H. R. 3009—55
‘‘(C) A drug or other substance listed in schedule I, II,
III, or IV in section 202 of the Controlled Substances Act
(21 U.S.C. 812).
‘‘(D) National defense and related information transmitted
in violation of any of sections 793 through 798 of title 18,
United States Code.
‘‘(E) Merchandise mailed in violation of section 1715 or
1716 of title 18, United States Code.
‘‘(F) Merchandise mailed in violation of any provision of
chapter 71 (relating to obscenity) or chapter 110 (relating to
sexual exploitation and other abuse of children) of title 18,
United States Code.
‘‘(G) Merchandise mailed in violation of the Export
Administration Act of 1979 (50 U.S.C. App. 2401 et seq.).
‘‘(H) Merchandise mailed in violation of section 38 of the
Arms Export Control Act (22 U.S.C. 2778).
‘‘(I) Merchandise mailed in violation of the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
‘‘(J) Merchandise mailed in violation of the Trading with
the Enemy Act (50 U.S.C. App. 1 et seq.).
‘‘(K) Merchandise subject to any other law enforced by
the Customs Service.
‘‘(2) LIMITATION.—No person acting under the authority
of paragraph (1) shall read, or authorize any other person
to read, any correspondence contained in mail sealed against
inspection unless prior to so reading—
‘‘(A) a search warrant has been issued pursuant to
rule 41 of the Federal Rules of Criminal Procedure; or
‘‘(B) the sender or addressee has given written
authorization for such reading.
‘‘(d) SEARCH OF MAIL SEALED AGAINST INSPECTION WEIGHING
16 OUNCES OR LESS.—Notwithstanding any other provision of this
section, subsection (a)(1) shall not apply to mail weighing 16 ounces
or less sealed against inspection under the postal laws and regula-
tions of the United States.’’.
(b) CERTIFICATION BY SECRETARY.—Not later than 3 months
after the date of enactment of this section, the Secretary of State
shall determine whether the application of section 583 of the Tariff
Act of 1930 to foreign mail transiting the United States that is
imported or exported by the United States Postal Service is being
handled in a manner consistent with international law and any
international obligation of the United States. Section 583 of such
Act shall not apply to such foreign mail unless the Secretary cer-
tifies to Congress that the application of such section 583 is con-
sistent with international law and any international obligation of
the United States.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), this
section and the amendments made by this section shall take
effect on the date of enactment of this Act.
(2) CERTIFICATION WITH RESPECT TO FOREIGN MAIL.—The
provisions of section 583 of the Tariff Act of 1930 relating
to foreign mail transiting the United States that is imported
or exported by the United States Postal Service shall not take
effect until the Secretary of State certifies to Congress, pursu-
ant to subsection (b), that the application of such section 583
H. R. 3009—56
is consistent with international law and any international
obligation of the United States.
SEC. 345. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISH-
MENT OF CUSTOMS OPERATIONS IN NEW YORK CITY.
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be appropriated
for the reestablishment of operations of the Customs Service
in New York, New York, such sums as may be necessary
for fiscal year 2003.
(2) OPERATIONS DESCRIBED.—The operations referred to in
paragraph (1) include, but are not limited to, the following:
(A) Operations relating to the Port Director of New
York City, the New York Customs Management Center
(including the Director of Field Operations), and the Special
Agent-In-Charge for New York.
(B) Commercial operations, including textile enforce-
ment operations and salaries and expenses of—
(i) trade specialists who determine the origin and
value of merchandise;
(ii) analysts who monitor the entry data into the
United States of textiles and textile products; and
(iii) Customs officials who work with foreign
governments to examine textile makers and verify
entry information.
(b) AVAILABILITY.—Amounts appropriated pursuant to the
authorization of appropriations under subsection (a) are authorized
to remain available until expended.
CHAPTER 5—TEXTILE TRANSSHIPMENT PROVISIONS
SEC. 351. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY
CUSTOMS SERVICE.
(a) GAO AUDIT.—The Comptroller General of the United States
shall conduct an audit of the system established and carried out
by the Customs Service to monitor transshipment.
(b) REPORT.—Not later than 9 months after the date of enact-
ment of this Act, the Comptroller General shall submit to the
Committee on Ways and Means of the House of Representatives
and Committee on Finance of the Senate a report that contains
the results of the study conducted under subsection (a), including
recommendations for improvements to the transshipment moni-
toring system if applicable.
