good only if such yarns are 
        wholly formed in the territory of Australia or the United 
        States.
            (C) Yarn, fabric, or fiber.--For purposes of this 
        paragraph, in the case of a textile or apparel good that is a 
        yarn, fabric, or group of fibers, the term ``component of the 
        good that determines the tariff classification of the good'' 
        means all of the fibers in the yarn, fabric, or group of 
        fibers.
    (d) Accumulation.--
        (1) Originating materials used in production of goods of other 
    country.--Originating materials from the territory of Australia or 
    the United States that are used in the production of a good in the 
    territory of the other country shall be considered to originate in 
    the territory of the other country.
        (2) Multiple procedures.--A good that is produced in the 
    territory of Australia, the United States, or both, by 1 or more 
    producers, is an originating good if the good satisfies the 
    requirements of subsection (b) and all other applicable 
    requirements of this section.
    (e) Regional Value-Content.--
        (1) In general.--For purposes of subsection (b)(2), the 
    regional value-content of a good referred to in Annex 5-A of the 
    Agreement, except for goods to which paragraph (4) applies, shall 
    be calculated by the importer, exporter, or producer of the good, 
    on the basis of the build-down method described in paragraph (2) or 
    the build-up method described in paragraph (3).
        (2) Build-down method.--
            (A) In general.--The regional value-content of a good may 
        be calculated on the basis of the following build-down method:

                                 av-vnm

                      rvc = -------- <greek-e> 100

                                   av

            (B) Definitions.--In subparagraph (A):
                (i) RVC.--The term ``RVC'' means the regional value-
            content of the good, expressed as a percentage.
                (ii) AV.--The term ``AV'' means the adjusted value of 
            the good.
                (iii) VNM.--The term ``VNM'' means the value of 
            nonoriginating materials that are acquired and used by the 
            producer in the production of the good, but does not 
            include the value of a material that is self-produced.
        (3) Build-up method.--
            (A) In general.--The regional value-content of a good may 
        be calculated on the basis of the following build-up method:

                                   vom

                      rvc = -------- <greek-e> 100

                                   av

            (B) Definitions.--In subparagraph (A):
                (i) RVC.--The term ``RVC'' means the regional value-
            content of the good, expressed as a percentage.
                (ii) AV.--The term ``AV'' means the adjusted value of 
            the good.
                (iii) VOM.--The term ``VOM'' means the value of 
            originating materials that are acquired or self-produced, 
            and used by the producer in the production of the good.
        (4) Special rule for certain automotive goods.--
            (A) In general.--For purposes of subsection (b)(2), the 
        regional value-content of an automotive good referred to in 
        Annex 5-A of the Agreement shall be calculated by the importer, 
        exporter, or producer of the good, on the basis of the 
        following net cost method:

                                 nc-vnm

                      rvc = -------- <greek-e> 100

                                   nc

            (B) Definitions.--In subparagraph (A):
                (i) Automotive good.--The term ``automotive good'' 
            means a good provided for in any of subheadings 8407.31 
            through 8407.34, subheading 8408.20, heading 8409, or in 
            any of headings 8701 through 8708.
                (ii) RVC.--The term ``RVC'' means the regional value-
            content of the automotive good, expressed as a percentage.
                (iii) NC.--The term ``NC'' means the net cost of the 
            automotive good.
                (iv) VNM.--The term ``VNM'' means the value of 
            nonoriginating materials that are acquired and used by the 
            producer in the production of the automotive good, but does 
            not include the value of a material that is self-produced.
            (C) Motor vehicles.--
                (i) Basis of calculation.--For purposes of determining 
            the regional value-content under subparagraph (A) for an 
            automotive good that is a motor vehicle provided for in any 
            of headings 8701 through 8705, an importer, exporter, or 
            producer may average the amounts calculated under the 
            formula contained in subparagraph (A), over the producer's 
            fiscal year--

                    (I) with respect to all motor vehicles in any one 
                of the categories described in clause (ii); or
                    (II) with respect to all motor vehicles in any such 
                category that are exported to the territory of the 
                United States or Australia.

                (ii) Categories.--A category is described in this 
            clause if it--

                    (I) is the same model line of motor vehicles, is in 
                the same class of vehicles, and is produced in the same 
                plant in the territory of Australia or the United 
                States, as the good described in clause (i) for which 
                regional value-content is being calculated;
                    (II) is the same class of motor vehicles, and is 
                produced in the same plant in the territory of 
                Australia or the United States, as the good described 
                in clause (i) for which regional value-content is being 
                calculated; or
                    (III) is the same model line of motor vehicles 
                produced in either the territory of Australia or the 
                United States, as the good described in clause (i) for 
                which regional value-content is being calculated.

            (D) Other automotive goods.--For purposes of determining 
        the regional value-content under subparagraph (A) for 
        automotive goods provided for in any of subheadings 8407.31 
        through 8407.34, in subheading 8408.20, or in heading 8409, 
        8706, 8707, or8708, that are produced in the same plant, an 
importer, exporter, or producer may--
                (i) average the amounts calculated under the formula 
            contained in subparagraph (A) over--

