108TH CONGRESS

2D SESSION H. R. 4759

AN ACT

To implement the United States-Australia Free

Trade Agreement.

108TH CONGRESS

2D SESSION H. R. 4759

AN ACT

To implement the United States-Australia Free Trade

Agreement.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘United States-Australia Free Trade Agreement Imple4 mentation Act’’.

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

6 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.
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Sec. 325. Rate after termination of import relief.

Sec. 326. Termination of relief authority.

Sec. 327. Compensation authority.

Sec. 328. Business confidential information.

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

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

TITLE IV—PROCUREMENT

Sec. 401. Eligible products.

1 SEC. 2. PURPOSES.

2 The purposes of this Act are—

3 (1) to approve and implement the Free Trade

4 Agreement between the United States and Australia,

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

6 of the Bipartisan Trade Promotion Authority Act of

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

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

10 their mutual benefit;

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

12 through the reduction and elimination of barriers to

13 trade in goods and services and to investment; and

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

16 Agreement.

17 SEC. 3. DEFINITIONS.

18 In this Act:

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

20 means the United States-Australia Free Trade
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1 Agreement approved by Congress under section

2 101(a)(1).

3 (2) HTS.—The term ‘‘HTS’’ means the Har4 monized Tariff Schedule of the United States.

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

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

7 Annex to the Agreement on Textiles and Clothing

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

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

10 TITLE I—APPROVAL OF, AND

11 GENERAL PROVISIONS RE12 LATING TO, THE AGREEMENT

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

14 AGREEMENT.

15 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

16 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of

17 the Bipartisan Trade Promotion Authority Act of 2002

18 (19 U.S.C. 3805) and section 151 of the Trade Act of

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

20 (1) the United States-Australia Free Trade

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

22 Government of Australia and submitted to Congress

23 on July 6, 2004; and
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1 (2) the statement of administrative action pro2 posed to implement the Agreement that was sub3 mitted to Congress on July 6, 2004.

4 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

5 AGREEMENT.—At such time as the President determines

6 that Australia has taken measures necessary to bring it

7 into compliance with those provisions of the Agreement

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

9 enters into force, the President is authorized to exchange

10 notes with the Government of Australia providing for the

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

12 Agreement with respect to the United States.

13 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED

14 STATES AND STATE LAW.

15 (a) RELATIONSHIP OF AGREEMENT TO UNITED

16 STATES LAW.—

17 (1) UNITED STATES LAW TO PREVAIL IN CON18 FLICT.—No provision of the Agreement, nor the ap19 plication of any such provision to any person or cir20 cumstance, which is inconsistent with any law of the

21 United States shall have effect.

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

23 be construed—

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

25 United States, or
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1 (B) to limit any authority conferred under

2 any law of the United States,

3 unless specifically provided for in this Act.

4 (b) RELATIONSHIP OF AGREEMENT TO STATE

5 LAW.—

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

7 application thereof, may be declared invalid as to

8 any person or circumstance on the ground that the

9 provision or application is inconsistent with the

10 Agreement, except in an action brought by the

11 United States for the purpose of declaring such law

12 or application invalid.

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

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

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

16 State; and

17 (B) any State law regulating or taxing the

18 business of insurance.

19 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI20 VATE REMEDIES.—No person other than the United

21 States—

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

23 under the Agreement or by virtue of congressional

24 approval thereof; or
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1 (2) may challenge, in any action brought under

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

3 department, agency, or other instrumentality of the

4 United States, any State, or any political subdivision

5 of a State, on the ground that such action or inac6 tion is inconsistent with the Agreement.

7 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF

8 ENTRY INTO FORCE AND INITIAL REGULA9 TIONS.

10 (a) IMPLEMENTING ACTIONS.—

11 (1) PROCLAMATION AUTHORITY.—After the

12 date of the enactment of this Act—

13 (A) the President may proclaim such ac14 tions, and

15 (B) other appropriate officers of the

16 United States Government may issue such reg17 ulations,

18 as may be necessary to ensure that any provision of

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

20 effect on the date the Agreement enters into force

21 is appropriately implemented on such date, but no

22 such proclamation or regulation may have an effec23 tive date earlier than the date on which the Agree24 ment enters into force.
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1 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

2 ACTIONS.—Any action proclaimed by the President

3 under the authority of this Act that is not subject

4 to the consultation and layover provisions under sec5 tion 104, may not take effect before the 15th day

6 after the date on which the text of the proclamation

7 is published in the Federal Register.

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

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

10 of proclaimed actions is waived to the extent that

11 the application of such restriction would prevent the

12 taking effect on the date the Agreement enters into

13 force of any action proclaimed under this section.

14 (b) INITIAL REGULATIONS.—Initial regulations nec15 essary or appropriate to carry out the actions required by

16 or authorized under this Act or proposed in the statement

17 of administrative action submitted under section

18 101(a)(2) to implement the Agreement shall, to the max19 imum extent feasible, be issued within 1 year after the

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

21 of any implementing action that takes effect on a date

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

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

24 maximum extent feasible, be issued within 1 year after

25 such effective date.
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1 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR,

2 AND EFFECTIVE DATE OF, PROCLAIMED AC3 TIONS.

4 If a provision of this Act provides that the implemen5 tation of an action by the President by proclamation is

6 subject to the consultation and layover requirements of

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

8 (1) the President has obtained advice regarding

9 the proposed action from—

10 (A) the appropriate advisory committees

11 established under section 135 of the Trade Act

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

13 (B) the United States International Trade

14 Commission;

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

16 Committee on Finance of the Senate and the Com17 mittee on Ways and Means of the House of Rep18 resentatives that sets forth—

19 (A) the action proposed to be proclaimed

20 and the reasons therefor; and

21 (B) the advice obtained under paragraph

22 (1);

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

24 the first day on which the requirements set forth in

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

26 and
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1 (4) the President has consulted with such Com2 mittees regarding the proposed action during the pe3 riod referred to in paragraph (3).

4 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO5 CEEDINGS.

6 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—

7 The President is authorized to establish or designate with8 in the Department of Commerce an office that shall be

9 responsible for providing administrative assistance to pan10 els established under chapter 21 of the Agreement. The

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

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

13 (b) AUTHORIZATION OF APPROPRIATIONS.—There

14 are authorized to be appropriated for each fiscal year after

15 fiscal year 2004 to the Department of Commerce such

16 sums as may be necessary for the establishment and oper17 ations of the office under subsection (a) and for the pay18 ment of the United States share of the expenses of panels

19 established under chapter 21 of the Agreement.

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

21 (a) EFFECTIVE DATES.—Except as provided in sub22 section (b), the provisions of this Act and the amendments

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

24 Agreement enters into force.
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1 (b) EXCEPTIONS.—Sections 1 through 3 and this

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

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

4 date on which the Agreement terminates, the provisions

5 of this Act (other than this subsection) and the amend6 ments made by this Act shall cease to be effective.

7 TITLE II—CUSTOMS PROVISIONS

8 SEC. 201. TARIFF MODIFICATIONS.

9 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

10 AGREEMENT.—The President may proclaim—

11 (1) such modifications or continuation of any

12 duty,

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

14 treatment, or

15 (3) such additional duties,

16 as the President determines to be necessary or appropriate

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

18 2–B of the Agreement.

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

20 consultation and layover provisions of section 104, the

21 President may proclaim—

22 (1) such modifications or continuation of any

23 duty,

24 (2) such modifications as the United States

25 may agree to with Australia regarding the staging of
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1 any duty treatment set forth in Annex 2–B of the

2 Agreement,

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

4 treatment, or

5 (4) such additional duties,

6 as the President determines to be necessary or appropriate

7 to maintain the general level of reciprocal and mutually

8 advantageous concessions with respect to Australia pro9 vided for by the Agreement.

10 (c) CONVERSION TO AD VALOREM RATES.—For pur11 poses of subsections (a) and (b), with respect to any good

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

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

14 compound rate of duty, the President may substitute for

15 the base rate an ad valorem rate that the President deter16 mines to be equivalent to the base rate.

17 SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL18 TURAL GOODS.

19 (a) GENERAL PROVISIONS.—

20 (1) APPLICABILITY OF SUBSECTION.—This sub21 section applies to additional duties assessed under

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

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

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

25 term ‘‘applicable NTR (MFN) rate of duty’’ means,
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1 with respect to a safeguard good, a rate of duty that

2 is the lesser of—

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

4 would have been imposed under the HTS on the

5 same safeguard good entered, without a claim

6 for preferential treatment, at the time the addi7 tional duty is imposed under subsection (b), (c),

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

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

10 would have been imposed under the HTS on the

11 same safeguard good entered, without a claim

12 for preferential treatment, on December 31,

13 2004.

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

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

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

17 the rate of duty for that good set out in the Sched18 ule of the United States to Annex 2–B of the Agree19 ment.