(c) TRANSSHIPMENT DESCRIBED.—Transshipment within the
meaning of this section has occurred when preferential treatment
under any provision of law has been claimed for a textile or apparel
article on the basis of material false information concerning the
country of origin, manufacture, processing, or assembly of the article
or any of its components. For purposes of the preceding sentence,
false information is material if disclosure of the true information
would mean or would have meant that the article is or was ineligible
for preferential treatment under the provision of law in question.
SEC. 352. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANS-
SHIPMENT ENFORCEMENT OPERATIONS.
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be appropriated
for transshipment (as described in section 351(c)) enforcement
H. R. 3009—57
operations, outreach, and education of the Customs Service
$9,500,000 for fiscal year 2003.
(2) AVAILABILITY.—Amounts appropriated pursuant to the
authorization of appropriations under paragraph (1) are author-
ized to remain available until expended.
(b) USE OF FUNDS.—Of the amount appropriated pursuant to
the authorization of appropriations under subsection (a), the fol-
lowing amounts are authorized to be made available for the fol-
lowing purposes:
(1) IMPORT SPECIALISTS.—$1,463,000 for 21 Customs import
specialists to be assigned to selected ports for documentation
review to support detentions and exclusions and 1 additional
Customs import specialist assigned to the Customs head-
quarters textile program to administer the program and provide
oversight.
(2) INSPECTORS.—$652,080 for 10 Customs inspectors to
be assigned to selected ports to examine targeted high-risk
shipments.
(3) INVESTIGATORS.—(A) $1,165,380 for 10 investigators to
be assigned to selected ports to investigate instances of smug-
gling, quota and trade agreement circumvention, and use of
counterfeit visas to enter inadmissible goods.
(B) $149,603 for 1 investigator to be assigned to the Cus-
toms headquarters textile program to coordinate and ensure
implementation of textile production verification team results
from an investigation perspective.
(4) INTERNATIONAL
TRADE
SPECIALISTS.—$226,500 for 3
international trade specialists to be assigned to Customs head-
quarters to be dedicated to illegal textile transshipment policy
issues, outreach, education, and other free trade agreement
enforcement issues.
(5) PERMANENT
IMPORT
SPECIALISTS
FOR
HONG
KONG.—
$500,000 for 2 permanent import specialist positions and
$500,000 for 2 investigators to be assigned to Hong Kong to
work with Hong Kong and other government authorities in
Southeast Asia to assist such authorities in pursuing proactive
enforcement of bilateral trade agreements.
(6) VARIOUS PERMANENT TRADE POSITIONS.—$3,500,000 for
the following:
(A) 2 permanent positions to be assigned to the Cus-
toms attache´ office in Central America to address trade
enforcement issues for that region.
(B) 2 permanent positions to be assigned to the Cus-
toms attache´ office in South Africa to address trade enforce-
ment issues pursuant to the African Growth and Oppor-
tunity Act (title I of Public Law 106–200).
(C) 4 permanent positions to be assigned to the Cus-
toms attache´ office in Mexico to address the threat of
illegal textile transshipment through Mexico and other
related issues under the North American Free Trade Agree-
ment Act.
(D) 2 permanent positions to be assigned to the Cus-
toms attache´ office in Seoul, South Korea, to address the
trade issues in the geographic region.
(E) 2 permanent positions to be assigned to the pro-
posed Customs attache´
office in New Delhi, India, to
H. R. 3009—58
address the threat of illegal textile transshipment and other
trade enforcement issues.
(F) 2 permanent positions to be assigned to the Cus-
toms attache´ office in Rome, Italy, to address trade enforce-
ment issues in the geographic region, including issues
under free trade agreements with Jordan and Israel.
(7) ATTORNEYS.—$179,886 for 2 attorneys for the Office
of the Chief Counsel of the Customs Service to pursue cases
regarding illegal textile transshipment.
(8) AUDITORS.—$510,000 for 6 Customs auditors to perform
internal control reviews and document and record reviews of
suspect importers.
(9) ADDITIONAL TRAVEL FUNDS.—$250,000 for deployment
of additional textile production verification teams to sub-Saha-
ran Africa.
(10) TRAINING.—(A) $75,000 for training of Customs per-
sonnel.
(B) $200,000 for training for foreign counterparts in risk
management analytical techniques and for teaching factory
inspection techniques, model law development, and enforcement
techniques.
(11) OUTREACH.—$60,000 for outreach efforts to United
States importers.