                    (I) the fiscal year of the motor vehicle producer 
                to whom the automotive goods are sold,
                    (II) any quarter or month, or
                    (III) its own fiscal year,

            if the goods were produced during the fiscal year, quarter, 
            or month that is the basis for the calculation;
                (ii) determine the average referred to in clause (i) 
            separately for such goods sold to one or more motor vehicle 
            producers; or
                (iii) make a separate determination under clause (i) or 
            (ii) for automotive goods that are exported to the 
            territory of the United States or Australia.
            (E) Calculating net cost.--Consistent with the provisions 
        regarding allocation of costs set out in generally accepted 
        accounting principles, the net cost of the automotive good 
        under subparagraph (B) shall be calculated by--
                (i) calculating the total cost incurred with respect to 
            all goods produced by the producer of the automotive good, 
            subtracting any sales promotion, marketing and after-sales 
            service costs, royalties, shipping and packing costs, and 
            nonallowable interest costs that are included in the total 
            cost of all such goods, and then reasonably allocating the 
            resulting net cost of those goods to the automotive good;
                (ii) calculating the total cost incurred with respect 
            to all goods produced by that producer, reasonably 
            allocating the total cost to the automotive good, and then 
            subtracting any sales promotion, marketing and after-sales 
            service costs, royalties, shipping and packing costs, and 
            nonallowable interest costs that are included in the 
            portion of the total cost allocated to the automotive good; 
            or
                (iii) reasonably allocating each cost that forms part 
            of the total cost incurred with respect to the automotive 
            good so that the aggregate of these costs does not include 
            any sales promotion, marketing and after-sales service 
            costs, royalties, shipping and packing costs, or 
            nonallowable interest costs.
    (f) Value of Materials.--
        (1) In general.--For the purpose of calculating the regional 
    value-content of a good under subsection (e), and for purposes of 
    applying the de minimis rules under subsection (c), the value of a 
    material is--
            (A) in the case of a material that is imported by the 
        producer of the good, the adjusted value of the material;
            (B) in the case of a material acquired in the territory in 
        which the good is produced, the value, determined in accordance 
        with Articles 1 through 8, article 15, and the corresponding 
        interpretive notes of the Agreement on Implementation of 
        Article VII of the General Agreement on Tariffs and Trade 1994 
        referred to in section 101(d)(8) of the Uruguay Round 
        Agreements Act, as set forth in regulations promulgated by the 
        Secretary of the Treasury providing for the application of such 
        Articles in the absence of an importation; or
            (C) in the case of a material that is self-produced, the 
        sum of--
                (i) all expenses incurred in the production of the 
            material, including general expenses; and
                (ii) an amount for profit equivalent to the profit 
            added in the normal course of trade.
        (2) Further adjustments to the value of materials.--
            (A) Originating material.--The following expenses, if not 
        included in the value of an originating material calculated 
        under paragraph (1), may be added to the value of the 
        originating material:
                (i) The costs of freight, insurance, packing, and all 
            other costs incurred in transporting the material within or 
            between the territory of Australia, the United States, or 
            both, to the location of the producer.
                (ii) Duties, taxes, and customs brokerage fees on the 
            material paid in the territory of Australia, the United 
            States, or both, other than duties or taxes that are 
            waived, refunded, refundable, or otherwiserecoverable, 
including credit against duty or tax paid or payable.
                (iii) The cost of waste and spoilage resulting from the 
            use of the material in the production of the good, less the 
            value of renewable scrap or byproducts.
            (B) Nonoriginating material.--The following expenses, if 
        included in the value of a nonoriginating material calculated 
        under paragraph (1), may be deducted from the value of the 
        nonoriginating material:
                (i) The costs of freight, insurance, packing, and all 
            other costs incurred in transporting the material within or 
            between the territory of Australia, the United States, or 
            both, to the location of the producer.
                (ii) Duties, taxes, and customs brokerage fees on the 
            material paid in the territory of Australia, the United 
            States, or both, other than duties or taxes that are 
            waived, refunded, refundable, or otherwise recoverable, 
            including credit against duty or tax paid or payable.
                (iii) The cost of waste and spoilage resulting from the 
            use of the material in the production of the good, less the 
            value of renewable scrap or byproducts.
                (iv) The cost of processing incurred in the territory 
            of Australia, the United States, or both, in the production 
            of the nonoriginating material.
                (v) The cost of originating materials used in the 
            production of the nonoriginating material in the territory 
            of Australia, the United States, or both.
    (g) Accessories, Spare Parts, or Tools.--
        (1) In general.--Subject to paragraph (2), accessories, spare 
    parts, or tools delivered with a good that form part of the good's 
    standard accessories, spare parts, or tools shall--
            (A) be treated as originating goods if the good is an 
        originating good; and
            (B) be disregarded in determining whether all the 
        nonoriginating materials used in the production of the good 
        undergo the applicable change in tariff classification set out 
        in Annex 5-A of the Agreement.
        (2) Conditions.--Paragraph (1) shall apply only if--
            (A) the accessories, spare parts, or tools are not invoiced 
        separately from the good;
            (B) the quantities and value of the accessories, spare 
        parts, or tools are customary for the good; and
            (C) if the good is subject to a regional value-content 
        requirement, the value of the accessories, spare parts, or 
        tools is taken into account as originating or nonoriginating 
        materials, as the case may be, in calculating the regional 
        value-content of the good.
    (h) Fungible Goods and Materials.--
        (1) In general.--
            (A) Claim for preferential treatment.--A person claiming 
        that a fungible good or fungible material is an originating 
        good may base the claim either on the physical segregation of 
        the fungible good or fungible material or by using an inventory 
        management method with respect to the fungible good or fungible 
        material.
            (B) Inventory management method.--In this subsection, the 
        term ``inventory management method'' means--
                (i) averaging;
                (ii) ``last-in, first-out'';
                (iii) ``first-in, first-out''; or
                (iv) any other method--

                    (I) recognized in the generally accepted accounting 
                principles of the country in which the production is 
                performed (whether Australia or the United States); or
                    (II) otherwise accepted by that country.