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

21 term ‘‘safeguard good’’ means—

22 (A) a horticulture safeguard good de23 scribed subsection (b)(1)(B); or

24 (B) a beef safeguard good described in

25 subsection (c)(1) or subsection (d)(1)(A).
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1 (5) EXCEPTIONS.—No additional duty shall be

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

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

4 relief under—

5 (A) subtitle A of title III of this Act; or

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

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

8 (6) TERMINATION.—The assessment of an ad9 ditional duty on a good under subsection (b) or (c),

10 whichever is applicable, shall cease to apply to that

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

12 be provided to that good under the Schedule of the

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

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

15 date on which the Secretary of the Treasury assesses

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

17 (c), or (d), the Secretary shall notify the Govern18 ment of Australia in writing of such action and shall

19 provide to that Government data supporting the as20 sessment of the additional duty.

21 (b) ADDITIONAL DUTIES ON HORTICULTURE SAFE22 GUARD GOODS.—

23 (1) DEFINITIONS.—In this subsection:

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

25 free on board, regardless of the mode of trans-
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1 portation, at the point of direct shipment by the

2 seller to the buyer.

3 (B) HORTICULTURE SAFEGUARD GOOD.—

4 The term ‘‘horticulture safeguard good’’ means

5 a good—

6 (i) that qualifies as an originating

7 good under section 203;

8 (ii) that is included in the United

9 States Horticulture Safeguard List set

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

11 (iii) for which a claim for preferential

12 treatment under the Agreement has been

13 made.

14 (C) UNIT IMPORT PRICE.—The ‘‘unit im15 port price’’ of a good means the price of the

16 good determined on the basis of the F.O.B. im17 port price of the good, expressed in either dol18 lars per kilogram or dollars per liter, whichever

19 unit of measure is indicated for the good in the

20 United States Horticulture Safeguard List set

21 forth in Annex 3–A of the Agreement.

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

23 for a good is the trigger price indicated for that

24 good in the United States Horticulture Safe-
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1 guard List set forth in Annex 3–A of the

2 Agreement or any amendment thereto.

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

4 duty proclaimed under subsection (a) or (b) of sec5 tion 201, and subject to subsection (a) of this sec6 tion, the Secretary of the Treasury shall assess a

7 duty on a horticulture safeguard good, in the

8 amount determined under paragraph (3), if the Sec9 retary determines that the unit import price of the

10 good when it enters the United States is less than

11 the trigger price for that good.

12 (3) CALCULATION OF ADDITIONAL DUTY.—The

13 additional duty assessed under this subsection on a

14 horticulture safeguard good shall be an amount de15 termined in accordance with the following table:

If the excess of the trigger price over

the unit import price is:

The additional duty is an

amount equal to:

Not more than 10 percent of the trigger price 0.

More than 10 percent but not more than 40

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

over the schedule rate of duty.

More than 40 percent but not more than 60

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

More than 60 percent but not more than 75

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

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

16 (c) ADDITIONAL DUTIES ON BEEF SAFEGUARD

17 GOODS BASED ON QUANTITY OF IMPORTS.—

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

19 ‘‘beef safeguard good’’ means a good—
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1 (A) that qualifies as an originating good

2 under section 203;

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

4 I of the General Notes to the Schedule of the

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

6 and

7 (C) for which a claim for preferential

8 treatment under the Agreement has been made.

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

10 duty proclaimed under subsection (a) or (b) of sec11 tion 201, and subject to subsection (a) of this sec12 tion and paragraphs (4) and (5) of this subsection,

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

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

15 beef safeguard good imported into the United States

16 in a calendar year if the Secretary determines that,

17 prior to such importation, the total volume of beef

18 safeguard goods imported into the United States in

19 that calendar year is equal to or greater than 110

20 percent of the volume set out for beef safeguard

21 goods in the corresponding year in the table con22 tained in paragraph 3(a) of Annex I of the General

23 Notes to the Schedule of the United States to Annex

24 2–B of the Agreement. For purposes of this sub25 section, the years 1 through 19 set out in the table
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1 contained in paragraph 3(a) of such Annex I cor2 respond to the calendar years 2005 through 2023.

3 (3) CALCULATION OF ADDITIONAL DUTY.—The

4 additional duty on a beef safeguard good under this

5 subsection shall be an amount equal to 75 percent

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

7 duty over the schedule rate of duty.

8 (4) WAIVER.—

9 (A) IN GENERAL.—The United States

10 Trade Representative is authorized to waive the

11 application of this subsection, if the Trade Rep12 resentative determines that extraordinary mar13 ket conditions demonstrate that the waiver

14 would be in the national interest of the United

15 States, after the requirements of subparagraph

16 (B) are met.

17 (B) NOTICE AND CONSULTATIONS.—

18 Promptly after receiving a request for a waiver

19 of this subsection, the Trade Representative

20 shall notify the Committee on Ways and Means

21 of the House of Representatives and the Com22 mittee on Finance of the Senate, and may make

23 the determination provided for in subparagraph

24 (A) only after consulting with—
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1 (i) appropriate private sector advisory

2 committees established under section 135

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

4 2155); and

5 (ii) the Committee on Ways and

6 Means of the House of Representatives

7 and the Committee on Finance of the Sen8 ate regarding—

9 (I) the reasons supporting the

10 determination to grant the waiver;

11 and

12 (II) the proposed scope and dura13 tion of the waiver.

14 (C) NOTIFICATION OF THE SEC15 RETARY OF THE TREASURY AND PUBLICA16 TION.—Upon granting a waiver under this

17 paragraph, the Trade Representative shall

18 promptly notify the Secretary of the Treas19 ury of the period in which the waiver will

20 be in effect, and shall publish notice of the

21 waiver in the Federal Register.

22 (5) EFFECTIVE DATES.—This subsection takes

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

24 after December 31, 2022.
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1 (d) ADDITIONAL DUTIES ON BEEF SAFEGUARD

2 GOODS BASED ON PRICE.—

3 (1) DEFINITIONS.—In this subsection:

4 (A) BEEF SAFEGUARD GOOD.—The term

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

6 (i) that qualifies as an originating

7 good under section 203;

8 (ii) that is classified under subheading

9 0201.10.50, 0201.20.80, 0201.30.80,

10 0202.10.50, 0202.20.80, or 0202.30.80 of

11 the HTS; and

12 (iii) for which a claim for preferential

13 treatment under the Agreement has been

14 made.

15 (B) CALENDAR QUARTER.—

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

17 quarter’’ means any 3-month period begin18 ning on January 1, April 1, July 1, or Oc19 tober 1 of a calendar year.

20 (ii) FIRST CALENDAR QUARTER.—The

21 term ‘‘first calendar quarter’’ means the

22 calendar quarter beginning on January 1.

23 (iii) SECOND CALENDAR QUARTER.—

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

2 April 1.

3 (iv) THIRD CALENDAR QUARTER.—

4 The term ‘‘third calendar quarter’’ means

5 the calendar quarter beginning on July 1.

6 (v) FOURTH CALENDAR QUARTER.—

7 The term ‘‘fourth calendar quarter’’ means

8 the calendar quarter beginning on October

9 1.

10 (C) MONTHLY AVERAGE INDEX PRICE.—

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

12 the simple average, as determined by the Sec13 retary of Agriculture, for a calendar month of

14 the daily average index prices for Wholesale

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

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

17 simple average is reported by the Agricultural

18 Marketing Service of the Department of Agri19 culture in Report LM–XB459 or any equivalent

20 report.

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

22 ‘‘24-month trigger price’’ means, with respect

23 to any calendar month, the average of the

24 monthly average index prices for the 24 pre25 ceding calendar months, multiplied by 0.935.
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1 (2) ADDITIONAL DUTIES.—In addition to any

2 duty proclaimed under subsection (a) or (b) of sec3 tion 201, and subject to subsection (a) of this sec4 tion and paragraphs (4) through (6) of this sub5 section, the Secretary of the Treasury shall assess a

6 duty, in the amount determined under paragraph

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

8 United States if—

9 (A)(i) the good is imported in the first cal10 endar quarter, second calendar quarter, or third

11 calendar quarter of a calendar year; and

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

13 2 calendar months of the preceding calendar

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

15 or

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

17 calendar quarter of a calendar year; and

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

19 any 2 calendar months of the preceding cal20 endar quarter, is less than the 24-month trigger

21 price; or

22 (II) the monthly average index price, in

23 any of the 4 calendar months preceding Janu24 ary 1 of the succeeding calendar year, is less

25 than the 24-month trigger price.
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1 (3) CALCULATION OF ADDITIONAL DUTY.—The

2 additional duty on a beef safeguard good under this

3 subsection shall be an amount equal to 65 percent

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

5 good.