SEC. 353. IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPOR-
TUNITY ACT.
Of the amount made available for fiscal year 2003 under section
301(b)(2)(A) of the Customs Procedural Reform and Simplification
Act of 1978 (19 U.S.C. 2075(b)(2)(A)), as amended by section
311(b)(1) of this Act, $1,317,000 shall be available until expended
for the Customs Service to provide technical assistance to help
sub-Saharan African countries develop and implement effective visa
and anti-transshipment systems as required by the African Growth
and Opportunity Act (title I of Public Law 106–200), as follows:
(1) TRAVEL FUNDS.—$600,000 for import specialists, special
agents, and other qualified Customs personnel to travel to
sub-Saharan African countries to provide technical assistance
in developing and implementing effective visa and anti-trans-
shipment systems.
(2) IMPORT SPECIALISTS.—$266,000 for 4 import specialists
to be assigned to Customs headquarters to be dedicated to
providing technical assistance to sub-Saharan African countries
for developing and implementing effective visa and anti-trans-
shipment systems.
(3) DATA RECONCILIATION ANALYSTS.—$151,000 for 2 data
reconciliation analysts to review apparel shipments.
(4) SPECIAL AGENTS.—$300,000 for 2 special agents to be
assigned to Customs headquarters to be available to provide
technical assistance to sub-Saharan African countries in the
performance of investigations and other enforcement initiatives.
H. R. 3009—59
Subtitle B—Office of the United States
Trade Representative
SEC. 361. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 141(g)(1) of the Trade Act of 1974
(19 U.S.C. 2171(g)(1)) is amended—
(1) in subparagraph (A)—
(A) in the matter preceding clause (i), by striking ‘‘not
to exceed’’;
(B) by striking clause (i), and inserting the following:
‘‘(i) $32,300,000 for fiscal year 2003.’’; and
(C) by striking clause (ii), and inserting the following:
‘‘(ii) $33,108,000 for fiscal year 2004.’’; and
(2) in subparagraph (B)—
(A) in clause (i), by adding ‘‘and’’ at the end;
(B) by striking clause (ii); and
(C) by redesignating clause (iii) as clause (ii).
(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section
141(g) of the Trade Act of 1974 (19 U.S.C. 2171(g)) is amended
by adding at the end the following:
‘‘(3) By not later than the date on which the President submits
to Congress the budget of the United States Government for a
fiscal year, the United States Trade Representative shall submit
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate the projected
amount of funds for the succeeding fiscal year that will be necessary
for the Office to carry out its functions.’’.
(c) ADDITIONAL STAFF FOR OFFICE OF ASSISTANT U.S. TRADE
REPRESENTATIVE FOR CONGRESSIONAL AFFAIRS.—
(1) IN GENERAL.—There is authorized to be appropriated
such sums as may be necessary for fiscal year 2003 for the
salaries and expenses of two additional legislative specialist
employee positions within the Office of the Assistant United
States Trade Representative for Congressional Affairs.
(2) AVAILABILITY.—Amounts appropriated pursuant to the
authorization of appropriations under paragraph (1) are author-
ized to remain available until expended.
Subtitle C—United States International
Trade Commission
SEC. 371. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 330(e)(2)(A) of the Tariff Act of 1930
(19 U.S.C. 1330(e)(2)(A)) is amended—
(1) by striking clause (i), and inserting the following:
‘‘(i) $54,000,000 for fiscal year 2003.’’; and
(2) by striking clause (ii), and inserting the following:
‘‘(ii) $57,240,000 for fiscal year 2004.’’.
(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section
330(e) of the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended
by adding at the end the following:
‘‘(4) By not later than the date on which the President submits
to Congress the budget of the United States Government for a
fiscal year, the Commission shall submit to the Committee on
H. R. 3009—60
Ways and Means of the House of Representatives and the Com-
mittee on Finance of the Senate the projected amount of funds
for the succeeding fiscal year that will be necessary for the Commis-
sion to carry out its functions.’’.
Subtitle D—Other trade provisions
SEC. 381. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT
FROM DUTY ACQUIRED ABROAD BY UNITED STATES
RESIDENTS.
(a) IN GENERAL.—Subheading 9804.00.65 of the Harmonized
Tariff Schedule of the United States is amended in the article
description column by striking ‘‘$400’’ and inserting ‘‘$800’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect 90 days after the date of the enactment of this
Act.