        (2) Election of inventory method.--A person selecting an 
    inventory management method under paragraph (1) for a particular 
    fungible good or fungible material shall continue to use that 
    method for that fungible good or fungible material throughout the 
    fiscal year of that person.
    (i) Packaging Materials and Containers for Retail Sale.--Packaging 
materials and containers in which a good is packaged for retail sale, 
if classified with the good, shall be disregarded in determining 
whether all the nonoriginating materials used in the production of the 
good undergo the applicable change in tariff classification set out in 
Annex 4-A or Annex 5-A of the Agreement, and, if the good is subject to 
a regional value-content requirement, the value of such packaging 
materials and containers shall be taken into account as originating or 
nonoriginating materials, as the case may be, in calculating the 
regional value-content of the good.
    (j) Packing Materials and Containers for Shipment.--Packing 
materials and containers for shipment shall be disregarded in 
determining whether--
        (1) the nonoriginating materials used in the production of a 
    good undergo the applicable change in tariff classification set out 
    in Annex 4-A or Annex 5-A of the Agreement; and
        (2) the good satisfies a regional value-content requirement.
    (k) Indirect Materials.--An indirect material shall be treated as 
an originating material without regard to where it is produced, and its 
value shall be the cost registered in the accounting records of the 
producer of the good.
    (l) Third Country Operations.--A good that has undergone production 
necessary to qualify as an originating good under subsection (b) shall 
not be considered to be an originating good if, subsequent to that 
production, the good undergoes further production or any other 
operation outside the territory of Australia or the United States, 
other than unloading, reloading, or any other operation necessary to 
preserve the good in good condition or to transport the good to the 
territory of Australia or the United States.
    (m) Textile and Apparel Goods Classifiable as Goods Put Up in 
Sets.--Notwithstanding the rules set forth in Annex 4-A of the 
Agreement, textile or apparel goods classifiable as goods put up in 
sets for retail sale as provided for in General Rule of Interpretation 
3 of the HTS shall not be considered to be originating goods unless 
each of the goods in the set is an originating good or the total value 
of the nonoriginating goods in the set does not exceed 10 percent of 
the value of the set determined for purposes of assessing customs 
duties.
    (n) Definitions.--In this section:
        (1) Adjusted value.--The term ``adjusted value'' means the 
    value determined under Articles 1 through 8, Article 15, and the 
    corresponding interpretive notes of the Agreement on Implementation 
    of Article VII of the General Agreement on Tariffs and Trade 1994 
    referred to in section 101(d)(8) of the Uruguay Round Agreements 
    Act, adjusted to exclude any costs, charges, or expenses incurred 
    fortransportation, insurance, and related services incident to the 
international shipment of the good from the country of exportation to 
the place of importation.
        (2) Class of motor vehicles.--The term ``class of motor 
    vehicles'' means any one of the following categories of motor 
    vehicles:
            (A) Motor vehicles provided for in subheading 8701.20, 
        8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 
        or 8706, or motor vehicles for the transport of 16 or more 
        persons provided for in subheading 8702.10 or 8702.90.
            (B) Motor vehicles provided for in subheading 8701.10 or 
        any of subheadings 8701.30 through 8701.90.
            (C) Motor vehicles for the transport of 15 or fewer persons 
        provided for in subheading 8702.10 or 8702.90, or motor 
        vehicles provided for in subheading 8704.21 or 8704.31.
            (D) Motor vehicles provided for in any of subheadings 
        8703.21 through 8703.90.
        (3) Fungible good or fungible material.--The term ``fungible 
    good'' or ``fungible material'' means a good or material, as the 
    case may be, that is interchangeable with another good or material 
    for commercial purposes and the properties of which are essentially 
    identical to such other good or material.
        (4) Generally accepted accounting principles.--The term 
    ``generally accepted accounting principles'' means the recognized 
    consensus or substantial authoritative support in the territory of 
    Australia or the United States, as the case may be, with respect to 
    the recording of revenues, expenses, costs, assets, and 
    liabilities, the disclosure of information, and the preparation of 
    financial statements. These standards may encompass broad 
    guidelines of general application as well as detailed standards, 
    practices, and procedures.
        (5) Good wholly obtained or produced entirely in the territory 
    of Australia, the United States, or both.--The term ``good wholly 
    obtained or produced entirely in the territory of Australia, the 
    United States, or both'' means--
            (A) a mineral good extracted in the territory of Australia, 
        the United States, or both;
            (B) a vegetable good, as such goods are provided for in the 
        HTS, harvested in the territory of Australia, the United 
        States, or both;
            (C) a live animal born and raised in the territory of 
        Australia, the United States, or both;
            (D) a good obtained from hunting, trapping, fishing, or 
        aquaculture conducted in the territory of Australia, the United 
        States, or both;
            (E) a good (fish, shellfish, and other marine life) taken 
        from the sea by vessels registered or recorded with Australia 
        or the United States and flying the flag of that country;
            (F) a good produced exclusively from products referred to 
        in subparagraph (E) on board factory ships registered or 
        recorded with Australia or the United States and flying the 
        flag of that country;
            (G) a good taken by Australia or the United States or a 
        person of Australia or the United States from the seabed or 
        beneath the seabed outside territorial waters, if Australia or 
        the United States has rights to exploit such seabed;
            (H) a good taken from outer space, if such good is obtained 
        by Australia or the United States or a person of Australia or 
        the United States and not processed in the territory of a 
        country other than Australia or the United States;
            (I) waste and scrap derived from--
                (i) production in the territory of Australia, the 
            United States, or both; or
                (ii) used goods collected in the territory of 
            Australia, the United States, or both, if such goods are 
            fit only for the recovery of raw materials;
            (J) a recovered good derived in the territory of Australia 
        or the United States from goods that have passed their life 
        expectancy, or are no longer usable due to defects, and 
        utilized in the territory of that country in the production of 
        remanufactured goods; or
            (K) a good produced in the territory of Australia, the 
        United States, or both, exclusively--
                (i) from goods referred to in any of subparagraphs (A) 
            through (I), or
                (ii) from the derivatives of goods referred to in 
            clause (i),
        at any stage of production.
        (6) Indirect material.--The term ``indirect material'' means a 
    good used in the production, testing, or inspection of a good but 
    not physically incorporated into the good, or a good used in the 
    maintenance of buildings or the operation of equipment associated 
    with the production of a good, including--
            (A) fuel and energy;
            (B) tools, dies, and molds;
            (C) spare parts and materials used in the maintenance of 
        equipment or buildings;
            (D) lubricants, greases, compounding materials, and other 
        materials used in production or used to operate equipment or 
        buildings;
            (E) gloves, glasses, footwear, clothing, safety equipment, 
        and supplies;
            (F) equipment, devices, and supplies used for testing or 
        inspecting the good;
            (G) catalysts and solvents; and
            (H) any other goods that are not incorporated into the good 
        but the use of which in the production of the good can 
        reasonably be demonstrated to be a part of that production.
        (7) Material.--The term ``material'' means a good that is used 
    in the production of another good.
        (8) Material that is self-produced.--The term ``material that 
    is self-produced'' means an originating material that is produced 
    by a producer of a good and used in the production of that good.
        (9) Model line.--The term ``model line'' means a group of motor 
    vehicles having the same platform or model name.
        (10) Nonallowable interest costs.--The term ``nonallowable 
    interest costs'' means interest costs incurred by a producer that 
    exceed 700 basis points above the applicable official interest rate 
    for comparable maturities of the country (whether Australia or the 
    United States).
        (11) Nonoriginating material.--The term ``nonoriginating 
    material'' means a material that does not qualify as originating 
    under this section.
        (12) Preferential treatment.--The term ``preferential 
    treatment'' means the customs duty rate, and the treatment under 
    article 2.12 of the Agreement, that are applicable to an 
    originating good pursuant to the Agreement.
        (13) Producer.--The term ``producer'' means a person who 
    engages in the production of a good in the territory of Australia 
    or the United States.
        (14) Production.--The term ``production'' means growing, 
    raising, mining, harvesting, fishing, trapping, hunting, 
    manufacturing, processing, assembling, or disassembling a good.
        (15) Reasonably allocate.--The term ``reasonably allocate'' 
    means to apportion in a manner that would be appropriate under 
    generally accepted accounting principles.
        (16) Recovered goods.--The term ``recovered goods'' means 
    materials in the form of individual parts that result from--
            (A) the complete disassembly of goods which have passed 
        their life expectancy, or are no longer usable due to defects, 
        into individual parts; and
            (B) the cleaning, inspecting, or testing, or other 
        processing that is necessary for improvement to sound working 
        condition of such individual parts.
        (17) Remanufactured good.--The term ``remanufactured good'' 
    means an industrial good that is assembled in the territory of 
    Australia or the United States, that is classified under chapter 
    84, 85, or 87 of the HTS or heading 9026, 9031, or 9032, other than 
    a good classified under heading 8418 or 8516 or any of headings 
    8701 through 8706, and that--
            (A) is entirely or partially comprised of recovered goods;
            (B) has a similar life expectancy to, and meets the same 
        performance standards as, a like good that is new; and
            (C) enjoys a factory warranty similar to a like good that 
        is new.
        (18) Total cost.--The term ``total cost'' means all product 
    costs, period costs, and other costs for a good incurred in the 
    territory of Australia, the United States, or both.
        (19) Used.--The term ``used'' means used or consumed in the 
    production of goods.
    (o) Presidential Proclamation Authority.--
        (1) In general.--The President is authorized to proclaim, as 
    part of the HTS--
            (A) the provisions set out in Annex 4-A and Annex 5-A of 
        the Agreement; and
            (B) any additional subordinate category necessary to carry 
        out this title consistent with the Agreement.
        (2) Modifications.--
            (A) In general.--Subject to the consultation and layover 
        provisions of section 104, the President may proclaim 
        modifications to the provisions proclaimed under the authority 
        of paragraph (1)(A), other than provisions of chapters 50 
        through 63 of the HTS, as included in Annex 4-A of the 
        Agreement.
            (B) Additional proclamations.--Notwithstanding subparagraph 
        (A), and subject to the consultation and layover provisions of 
        section 104, the President may proclaim--
                (i) modifications to the provisions proclaimed under 
            the authority of paragraph (1)(A) as are necessary to 
            implement an agreement with Australia pursuant to article 
            4.2.5 of the Agreement; and
                (ii) before the end of the 1-year period beginning on 
            the date of the enactment of this Act, modifications to 
            correct any typographical, clerical, or other 
            nonsubstantive technical error regarding the provisions of 
            chapters 50 through 63 of the HTS, as included in Annex 4-A 
            of the Agreement.

