II 

111TH CONGRESS 

2D SESSION S. 3134 

To provide for identification of misaligned currency, require action to correct 

the misalignment, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 17, 2010 

Mr. SCHUMER (for himself, Ms. STABENOW, Mr. GRAHAM, Mr. BROWNBACK, 

Mr. BROWN of Ohio, Ms. SNOWE, Mr. FEINGOLD, Mr. SPECTER, Mr. 

CASEY, Mr. BAYH, Mr. LEVIN, Mr. CARDIN, Mrs. GILLIBRAND, Mr. 

WEBB, Mr. REED, Mrs. LINCOLN, and Ms. COLLINS) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To provide for identification of misaligned currency, require 

action to correct the misalignment, 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 ‘‘Currency Exchange 

5 Rate Oversight Reform Act of 2010’’. 


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1 TITLE I—CURRENCY EXCHANGE 

2 RATE OVERSIGHT REFORM 

3 SEC. 101. DEFINITIONS. 

4 In this title: 

5 (1) ADMINISTERING AUTHORITY.—The term 

6 ‘‘administering authority’’ means the authority re7 ferred to in section 771(1) of the Tariff Act of 1930 

8 (19 U.S.C. 1677(1)). 

9 (2) AGREEMENT ON GOVERNMENT PROCURE10 MENT.—The term ‘‘Agreement on Government Pro11 curement’’ means the agreement referred to in sec12 tion 101(d)(17) of the Uruguay Round Agreements 

13 Act (19 U.S.C. 3511(d)(17)). 

14 (3) COUNTRY.—The term ‘‘country’’ means a 

15 foreign country, dependent territory, or possession of 

16 a foreign country, and may include an association of 

17 2 or more foreign countries, dependent territories, or 

18 possessions of countries into a customs union out19 side the United States. 

20 (4) EXPORTING COUNTRY.—The term ‘‘export21 ing country’’ means the country in which the subject 

22 merchandise is produced or manufactured. 

23 (5) FUNDAMENTAL MISALIGNMENT.—The term 

24 ‘‘fundamental misalignment’’ means a significant 

25 and sustained undervaluation of the prevailing real 


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1 effective exchange rate, adjusted for cyclical and 

2 transitory factors, from its medium-term equilibrium 

3 level. 

4 (6) FUNDAMENTALLY MISALIGNED CUR5 RENCY.—The term ‘‘fundamentally misaligned cur6 rency’’ means a foreign currency that is in funda7 mental misalignment. 

8 (7) REAL EFFECTIVE EXCHANGE RATE.—The 

9 term ‘‘real effective exchange rate’’ means a weight10 ed average of bilateral exchange rates, expressed in 

11 price-adjusted terms. 

12 (8) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of the Treasury. 

14 (9) STERILIZATION.—The term ‘‘sterilization’’ 

15 means domestic monetary operations taken to neu16 tralize the monetary impact of increases in reserves 

17 associated with intervention in the currency ex18 change market. 

19 (10) SUBJECT MERCHANDISE.—The term ‘‘sub20 ject merchandise’’ means the merchandise subject to 

21 an antidumping investigation, review, suspension 

22 agreement, or order referred to in section 771(25) of 

23 the Tariff Act of 1930 (19 U.S.C. 1677(25)). 

24 (11) WTO AGREEMENT.—The term ‘‘WTO 

25 Agreement’’ means the agreement referred to in secVerDate Nov 24 2008 01:44 Mar 18, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3134.IS S3134

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1 tion 2(9) of the Uruguay Round Agreements Act (19 

2 U.S.C. 3501(9)). 

3 SEC. 102. REPORT ON INTERNATIONAL MONETARY POLICY 

4 AND CURRENCY EXCHANGE RATES. 

5 (a) REPORTS REQUIRED.— 

6 (1) IN GENERAL.—Not later than March 15 

7 and September 15 of each calendar year, the Sec8 retary, after consulting with the Chairman of the 

9 Board of Governors of the Federal Reserve System 

10 and the Advisory Committee on International Ex11 change Rate Policy, shall submit to Congress and 

12 make public, a written report on international mone13 tary policy and currency exchange rates. 

14 (2) CONSULTATIONS.—On or before March 30 

15 and September 30 of each calendar year, the Sec16 retary shall appear, if requested, before the Com17 mittee on Banking, Housing, and Urban Affairs and 

18 the Committee on Finance of the Senate and the 

19 Committee on Financial Services and the Committee 

20 on Ways and Means of the House of Representatives 

21 to provide testimony on the reports submitted pursu22 ant to paragraph (1). 