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

7 assessed under this subsection on a beef safeguard

8 good imported into the United States in a calendar

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

10 the total quantity of beef safeguard goods imported

11 into the United States in that calendar year is equal

12 to or greater than the sum of—

13 (A) the quantity of goods of Australia eli14 gible to enter the United States in that year

15 specified in Additional United States Note 3 to

16 Chapter 2 of the HTS; and

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

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

19 a quantity that is 0.6 percent greater than the

20 quantity provided for in the preceding year

21 under this subparagraph.

22 (5) WAIVER.—

23 (A) IN GENERAL.—The United States

24 Trade Representative is authorized to waive the

25 application of this subsection, if the Trade Rep-
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1 resentative determines that extraordinary mar2 ket conditions demonstrate that the waiver

3 would be in the national interest of the United

4 States, after the requirements of subparagraph

5 (B) are met.

6 (B) NOTICE AND CONSULTATIONS.—

7 Promptly after receiving a request for a waiver

8 of this subsection, the Trade Representative

9 shall notify the Committee on Ways and Means

10 of the House of Representatives and the Com11 mittee on Finance of the Senate, and may make

12 the determination provided for in subparagraph

13 (A) only after consulting with—

14 (i) appropriate private sector advisory

15 committees established under section 135

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

17 2155); and

18 (ii) the Committee on Ways and

19 Means of the House of Representatives

20 and the Committee on Finance of the Sen21 ate regarding—

22 (I) the reasons supporting the

23 determination to grant the waiver;

24 and
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1 (II) the proposed scope and dura2 tion of the waiver.

3 (C) NOTIFICATION OF THE SEC4 RETARY OF THE TREASURY AND PUBLICA5 TION.—Upon granting a waiver under this

6 paragraph, the Trade Representative shall

7 promptly notify the Secretary of the Treas8 ury of the period in which the waiver will

9 be in effect, and shall publish notice of the

10 waiver in the Federal Register.

11 (6) EFFECTIVE DATE.—This subsection takes

12 effect on January 1, 2023.

13 SEC. 203. RULES OF ORIGIN.

14 (a) APPLICATION AND INTERPRETATION.—In this

15 section:

16 (1) TARIFF CLASSIFICATION.—The basis for

17 any tariff classification is the HTS.

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

19 section there is a reference to a heading or sub20 heading, such reference shall be a reference to a

21 heading or subheading of the HTS.

22 (3) COST OR VALUE.—Any cost or value re23 ferred to in this section shall be recorded and main24 tained in accordance with the generally accepted ac25 counting principles applicable in the territory of the
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1 country in which the good is produced (whether Aus2 tralia or the United States).

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

4 and for purposes of implementing the preferential treat5 ment provided for under the Agreement, a good is an orig6 inating good if—

7 (1) the good is a good wholly obtained or pro8 duced entirely in the territory of Australia, the

9 United States, or both;

10 (2) the good—

11 (A) is produced entirely in the territory of

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

13 (i) each of the nonoriginating mate14 rials used in the production of the good

15 undergoes an applicable change in tariff

16 classification specified in Annex 4–A or

17 Annex 5–A of the Agreement;

18 (ii) the good otherwise satisfies any

19 applicable regional value-content require20 ment referred to in Annex 5–A of the

21 Agreement; or

22 (iii) the good meets any other require23 ments specified in Annex 4–A or Annex 5–

24 A of the Agreement; and
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1 (B) the good satisfies all other applicable

2 requirements of this section;

3 (3) the good is produced entirely in the terri4 tory of Australia, the United States, or both, exclu5 sively from materials described in paragraph (1) or

6 (2); or

7 (4) the good otherwise qualifies as an origi8 nating good under this section.

9 (c) DE MINIMIS AMOUNTS OF NONORIGINATING MA10 TERIALS.—

11 (1) IN GENERAL.—Except as provided in para12 graphs (2) and (3), a good that does not undergo a

13 change in tariff classification pursuant to Annex 5–

14 A of the Agreement is an originating good if—

15 (A) the value of all nonoriginating mate16 rials that—

17 (i) are used in the production of the

18 good, and

19 (ii) do not undergo the required

20 change in tariff classification,

21 does not exceed 10 percent of the adjusted

22 value of the good;

23 (B) the good meets all other applicable re24 quirements of this section; and
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1 (C) the value of such nonoriginating mate2 rials is included in the value of nonoriginating

3 materials for any applicable regional value-con4 tent requirement for the good.

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

6 apply to the following:

7 (A) A nonoriginating material provided for

8 in chapter 4 of the HTS or in subheading

9 1901.90 that is used in the production of a

10 good provided for in chapter 4 of the HTS.

11 (B) A nonoriginating material provided for

12 in chapter 4 of the HTS or in subheading

13 1901.90 that is used in the production of a

14 good provided for in subheading 1901.10,

15 1901.20, or 1901.90, heading 2105, or sub16 heading 2106.90, 2202.90, or 2309.90.

17 (C) A nonoriginating material provided for

18 in heading 0805 or any of subheadings 2009.11

19 through 2009.39 that is used in the production

20 of a good provided for in any of subheadings

21 2009.11 through 2009.39, or in subheading

22 2106.90 or 2202.90.

23 (D) A nonoriginating material provided for

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

25 production of a good provided for in any of
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1 headings 1501.00.00 through 1508, or in head2 ing 1512, 1514, or 1515.

3 (E) A nonoriginating material provided for

4 in heading 1701 that is used in the production

5 of a good provided for in any of headings 1701

6 through 1703.

7 (F) A nonoriginating material provided for

8 in chapter 17 of the HTS or heading

9 1805.00.00 that is used in the production of a

10 good provided for in subheading 1806.10.

11 (G) A nonoriginating material provided for

12 in any of headings 2203 through 2208 that is

13 used in the production of a good provided for

14 in heading 2207 or 2208.

15 (H) A nonoriginating material used in the

16 production of a good provided for in any of

17 chapters 1 through 21 of the HTS unless the

18 nonoriginating material is provided for in a dif19 ferent subheading than the good for which ori20 gin is being determined under this section.

21 (3) TEXTILE AND APPAREL GOODS.—

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

23 subparagraph (B), a textile or apparel good

24 that is not an originating good because certain

25 fibers or yarns used in the production of the
30

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1 component of the good that determines the tar2 iff classification of the good do not undergo an

3 applicable change in tariff classification set out

4 in Annex 4–A of the Agreement shall be consid5 ered to be an originating good if the total

6 weight of all such fibers or yarns in that com7 ponent is not more than 7 percent of the total

8 weight of that component.

9 (B) CERTAIN TEXTILE OR APPAREL

10 GOODS.—A textile or apparel good containing

11 elastomeric yarns in the component of the good

12 that determines the tariff classification of the

13 good shall be considered to be an originating

14 good only if such yarns are wholly formed in

15 the territory of Australia or the United States.

16 (C) YARN, FABRIC, OR FIBER.—For pur17 poses of this paragraph, in the case of a textile

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

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

20 determines the tariff classification of the good’’

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

22 group of fibers.

23 (d) ACCUMULATION.—

24 (1) ORIGINATING MATERIALS USED IN PRODUC25 TION OF GOODS OF OTHER COUNTRY.—Originating
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1 materials from the territory of Australia or the

2 United States that are used in the production of a

3 good in the territory of the other country shall be

4 considered to originate in the territory of the other

5 country.

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

7 produced in the territory of Australia, the United

8 States, or both, by 1 or more producers, is an origi9 nating good if the good satisfies the requirements of

10 subsection (b) and all other applicable requirements

11 of this section.

12 (e) REGIONAL VALUE-CONTENT.—

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

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

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

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

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

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

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

20 paragraph (3).

21 (2) BUILD-DOWN METHOD.—

22 (A) IN GENERAL.—The regional value-con23 tent of a good may be calculated on the basis

24 of the following build-down method:

AV–VNM
32

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RVC = ———— × 100

AV

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

2 (i) RVC.—The term ‘‘RVC’’ means

3 the regional value-content of the good, ex4 pressed as a percentage.

5 (ii) AV.—The term ‘‘AV’’ means the

6 adjusted value of the good.

7 (iii) VNM.—The term ‘‘VNM’’ means

8 the value of nonoriginating materials that

9 are acquired and used by the producer in

10 the production of the good, but does not

11 include the value of a material that is self12 produced.

13 (3) BUILD-UP METHOD.—

14 (A) IN GENERAL.—The regional value-con15 tent of a good may be calculated on the basis

16 of the following build-up method:

VOM

RVC = ———— × 100

AV

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

18 (i) RVC.—The term ‘‘RVC’’ means

19 the regional value-content of the good, ex20 pressed as a percentage.
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1 (ii) AV.—The term ‘‘AV’’ means the

2 adjusted value of the good.

3 (iii) VOM.—The term ‘‘VOM’’ means

4 the value of originating materials that are

5 acquired or self-produced, and used by the

6 producer in the production of the good.