SEC. 204. CUSTOMS USER FEES.

    Section 13031(b) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph 
(13) the following:
    ``(14) No fee may be charged under subsection (a) (9) or (10) with 
respect to goods that qualify as originating goods under section 203 of 
the United States-Australia Free Trade AgreementImplementation Act. Any 
service for which an exemption from such fee is provided by reason of 
this paragraph may not be funded with money contained in the Customs 
User Fee Account.''.

SEC. 205. DISCLOSURE OF INCORRECT INFORMATION.

    Section 592(c) of the Tariff Act of 1930 (19 U.S.C. 1592(c)) is 
amended--
        (1) by redesignating paragraph (8) as paragraph (9); and
        (2) by inserting after paragraph (7) the following new 
    paragraph:
        ``(8) Prior disclosure regarding claims under the united 
    states-australia free trade agreement.--
            ``(A) In general.--An importer shall not be subject to 
        penalties under subsection (a) for making an incorrect claim 
        that a good qualifies as an originating good under section 203 
        of the United States-Australia Free Trade Agreement 
        Implementation Act if the importer, in accordance with 
        regulations issued by the Secretary of the Treasury, 
        voluntarily and promptly makes a corrected declaration and pays 
        any duties owing.
            ``(B) Time periods for making corrections.--In the 
        regulations referred to in subparagraph (A), the Secretary of 
        the Treasury is authorized to prescribe time periods for making 
        a corrected declaration and paying duties owing under 
        subparagraph (A), if such periods are not shorter than 1 year 
        following the date on which the importer makes the incorrect 
        claim.''.