23 (b) CONTENT OF REPORTS.—Each report submitted 

24 under subsection (a) shall contain the following: 


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1 (1) An analysis of currency market develop2 ments and the relationship between the United 

3 States dollar and the currencies of major economies 

4 and trading partners of the United States. 

5 (2) A review of the economic and monetary 

6 policies of major economies and trading partners of 

7 the United States, and an evaluation of how such 

8 policies impact currency exchange rates. 

9 (3) A description of any currency intervention 

10 by the United States or other major economies or 

11 trading partners of the United States, or other ac12 tions undertaken to adjust the actual exchange rate 

13 relative to the United States dollar. 

14 (4) An evaluation of the domestic and global 

15 factors that underlie the conditions in the currency 

16 markets, including— 

17 (A) monetary and financial conditions; 

18 (B) accumulation of foreign assets; 

19 (C) macroeconomic trends; 

20 (D) trends in current and financial ac21 count balances; 

22 (E) the size, composition, and growth of 

23 international capital flows; 

24 (F) the impact of the external sector on 

25 economic growth; 


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1 (G) the size and growth of external indebt2 edness; 

3 (H) trends in the net level of international 

4 investment; and 

5 (I) capital controls, trade, and exchange 

6 restrictions. 

7 (5) A list of currencies designated as fun8 damentally misaligned currencies pursuant to section 

9 103(a)(2), and a description of any economic models 

10 or methodologies used to establish the list. 

11 (6) A list of currencies designated for priority 

12 action pursuant to section 103(a)(3). 

13 (7) An identification of the nominal value asso14 ciated with the medium-term equilibrium exchange 

15 rate, relative to the United States dollar, for each 

16 currency listed under paragraph (6). 

17 (8) A description of any consultations con18 ducted or other steps taken pursuant to section 104, 

19 105, or 106, including any actions taken to elimi20 nate the fundamental misalignment. 

21 (9) A description of any determination made 

22 pursuant to section 108(a). 

23 (c) CONSULTATIONS.—The Secretary shall consult 

24 with the Chairman of the Board of Governors of the Fed25 eral Reserve System and the Advisory Committee on 


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1 International Exchange Rate Policy with respect to the 

2 preparation of each report required under subsection (a). 

3 Any comments provided by the Chairman of the Board 

4 of Governors of the Federal Reserve System or the Advi5 sory Committee on International Exchange Rate Policy 

6 shall be submitted to the Secretary not later than the date 

7 that is 15 days before the date each report is due under 

8 subsection (a). The Secretary shall submit the report to 

9 Congress after taking into account all such comments re10 ceived. 

11 SEC. 103. IDENTIFICATION OF FUNDAMENTALLY MIS12 ALIGNED CURRENCIES. 

13 (a) IDENTIFICATION.— 

14 (1) IN GENERAL.—The Secretary shall analyze 

15 on a semiannual basis the prevailing real effective 

16 exchange rates of foreign currencies. 

17 (2) DESIGNATION OF FUNDAMENTALLY MIS18 ALIGNED CURRENCIES.—With respect to the cur19 rencies of countries that have significant bilateral 

20 trade flows with the United States, and currencies 

21 that are otherwise significant to the operation, sta22 bility, or orderly development of regional or global 

23 capital markets, the Secretary shall determine 

24 whether any such currency is in fundamental misVerDate Nov 24 2008 01:44 Mar 18, 2010 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3134.IS S3134

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1 alignment and shall designate such currency as a 

2 fundamentally misaligned currency. 

3 (3) DESIGNATION OF CURRENCIES FOR PRI4 ORITY ACTION.—The Secretary shall designate a 

5 currency identified under paragraph (2) for priority 

6 action if the country that issues such currency is— 

7 (A) engaging in protracted large-scale 

8 intervention in the currency exchange market, 

9 particularly if accompanied by partial or full 

10 sterilization; 

11 (B) engaging in excessive and prolonged 

12 official or quasi-official accumulation of foreign 

13 exchange reserves and other foreign assets, for 

14 balance of payments purposes; 

15 (C) introducing or substantially modifying 

16 for balance of payments purposes a restriction 

17 on, or incentive for, the inflow or outflow of 

18 capital, that is inconsistent with the goal of 

19 achieving full currency convertibility; or 

20 (D) pursuing any other policy or action 

21 that, in the view of the Secretary, warrants des22 ignation for priority action. 

23 (b) REPORTS.—The Secretary shall include a list of 

24 any foreign currency designated under paragraph (2) or 

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1 lying such designations in each report required by section 

2 102. 

3 SEC. 104. NEGOTIATIONS AND CONSULTATIONS. 

4 (a) IN GENERAL.—Upon designation of a currency 

5 pursuant to section 103(a)(2), the Secretary shall seek to 

6 consult bilaterally with the country that issues such cur7 rency in order to facilitate the adoption of appropriate 

8 policies to address the fundamental misalignment. 