7 (4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE

8 GOODS.—

9 (A) IN GENERAL.—For purposes of sub10 section (b)(2), the regional value-content of an

11 automotive good referred to in Annex 5–A of

12 the Agreement shall be calculated by the im13 porter, exporter, or producer of the good, on the

14 basis of the following net cost method:

NC–VNM

RVC = ———— × 100

NC

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

16 (i) AUTOMOTIVE GOOD.—The term

17 ‘‘automotive good’’ means a good provided

18 for in any of subheadings 8407.31 through

19 8407.34, subheading 8408.20, heading

20 8409, or in any of headings 8701 through

21 8708.
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1 (ii) RVC.—The term ‘‘RVC’’ means

2 the regional value-content of the auto3 motive good, expressed as a percentage.

4 (iii) NC.—The term ‘‘NC’’ means the

5 net cost of the automotive good.

6 (iv) VNM.—The term ‘‘VNM’’ means

7 the value of nonoriginating materials that

8 are acquired and used by the producer in

9 the production of the automotive good, but

10 does not include the value of a material

11 that is self-produced.

12 (C) MOTOR VEHICLES.—

13 (i) BASIS OF CALCULATION.—For

14 purposes of determining the regional value15 content under subparagraph (A) for an

16 automotive good that is a motor vehicle

17 provided for in any of headings 8701

18 through 8705, an importer, exporter, or

19 producer may average the amounts cal20 culated under the formula contained in

21 subparagraph (A), over the producer’s fis22 cal year—

23 (I) with respect to all motor vehi24 cles in any one of the categories de25 scribed in clause (ii); or
35

•HR 4759 EH

1 (II) with respect to all motor ve2 hicles in any such category that are

3 exported to the territory of the United

4 States or Australia.

5 (ii) CATEGORIES.—A category is de6 scribed in this clause if it—

7 (I) is the same model line of

8 motor vehicles, is in the same class of

9 vehicles, and is produced in the same

10 plant in the territory of Australia or

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

13 value-content is being calculated;

14 (II) is the same class of motor

15 vehicles, and is produced in the same

16 plant in the territory of Australia or

17 the United States, as the good de18 scribed in clause (i) for which regional

19 value-content is being calculated; or

20 (III) is the same model line of

21 motor vehicles produced in either the

22 territory of Australia or the United

23 States, as the good described in clause

24 (i) for which regional value-content is

25 being calculated.
36

•HR 4759 EH

1 (D) OTHER AUTOMOTIVE GOODS.—For

2 purposes of determining the regional value-con3 tent under subparagraph (A) for automotive

4 goods provided for in any of subheadings

5 8407.31 through 8407.34, in subheading

6 8408.20, or in heading 8409, 8706, 8707, or

7 8708, that are produced in the same plant, an

8 importer, exporter, or producer may—

9 (i) average the amounts calculated

10 under the formula contained in subpara11 graph (A) over—

12 (I) the fiscal year of the motor

13 vehicle producer to whom the auto14 motive goods are sold,

15 (II) any quarter or month, or

16 (III) its own fiscal year,

17 if the goods were produced during the fis18 cal year, quarter, or month that is the

19 basis for the calculation;

20 (ii) determine the average referred to

21 in clause (i) separately for such goods sold

22 to one or more motor vehicle producers; or

23 (iii) make a separate determination

24 under clause (i) or (ii) for automotive
37

•HR 4759 EH

1 goods that are exported to the territory of

2 the United States or Australia.

3 (E) CALCULATING NET COST.—Consistent

4 with the provisions regarding allocation of costs

5 set out in generally accepted accounting prin6 ciples, the net cost of the automotive good

7 under subparagraph (B) shall be calculated

8 by—

9 (i) calculating the total cost incurred

10 with respect to all goods produced by the

11 producer of the automotive good, sub12 tracting any sales promotion, marketing

13 and after-sales service costs, royalties,

14 shipping and packing costs, and nonallow15 able interest costs that are included in the

16 total cost of all such goods, and then rea17 sonably allocating the resulting net cost of

18 those goods to the automotive good;

19 (ii) calculating the total cost incurred

20 with respect to all goods produced by that

21 producer, reasonably allocating the total

22 cost to the automotive good, and then sub23 tracting any sales promotion, marketing

24 and after-sales service costs, royalties,

25 shipping and packing costs, and nonallow-
38

•HR 4759 EH

1 able interest costs that are included in the

2 portion of the total cost allocated to the

3 automotive good; or

4 (iii) reasonably allocating each cost

5 that forms part of the total cost incurred

6 with respect to the automotive good so that

7 the aggregate of these costs does not in8 clude any sales promotion, marketing and

9 after-sales service costs, royalties, shipping

10 and packing costs, or nonallowable interest

11 costs.

12 (f) VALUE OF MATERIALS.—

13 (1) IN GENERAL.—For the purpose of calcu14 lating the regional value-content of a good under

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

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

17 material is—

18 (A) in the case of a material that is im19 ported by the producer of the good, the ad20 justed value of the material;

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

22 the territory in which the good is produced, the

23 value, determined in accordance with Articles 1

24 through 8, article 15, and the corresponding in25 terpretive notes of the Agreement on Implemen-
39

•HR 4759 EH

1 tation of Article VII of the General Agreement

2 on Tariffs and Trade 1994 referred to in sec3 tion 101(d)(8) of the Uruguay Round Agree4 ments Act, as set forth in regulations promul5 gated by the Secretary of the Treasury pro6 viding for the application of such Articles in the

7 absence of an importation; or

8 (C) in the case of a material that is self9 produced, the sum of—

10 (i) all expenses incurred in the pro11 duction of the material, including general

12 expenses; and

13 (ii) an amount for profit equivalent to

14 the profit added in the normal course of

15 trade.

16 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

17 MATERIALS.—

18 (A) ORIGINATING MATERIAL.—The fol19 lowing expenses, if not included in the value of

20 an originating material calculated under para21 graph (1), may be added to the value of the

22 originating material:

23 (i) The costs of freight, insurance,

24 packing, and all other costs incurred in

25 transporting the material within or be-
40

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1 tween the territory of Australia, the United

2 States, or both, to the location of the pro3 ducer.

4 (ii) Duties, taxes, and customs broker5 age fees on the material paid in the terri6 tory of Australia, the United States, or

7 both, other than duties or taxes that are

8 waived, refunded, refundable, or otherwise

9 recoverable, including credit against duty

10 or tax paid or payable.

11 (iii) The cost of waste and spoilage re12 sulting from the use of the material in the

13 production of the good, less the value of

14 renewable scrap or byproducts.

15 (B) NONORIGINATING MATERIAL.—The

16 following expenses, if included in the value of a

17 nonoriginating material calculated under para18 graph (1), may be deducted from the value of

19 the nonoriginating material:

20 (i) The costs of freight, insurance,

21 packing, and all other costs incurred in

22 transporting the material within or be23 tween the territory of Australia, the United

24 States, or both, to the location of the pro25 ducer.
41

•HR 4759 EH

1 (ii) Duties, taxes, and customs broker2 age fees on the material paid in the terri3 tory of Australia, the United States, or

4 both, other than duties or taxes that are

5 waived, refunded, refundable, or otherwise

6 recoverable, including credit against duty

7 or tax paid or payable.

8 (iii) The cost of waste and spoilage re9 sulting from the use of the material in the

10 production of the good, less the value of

11 renewable scrap or byproducts.

12 (iv) The cost of processing incurred in

13 the territory of Australia, the United

14 States, or both, in the production of the

15 nonoriginating material.

16 (v) The cost of originating materials

17 used in the production of the nonorigi18 nating material in the territory of Aus19 tralia, the United States, or both.

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

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

22 accessories, spare parts, or tools delivered with a

23 good that form part of the good’s standard acces24 sories, spare parts, or tools shall—
42

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1 (A) be treated as originating goods if the

2 good is an originating good; and

3 (B) be disregarded in determining whether

4 all the nonoriginating materials used in the pro5 duction of the good undergo the applicable

6 change in tariff classification set out in Annex

7 5–A of the Agreement.

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

9 only if—

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

11 are not invoiced separately from the good;

12 (B) the quantities and value of the acces13 sories, spare parts, or tools are customary for

14 the good; and

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

16 value-content requirement, the value of the ac17 cessories, spare parts, or tools is taken into ac18 count as originating or nonoriginating mate19 rials, as the case may be, in calculating the re20 gional value-content of the good.

21 (h) FUNGIBLE GOODS AND MATERIALS.—

22 (1) IN GENERAL.—

23 (A) CLAIM FOR PREFERENTIAL TREAT24 MENT.—A person claiming that a fungible good

25 or fungible material is an originating good may
43

•HR 4759 EH

1 base the claim either on the physical segrega2 tion of the fungible good or fungible material or

3 by using an inventory management method with

4 respect to the fungible good or fungible mate5 rial.

