107TH CONGRESS
2D SESSION
H.R. 3009
HOUSE AMENDMENT TO
SENATE AMENDMENT
In the House of Representatives, U. S.,
June 26, 2002.
Resolved, That the House agree to the amendment of the
Senate to the bill (H.R. 3009) entitled ‘‘An Act to extend the
Andean Trade Preference Act, to grant additional trade bene-
fits under that Act, and for other purposes’’, with the fol-
lowing
HOUSE AMENDMENT TO SENATE AMENDMENT:
In lieu of the matter proposed to be inserted by the
Senate amendment, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Trade Act of 2002’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into 4 divisions
as follows:
(1) DIVISION A.—Trade Adjustment Assistance.
(2) DIVISION B.—Bipartisan Trade Promotion
Authority.
(3) DIVISION C.—Andean Trade Preference Act.
(4) DIVISION
D.—Extension of Certain Pref-
erential Trade Treatment and Other Provisions.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
Sec. 2. Organization of act into divisions; table of contents.
DIVISION A—TRADE ADJUSTMENT ASSISTANCE
Sec. 101. Short title.
TITLE I—TRADE ADJUSTMENT ASSISTANCE PROGRAM
Sec. 111. Reauthorization of trade adjustment assistance program.
Sec. 112. Filing of petitions and provision of rapid response assistance; expedited
review of petitions by Secretary of Labor.
Sec. 113. Group eligibility requirements.
Sec. 114. Qualifying requirements for trade readjustment allowances.
Sec. 115. Waivers of training requirements.
Sec. 116. Amendments to limitations on trade readjustment allowances.
Sec. 117. Annual total amount of payments for training.
Sec. 118. Authority of States with respect to costs of approved training and sup-
plemental assistance.
Sec. 119. Provision of employer-based training.
Sec. 120. Coordination with title I of the Workforce Investment Act of 1998.
Sec. 121. Expenditure period.
Sec. 122. Declaration of policy; sense of Congress.
TITLE II—CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE
INDIVIDUALS
Sec. 201.
Credit for health insurance costs of individuals receiving a trade read-
justment allowance or a benefit from the Pension Benefit Guar-
anty Corporation.
Sec. 202.
Advance payment of credit for health insurance costs of eligible indi-
viduals.
TITLE III—CUSTOMS REAUTHORIZATION
Sec. 301. Short title.
Subtitle A—United States Customs Service
CHAPTER 1—DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND
COMMERCIAL OPERATIONS
Sec. 311. Authorization of appropriations for noncommercial operations, commer-
cial operations, and air and marine interdiction.
Sec. 312. Antiterrorist and illicit narcotics detection equipment for the United
States-Mexico border, United States-Canada border, and Florida
and the Gulf Coast seaports.
Sec. 313. Compliance with performance plan requirements.
CHAPTER 2—CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE
Sec. 321. Authorization of appropriations for program to prevent child pornog-
raphy/child sexual exploitation.
CHAPTER 3—MISCELLANEOUS PROVISIONS
Sec. 331. Additional Customs Service officers for United States-Canada border.
Sec. 332. Study and report relating to personnel practices of the Customs Service.
Sec. 333. Study and report relating to accounting and auditing procedures of the
Customs Service.
Sec. 334. Establishment and implementation of cost accounting system; reports.
Sec. 335. Study and report relating to timeliness of prospective rulings.
Sec. 336. Study and report relating to customs user fees.
Sec. 337. Fees for customs inspections at express courier facilities.
Sec. 338. National customs automation program.
CHAPTER 4—ANTITERRORISM PROVISIONS
Sec. 341. Immunity for United States officials that act in good faith.
Sec. 342. Emergency adjustments to offices, ports of entry, or staffing of the cus-
toms service.
Sec. 343. Mandatory advanced electronic information for cargo and passengers.
Sec. 344. Border search authority for certain contraband in outbound mail.
Sec. 345. Authorization of appropriations for reestablishment of customs oper-
ations in New York City.
CHAPTER 5—TEXTILE TRANSSHIPMENT PROVISIONS
Sec. 351. Gao audit of textile transshipment monitoring by customs service.
Sec. 352. Authorization of appropriations for textile transshipment enforcement
operations.
Sec. 353. Implementation of the african growth and opportunity act.
Subtitle B—Office of the United States Trade Representative
Sec. 361. Authorization of appropriations.
Subtitle C—United States International Trade Commission
Sec. 371. Authorization of appropriations.
Subtitle D—Other trade provisions
Sec. 381. Increase in aggregate value of articles exempt from duty acquired
abroad by United States residents.