9 (b) CONSULTATIONS INVOLVING CURRENCIES DES10 IGNATED FOR PRIORITY ACTION.—With respect to each 

11 currency designated for priority action pursuant to section 

12 103(a)(3), the Secretary shall, in addition to seeking to 

13 consult with a country pursuant to subsection (a)— 

14 (1) seek the advice of the International Mone15 tary Fund with respect to the Secretary’s findings in 

16 the report submitted to Congress pursuant to section 

17 102(a); and 

18 (2) encourage other governments, whether bilat19 erally or in appropriate multinational fora, to join 

20 the United States in seeking the adoption of appro21 priate policies by the country described in subsection 

22 (a) to eliminate the fundamental misalignment. 

23 SEC. 105. FAILURE TO ADOPT APPROPRIATE POLICIES. 

24 (a) IN GENERAL.—Not later than 90 days after the 

25 date on which a currency is designated for priority action 


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1 pursuant to section 103(a)(3), the Secretary shall deter2 mine whether the country that issues such currency has 

3 adopted appropriate policies, and taken identifiable action, 

4 to eliminate the fundamental misalignment. The Secretary 

5 shall promptly notify Congress of such determination and 

6 publish notice of the determination in the Federal Reg7 ister. If the Secretary determines that the country that 

8 issues such currency has failed to adopt appropriate poli9 cies, or take identifiable action, to eliminate the funda10 mental misalignment, the following shall apply with re11 spect to the country until a notification described in sec12 tion 106(b) is published in the Federal Register: 

13 (1) ADJUSTMENT UNDER ANTIDUMPING LAW.— 

14 For purposes of an antidumping investigation under 

15 subtitle B of title VII of the Tariff Act of 1930 (19 

16 U.S.C. 1673 et seq.), or a review under subtitle C 

17 of such Act (19 U.S.C. 1675 et seq.), the following 

18 shall apply: 

19 (A) IN GENERAL.—The administering au20 thority shall ensure a fair comparison between 

21 the export price and the normal value by ad22 justing the price used to establish export price 

23 or constructed export price to reflect the funda24 mental misalignment of the currency of the ex25 porting country. 


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1 (B) SALES SUBJECT TO ADJUSTMENT.— 

2 The adjustment described in subparagraph (A) 

3 shall apply with respect to subject merchandise 

4 sold on or after the date that is 30 days after 

5 the date the currency of the exporting country 

6 is designated for priority action pursuant to 

7 section 103(a)(3). 

8 (2) FEDERAL PROCUREMENT.— 

9 (A) IN GENERAL.—The President shall 

10 prohibit the procurement by the Federal Gov11 ernment of products or services from the coun12 try. 

13 (B) EXCEPTION.—The prohibition pro14 vided for in subparagraph (A) shall not apply 

15 with respect to a country that is a party to the 

16 Agreement on Government Procurement. 

17 (3) REQUEST FOR IMF ACTION.—The United 

18 States shall inform the Managing Director of the 

19 International Monetary Fund of the failure of the 

20 country to adopt appropriate policies, or to take 

21 identifiable action, to eliminate the fundamental mis22 alignment, and the actions the country is engaging 

23 in that are identified in section 103(a)(3), and shall 

24 request that the Managing Director of the Inter25 national Monetary Fund— 


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1 (A) consult with such country regarding 

2 the observance of the country’s obligations 

3 under article IV of the International Monetary 

4 Fund Articles of Agreement, including through 

5 special consultations, if necessary; and 

6 (B) formally report the results of such con7 sultations to the Executive Board of the Inter8 national Monetary Fund within 180 days of the 

9 date of such request. 

10 (4) OPIC FINANCING.—The Overseas Private 

11 Investment Corporation shall not approve any new 

12 financing (including insurance, reinsurance, or guar13 antee) with respect to a project located within the 

14 country. 

15 (5) MULTILATERAL BANK FINANCING.—The 

16 Secretary shall instruct the United States Executive 

17 Director at each multilateral bank to oppose the ap18 proval of any new financing (including loans, other 

19 credits, insurance, reinsurance, or guarantee) to the 

20 government of the country or for a project located 

21 within the country. 

22 (b) WAIVER.— 

23 (1) IN GENERAL.—The President may waive 

24 any action provided for under subsection (a) if the 

25 President determines that— 


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1 (A) taking such action would cause serious 

2 harm to the national security of the United 

3 States; or 

4 (B) it is in the vital economic interest of 

5 the United States to do so and taking such ac6 tion would have an adverse impact on the 

7 United States economy greater than the bene8 fits of such action. 

9 (2) NOTIFICATION.—The President shall 

10 promptly notify Congress of a determination under 

11 paragraph (1) (and the reasons for the determina12 tion, if made under paragraph (1)(B)) and shall 

13 publish notice of the determination (and the reasons 

14 for the determination, if made under paragraph 

15 (1)(B)) in the Federal Register. 