SEC. 206. ENFORCEMENT RELATING TO TRADE IN TEXTILE AND APPAREL GOODS.

    (a) Action During Verification.--
        (1) In general.--If the Secretary of the Treasury requests the 
    Government of Australia to conduct a verification pursuant to 
    article 4.3 of the Agreement for purposes of making a determination 
    under paragraph (2), the President may direct the Secretary to take 
    appropriate action described in subsection (b) while the 
    verification is being conducted.
    (2) Determination.--A determination under this paragraph is a 
determination--
            (A) that an exporter or producer in Australia is complying 
        with applicable customs laws, regulations, procedures, 
        requirements, or practices affecting trade in textile or 
        apparel goods; or
            (B) that a claim that a textile or apparel good exported or 
        produced by such exporter or producer--
                (i) qualifies as an originating good under section 203 
            of this Act; or
                (ii) is a good of Australia,
        is accurate.
    (b) Appropriate Action Described.--Appropriate action under 
subsection (a)(1) includes--
        (1) suspension of liquidation of the entry of any textile or 
    apparel good exported or produced by the person that is the subject 
    of a verification under subsection (a)(1) regarding compliance 
    described in subsection (a)(2)(A), in a case in which the request 
    for verification was based on a reasonable suspicion of unlawful 
    activity related to such goods; and
        (2) suspension of liquidation of the entry of a textile or 
    apparel good for which a claim has been made that is the subject of 
    a verification under subsection (a)(1) regarding a claim described 
    in subsection (a)(2)(B).
    (c) Action When Information is Insufficient.--If the Secretary of 
the Treasury determines that the information obtained within 12 months 
after making a request for a verification under subsection (a)(1) is 
insufficient to make a determination under subsection (a)(2), the 
President may direct the Secretary to take appropriate action described 
in subsection (d) until such time as the Secretary receives information 
sufficient to make a determination under subsection (a)(2) or until 
such earlier date as the President may direct.
    (d) Appropriate Action Described.--Appropriate action referred to 
in subsection (c) includes--
        (1) publication of the name and address of the person that is 
    the subject of the verification;
        (2) denial of preferential tariff treatment under the Agreement 
    to--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification under subsection 
        (a)(1) regarding compliance described in subsection (a)(2)(A); 
        or
            (B) a textile or apparel good for which a claim has been 
        made that is the subject of a verification under subsection 
        (a)(1) regarding a claim described in subsection (a)(2)(B); and
        (3) denial of entry into the United States of--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification under subsection 
        (a)(1) regarding compliance described in subsection (a)(2)(A); 
        or
            (B) a textile or apparel good for which a claim has been 
        made that is the subject of a verification under subsection 
        (a)(1) regarding a claim described in subsection (a)(2)(B).

SEC. 207. REGULATIONS.

    The Secretary of the Treasury shall prescribe such regulations as 
may be necessary to carry out--
        (1) subsections (a) through (n) of section 203 and section 204;
        (2) amendments to existing law made by the sections referred to 
    in paragraph (1); and
        (3) proclamations issued under section 203(o).

                     TITLE III--RELIEF FROM IMPORTS

SEC. 301. DEFINITIONS.

     As used in this title:
        (1) Australian article.--The term ``Australian article'' means 
    an article that qualifies as an originating good under section 
    203(b) of this Act.
        (2) Australian textile or apparel article.--The term 
    ``Australian textile or apparel article'' means an article--
            (A) that is listed in the Annex to the Agreement on 
        Textiles and Clothing referred to in section 101(d)(4) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)); and
            (B) that is an Australian article.
        (3) Commission.--The term ``Commission'' means the United 
    States International Trade Commission.

     Subtitle A--Relief From Imports Benefiting From the Agreement

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--
        (1) In general.--A petition requesting action under this 
    subtitle for the purpose of adjusting to the obligations of the 
    United States under the Agreement may be filed with the Commission 
    by an entity, including a trade association, firm, certified or 
    recognized union, or group of workers, that is representative of an 
    industry. The Commission shalltransmit a copy of any petition filed 
under this subsection to the United States Trade Representative.
        (2) Provisional relief.--An entity filing a petition under this 
    subsection may request that provisional relief be provided as if 
    the petition had been filed under section 202(a) of the Trade Act 
    of 1974 (19 U.S.C. 2252(a)).
        (3) Critical circumstances.--Any allegation that critical 
    circumstances exist shall be included in the petition.
    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the Commission, unless subsection (d) applies, 
shall promptly initiate an investigation to determine whether, as a 
result of the reduction or elimination of a duty provided for under the 
Agreement, an Australian article is being imported into the United 
States in such increased quantities, in absolute terms or relative to 
domestic production, and under such conditions that imports of the 
Australian article constitute a substantial cause of serious injury or 
threat thereof to the domestic industry producing an article that is 
like, or directly competitive with, the imported article.
    (c) Applicable Provisions.--The following provisions of section 202 
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any 
investigation initiated under subsection (b):
        (1) Paragraphs (1)(B) and (3) of subsection (b).
        (2) Subsection (c).
        (3) Subsection (d).
        (4) Subsection (i).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any Australian article if, 
after the date on which the Agreement enters into force, import relief 
has been provided with respect to that Australian article under this 
subtitle.

SEC. 312. COMMISSION ACTION ON PETITION.