Sec. 382. Regulatory audit procedures.
DIVISION B—BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI—TRADE PROMOTION AUTHORITY
Sec. 2101. Short title and findings.
Sec. 2102. Trade negotiating objectives.
Sec. 2103. Trade agreements authority.
Sec. 2104. Consultations and assessment.
Sec. 2105. Implementation of trade agreements.
Sec. 2106. Treatment of certain trade agreements for which negotiations have al-
ready begun.
Sec. 2107. Congressional oversight group.
Sec. 2108. Additional implementation and enforcement requirements.
Sec. 2109. Committee staff.
Sec. 2110. Conforming amendments.
Sec. 2111. Definitions.
DIVISION C—ANDEAN TRADE PREFERENCE ACT
TITLE XXXI—ANDEAN TRADE PREFERENCE
Sec. 3101. Short title.
Sec. 3102. Findings.
Sec. 3103. Articles eligible for preferential treatment.
Sec. 3104. Termination of preferential treatment.
Sec. 3105. Trade benefits under the Caribbean Basin Economic Recovery act.
Sec. 3106. Trade benefits under the African Growth and Opportunity Act.
DIVISION D—EXTENSION OF CERTAIN PREFERENTIAL TRADE
TREATMENT AND OTHER PROVISIONS
Sec. 4101. Extension of generalized system of preferences.
Sec. 4102. Fund for WTO dispute settlements.
Sec. 4103. Payment of duties and fees.
DIVISION A—TRADE
ADJUSTMENT ASSISTANCE
SEC. 101. SHORT TITLE.
This division may be cited as the ‘‘Trade Adjustment
Assistance Reform Act of 2002’’.
TITLE I—TRADE ADJUSTMENT
ASSISTANCE PROGRAM
SEC. 111. REAUTHORIZATION OF TRADE ADJUSTMENT AS-
SISTANCE PROGRAM.
(a) ASSISTANCE FOR WORKERS.—Section 245 of the
Trade Act of 1974 (19 U.S.C. 2317) is amended by striking
‘‘October 1, 1998, and ending September 30, 2001,’’ each
place it appears and inserting ‘‘October 1, 2001, and end-
ing September 30, 2004,’’.
(b) ASSISTANCE FOR FIRMS.—Section 256(b) of the
Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by strik-
ing ‘‘October 1, 1998, and ending September 30, 2001’’ and
inserting ‘‘October 1, 2001, and ending September 30,
2004,’’.
(c) TERMINATION.—Section 285(c) of the Trade Act of
1974 (19 U.S.C. 2271 note) is amended in paragraphs (1)
and (2)(A) by striking ‘‘September 30, 2001’’ and inserting
‘‘September 30, 2004’’.
(d) TRAINING
LIMITATION
UNDER
NAFTA PRO-
GRAM.—Section 250(d)(2) of the Trade Act of 1974 (19
U.S.C. 2331(d)(2)) is amended by striking ‘‘October 1,
1998, and ending September 30, 2001’’ and inserting ‘‘Oc-
tober 1, 2001, and ending September 30, 2004’’.
SEC. 112. FILING OF PETITIONS AND PROVISION OF RAPID
RESPONSE ASSISTANCE; EXPEDITED REVIEW
OF PETITIONS BY SECRETARY OF LABOR.
(a) FILING OF PETITIONS AND PROVISION OF RAPID
RESPONSE ASSISTANCE.—Section 221(a) of the Trade Act
of 1974 (19 U.S.C. 2271(a)) is amended to read as follows:
‘‘(a)(1) A petition for certification of eligibility to
apply for adjustment assistance for a group of workers
under this chapter may be filed with the Governor of the
State in which such workers’ firm or subdivision is located
by any of the following:
‘‘(A) The group of workers (including workers in
an agricultural firm or subdivision of any agricul-
tural firm).
‘‘(B) The certified or recognized union or other
duly authorized representative of such workers.
‘‘(C) Employers of such workers, one-stop opera-
tors or one-stop partners (as defined in section 101 of
the Workforce Investment Act of 1998 (29 U.S.C.
2801)), including State employment security agencies,
or the State dislocated worker unit established under
title I of such Act, on behalf of such workers.