16 (c) REPORTS.—The Secretary shall describe any ac17 tion or determination pursuant to subsection (a) or (b) 

18 in the first semiannual report required by section 102 

19 after the date of such action or determination. 

20 SEC. 106. PERSISTENT FAILURE TO ADOPT APPROPRIATE 

21 POLICIES. 

22 (a) PERSISTENT FAILURE TO ADOPT APPROPRIATE

23 POLICIES.—Not later than 360 days after the date on 

24 which a currency is designated for priority action pursuant 

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1 er the country that issues such currency has adopted ap2 propriate policies, and taken identifiable action, to elimi3 nate the fundamental misalignment. The Secretary shall 

4 promptly notify Congress of such determination and shall 

5 publish notice of the determination in the Federal Reg6 ister. If the Secretary determines that the country that 

7 issues such currency has failed to adopt appropriate poli8 cies, or take identifiable action, to eliminate the funda9 mental misalignment, in addition to the actions described 

10 in section 105(a), the following shall apply with respect 

11 to the country until a notification described in subsection 

12 (b) is published in the Federal Register: 

13 (1) ACTION AT THE WTO.—The United States 

14 Trade Representative shall request consultations in 

15 the World Trade Organization with the country re16 garding the consistency of the country’s actions with 

17 its obligations under the WTO Agreement. 

18 (2) REMEDIAL INTERVENTION.— 

19 (A) IN GENERAL.—The Secretary shall 

20 consult with the Board of Governors of the 

21 Federal Reserve System to consider under22 taking remedial intervention in international 

23 currency markets in response to the funda24 mental misalignment of the currency designated 

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1 vention with other monetary authorities and the 

2 International Monetary Fund. In doing so, the 

3 Secretary shall consider the impact of such 

4 intervention on domestic economic growth and 

5 stability, including the impact on interest rates. 

6 (B) NOTICE TO COUNTRY.—At the same 

7 time the Secretary takes action under subpara8 graph (A), the Secretary shall notify the coun9 try that issues such currency of the consulta10 tions under subparagraph (A). 

11 (b) NOTIFICATION.—The Secretary shall promptly 

12 notify Congress when a country that issues a currency des13 ignated for priority action pursuant to section 103(a)(3) 

14 adopts appropriate policies, or takes identifiable action, to 

15 eliminate the fundamental misalignment, and publish no16 tice of the action of that country in the Federal Register. 

17 (c) WAIVER.— 

18 (1) IN GENERAL.—The President may waive 

19 any action provided for under this section, or extend 

20 any waiver provided for under section 105(b), if the 

21 President determines that— 

22 (A) taking such action would cause serious 

23 harm to the national security of the United 

24 States; or 


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1 (B) it is in the vital economic interest of 

2 the United States to do so, and that taking 

3 such action would have an adverse impact on 

4 the United States economy substantially out of 

5 proportion to the benefits of such action. 

6 (2) NOTIFICATION.—The President shall 

7 promptly notify Congress of a determination under 

8 paragraph (1) (and the reasons for the determina9 tion, if made under paragraph (1)(B)) and shall 

10 publish notice of the determination (and the reasons 

11 for the determination, if made under paragraph 

12 (1)(B)) in the Federal Register. 

13 (d) DISAPPROVAL OF WAIVER.—If the President 

14 waives an action pursuant to subsection (c)(1)(B), or ex15 tends a waiver provided for under section 105(b)(1)(B), 

16 the waiver shall cease to have effect upon the enactment 

17 of a joint resolution described in section 107(a)(2). 

18 (e) REPORTS.—The Secretary shall describe any ac19 tion or determination pursuant to subsection (a), (b), or 

20 (c) in the first semiannual report required by section 102 

21 after the date of such action or determination. 

22 SEC. 107. CONGRESSIONAL DISAPPROVAL OF WAIVER. 

23 (a) RESOLUTION OF DISAPPROVAL.— 

24 (1) INTRODUCTION.—If a resolution of dis25 approval is introduced in the House of RepresentaVerDate Nov 24 2008 01:44 Mar 18, 2010 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S3134.IS S3134

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1 tives or the Senate during the 90-day period (not 

2 counting any day which is excluded under section 

3 154(b)(1) of the Trade Act of 1974 (19 U.S.C. 