    (a) Determination.--Not later than 120 days (180 days if critical 
circumstances have been alleged) after the date on which an 
investigation is initiated under section 311(b) with respect to a 
petition, the Commission shall make the determination required under 
that section.
    (b) Applicable Provisions.--For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under this 
section as if such determinations and findings were made under section 
202 of the Trade Act of 1974 (19 U.S.C. 2252).
    (c) Additional Finding and Recommendation if Determination 
Affirmative.--If the determination made by the Commission under 
subsection (a) with respect to imports of an article is affirmative, or 
if the President may consider a determination of the Commission to be 
an affirmative determination as provided for under paragraph (1) of 
section 330(d) of the Tariff Act of 1930) (19 U.S.C. 1330(d)), the 
Commission shall find, and recommend to the President in the report 
required under subsection (d), the amount of import relief that is 
necessary to remedy or prevent the injury found by the Commission in 
the determination and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competition. The 
import relief recommended by the Commission under this subsection shall 
be limited to that described in section 313(c). Only those members of 
the Commission who voted in the affirmative under subsection (a) are 
eligible to vote on the proposed action to remedy or prevent the injury 
found by the Commission. Members of the Commission who did not vote in 
the affirmative may submit, in the report required under subsection 
(d), separate views regarding what action, if any, should be taken to 
remedy or prevent the injury.
    (d) Report to President.--Not later than the date that is 30 days 
after the date on which a determination is made under subsection (a) 
with respect to an investigation, the Commission shall submit to the 
President a report that includes--
        (1) the determination made under subsection (a) and an 
    explanation of the basis for the determination;
        (2) if the determination under subsection (a) is affirmative, 
    any findings and recommendations for import relief made under 
    subsection (c) and an explanation of the basis for each 
    recommendation; and
        (3) any dissenting or separate views by members of the 
    Commission regarding the determination and recommendation referred 
    to in paragraphs (1) and (2).
    (e) Public Notice.--Upon submitting a report to the President under 
subsection (d), the Commission shall promptly make public such report 
(with the exception of information which the Commission determines to 
be confidential) and shall cause a summary thereof to be published in 
the Federal Register.

SEC. 313. PROVISION OF RELIEF.

    (a) In General.--Not later than the date that is 30 days after the 
date on which the President receives the report of the Commission in 
which the Commission's determination under section 312(a) is 
affirmative, or which contains a determination under section 312(a) 
that the President considers to be affirmative under paragraph (1) of 
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 
President, subject to subsection (b), shall provide relief from imports 
of the article that is the subject of such determination to the extent 
that the President determines necessary to remedy or prevent the injury 
found by the Commission and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competition.
    (b) Exception.--The President is not required to provide import 
relief under this section if the President determines that the 
provision of the import relief will not provide greater economic and 
social benefits than costs.
    (c) Nature of Relief.--
        (1) In general.--The import relief (including provisional 
    relief) that the President is authorized to provide under this 
    section with respect to imports of an article is as follows:
            (A) The suspension of any further reduction provided for 
        under Annex 2-B of the Agreement in the duty imposed on such 
        article.
            (B) An increase in the rate of duty imposed on such article 
        to a level that does not exceed the lesser of--
                (i) the column 1 general rate of duty imposed under the 
            HTS on like articles at the time the import relief is 
            provided; or
                (ii) the column 1 general rate of duty imposed under 
            the HTS on like articles on the day before the date on 
            which the Agreement enters into force.
            (C) In the case of a duty applied on a seasonal basis to 
        such article, an increase in the rate of duty imposed on the 
        article to a level that does not exceed the lesser of--
                (i) the column 1 general rate of duty imposed under the 
            HTS on like articles for the immediately preceding 
            corresponding season; or
                (ii) the column 1 general rate of duty imposed under 
            the HTS on like articles on the day before the date on 
            which the Agreement enters into force.
        (2) Progressive liberalization.--If the period for which import 
    relief is provided under this section is greater than 1 year, the 
    President shall provide for the progressive liberalization 
    (described in article 9.2.7 of the Agreement) of such relief at 
    regular intervals during the period in which the relief is in 
    effect.
    (d) Period of Relief.--
        (1) In general.--Subject to paragraph (2), any import relief 
    that the President provides under this section may not be in effect 
    for more than 2 years.
        (2) Extension.--
            (A) In general.--Subject to subparagraph (C), the 
        President, after receiving an affirmative determination from 
        the Commission under subparagraph (B), may extend the effective 
        period of any import relief provided under this section if the 
        President determines that--
                (i) the import relief continues to be necessary to 
            remedy or prevent serious injury and to facilitate 
            adjustment by the domestic industry to import competition; 
            and
                (ii) there is evidence that the industry is making a 
            positive adjustment to import competition.
            (B) Action by commission.--(i) Upon a petition on behalf of 
        the industry concerned that is filed with the Commission not 
        earlier than the date which is 9 months, and not later than the 
        date which is 6 months, before the date any action taken under 
        subsection (a) is to terminate, the Commission shall conduct an 
        investigation to determine whether action under this section 
        continues to be necessary to remedy or prevent serious injury 
        and whether there is evidence that the industry is making a 
        positive adjustment to import competition.
            (ii) The Commission shall publish notice of the 
        commencement of any proceeding under this subparagraph in the 
        Federal Register and shall, within a reasonable time 
        thereafter, hold a public hearing at which the Commission shall 
        afford interested parties and consumers an opportunity to be 
        present, to present evidence, and to respond to the 
        presentations of other parties and consumers, and otherwise to 
        be heard.
            (iii) The Commission shall transmit to the President a 
        report on its investigation and determination under this 
        subparagraph not later than 60 days before the action under 
        subsection (a) is to terminate, unless the President specifies 
        a different date.
            (C) Period of import relief.--Any import relief provided 
        under this section, including any extensions thereof, may not, 
        in the aggregate, be in effect for more than 4 years.
    (e) Rate After Termination of Import Relief.--When import relief 
under this section is terminated with respect to an article--
        (1) the rate of duty on that article after such termination and 
    on or before December 31 of the year in which such termination 
    occurs shall be the rate that, according to the Schedule of the 
    United States to Annex 2-B of the Agreement for the staged 
    elimination of the tariff, would have been in effect 1 year after 
    the provision of relief under subsection (a); and
        (2) the rate of duty for that article after December 31 of the 
    year in which termination occurs shall be, at the discretion of the 
    President, either--
            (A) the applicable NTR (MFN) rate of duty for that article 
        set out in the Schedule of the United States to Annex 2-B of 
        the Agreement; or
            (B) the rate of duty resulting from the elimination of the 
        tariff in equal annual stages ending on the date set out in the 
        Schedule of the United States to Annex 2-B of the Agreement for 
        the elimination of the tariff.
    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on any article that--
        (1) is subject to--
            (A) import relief under subtitle B; or
            (B) an assessment of additional duty under subsection (b), 
        (c), or (d) of section 202; or
        (2) has been subject to import relief under this subtitle after 
    the date on which the Agreement enters into force.