‘‘(2) Upon receipt of a petition filed under paragraph
(1), the Governor shall—
‘‘(A) immediately transmit the petition to the
Secretary of Labor (hereinafter in this chapter re-
ferred to as the ‘Secretary’);
‘‘(B) ensure that rapid response assistance, and
appropriate core and intensive services (as described
section 134 of the Workforce Investment Act of 1998
(29 U.S.C. 2864)) authorized under other Federal
laws are made available to the workers covered by the
petition to the extent authorized under such laws; and
‘‘(C) assist the Secretary in the review of the pe-
tition by verifying such information and providing
such other assistance as the Secretary may request.
‘‘(3) Upon receipt of the petition, the Secretary shall
promptly publish notice in the Federal Register that the
Secretary has received the petition and initiated an inves-
tigation.’’.
(b) EXPEDITED REVIEW OF PETITIONS BY SECRETARY
OF LABOR.—Section 223(a) of such Act (19 U.S.C. 2273(a))
is amended in the first sentence by striking ‘‘60 days’’ and
inserting ‘‘40 days’’.
SEC. 113. GROUP ELIGIBILITY REQUIREMENTS.
(a) TRADE ADJUSTMENT ASSISTANCE PROGRAM.—
(1) IN GENERAL.—Section 222 of the Trade Act
of 1974 (19 U.S.C. 2272) is amended—
(A) by redesignating subsection (b) as sub-
section (c); and
(B) by inserting after subsection (a) the fol-
lowing:
‘‘(b)(1) A group of workers (including workers in any
agricultural firm or subdivision of an agricultural firm)
shall be certified by the Secretary as eligible to apply for
adjustment assistance benefits under this subchapter if, sub-
ject to paragraph (2), the Secretary determines that—
‘‘(A) a significant number or proportion of the
workers in the workers’ firm or an appropriate sub-
division of the firm have become totally or partially
separated, or are threatened to become totally or par-
tially separated;
‘‘(B) the workers’ firm (or subdivision) is a sup-
plier to a firm (or subdivision) that employed workers
covered by a certification of eligibility under sub-
section (a), the component parts provided to the firm
by the supplier is a direct component of the article
that is the basis for the certification of eligibility
under subsection (a), and either the component parts
have a dedicated usage for the firm and the supplier
does not have another reasonably available purchaser,
or the component parts add at least 25 percent of the
value to the article involved; and
‘‘(C) a loss of business with the firm (or subdivi-
sion) covered by the certification of eligibility under
subsection (a) contributed importantly to the workers’
separation or threat of separation determined under
subparagraph (A).
‘‘(2) A group of workers shall be eligible for certifi-
cation by the Secretary under paragraph (1) if the petition
for certification is filed with the Secretary not later than
6 months after the date on which the Secretary certifies the
group of workers in the firm (or subdivision of the firm)
under subsection (a) with respect to which the firm involved
is a supplier.’’.
(2) DEFINITIONS.—Section 222(c) of such Act, as
redesignated by paragraph (1)(A), is amended—
(A) in the matter preceding paragraph (1),
by striking ‘‘subsection (a)(3)’’ and inserting
‘‘this section’’; and
(B) by adding at the end the following:
‘‘(3) The term ‘supplier’ means a firm that pro-
duces component parts for articles produced by a firm
(or subdivision) that employed a group of workers
covered by a certification of eligibility under sub-
section (a) and with respect to which the production
of such component parts constitutes not less than 50
percent of the total operations or production of the
firm.’’.
(b) NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE
PROGRAM.—
(1) IN GENERAL.—Section 250(a) of the Trade
Act of 1974 (19 U.S.C. 2331(a)) is amended—
(A) by redesignating paragraphs (2) and
(3) as paragraphs (3) and (4), respectively; and
(B) by inserting after paragraph (1) the fol-
lowing:
‘‘(2) CRITERIA FOR ADVERSELY AFFECTED SEC-
ONDARY WORKERS.—(A) A group of workers (includ-
ing workers in any agricultural firm or subdivision
of an agricultural firm) shall be certified by the Sec-
retary as eligible to apply for adjustment assistance
by striking ‘‘paragraph (1)’’ and inserting ‘‘para-
graphs (1) and (2)’’.
SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READ-
JUSTMENT ALLOWANCES.
(a) CLARIFICATION OF CERTAIN REDUCTIONS.—(1)
Section 231(a)(3)(B) of the Trade Act of 1974 (19 U.S.C.
2291(a)(3)(B)) is amended by inserting after ‘‘any unem-
ployment insurance’’ the following: ‘‘, except additional
compensation that is funded by a State and is not reim-
bursed from any Federal funds,’’.
(2) Section 233(a)(1) of the Trade Act of 1974 (19
U.S.C. 2293(a)(1)) is amended by inserting after ‘‘any un-
employment insurance’’ the following: ‘‘, except additional
compensation that is funded by a State and is not reim-
bursed from any Federal funds,’’.