4 2194(b)(1))), beginning on the date on which the 

5 President first notifies Congress of a determination 

6 to waive action with respect to a country pursuant 

7 to section 106(c)(1)(B), that resolution of dis8 approval shall be considered in accordance with this 

9 subsection. 

10 (2) RESOLUTION OF DISAPPROVAL.—In this 

11 subsection, the term ‘‘resolution of disapproval’’ 

12 means only a joint resolution of the two Houses of 

13 the Congress, the sole matter after the resolving 

14 clause of which is as follows: ‘‘That Congress does 

15 not approve the determination of the President 

16 under section 106(c)(1)(B) of the Currency Ex17 change Rate Oversight Reform Act of 2010 with re18 spect to llllll, of which Congress was noti19 fied on lllll.’’, with the first blank space 

20 being filled with the name of the appropriate country 

21 and the second blank space being filled with the ap22 propriate date. 

23 (3) PROCEDURES FOR CONSIDERING RESOLU24 TIONS.— 


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1 (A) INTRODUCTION AND REFERRAL.—Res2 olutions of disapproval— 

3 (i) in the House of Representatives— 

4 (I) may be introduced by any 

5 Member of the House; 

6 (II) shall be referred to the Com7 mittee on Financial Services and, in 

8 addition, to the Committee on Rules; 

9 and 

10 (III) may not be amended by ei11 ther Committee; and 

12 (ii) in the Senate— 

13 (I) may be introduced by any 

14 Member of the Senate; 

15 (II) shall be referred to the Com16 mittee on Banking, Housing, and 

17 Urban Affairs; and 

18 (III) may not be amended. 

19 (B) COMMITTEE DISCHARGE AND FLOOR

20 CONSIDERATION.—The provisions of sub21 sections (c) through (f) of section 152 of the 

22 Trade Act of 1974 (other than paragraph (3) 

23 of such subsection (f)) (19 U.S.C. 2192(c) 

24 through (f)) (relating to committee discharge 

25 and floor consideration of certain resolutions in 


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1 the House and Senate) apply to a joint resolu2 tion of disapproval under this section to the 

3 same extent as such subsections apply to joint 

4 resolutions under such section 152. 

5 (b) RULES OF HOUSE OF REPRESENTATIVES AND

6 SENATE.—This section is enacted by Congress— 

7 (1) as an exercise of the rulemaking power of 

8 the House of Representatives and the Senate, re9 spectively, and as such is deemed a part of the rules 

10 of each House, respectively, and the rules provided 

11 for in this section supersede other rules only to the 

12 extent that they are inconsistent with such other 

13 rules; and 

14 (2) with the full recognition of the constitu15 tional right of either House to change the rules pro16 vided for in this section (so far as relating to the 

17 procedures of that House) at any time, in the same 

18 manner, and to the same extent as any other rule 

19 of that House. 

20 SEC. 108. INTERNATIONAL FINANCIAL INSTITUTION GOV21 ERNANCE ARRANGEMENTS. 

22 (a) INITIAL REVIEW.—Notwithstanding any other 

23 provision of law, before the United States approves a pro24 posed change in the governance arrangement of any inter25 national financial institution, as defined in section 


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1 1701(c)(2) of the International Financial Institutions Act 

2 (22 U.S.C. 262r(c)(2)), the Secretary shall determine 

3 whether any member of the international financial institu4 tion that would benefit from the proposed change, in the 

5 form of increased voting shares or representation, has a 

6 currency that was designated a currency for priority action 

7 pursuant to section 103(a)(3) in the most recent report 

8 required by section 102. The determination shall be re9 ported to Congress. 

10 (b) SUBSEQUENT ACTION.—The United States shall 

11 oppose any proposed change in the governance arrange12 ment of the international financial institution (described 

13 in subsection (a)), if the Secretary renders an affirmative 

14 determination pursuant to subsection (a). 

15 (c) FURTHER ACTION.—The United States shall con16 tinue to oppose any proposed change in the governance 

17 arrangement of the international financial institution, pur18 suant to subsection (b), until the Secretary determines 

19 and reports to Congress that the proposed change would 

20 not benefit any member of the international financial insti21 tution, in the form of increased voting shares or represen22 tation, that has a currency that is designated a currency 

23 for priority action pursuant to section 103(a)(3). 


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1 SEC. 109. ADJUSTMENT FOR FUNDAMENTALLY MIS2 ALIGNED CURRENCY DESIGNATED FOR PRI3 ORITY ACTION. 

