II 

109TH CONGRESS 

2D SESSION S. 3899 

To achieve balance in the foreign trade of the United States, through a 

market-based system of tradable certificates, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 14, 2006 

Mr. DORGAN (for himself and Mr. FEINGOLD) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To achieve balance in the foreign trade of the United States, 

through a market-based system of tradable certificates, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Balanced Trade Res5 toration Act of 2006’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 

8 (1) Since the 1990s, the United States has ex9 perienced record trade deficits that has made the 


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1 United States the largest debtor country in the 

2 world. 

3 (2) In 2005, the merchandise trade deficit of 

4 the United States was a record $767,000,000,000, 

5 and in 2006, the merchandise trade deficit of the 

6 United States is projected to surpass the record set 

7 in 2005. 

8 (3) The surging trade deficits could soon create 

9 a balance of payments crisis for the United States, 

10 which could wreak havoc with the economy of the 

11 United States. 

12 (4) Article XII of the General Agreement on 

13 Tariff and Trade (GATT 1994), annexed to the 

14 Agreement Establishing the World Trade Organiza15 tion entered into on April 15, 1994, permits any 

16 member country to restrict the quantity or value of 

17 imports in order to safeguard the external financial 

18 position and the balance of payments of the member 

19 country. 

20 (5) In accordance with Article XII of the GATT 

21 1994, the United States should take steps to restore 

22 balance to its merchandise trade, and safeguard its 

23 external financial position and its balance of pay24 ments. 


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1 (6) The imposition of import restrictions should 

2 be phased in to allow the economy of the United 

3 States to absorb the impact of import restrictions 

4 with minimal disruption. 

5 SEC. 3. DEFINITIONS. 

6 In this Act: 

7 (1) BALANCED TRADE CERTIFICATE; CERTIFI8 CATE.—The terms ‘‘Balanced Trade Certificate’’ 

9 and ‘‘Certificate’’ mean a certificate issued pursuant 

10 to section 4 that provides the holder of the certifi11 cate with a license to import into the United States 

12 a good with an appraised value that is equal to or 

13 less than the face value of the certificate. 

14 (2) DEPARTMENT.—The term ‘‘Department’’ 

15 means the Department of Commerce. 

16 (3) OIL OR GAS.—The term ‘‘oil or gas’’ means 

17 any good classifiable under— 

18 (A) heading 2709 of the Harmonized Tar19 iff Schedule of the United States (relating to 

20 petroleum oils and oils obtained from bitu21 minous minerals, crude); 

22 (B) heading 2710 of the Harmonized Tar23 iff Schedule of the United States (relating to 

24 petroleum oils and oils obtained from bitu25 minous minerals, other than crude); and 


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1 (C) heading 2711 of the Harmonized Tar2 iff Schedule of the United States (relating to 

3 light oils and preparations). 

4 (4) PROGRAM.—The term ‘‘Program’’ means 

5 the Balanced Trade Certificate Program established 

6 under section 4. 

7 (5) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of Commerce. 

9 SEC. 4. ESTABLISHMENT OF BALANCED TRADE PROGRAM. 

10 (a) IN GENERAL.—Not later than 180 days after the 

11 date of the enactment of this Act, the Secretary shall, in 

12 cooperation with the Secretary of Homeland Security, es13 tablish a Balanced Trade Certificate Program within the 

14 International Trade Administration of the Department. 

15 The purpose of the Program is to create gradually balance 

16 between the dollar value of goods imported into the United 

17 States and goods exported from the United States. 

18 (b) REGULATORY AUTHORITY.—The Secretary, in 

19 cooperation with the Secretary of Homeland Security, 

20 shall promulgate regulations in accordance with section 5 

21 that provide for— 

22 (1) issuing Certificates to exporters; 

23 (2) collecting Certificates from importers; 

24 (3) valuing the Certificates issued and collected; 

25 and 


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1 (4) trading Certificates. 

2 SEC. 5. OPERATION OF THE PROGRAM. 

3 (a) EXPORTERS.— 

4 (1) ISSUANCE OF CERTIFICATES.—The Pro5 gram established under section 4 shall provide for 

6 the issuance of a Certificate to any person who ex7 ports a good from the United States with a face 

8 value equivalent to a multiple of the appraised value 

9 of the good determined pursuant to paragraph (2). 