SEC. 314. TERMINATION OF RELIEF AUTHORITY.

    (a) General Rule.--Subject to subsection (b), no import relief may 
be provided under this subtitle after the date that is 10 years after 
the date on which the Agreement enters into force.
    (b) Exception.--If an article for which relief is provided under 
this subtitle is an article for which the period for tariff 
elimination, set out in the Schedule of the United States to Annex 2-B 
of the Agreement, is greater than10 years, no relief under this 
subtitle may be provided for that article after the date on which such 
period ends.
    (c) Presidential Determination.--Import relief may be provided 
under this subtitle in the case of an Australian article after the date 
on which such relief would, but for this subsection, terminate under 
subsection (a) or (b), if the President determines that Australia has 
consented to such relief.

SEC. 315. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 313 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

    Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) 
is amended in the first sentence--
        (1) by striking ``and''; and
        (2) by inserting before the period at the end ``, and title III 
    of the United States-Australia Free Trade Agreement Implementation 
    Act''.

           Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

    (a) In General.--A request under this subtitle for the purpose of 
adjusting to the obligations of the United States under the Agreement 
may be filed with the President by an interested party. Upon the filing 
of a request, the President shall review the request to determine, from 
information presented in the request, whether to commence consideration 
of the request.
    (b) Allegation of Critical Circumstances.--An interested party 
filing a request under this section may--
        (1) allege that critical circumstances exist such that delay in 
    the provision of relief would cause damage that would be difficult 
    to repair; and
        (2) based on such allegation, request that relief be provided 
    on a provisional basis.
    (c) Publication of Request.--If the President determines that the 
request under subsection (a) provides the information necessary for the 
request to be considered, the President shall cause to be published in 
the Federal Register a notice of commencement of consideration of the 
request, and notice seeking public comments regarding the request. The 
notice shall include a summary of the request and the dates by which 
comments and rebuttals must be received.

SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

    (a) Determination.--
        (1) In general.--If a positive determination is made under 
    section 321(c), the President shall determine whether, as a result 
    of the reduction or elimination of a duty under the Agreement, an 
    Australian textile or apparel article is being imported into the 
    United States in such increased quantities, in absolute terms or 
    relative to the domestic market for that article, and under such 
    conditions as to cause serious damage, or actual threat thereof, to 
    a domestic industry producing an article that is like, or directly 
    competitive with, the imported article.
        (2) Serious damage.--In making a determination under paragraph 
    (1), the President--
            (A) shall examine the effect of increased imports on the 
        domestic industry, as reflected in changes in such relevant 
        economic factors as output, productivity, utilization of 
        capacity, inventories, market share, exports, wages, 
        employment, domestic prices, profits, and investment, none of 
        which is necessarily decisive; and
            (B) shall not consider changes in technology or consumer 
        preference as factors supporting a determination of serious 
        damage or actual threat thereof.
    (b) Provision of Relief.--
        (1) In general.--If a determination under subsection (a) is 
    affirmative, the President may provide relief from imports of the 
    article that is the subject of such determination, as described in 
    paragraph (2), to the extent that the President determines 
    necessary to remedy or prevent the serious damage and to facilitate 
    adjustment by the domestic industry to import competition.
        (2) Nature of relief.--The relief that the President is 
    authorized to provide under this subsection with respect to imports 
    of an article is an increase in the rate of duty imposed on the 
    article to a level that does not exceed the lesser of--
            (A) the column 1 general rate of duty imposed under the HTS 
        on like articles at the time the import relief is provided; or
            (B) the column 1 general rate of duty imposed under the HTS 
        on like articles on the day before the date on which the 
        Agreement enters into force.
    (c) Critical Circumstances.--
        (1) Presidential determination.--When a request filed under 
    section 321(a) contains an allegation of critical circumstances and 
    a request for provisional relief under section 321(b), the 
    President shall, not later than 60 days after the request is filed, 
    determine, on the basis of available information, whether--
            (A) there is clear evidence that--
                (i) imports from Australia have increased as the result 
            of the reduction or elimination of a customs duty under the 
            Agreement; and
                (ii) such imports are causing serious damage, or actual 
            threat thereof, to the domestic industry producing an 
            article like or directly competitive with the imported 
            article; and
            (B) delay in taking action under this subtitle would cause 
        damage to that industry that would be difficult to repair.
        (2) Extent of provisional relief.--If the determinations under 
    subparagraphs (A) and (B) of paragraph (1) are affirmative, the 
    President shall determine the extent of provisional relief that is 
    necessary to remedy or prevent the serious damage. The nature of 
    the provisional relief available shall be the relief described in 
    subsection (b)(2). Within 30 days after making affirmative 
    determinations under subparagraphs (A) and (B) of paragraph (1), 
    the President, if the President considers provisional relief tobe 
warranted, shall provide, for a period not to exceed 200 days, such 
provisional relief that the President considers necessary to remedy or 
prevent the serious damage.
        (3) Suspension of liquidation.--If provisional relief is 
    provided under paragraph (2), the President shall order the 
    suspension of liquidation of all imported articles subject to the 
    affirmative determinations under subparagraphs (A) and (B) of 
    paragraph (1) that are entered, or withdrawn from warehouse for 
    consumption, on or after the date of the determinations.
        (4) Termination of provisional relief.--
            (A) In general.--Any provisional relief implemented under 
        this subsection with respect to an imported article shall 
        terminate on the day on which--
                (i) the President makes a negative determination under 
            subsection (a) regarding serious damage or actual threat 
            thereof by imports of such article;
                (ii) action described in subsection (b) takes effect 
            with respect to such article;
                (iii) a decision by the President not to take any 
            action under subsection (b) with respect to such article 
            becomes final; or
                (iv) the President determines that, because of changed 
            circumstances, such relief is no longer warranted.
            (B) Suspension of liquidation.--Any suspension of 
        liquidation ordered under paragraph (3) with respect to an 
        imported article shall terminate on the day on which 
        provisional relief is terminated under subparagraph (A) with 
        respect to the article.
            (C) Rates of duty.--If an increase in, or the imposition 
        of, a duty that is provided under subsection (b) on an imported 
        article is different from a duty increase or imposition that 
        was provided for such an article under this subsection, then 
        the entry of any such article for which liquidation was 
        suspended under paragraph (3) shall be liquidated at whichever 
        of such rates of duty is lower.
            (D) Rate of duty if provisional relief.--If provisional 
        relief is provided under this subsection with respect to an 
        imported article and neither a duty increase nor a duty 
        imposition is provided under subsection (b) for such article, 
        the entry of any such article for which liquidation was 
        suspended under paragraph (3) shall be liquidated at the rate 
        of duty that applied before the provisional relief was 
        provided.