4 (a) IN GENERAL.—Subsection (c)(2) of section 772 

5 of the Tariff Act of 1930 (19 U.S.C. 1677a(c)(2)) is 

6 amended— 

7 (1) by striking ‘‘and’’ at the end of subpara8 graph (A); 

9 (2) by striking the period at the end of sub10 paragraph (B) and inserting ‘‘; and’’; and 

11 (3) by adding at the end the following: 

12 ‘‘(C) if required by section 105(a)(1) of the 

13 Currency Exchange Rate Oversight Reform Act 

14 of 2010, the percentage by which the domestic 

15 currency of the producer or exporter is under16 valued in relation to the United States dollar as 

17 determined under section 771(37).’’. 

18 (b) CALCULATION METHODOLOGY.—Section 771 of 

19 the Tariff Act of 1930 (19 U.S.C. 1677) is amended by 

20 adding at the end the following: 

21 ‘‘(37) PERCENTAGE UNDERVALUATION.—The 

22 administering authority shall determine the percent23 age by which the domestic currency of the producer 

24 or exporter is undervalued in relation to the United 

25 States dollar by comparing the nominal value associ26 ated with the medium-term equilibrium exchange 


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1 rate of the domestic currency of the producer or ex2 porter, identified by the Secretary pursuant to sec3 tion 102(b)(7) of the Currency Exchange Rate Over4 sight Reform Act of 2010, to the official daily ex5 change rate identified by the administering author6 ity.’’. 

7 SEC. 110. CURRENCY UNDERVALUATION UNDER COUNTER8 VAILING DUTY LAW. 

9 (a) INVESTIGATION OR REVIEW.—Subsection (c) of 

10 section 702 of the Tariff Act of 1930 (19 U.S.C. 

11 1671a(c)) is amended by adding at the end the following: 

12 ‘‘(6) CURRENCY UNDERVALUATION.—For pur13 poses of a countervailing duty investigation under 

14 this subtitle, or a review under subtitle C of this 

15 title, the following shall apply: 

16 ‘‘(A) IN GENERAL.—The administering au17 thority shall initiate an investigation to deter18 mine whether currency undervaluation by the 

19 government of a country or any public entity 

20 within the territory of a country is providing, 

21 directly or indirectly, a countervailable subsidy 

22 as described in section 771(5), if— 

23 ‘‘(i) a petition filed by an interested 

24 party (described in subparagraph (C), (D), 

25 (E), (F), or (G) of section 771(9)) alleges 


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1 the elements necessary for the imposition 

2 of the duty imposed by section 701(a); and 

3 ‘‘(ii) the petition is accompanied by 

4 information reasonably available to the pe5 titioner supporting those allegations. 

6 ‘‘(B) DESIGNATION OF FUNDAMENTALLY

7 MISALIGNED CURRENCY FOR PRIORITY AC8 TION.—Upon designation of a currency as a 

9 fundamentally misaligned currency for priority 

10 action pursuant to section 103(a)(3) of the 

11 Currency Exchange Rate Oversight Reform Act 

12 of 2010, the administering authority shall ini13 tiate an investigation to determine whether the 

14 country that issues such currency is providing, 

15 directly or indirectly, a countervailable subsidy 

16 as defined in section 771(5), if— 

17 ‘‘(i) a petition filed by an interested 

18 party (described in subparagraph (C), (D), 

19 (E), (F), or (G) of section 771(9)) alleges 

20 the elements necessary for the imposition 

21 of the duty imposed by section 701(a); and 

22 ‘‘(ii) the petition is accompanied by 

23 information reasonably available to the pe24 titioner supporting those allegations.’’. 


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1 (b) BENEFIT CALCULATION METHODOLOGY.—Sec2 tion 771 of the Tariff Act of 1930 (19 U.S.C. 1677), as 

3 amended by section 109(b), is amended by adding at the 

4 end the following: 

5 ‘‘(38) CURRENCY UNDERVALUATION BEN6 EFIT.—For purposes of a countervailing duty inves7 tigation under subtitle A of this title, or a review 

8 under subtitle C of this title, the following shall 

9 apply: 

10 ‘‘(A) IN GENERAL.—If the administering 

11 authority determines to investigate whether cur12 rency undervaluation is a countervailable sub13 sidy as defined in section 771(5), the admin14 istering authority shall determine whether there 

15 is a benefit to the recipient and measure such 

16 benefit as the simple average of the results 

17 yielded from application of the macroeconomic18 balance approach and the equilibrium-real-ex19 change-rate approach. The administering au20 thority shall rely upon data that are publicly 

21 available, reliable, and complied and maintained 

22 by the International Monetary Fund or the 

23 World Bank, or other international organiza24 tions or national governments if International 


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1 Monetary Fund or World Bank data is not 

2 available. 