10 (2) VALUE OF BALANCED TRADE CERTIFI11 CATES.— 

12 (A) DETERMINATION OF VALUE.—The 

13 Secretary shall establish a system for the valu14 ation of Certificates. To the extent practicable, 

15 the value of a Certificate shall be based upon 

16 the appraised value declared on the shipper’s 

17 export declaration (SED), in accordance with 

18 subparagraph (B); 

19 (B) SYSTEM OF VALUATION.—The value of 

20 a Certificate shall be determined in accordance 

21 with the following table: 


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If a Certificate is issued: The face value of the Certificate is an amount equal to: 

During the first year the Program 

is in operation 

140% of the appraised value of the 

good exported. 

During the second year the Program is in operation 130% of the appraised value of the 

good exported. 

During the third year the Program 

is in operation 

120% of the appraised value of the 

good exported. 

During the fourth year the Program is in operation 110% of the appraised value of the 

good exported. 

After the fourth year the Program 

is in operation 

100% of the appraised value of the 

good exported 

1 (b) IMPORTERS.— 

2 (1) SUBMISSION REQUIREMENT.—Except as de3 scribed in paragraph (5), any person who imports a 

4 good into the United States shall submit to the Sec5 retary of Homeland Security, not later than 90 days 

6 after the date on which the good enters the United 

7 States, a Certificate with an aggregate face value 

8 equal to or greater than the appraised value of the 

9 good imported pursuant to paragraph (2). 

10 (2) VALUATION OF IMPORTED GOODS.—The 

11 Secretary shall establish a method for the valuation 

12 of goods imported into the United States. The meth13 od may include the use of the declared dollar value 

14 of the goods on the Entry Summary (United States 

15 Customs and Border Protection Form 7501). 

16 (3) COLLECTION OF CERTIFICATES.—The Sec17 retary shall establish a system for the collection of 

18 Certificates submitted by importers to the Secretary 

19 of Homeland Security. 


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1 (4) PENALTY FOR FAILURE TO SUPPLY CER2 TIFICATES.—If a person imports a good into the 

3 United States and fails to submit a Certificate with 

4 an aggregate face value equal to, or greater than, 

5 the value of the good imported as required by para6 graph (1), the Secretary of Homeland Security 

7 shall— 

8 (A) suspend the person from importing 

9 any good until such time as a Certificate re10 quired by paragraph (1) is submitted; and 

11 (B) impose a penalty equal to 3 times the 

12 appraised value of the good imported. 

13 (5) EXCEPTION FOR OIL OR GAS.— 

14 (A) ADJUSTMENT PERIOD.—During the 

15 period that begins on the date of the enactment 

16 of this Act and ends 5 years after such date, 

17 paragraph (1) shall not apply to a person who 

18 imports oil or gas into the United States. 

19 (B) GRADUAL VALUATION.—At the end of 

20 the period described in subparagraph (A), any 

21 person who imports oil or gas into the United 

22 States shall submit to the Secretary of Home23 land Security, not later than 90 days after the 

24 date on which the oil or gas enters the United 

25 States, a Certificate with an aggregate face 


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1 value equal to, or greater than, the appraised 

2 value of the oil or gas imported pursuant to 

3 paragraph (2), adjusted in accordance with the 

4 following table: 

If the oil or gas is imported: The aggregate face value of 

the Certificate required to 

import the oil or gas is: 

During the sixth year the Program 

is in operation 

60% of the appraised value of the oil 

or gas imported. 

During the seventh year the Program is in operation 70% of the appraised value of the oil 

or gas imported. 

During the eighth year the Program is in operation 80% of the appraised value of the oil 

or gas imported. 

During the ninth year the Program is in operation 90% of the appraised value of the oil 

or gas imported. 

After the ninth year the Program 

is in operation 

100% of the appraised value of the oil 

or gas imported. 

5 (c) MANAGEMENT OF CERTIFICATES.— 

6 (1) CERTIFICATES REMOVED FROM CIRCULA7 TION.—Upon the receipt of a Certificate from a per8 son importing a good, the Secretary of Homeland 

9 Security, in cooperation with the Secretary, shall 

10 permanently remove the Certificate from circulation. 

11 (2) TRANSFERABILITY AND LIMITATION ON VA12 LIDITY OF CERTIFICATES.—A Certificate issued pur13 suant to this Act shall be— 

14 (A) fully transferable; and 

15 (B) valid for 365 days from the date the 

16 Certificate is issued. 

Æ 


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