SEC. 382. REGULATORY AUDIT PROCEDURES.
Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b))
is amended by adding at the end the following:
‘‘(6)(A) If during the course of any audit concluded under
this subsection, the Customs Service identifies overpayments
of duties or fees or over-declarations of quantities or values
that are within the time period and scope of the audit that
the Customs Service has defined, then in calculating the loss
of revenue or monetary penalties under section 592, the Cus-
toms Service shall treat the overpayments or over-declarations
on finally liquidated entries as an offset to any underpayments
or underdeclarations also identified on finally liquidated
entries, if such overpayments or over-declarations were not
made by the person being audited for the purpose of violating
any provision of law.
‘‘(B) Nothing in this paragraph shall be construed to
authorize a refund not otherwise authorized under section 520.’’.
SEC. 383. PAYMENT OF DUTIES AND FEES.
Section 505(a) of the Tariff Act of 1930 (19 U.S.C. 1505(a))
is amended to read as follows:
‘‘(a) DEPOSIT
OF ESTIMATED DUTIES
AND FEES.—Unless the
entry is subject to a periodic payment or the merchandise is entered
for warehouse or transportation, or under bond, the importer of
record shall deposit with the Customs Service at the time of entry,
or at such later time as the Secretary may prescribe by regulation
(but not later than 10 working days after entry or release) the
amount of duties and fees estimated to be payable on such merchan-
dise. As soon as a periodic payment module of the Automated
Commercial Environment is developed, but no later than October
1, 2004, a participating importer of record, or the importer’s filer,
may deposit estimated duties and fees for entries of merchandise
no later than the 15th day of the month following the month
in which the merchandise is entered or released, whichever comes
first.’’.
H. R. 3009—61
DIVISION B—BIPARTISAN TRADE
PROMOTION AUTHORITY
TITLE XXI—TRADE PROMOTION
AUTHORITY
SEC. 2101. SHORT TITLE AND FINDINGS.
(a) SHORT TITLE.—This title may be cited as the ‘‘Bipartisan
Trade Promotion Authority Act of 2002’’.
(b) FINDINGS.—The Congress makes the following findings:
(1) The expansion of international trade is vital to the
national security of the United States. Trade is critical to
the economic growth and strength of the United States and
to its leadership in the world. Stable trading relationships
promote security and prosperity. Trade agreements today serve
the same purposes that security pacts played during the Cold
War, binding nations together through a series of mutual rights
and obligations. Leadership by the United States in inter-
national trade fosters open markets, democracy, and peace
throughout the world.
(2) The national security of the United States depends
on its economic security, which in turn is founded upon a
vibrant and growing industrial base. Trade expansion has been
the engine of economic growth. Trade agreements maximize
opportunities for the critical sectors and building blocks of
the economy of the United States, such as information tech-
nology, telecommunications and other leading technologies,
basic industries, capital equipment, medical equipment, serv-
ices, agriculture, environmental technology, and intellectual
property. Trade will create new opportunities for the United
States and preserve the unparalleled strength of the United
States in economic, political, and military affairs. The United
States, secured by expanding trade and economic opportunities,
will meet the challenges of the twenty-first century.
(3) Support for continued trade expansion requires that
dispute settlement procedures under international trade agree-
ments not add to or diminish the rights and obligations provided
in such agreements. Therefore—
(A) the recent pattern of decisions by dispute settle-
ment panels of the WTO and the Appellate Body to impose
obligations and restrictions on the use of antidumping,
countervailing, and safeguard measures by WTO members
under the Antidumping Agreement, the Agreement on Sub-
sidies and Countervailing Measures, and the Agreement
on Safeguards has raised concerns; and
(B) the Congress is concerned that dispute settlement
panels of the WTO and the Appellate Body appropriately
apply the standard of review contained in Article 17.6
of the Antidumping Agreement, to provide deference to
a permissible interpretation by a WTO member of provi-
sions of that Agreement, and to the evaluation by a WTO
member of the facts where that evaluation is unbiased
and objective and the establishment of the facts is proper.
H. R. 3009—62
SEC. 2102. TRADE NEGOTIATING OBJECTIVES.