6 (B) INVENTORY MANAGEMENT METHOD.—

7 In this subsection, the term ‘‘inventory manage8 ment method’’ means—

9 (i) averaging;

10 (ii) ‘‘last-in, first-out’’;

11 (iii) ‘‘first-in, first-out’’; or

12 (iv) any other method—

13 (I) recognized in the generally

14 accepted accounting principles of the

15 country in which the production is

16 performed (whether Australia or the

17 United States); or

18 (II) otherwise accepted by that

19 country.

20 (2) ELECTION OF INVENTORY METHOD.—A

21 person selecting an inventory management method

22 under paragraph (1) for a particular fungible good

23 or fungible material shall continue to use that meth24 od for that fungible good or fungible material

25 throughout the fiscal year of that person.
44

•HR 4759 EH

1 (i) PACKAGING MATERIALS AND CONTAINERS FOR

2 RETAIL SALE.—Packaging materials and containers in

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

4 the good, shall be disregarded in determining whether all

5 the nonoriginating materials used in the production of the

6 good undergo the applicable change in tariff classification

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

8 and, if the good is subject to a regional value-content re9 quirement, the value of such packaging materials and con10 tainers shall be taken into account as originating or non11 originating materials, as the case may be, in calculating

12 the regional value-content of the good.

13 (j) PACKING MATERIALS AND CONTAINERS FOR

14 SHIPMENT.—Packing materials and containers for ship15 ment shall be disregarded in determining whether—

16 (1) the nonoriginating materials used in the

17 production of a good undergo the applicable change

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

19 Annex 5–A of the Agreement; and

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

21 requirement.

22 (k) INDIRECT MATERIALS.—An indirect material

23 shall be treated as an originating material without regard

24 to where it is produced, and its value shall be the cost
45

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1 registered in the accounting records of the producer of the

2 good.

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

4 undergone production necessary to qualify as an origi5 nating good under subsection (b) shall not be considered

6 to be an originating good if, subsequent to that produc7 tion, the good undergoes further production or any other

8 operation outside the territory of Australia or the United

9 States, other than unloading, reloading, or any other oper10 ation necessary to preserve the good in good condition or

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

12 United States.

13 (m) TEXTILE AND APPAREL GOODS CLASSIFIABLE

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

15 set forth in Annex 4–A of the Agreement, textile or ap16 parel goods classifiable as goods put up in sets for retail

17 sale as provided for in General Rule of Interpretation 3

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

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

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

21 does not exceed 10 percent of the value of the set deter22 mined for purposes of assessing customs duties.

23 (n) DEFINITIONS.—In this section:

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

25 value’’ means the value determined under Articles 1
46

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1 through 8, Article 15, and the corresponding inter2 pretive notes of the Agreement on Implementation of

3 Article VII of the General Agreement on Tariffs and

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

5 Uruguay Round Agreements Act, adjusted to ex6 clude any costs, charges, or expenses incurred for

7 transportation, insurance, and related services inci8 dent to the international shipment of the good from

9 the country of exportation to the place of importa10 tion.

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

12 ‘‘class of motor vehicles’’ means any one of the fol13 lowing categories of motor vehicles:

14 (A) Motor vehicles provided for in sub15 heading 8701.20, 8704.10, 8704.22, 8704.23,

16 8704.32, or 8704.90, or heading 8705 or 8706,

17 or motor vehicles for the transport of 16 or

18 more persons provided for in subheading

19 8702.10 or 8702.90.

20 (B) Motor vehicles provided for in sub21 heading 8701.10 or any of subheadings

22 8701.30 through 8701.90.

23 (C) Motor vehicles for the transport of 15

24 or fewer persons provided for in subheading
47

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1 8702.10 or 8702.90, or motor vehicles provided

2 for in subheading 8704.21 or 8704.31.

3 (D) Motor vehicles provided for in any of

4 subheadings 8703.21 through 8703.90.

5 (3) FUNGIBLE GOOD OR FUNGIBLE MATE6 RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate7 rial’’ means a good or material, as the case may be,

8 that is interchangeable with another good or mate9 rial for commercial purposes and the properties of

10 which are essentially identical to such other good or

11 material.

12 (4) GENERALLY ACCEPTED ACCOUNTING PRIN13 CIPLES.—The term ‘‘generally accepted accounting

14 principles’’ means the recognized consensus or sub15 stantial authoritative support in the territory of Aus16 tralia or the United States, as the case may be, with

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

18 assets, and liabilities, the disclosure of information,

19 and the preparation of financial statements. These

20 standards may encompass broad guidelines of gen21 eral application as well as detailed standards, prac22 tices, and procedures.

23 (5) GOOD WHOLLY OBTAINED OR PRODUCED

24 ENTIRELY IN THE TERRITORY OF AUSTRALIA, THE

25 UNITED STATES, OR BOTH.—The term ‘‘good wholly
48

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1 obtained or produced entirely in the territory of Aus2 tralia, the United States, or both’’ means—

3 (A) a mineral good extracted in the terri4 tory of Australia, the United States, or both;

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

6 provided for in the HTS, harvested in the terri7 tory of Australia, the United States, or both;

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

9 territory of Australia, the United States, or

10 both;

11 (D) a good obtained from hunting, trap12 ping, fishing, or aquaculture conducted in the

13 territory of Australia, the United States, or

14 both;

15 (E) a good (fish, shellfish, and other ma16 rine life) taken from the sea by vessels reg17 istered or recorded with Australia or the United

18 States and flying the flag of that country;

19 (F) a good produced exclusively from prod20 ucts referred to in subparagraph (E) on board

21 factory ships registered or recorded with Aus22 tralia or the United States and flying the flag

23 of that country;

24 (G) a good taken by Australia or the

25 United States or a person of Australia or the
49

•HR 4759 EH

1 United States from the seabed or beneath the

2 seabed outside territorial waters, if Australia or

3 the United States has rights to exploit such

4 seabed;

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

6 good is obtained by Australia or the United

7 States or a person of Australia or the United

8 States and not processed in the territory of a

9 country other than Australia or the United

10 States;

11 (I) waste and scrap derived from—

12 (i) production in the territory of Aus13 tralia, the United States, or both; or

14 (ii) used goods collected in the terri15 tory of Australia, the United States, or

16 both, if such goods are fit only for the re17 covery of raw materials;

18 (J) a recovered good derived in the terri19 tory of Australia or the United States from

20 goods that have passed their life expectancy, or

21 are no longer usable due to defects, and utilized

22 in the territory of that country in the produc23 tion of remanufactured goods; or
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1 (K) a good produced in the territory of

2 Australia, the United States, or both,

3 exclusively—

4 (i) from goods referred to in any of

5 subparagraphs (A) through (I), or

6 (ii) from the derivatives of goods re7 ferred to in clause (i),

8 at any stage of production.

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

10 material’’ means a good used in the production, test11 ing, or inspection of a good but not physically incor12 porated into the good, or a good used in the mainte13 nance of buildings or the operation of equipment as14 sociated with the production of a good, including—

15 (A) fuel and energy;

16 (B) tools, dies, and molds;

17 (C) spare parts and materials used in the

18 maintenance of equipment or buildings;

19 (D) lubricants, greases, compounding ma20 terials, and other materials used in production

21 or used to operate equipment or buildings;

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

23 safety equipment, and supplies;

24 (F) equipment, devices, and supplies used

25 for testing or inspecting the good;
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1 (G) catalysts and solvents; and

2 (H) any other goods that are not incor3 porated into the good but the use of which in

4 the production of the good can reasonably be

5 demonstrated to be a part of that production.

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

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

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

9 term ‘‘material that is self-produced’’ means an orig10 inating material that is produced by a producer of

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

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

13 means a group of motor vehicles having the same

14 platform or model name.

15 (10) NONALLOWABLE INTEREST COSTS.—The

16 term ‘‘nonallowable interest costs’’ means interest

17 costs incurred by a producer that exceed 700 basis

18 points above the applicable official interest rate for

19 comparable maturities of the country (whether Aus20 tralia or the United States).

21 (11) NONORIGINATING MATERIAL.—The term

22 ‘‘nonoriginating material’’ means a material that

23 does not qualify as originating under this section.

24 (12) PREFERENTIAL TREATMENT.—The term

25 ‘‘preferential treatment’’ means the customs duty
52

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1 rate, and the treatment under article 2.12 of the

2 Agreement, that are applicable to an originating

3 good pursuant to the Agreement.

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

5 a person who engages in the production of a good

6 in the territory of Australia or the United States.

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

8 means growing, raising, mining, harvesting, fishing,

9 trapping, hunting, manufacturing, processing, as10 sembling, or disassembling a good.