3 ‘‘(B) DESIGNATION OF FUNDAMENTALLY

4 MISALIGNED CURRENCY FOR PRIORITY AC5 TION.—In the case of designation of a currency 

6 as a fundamentally misaligned currency for pri7 ority action pursuant to section 103(a)(3) of 

8 the Currency Exchange Rate Oversight Reform 

9 Act of 2010, the administering authority shall 

10 determine whether there is a benefit to the re11 cipient and measure such benefit by comparing 

12 the nominal value associated with the medium13 term equilibrium exchange rate of the currency 

14 of the exporting country, identified by the Sec15 retary pursuant to section 102(b)(7) of such 

16 Act, to the official daily exchange rate identified 

17 by the administering authority. 

18 ‘‘(C) DEFINITIONS.— 

19 ‘‘(i) MACROECONOMIC-BALANCE AP20 PROACH.—The term ‘marcroeconomic-bal21 ance approach’ means a methodology 

22 under which the level of undervaluation of 

23 the real effective exchange rate of the ex24 porting country’s currency is defined as 

25 the change in the real effective exchange 


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1 rate needed to achieve equilibrium in the 

2 exporting country’s balance of payments, 

3 as such methodology is described in the 

4 guidelines of the International Monetary 

5 Fund’s Consultative Group on Exchange 

6 Rate Issues, if available. 

7 ‘‘(ii) EQUILIBRIUM-REAL-EXCHANGE8 RATE APPROACH.—The term ‘equilibrium9 real-exchange-rate approach’ means a 

10 methodology under which the level of 

11 undervaluation of the real effective ex12 change rate of the exporting country’s cur13 rency is defined as the difference between 

14 the observed real effective exchange rate 

15 and the real effective exchange rate pre16 dicted by an econometric model, as such 

17 methodology is described in the guidelines 

18 of the International Monetary Fund’s Con19 sultative Group on Exchange Rate Issues, 

20 if available.’’. 

21 SEC. 111. NONMARKET ECONOMY STATUS. 

22 Paragraph (18)(B) of section 771 of the Tariff Act 

23 of 1930 (19 U.S.C. 1677(18)(B)) is amended— 

24 (1) by striking ‘‘and’’ at the end of clause (v); 

25 and 


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1 (2) by redesignating clause (vi) as clause (vii) 

2 and inserting after clause (v) the following: 

3 ‘‘(vi) whether the currency of the for4 eign country is designated, or has been 

5 designated at any time over the 5 years 

6 prior to review of nonmarket economy sta7 tus, a currency for priority action pursuant 

8 to section 103(a)(3) of the Currency Ex9 change Rate Oversight Reform Act of 

10 2010, and’’. 

11 SEC. 112. APPLICATION TO CANADA AND MEXICO. 

12 Pursuant to article 1902 of the North American Free 

13 Trade Agreement and section 408 of the North American 

14 Free Trade Agreement Implementation Act (19 U.S.C. 

15 3438), section 105(a)(1) and the amendments made by 

16 sections 109, 110, and 111 shall apply with respect to 

17 goods from Canada and Mexico. 

18 SEC. 113. ADVISORY COMMITTEE ON INTERNATIONAL EX19 CHANGE RATE POLICY. 

20 (a) ESTABLISHMENT.— 

21 (1) IN GENERAL.—There is established an Ad22 visory Committee on International Exchange Rate 

23 Policy (in this section referred to as the ‘‘Com24 mittee’’). The Committee shall be responsible for— 


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1 (A) advising the Secretary in the prepara2 tion of each report to Congress on international 

3 monetary policy and currency exchange rates, 

4 provided for in section 102; and 

5 (B) advising Congress and the President 

6 with respect to— 

7 (i) international exchange rates and 

8 financial policies; and 

9 (ii) the impact of such policies on the 

10 economy of the United States. 

11 (2) MEMBERSHIP.— 

12 (A) IN GENERAL.—The Committee shall be 

13 composed of 9 members as follows, none of 

14 whom shall be from the Federal Government: 

15 (i) CONGRESSIONAL APPOINTEES.— 

16 (I) SENATE APPOINTEES.—Four 

17 persons shall be appointed by the 

18 President pro tempore of the Senate, 

19 upon the recommendation of the 

20 chairmen and ranking members of the 

21 Committee on Banking, Housing, and 

22 Urban Affairs and the Committee on 

23 Finance of the Senate. 

24 (II) HOUSE APPOINTEES.—Four 

25 persons shall be appointed by the 


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1 Speaker of the House of Representa2 tives upon the recommendation of the 

3 chairmen and ranking members of the 

4 Committee on Financial Services and 

5 the Committee on Ways and Means of 

6 the House of Representatives. 

7 (ii) PRESIDENTIAL APPOINTEE.—One 

8 person shall be appointed by the President. 