(a) OVERALL TRADE NEGOTIATING OBJECTIVES.—The overall
trade negotiating objectives of the United States for agreements
subject to the provisions of section 2103 are—
(1) to obtain more open, equitable, and reciprocal market
access;
(2) to obtain the reduction or elimination of barriers and
distortions that are directly related to trade and that decrease
market opportunities for United States exports or otherwise
distort United States trade;
(3) to further strengthen the system of international trading
disciplines and procedures, including dispute settlement;
(4) to foster economic growth, raise living standards, and
promote full employment in the United States and to enhance
the global economy;
(5) to ensure that trade and environmental policies are
mutually supportive and to seek to protect and preserve the
environment and enhance the international means of doing
so, while optimizing the use of the world’s resources;
(6) to promote respect for worker rights and the rights
of children consistent with core labor standards of the ILO
(as defined in section 2113(6)) and an understanding of the
relationship between trade and worker rights;
(7) to seek provisions in trade agreements under which
parties to those agreements strive to ensure that they do not
weaken or reduce the protections afforded in domestic environ-
mental and labor laws as an encouragement for trade;
(8) to ensure that trade agreements afford small businesses
equal access to international markets, equitable trade benefits,
and expanded export market opportunities, and provide for
the reduction or elimination of trade barriers that dispropor-
tionately impact small businesses; and
(9) to promote universal ratification and full compliance
with ILO Convention No. 182 Concerning the Prohibition and
Immediate Action for the Elimination of the Worst Forms of
Child Labor.
(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.—
(1) TRADE BARRIERS AND DISTORTIONS.—The principal nego-
tiating objectives of the United States regarding trade barriers
and other trade distortions are—
(A) to expand competitive market opportunities for
United States exports and to obtain fairer and more open
conditions of trade by reducing or eliminating tariff and
nontariff barriers and policies and practices of foreign
governments directly related to trade that decrease market
opportunities for United States exports or otherwise distort
United States trade; and
(B) to obtain reciprocal tariff and nontariff barrier
elimination agreements, with particular attention to those
tariff categories covered in section 111(b) of the Uruguay
Round Agreements Act (19 U.S.C. 3521(b)).
(2) TRADE IN SERVICES.—The principal negotiating objective
of the United States regarding trade in services is to reduce
or eliminate barriers to international trade in services,
including regulatory and other barriers that deny national
treatment and market access or unreasonably restrict the
establishment or operations of service suppliers.
H. R. 3009—63
(3) FOREIGN INVESTMENT.—Recognizing that United States
law on the whole provides a high level of protection for invest-
ment, consistent with or greater than the level required by
international law, the principal negotiating objectives of the
United States regarding foreign investment are to reduce or
eliminate artificial or trade-distorting barriers to foreign invest-
ment, while ensuring that foreign investors in the United States
are not accorded greater substantive rights with respect to
investment protections than United States investors in the
United States, and to secure for investors important rights
comparable to those that would be available under United
States legal principles and practice, by—
(A) reducing or eliminating exceptions to the principle
of national treatment;
(B) freeing the transfer of funds relating to invest-
ments;
(C) reducing or eliminating performance requirements,
forced technology transfers, and other unreasonable bar-
riers to the establishment and operation of investments;
(D) seeking to establish standards for expropriation
and compensation for expropriation, consistent with United
States legal principles and practice;
(E) seeking to establish standards for fair and equitable
treatment consistent with United States legal principles
and practice, including the principle of due process;
(F) providing meaningful procedures for resolving
investment disputes;
(G) seeking to improve mechanisms used to resolve
disputes between an investor and a government through—
(i) mechanisms to eliminate frivolous claims and
to deter the filing of frivolous claims;
(ii) procedures to ensure the efficient selection of
arbitrators and the expeditious disposition of claims;
(iii) procedures to enhance opportunities for public
input into the formulation of government positions;
and
(iv) providing for an appellate body or similar
mechanism to provide coherence to the interpretations
of investment provisions in trade agreements; and
(H) ensuring the fullest measure of transparency in
the dispute settlement mechanism, to the extent consistent
with the need to protect information that is classified or
business confidential, by—
(i) ensuring that all requests for dispute settlement
are promptly made public;
(ii) ensuring that—
(I) all proceedings, submissions, findings, and
decisions are promptly made public; and
(II) all hearings are open to the public; and
(iii) establishing a mechanism for acceptance of
amicus curiae submissions from businesses, unions,
and nongovernmental organizations.
(4) INTELLECTUAL
PROPERTY.—The principal negotiating
objectives of the United States regarding trade-related intellec-
tual property are—
(A) to further promote adequate and effective protec-
tion of intellectual property rights, including through—