11 (15) REASONABLY ALLOCATE.—The term ‘‘rea12 sonably allocate’’ means to apportion in a manner

13 that would be appropriate under generally accepted

14 accounting principles.

15 (16) RECOVERED GOODS.—The term ‘‘recov16 ered goods’’ means materials in the form of indi17 vidual parts that result from—

18 (A) the complete disassembly of goods

19 which have passed their life expectancy, or are

20 no longer usable due to defects, into individual

21 parts; and

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

23 other processing that is necessary for improve24 ment to sound working condition of such indi25 vidual parts.
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1 (17) REMANUFACTURED GOOD.—The term ‘‘re2 manufactured good’’ means an industrial good that

3 is assembled in the territory of Australia or the

4 United States, that is classified under chapter 84,

5 85, or 87 of the HTS or heading 9026, 9031, or

6 9032, other than a good classified under heading

7 8418 or 8516 or any of headings 8701 through

8 8706, and that—

9 (A) is entirely or partially comprised of re10 covered goods;

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

12 meets the same performance standards as, a

13 like good that is new; and

14 (C) enjoys a factory warranty similar to a

15 like good that is new.

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

17 means all product costs, period costs, and other

18 costs for a good incurred in the territory of Aus19 tralia, the United States, or both.

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

21 consumed in the production of goods.

22 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.—

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

24 to proclaim, as part of the HTS—
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1 (A) the provisions set out in Annex 4–A

2 and Annex 5–A of the Agreement; and

3 (B) any additional subordinate category

4 necessary to carry out this title consistent with

5 the Agreement.

6 (2) MODIFICATIONS.—

7 (A) IN GENERAL.—Subject to the consulta8 tion and layover provisions of section 104, the

9 President may proclaim modifications to the

10 provisions proclaimed under the authority of

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

12 chapters 50 through 63 of the HTS, as in13 cluded in Annex 4–A of the Agreement.

14 (B) ADDITIONAL PROCLAMATIONS.—Not15 withstanding subparagraph (A), and subject to

16 the consultation and layover provisions of sec17 tion 104, the President may proclaim—

18 (i) modifications to the provisions pro19 claimed under the authority of paragraph

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

21 agreement with Australia pursuant to arti22 cle 4.2.5 of the Agreement; and

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

24 beginning on the date of the enactment of

25 this Act, modifications to correct any typo-
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1 graphical, clerical, or other nonsubstantive

2 technical error regarding the provisions of

3 chapters 50 through 63 of the HTS, as in4 cluded in Annex 4–A of the Agreement.

5 SEC. 204. CUSTOMS USER FEES.

6 Section 13031(b) of the Consolidated Omnibus Budg7 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is

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

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

10 (9) or (10) with respect to goods that qualify as origi11 nating goods under section 203 of the United States-Aus12 tralia Free Trade Agreement Implementation Act. Any

13 service for which an exemption from such fee is provided

14 by reason of this paragraph may not be funded with

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

16 SEC. 205. DISCLOSURE OF INCORRECT INFORMATION.

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

18 1592(c)) is amended—

19 (1) by redesignating paragraph (8) as para20 graph (9); and

21 (2) by inserting after paragraph (7) the fol22 lowing new paragraph:

23 ‘‘(8) PRIOR DISCLOSURE REGARDING CLAIMS

24 UNDER THE UNITED STATES-AUSTRALIA FREE

25 TRADE AGREEMENT.—
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1 ‘‘(A) IN GENERAL.—An importer shall not

2 be subject to penalties under subsection (a) for

3 making an incorrect claim that a good qualifies

4 as an originating good under section 203 of the

5 United States-Australia Free Trade Agreement

6 Implementation Act if the importer, in accord7 ance with regulations issued by the Secretary of

8 the Treasury, voluntarily and promptly makes a

9 corrected declaration and pays any duties

10 owing.

11 ‘‘(B) TIME PERIODS FOR MAKING CORREC12 TIONS.—In the regulations referred to in sub13 paragraph (A), the Secretary of the Treasury is

14 authorized to prescribe time periods for making

15 a corrected declaration and paying duties owing

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

17 shorter than 1 year following the date on which

18 the importer makes the incorrect claim.’’.

19 SEC. 206. ENFORCEMENT RELATING TO TRADE IN TEXTILE

20 AND APPAREL GOODS.

21 (a) ACTION DURING VERIFICATION.—

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

23 Treasury requests the Government of Australia to

24 conduct a verification pursuant to article 4.3 of the

25 Agreement for purposes of making a determination
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1 under paragraph (2), the President may direct the

2 Secretary to take appropriate action described in

3 subsection (b) while the verification is being con4 ducted.

5 (2) DETERMINATION.—A determination under this

6 paragraph is a determination—

7 (A) that an exporter or producer in Aus8 tralia is complying with applicable customs

9 laws, regulations, procedures, requirements, or

10 practices affecting trade in textile or apparel

11 goods; or

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

13 good exported or produced by such exporter or

14 producer—

15 (i) qualifies as an originating good

16 under section 203 of this Act; or

17 (ii) is a good of Australia,

18 is accurate.

19 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate

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

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

22 textile or apparel good exported or produced by the

23 person that is the subject of a verification under

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

25 subsection (a)(2)(A), in a case in which the request
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1 for verification was based on a reasonable suspicion

2 of unlawful activity related to such goods; and

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

4 textile or apparel good for which a claim has been

5 made that is the subject of a verification under sub6 section (a)(1) regarding a claim described in sub7 section (a)(2)(B).

8 (c) ACTION WHEN INFORMATION IS INSUFFI9 CIENT.—If the Secretary of the Treasury determines that

10 the information obtained within 12 months after making

11 a request for a verification under subsection (a)(1) is in12 sufficient to make a determination under subsection

13 (a)(2), the President may direct the Secretary to take ap14 propriate action described in subsection (d) until such

15 time as the Secretary receives information sufficient to

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

17 such earlier date as the President may direct.

18 (d) APPROPRIATE ACTION DESCRIBED.—Appro19 priate action referred to in subsection (c) includes—

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

21 person that is the subject of the verification;

22 (2) denial of preferential tariff treatment under

23 the Agreement to—

24 (A) any textile or apparel good exported or

25 produced by the person that is the subject of a
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1 verification under subsection (a)(1) regarding

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

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

4 claim has been made that is the subject of a

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

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

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

8 (A) any textile or apparel good exported or

9 produced by the person that is the subject of a

10 verification under subsection (a)(1) regarding

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

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

13 claim has been made that is the subject of a

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

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

16 SEC. 207. REGULATIONS.

17 The Secretary of the Treasury shall prescribe such

18 regulations as may be necessary to carry out—

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

20 and section 204;

21 (2) amendments to existing law made by the

22 sections referred to in paragraph (1); and

23 (3) proclamations issued under section 203(o).
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1 TITLE III—RELIEF FROM

2 IMPORTS

3 SEC. 301. DEFINITIONS.

4 As used in this title:

5 (1) AUSTRALIAN ARTICLE.—The term ‘‘Aus6 tralian article’’ means an article that qualifies as an

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

8 (2) AUSTRALIAN TEXTILE OR APPAREL ARTI9 CLE.—The term ‘‘Australian textile or apparel arti10 cle’’ means an article—

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

12 Agreement on Textiles and Clothing referred to

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

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

15 (B) that is an Australian article.

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

17 means the United States International Trade Com18 mission.

19 Subtitle A—Relief From Imports

20 Benefiting From the Agreement

21 SEC. 311. COMMENCING OF ACTION FOR RELIEF.

22 (a) FILING OF PETITION.—

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

24 under this subtitle for the purpose of adjusting to

25 the obligations of the United States under the
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1 Agreement may be filed with the Commission by an

2 entity, including a trade association, firm, certified

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

4 representative of an industry. The Commission shall

5 transmit a copy of any petition filed under this sub6 section to the United States Trade Representative.

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

8 petition under this subsection may request that pro9 visional relief be provided as if the petition had been

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

11 (19 U.S.C. 2252(a)).

12 (3) CRITICAL CIRCUMSTANCES.—Any allegation

13 that critical circumstances exist shall be included in

14 the petition.

15 (b) INVESTIGATION AND DETERMINATION.—Upon

16 the filing of a petition under subsection (a), the Commis17 sion, unless subsection (d) applies, shall promptly initiate

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

19 reduction or elimination of a duty provided for under the

20 Agreement, an Australian article is being imported into

21 the United States in such increased quantities, in absolute

22 terms or relative to domestic production, and under such

23 conditions that imports of the Australian article constitute

24 a substantial cause of serious injury or threat thereof to
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1 the domestic industry producing an article that is like, or

2 directly competitive with, the imported article.

3 (c) APPLICABLE PROVISIONS.—The following provi4 sions of section 202 of the Trade Act of 1974 (19 U.S.C.