9 (B) QUALIFICATIONS.—Persons shall be 

10 selected under subparagraph (A) on the basis of 

11 their objectivity and demonstrated expertise in 

12 finance, economics, or currency exchange. 

13 (3) TERMS.—Members shall be appointed for a 

14 term of 4 years or until the Committee terminates. 

15 An individual may be reappointed to the Committee 

16 for additional terms. 

17 (4) VACANCIES.—Any vacancy in the Com18 mittee shall not affect its powers, but shall be filled 

19 in the same manner as the original appointment. 

20 (b) DURATION OF COMMITTEE.—Notwithstanding 

21 section 14(c) of the Federal Advisory Committee Act (5 

22 U.S.C. App.), the Committee shall terminate on the date 

23 that is 4 years after the date of the enactment of this 

24 Act unless renewed by the President pursuant to section 

25 14 of the Federal Advisory Committee Act (5 U.S.C. 


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1 App.) for a subsequent 4-year period. The President may 

2 continue to renew the Committee for successive 4-year pe3 riods by taking appropriate action prior to the date on 

4 which the Committee would otherwise terminate. 

5 (c) PUBLIC MEETINGS.—The Committee shall hold 

6 at least 2 public meetings each year for the purpose of 

7 accepting public comments, including comments from 

8 small business owners. The Committee shall also meet as 

9 needed at the call of the Secretary or at the call of two10 thirds of the members of the Committee. 

11 (d) CHAIRPERSON.—The Committee shall elect from 

12 among its members a chairperson for a term of 4 years 

13 or until the Committee terminates. A chairperson of the 

14 Committee may be reelected chairperson but is ineligible 

15 to serve consecutive terms as chairperson. 

16 (e) STAFF.—The Secretary shall make available to 

17 the Committee such staff, information, personnel, admin18 istrative services, and assistance as the Committee may 

19 reasonably require to carry out its activities. 

20 (f) APPLICATION OF FEDERAL ADVISORY COM21 MITTEE ACT.— 

22 (1) IN GENERAL.—The provisions of the Fed23 eral Advisory Committee Act (5 U.S.C. App.) shall 

24 apply to the Committee. 


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1 (2) EXCEPTION.—Except for the 2 annual pub2 lic meetings required under subsection (c), meetings 

3 of the Committee shall be exempt from the require4 ments of subsections (a) and (b) of sections 10 and 

5 11 of the Federal Advisory Committee Act (relating 

6 to open meetings, public notice, public participation, 

7 and public availability of documents), whenever and 

8 to the extent it is determined by the President or the 

9 Secretary that such meetings will be concerned with 

10 matters the disclosure of which would seriously com11 promise the development by the United States Gov12 ernment of monetary and financial policy. 

13 SEC. 114. REPEAL OF THE EXCHANGE RATES AND INTER14 NATIONAL ECONOMIC POLICY COORDINA15 TION ACT OF 1988. 

16 The Exchange Rates and International Economic 

17 Policy Coordination Act of 1988 (22 U.S.C. 5301 et seq.) 

18 is repealed. 


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1 TITLE II—PERMANENT EXTEN2 SION OF CERTAIN CHARI3 TABLE PROVISIONS 

4 SEC. 201. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE5 TIREMENT PLANS FOR CHARITABLE PUR6 POSES. 

7 (a) IN GENERAL.—Section 408(d)(8) of the Internal 

8 Revenue Code of 1986 is amended by striking subpara9 graph (F). 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall apply to distributions made in taxable 

12 years beginning after December 31, 2009. 

13 SEC. 202. ENHANCED CHARITABLE DEDUCTION FOR CON14 TRIBUTIONS OF FOOD INVENTORY. 

15 (a) IN GENERAL.—Section 170(e)(3)(C) of the Inter16 nal Revenue Code of 1986 is amended by striking clause 

17 (iv). 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall apply to contributions made after De20 cember 31, 2009. 


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1 SEC. 203. ENHANCED CHARITABLE DEDUCTION FOR CON2 TRIBUTIONS OF BOOK INVENTORIES TO PUB3 LIC SCHOOLS. 

4 (a) IN GENERAL.—Section 170(e)(3)(D) of the Inter5 nal Revenue Code of 1986 is amended by striking clause 

6 (iv). 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to contributions made after De9 cember 31, 2009. 

10 SEC. 204. ENHANCED CHARITABLE DEDUCTION FOR COR11 PORATE CONTRIBUTIONS OF COMPUTER IN12 VENTORY FOR EDUCATIONAL PURPOSES. 

13 (a) IN GENERAL.—Section 170(e)(6) of the Internal 

14 Revenue Code of 1986 is amended by striking subpara15 graph (G). 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to contributions made in taxable 

18 years beginning after December 31, 2009. 

Æ 


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