SEC. 323. PERIOD OF RELIEF.

    (a) In General.--Subject to subsection (b), the import relief that 
the President provides under subsections (b) and (c) of section 322 may 
not, in the aggregate, be in effect for more than 2 years.
    (b) Extension.--
        (1) In general.--Subject to paragraph (2), the President may 
    extend the effective period of any import relief provided under 
    this subtitle for a period of not more than 2 years, if the 
    President determines that--
            (A) the import relief continues to be necessary to remedy 
        or prevent serious damage and to facilitate adjustment by the 
        domestic industry to import competition; and
            (B) there is evidence that the industry is making a 
        positive adjustment to import competition.
        (2) Limitation.--Any relief provided under this subtitle, 
    including any extensions thereof, may not, in the aggregate, be in 
    effect for more than 4 years.

SEC. 324. ARTICLES EXEMPT FROM RELIEF.

     The President may not provide import relief under this subtitle 
with respect to any article if--
        (1) import relief previously has been provided under this 
    subtitle with respect to that article; or
        (2) the article is subject to import relief under--
            (A) subtitle A; or
            (B) chapter 1 of title II of the Trade Act of 1974 (19 
        U.S.C. 2251 et seq.).

SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

     When import relief under this subtitle is terminated with respect 
to an article, the rate of duty on that article shall be the rate that 
would have been in effect, but for the provision of such relief, on the 
date the relief terminates.

SEC. 326. TERMINATION OF RELIEF AUTHORITY.

     No import relief may be provided under this subtitle with respect 
to any article after the date that is 10 years after the date on which 
duties on the article are eliminated pursuant to the Agreement.

SEC. 327. COMPENSATION AUTHORITY.

     For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under this subtitle 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.

    The President may not release information which is submitted in a 
proceeding under this subtitle and which the President considers to be 
confidential business information unless the party submitting the 
confidential business information had notice, at the time of 
submission, that such information would be released, or such party 
subsequently consents to the release of the information. To the extent 
a party submits confidential business information to the President in a 
proceeding under this subtitle, the party also shall submit a 
nonconfidential version of the information, in which the confidential 
business information is summarized or, if necessary, deleted.

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

SEC. 331. FINDINGS AND ACTION ON GOODS FROM AUSTRALIA.

    (a) Effect of Imports.--If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
seq.), the Commission makes an affirmative determination (or a 
determination which the President may treat as an affirmative 
determination under such chapter by reason of section 330(d) of the 
Tariff Act of 1930), the Commission shall also find (and report to the 
President at the time such injury determination is submitted to the 
President) whether imports of the article from Australia are a 
substantial cause of serious injury or threat thereof.
    (b) Presidential Determination Regarding Australian Imports.--In 
determining the nature and extent of action to be taken under chapter 1 
of title II of the Trade Act of 1974, the President shall determine 
whether imports from Australia are a substantial cause of the serious 
injury or threat thereof found by the Commission and, if such 
determination is in the negative, may exclude from such action imports 
from Australia.

                         TITLE IV--PROCUREMENT

SEC. 401. ELIGIBLE PRODUCTS.

     Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C. 
2518(4)(A)) is amended--
        (1) by striking ``or'' at the end of clause (i);
        (2) by striking the period at the end of clause (ii) and 
    inserting ``; or''; and
        (3) by adding at the end the following new clause:
                ``(iii) a party to a free trade agreement that entered 
            into force with respect to the United States after December 
            31, 2003, and before January 2, 2005, a product or service 
            of that country or instrumentality which is covered under 
            the free trade agreement for procurement by the United 
            States.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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