5 2252) apply with respect to any investigation initiated

6 under subsection (b):

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

8 (b).

9 (2) Subsection (c).

10 (3) Subsection (d).

11 (4) Subsection (i).

12 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No

13 investigation may be initiated under this section with re14 spect to any Australian article if, after the date on which

15 the Agreement enters into force, import relief has been

16 provided with respect to that Australian article under this

17 subtitle.

18 SEC. 312. COMMISSION ACTION ON PETITION.

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

20 days if critical circumstances have been alleged) after the

21 date on which an investigation is initiated under section

22 311(b) with respect to a petition, the Commission shall

23 make the determination required under that section.

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

25 subtitle, the provisions of paragraphs (1), (2), and (3) of
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1 section 330(d) of the Tariff Act of 1930 (19 U.S.C.

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

3 to determinations and findings made under this section

4 as if such determinations and findings were made under

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

6 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

7 DETERMINATION AFFIRMATIVE.—If the determination

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

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

10 may consider a determination of the Commission to be an

11 affirmative determination as provided for under paragraph

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

13 1330(d)), the Commission shall find, and recommend to

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

15 the amount of import relief that is necessary to remedy

16 or prevent the injury found by the Commission in the de17 termination and to facilitate the efforts of the domestic

18 industry to make a positive adjustment to import competi19 tion. The import relief recommended by the Commission

20 under this subsection shall be limited to that described in

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

22 who voted in the affirmative under subsection (a) are eligi23 ble to vote on the proposed action to remedy or prevent

24 the injury found by the Commission. Members of the Com25 mission who did not vote in the affirmative may submit,
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1 in the report required under subsection (d), separate views

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

3 or prevent the injury.

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

5 date that is 30 days after the date on which a determina6 tion is made under subsection (a) with respect to an inves7 tigation, the Commission shall submit to the President a

8 report that includes—

9 (1) the determination made under subsection

10 (a) and an explanation of the basis for the deter11 mination;

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

13 affirmative, any findings and recommendations for

14 import relief made under subsection (c) and an ex15 planation of the basis for each recommendation; and

16 (3) any dissenting or separate views by mem17 bers of the Commission regarding the determination

18 and recommendation referred to in paragraphs (1)

19 and (2).

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

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

22 promptly make public such report (with the exception of

23 information which the Commission determines to be con24 fidential) and shall cause a summary thereof to be pub25 lished in the Federal Register.
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1 SEC. 313. PROVISION OF RELIEF.

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

3 30 days after the date on which the President receives the

4 report of the Commission in which the Commission’s de5 termination under section 312(a) is affirmative, or which

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

7 President considers to be affirmative under paragraph (1)

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

9 1330(d)(1)), the President, subject to subsection (b), shall

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

11 of such determination to the extent that the President de12 termines necessary to remedy or prevent the injury found

13 by the Commission and to facilitate the efforts of the do14 mestic industry to make a positive adjustment to import

15 competition.

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

17 provide import relief under this section if the President

18 determines that the provision of the import relief will not

19 provide greater economic and social benefits than costs.

20 (c) NATURE OF RELIEF.—

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

22 provisional relief) that the President is authorized to

23 provide under this section with respect to imports of

24 an article is as follows:
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1 (A) The suspension of any further reduc2 tion provided for under Annex 2–B of the

3 Agreement in the duty imposed on such article.

4 (B) An increase in the rate of duty im5 posed on such article to a level that does not

6 exceed the lesser of—

7 (i) the column 1 general rate of duty

8 imposed under the HTS on like articles at

9 the time the import relief is provided; or

10 (ii) the column 1 general rate of duty

11 imposed under the HTS on like articles on

12 the day before the date on which the

13 Agreement enters into force.

14 (C) In the case of a duty applied on a sea15 sonal basis to such article, an increase in the

16 rate of duty imposed on the article to a level

17 that does not exceed the lesser of—

18 (i) the column 1 general rate of duty

19 imposed under the HTS on like articles for

20 the immediately preceding corresponding

21 season; or

22 (ii) the column 1 general rate of duty

23 imposed under the HTS on like articles on

24 the day before the date on which the

25 Agreement enters into force.
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1 (2) PROGRESSIVE LIBERALIZATION.—If the pe2 riod for which import relief is provided under this

3 section is greater than 1 year, the President shall

4 provide for the progressive liberalization (described

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

6 regular intervals during the period in which the re7 lief is in effect.

8 (d) PERIOD OF RELIEF.—

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

10 any import relief that the President provides under

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

12 years.

13 (2) EXTENSION.—

14 (A) IN GENERAL.—Subject to subpara15 graph (C), the President, after receiving an af16 firmative determination from the Commission

17 under subparagraph (B), may extend the effec18 tive period of any import relief provided under

19 this section if the President determines that—

20 (i) the import relief continues to be

21 necessary to remedy or prevent serious in22 jury and to facilitate adjustment by the do23 mestic industry to import competition; and
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1 (ii) there is evidence that the industry

2 is making a positive adjustment to import

3 competition.

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

5 petition on behalf of the industry concerned

6 that is filed with the Commission not earlier

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

8 than the date which is 6 months, before the

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

10 terminate, the Commission shall conduct an in11 vestigation to determine whether action under

12 this section continues to be necessary to remedy

13 or prevent serious injury and whether there is

14 evidence that the industry is making a positive

15 adjustment to import competition.

16 (ii) The Commission shall publish notice of

17 the commencement of any proceeding under

18 this subparagraph in the Federal Register and

19 shall, within a reasonable time thereafter, hold

20 a public hearing at which the Commission shall

21 afford interested parties and consumers an op22 portunity to be present, to present evidence,

23 and to respond to the presentations of other

24 parties and consumers, and otherwise to be

25 heard.
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1 (iii) The Commission shall transmit to the

2 President a report on its investigation and de3 termination under this subparagraph not later

4 than 60 days before the action under subsection

5 (a) is to terminate, unless the President speci6 fies a different date.

7 (C) PERIOD OF IMPORT RELIEF.—Any im8 port relief provided under this section, including

9 any extensions thereof, may not, in the aggre10 gate, be in effect for more than 4 years.

11 (e) RATE AFTER TERMINATION OF IMPORT RE12 LIEF.—When import relief under this section is termi13 nated with respect to an article—

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

15 termination and on or before December 31 of the

16 year in which such termination occurs shall be the

17 rate that, according to the Schedule of the United

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

19 staged elimination of the tariff, would have been in

20 effect 1 year after the provision of relief under sub21 section (a); and

22 (2) the rate of duty for that article after De23 cember 31 of the year in which termination occurs

24 shall be, at the discretion of the President, either—
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1 (A) the applicable NTR (MFN) rate of

2 duty for that article set out in the Schedule of

3 the United States to Annex 2–B of the Agree4 ment; or

5 (B) the rate of duty resulting from the

6 elimination of the tariff in equal annual stages

7 ending on the date set out in the Schedule of

8 the United States to Annex 2–B of the Agree9 ment for the elimination of the tariff.

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

11 relief may be provided under this section on any article

12 that—

13 (1) is subject to—

14 (A) import relief under subtitle B; or

15 (B) an assessment of additional duty

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

17 or

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

19 subtitle after the date on which the Agreement en20 ters into force.

21 SEC. 314. TERMINATION OF RELIEF AUTHORITY.

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

23 import relief may be provided under this subtitle after the

24 date that is 10 years after the date on which the Agree25 ment enters into force.
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1 (b) EXCEPTION.—If an article for which relief is pro2 vided under this subtitle is an article for which the period

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

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

5 10 years, no relief under this subtitle may be provided for

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

7 (c) PRESIDENTIAL DETERMINATION.—Import relief

8 may be provided under this subtitle in the case of an Aus9 tralian article after the date on which such relief would,

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

11 (b), if the President determines that Australia has con12 sented to such relief.

13 SEC. 315. COMPENSATION AUTHORITY.

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

15 (19 U.S.C. 2133), any import relief provided by the Presi16 dent under section 313 shall be treated as action taken

17 under chapter 1 of title II of such Act.

18 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

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

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

21 (1) by striking ‘‘and’’; and

22 (2) by inserting before the period at the end ‘‘,

23 and title III of the United States-Australia Free

24 Trade Agreement Implementation Act’’.
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1 Subtitle B—Textile and Apparel

2 Safeguard Measures

3 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

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

5 the purpose of adjusting to the obligations of the United

6 States under the Agreement may be filed with the Presi7 dent by an interested party. Upon the filing of a request,

8 the President shall review the request to determine, from

9 information presented in the request, whether to com10 mence consideration of the request.

11 (b) ALLEGATION OF CRITICAL CIRCUMSTANCES.—An

12 interested party filing a request under this section may—

13 (1) allege that critical circumstances exist such

14 that delay in the provision of relief would cause

15 damage that would be difficult to repair; and

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

17 be provided on a provisional basis.

18 (c) PUBLICATION OF REQUEST.—If the President de19 termines that the request under subsection (a) provides

20 the information necessary for the request to be considered,

21 the President shall cause to be published in the Federal

22 Register a notice of commencement of consideration of the

23 request, and notice seeking public comments regarding the

24 request. The notice shall include a summary of the request
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1 and the dates by which comments and rebuttals must be

2 received.

3 SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

4 (a) DETERMINATION.—

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

6 made under section 321(c), the President shall de7 termine whether, as a result of the reduction or

8 elimination of a duty under the Agreement, an Aus9 tralian textile or apparel article is being imported

10 into the United States in such increased quantities,

11 in absolute terms or relative to the domestic market

12 for that article, and under such conditions as to

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

14 domestic industry producing an article that is like,

15 or directly competitive with, the imported article.

16 (2) SERIOUS DAMAGE.—In making a deter17 mination under paragraph (1), the President—

18 (A) shall examine the effect of increased

19 imports on the domestic industry, as reflected

20 in changes in such relevant economic factors as

21 output, productivity, utilization of capacity, in22 ventories, market share, exports, wages, em23 ployment, domestic prices, profits, and invest24 ment, none of which is necessarily decisive; and
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1 (B) shall not consider changes in tech2 nology or consumer preference as factors sup3 porting a determination of serious damage or

4 actual threat thereof.

5 (b) PROVISION OF RELIEF.—

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

7 subsection (a) is affirmative, the President may pro8 vide relief from imports of the article that is the

9 subject of such determination, as described in para10 graph (2), to the extent that the President deter11 mines necessary to remedy or prevent the serious

12 damage and to facilitate adjustment by the domestic

13 industry to import competition.

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

15 President is authorized to provide under this sub16 section with respect to imports of an article is an in17 crease in the rate of duty imposed on the article to

18 a level that does not exceed the lesser of—

19 (A) the column 1 general rate of duty im20 posed under the HTS on like articles at the

21 time the import relief is provided; or

22 (B) the column 1 general rate of duty im23 posed under the HTS on like articles on the

24 day before the date on which the Agreement en25 ters into force.
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1 (c) CRITICAL CIRCUMSTANCES.—

2 (1) PRESIDENTIAL DETERMINATION.—When a

3 request filed under section 321(a) contains an alle4 gation of critical circumstances and a request for

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

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

7 filed, determine, on the basis of available informa8 tion, whether—

9 (A) there is clear evidence that—

10 (i) imports from Australia have in11 creased as the result of the reduction or

12 elimination of a customs duty under the

13 Agreement; and

14 (ii) such imports are causing serious

15 damage, or actual threat thereof, to the

16 domestic industry producing an article like

17 or directly competitive with the imported

18 article; and

19 (B) delay in taking action under this sub20 title would cause damage to that industry that

21 would be difficult to repair.

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

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

24 paragraph (1) are affirmative, the President shall

25 determine the extent of provisional relief that is nec-
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1 essary to remedy or prevent the serious damage. The

2 nature of the provisional relief available shall be the

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

4 after making affirmative determinations under sub5 paragraphs (A) and (B) of paragraph (1), the Presi6 dent, if the President considers provisional relief to

7 be warranted, shall provide, for a period not to ex8 ceed 200 days, such provisional relief that the Presi9 dent considers necessary to remedy or prevent the

10 serious damage.

11 (3) SUSPENSION OF LIQUIDATION.—If provi12 sional relief is provided under paragraph (2), the

13 President shall order the suspension of liquidation of

14 all imported articles subject to the affirmative deter15 minations under subparagraphs (A) and (B) of para16 graph (1) that are entered, or withdrawn from ware17 house for consumption, on or after the date of the

18 determinations.

19 (4) TERMINATION OF PROVISIONAL RELIEF.—

20 (A) IN GENERAL.—Any provisional relief

21 implemented under this subsection with respect

22 to an imported article shall terminate on the

23 day on which—

24 (i) the President makes a negative de25 termination under subsection (a) regarding
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1 serious damage or actual threat thereof by

2 imports of such article;

3 (ii) action described in subsection (b)

4 takes effect with respect to such article;

5 (iii) a decision by the President not to

6 take any action under subsection (b) with

7 respect to such article becomes final; or

8 (iv) the President determines that, be9 cause of changed circumstances, such relief

10 is no longer warranted.

11 (B) SUSPENSION OF LIQUIDATION.—Any

12 suspension of liquidation ordered under para13 graph (3) with respect to an imported article

14 shall terminate on the day on which provisional

15 relief is terminated under subparagraph (A)

16 with respect to the article.

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

18 the imposition of, a duty that is provided under

19 subsection (b) on an imported article is dif20 ferent from a duty increase or imposition that

21 was provided for such an article under this sub22 section, then the entry of any such article for

23 which liquidation was suspended under para24 graph (3) shall be liquidated at whichever of

25 such rates of duty is lower.
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1 (D) RATE OF DUTY IF PROVISIONAL RE2 LIEF.—If provisional relief is provided under

3 this subsection with respect to an imported arti4 cle and neither a duty increase nor a duty im5 position is provided under subsection (b) for

6 such article, the entry of any such article for

7 which liquidation was suspended under para8 graph (3) shall be liquidated at the rate of duty

9 that applied before the provisional relief was

10 provided.

11 SEC. 323. PERIOD OF RELIEF.

12 (a) IN GENERAL.—Subject to subsection (b), the im13 port relief that the President provides under subsections

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

15 in effect for more than 2 years.

16 (b) EXTENSION.—

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

18 the President may extend the effective period of any

19 import relief provided under this subtitle for a pe20 riod of not more than 2 years, if the President de21 termines that—

22 (A) the import relief continues to be nec23 essary to remedy or prevent serious damage

24 and to facilitate adjustment by the domestic in25 dustry to import competition; and
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1 (B) there is evidence that the industry is

2 making a positive adjustment to import com3 petition.

4 (2) LIMITATION.—Any relief provided under

5 this subtitle, including any extensions thereof, may

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

7 years.

8 SEC. 324. ARTICLES EXEMPT FROM RELIEF.

9 The President may not provide import relief under

10 this subtitle with respect to any article if—

11 (1) import relief previously has been provided

12 under this subtitle with respect to that article; or

13 (2) the article is subject to import relief

14 under—

15 (A) subtitle A; or

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

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

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

19 When import relief under this subtitle is terminated

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

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

22 the provision of such relief, on the date the relief termi23 nates.
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1 SEC. 326. TERMINATION OF RELIEF AUTHORITY.

2 No import relief may be provided under this subtitle

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

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

5 pursuant to the Agreement.

6 SEC. 327. COMPENSATION AUTHORITY.

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

8 (19 U.S.C. 2133), any import relief provided by the Presi9 dent under this subtitle shall be treated as action taken

10 under chapter 1 of title II of such Act.

11 SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.

12 The President may not release information which is

13 submitted in a proceeding under this subtitle and which

14 the President considers to be confidential business infor15 mation unless the party submitting the confidential busi16 ness information had notice, at the time of submission,

17 that such information would be released, or such party

18 subsequently consents to the release of the information.

19 To the extent a party submits confidential business infor20 mation to the President in a proceeding under this sub21 title, the party also shall submit a nonconfidential version

22 of the information, in which the confidential business in23 formation is summarized or, if necessary, deleted.
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1 Subtitle C—Cases Under Title II of

2 the Trade Act of 1974

3 SEC. 331. FINDINGS AND ACTION ON GOODS FROM AUS4 TRALIA.

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

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

7 1974 (19 U.S.C. 2251 et seq.), the Commission makes an

8 affirmative determination (or a determination which the

9 President may treat as an affirmative determination under

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

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

12 the President at the time such injury determination is sub13 mitted to the President) whether imports of the article

14 from Australia are a substantial cause of serious injury

15 or threat thereof.

16 (b) PRESIDENTIAL DETERMINATION REGARDING

17 AUSTRALIAN IMPORTS.—In determining the nature and

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

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

20 whether imports from Australia are a substantial cause

21 of the serious injury or threat thereof found by the Com22 mission and, if such determination is in the negative, may

23 exclude from such action imports from Australia.
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1 TITLE IV—PROCUREMENT

2 SEC. 401. ELIGIBLE PRODUCTS.

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

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

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

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

7 (ii) and inserting ‘‘; or’’; and

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

9 clause:

10 ‘‘(iii) a party to a free trade agree11 ment that entered into force with respect

12 to the United States after December 31,

13 2003, and before January 2, 2005, a prod14 uct or service of that country or instru15 mentality which is covered under the free

16 trade agreement for procurement by the

17 United States.’’.

Passed the House of Representatives July 14, 2004.

Attest:

Clerk.