(b) ENROLLMENT IN TRAINING REQUIREMENT.—Sec-
tion 231(a)(5)(A) of such Act (19 U.S.C. 2291(a)(5)(A)) is
amended—
(1) by inserting ‘‘(i)’’ after ‘‘(A)’’;
(2) by adding ‘‘and’’ after the comma at the end;
and
(3) by adding at the end the following:
‘‘(ii) the enrollment required under clause
(i) occurs no later than the latest of—
‘‘(I) the last day of the 13th week after
the worker’s most recent total separation
from adversely affected employment which
meets the requirements of paragraphs (1)
and (2);
‘‘(II) the last day of the 8th week after
the week in which the Secretary issues a
certification covering the worker;
‘‘(III) 45 days after the later of the
dates specified in subclause (I) or (II), if
the Secretary determines there are extenu-
ating circumstances that justify an exten-
sion in the enrollment period; or
‘‘(IV) the last day of a period deter-
mined by the Secretary to be approved for
enrollment after the termination of a waiver
issued pursuant to subsection (c).’’.
SEC. 115. WAIVERS OF TRAINING REQUIREMENTS.
(a) IN GENERAL.—Section 231(c) of the Trade Act of
1974 (19 U.S.C. 2291(c)) is amended to read as follows:
‘‘(c)(1) The Secretary may issue a written statement
to a worker waiving the enrollment in the training require-
ment described in subsection (a)(5)(A) if the Secretary de-
termines that such training requirement is not feasible or
appropriate for the worker, as indicated by 1 or more of
the following:
‘‘(A) The worker has been provided a written no-
tice that the worker will be recalled by the firm from
which the qualifying separation occurred and that
such recall will occur within 6 months of the quali-
fying separation.
‘‘(B) The worker is within 2 years of meeting all
requirements for entitlement to old-age insurance ben-
efits under title II of the Social Security Act (42
U.S.C. 401 et seq.) (except for application therefore)
as of the date of the most recent separation of the
worker that meets the requirements of subsection
(a)(1) and (2).
‘‘(C) The worker is unable to participate in
training due to the health of the worker, except that
a waiver under this subparagraph shall not be con-
strued to exempt a worker from requirements relating
to the availability for work, active search for work, or
refusal to accept work under Federal or State unem-
ployment compensation laws.
‘‘(D) The first available enrollment date for the
approved training of the worker is within 45 days
after the date of the determination made under this
paragraph, or, if later, there are extenuating cir-
cumstances for the delay in enrollment, as determined
pursuant to guidelines issued by the Secretary.
‘‘(E) There are insufficient funds available for
training under this chapter, and funds are not avail-
able for the approved training under other Federal
law.
‘‘(2) The Secretary shall specify the duration of the
waiver under paragraph (1)and shall periodically review
the waiver to determine whether the basis for issuing the
waiver remains applicable. If at any time the Secretary de-
termines such basis is no longer applicable to the worker,
the Secretary shall revoke the waiver.
‘‘(3) Pursuant to the agreement under section 239, the
Secretary may authorize a cooperating State or State agen-
cy to carry out activities described in paragraph (1) (except
for the determination under subparagraph (E) of para-
graph (1)). Such agreement shall include a requirement
that the State or State agency maintain and make available
to the Secretary the written statements provided pursuant
to paragraph (1) and a statement of the reasons for the
waiver.
‘‘(4) The Secretary shall collect and maintain informa-
tion identifying the number of workers who received waivers
and the average duration of such waivers issued under this
subsection during the preceding year.’’.
(b) CONFORMING AMENDMENT.—Section 231(a)(5)(C)
of such Act (19 U.S.C. 2291(a)(5)(C)) is amended by strik-
ing ‘‘certified’’.
SEC. 116. AMENDMENTS TO LIMITATIONS ON TRADE READ-
JUSTMENT ALLOWANCES.
(a) INCREASE IN MAXIMUM NUMBER OF WEEKS.—
Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a))
is amended—
(1) in paragraph (2), by inserting after ‘‘104-
week period’’ the following: ‘‘(or, in the case of an ad-
versely affected worker who requires a program of re-
medial 
education 
(as 
described 
in 
section
236(a)(5)(D)) in order to complete training approved
for the worker under section 236, the 130-week pe-
riod)’’; and
(2) in paragraph (3), by striking ‘‘26’’ each
place it appears and inserting ‘‘52’’.
(b) SPECIAL RULE RELATING TO BREAK IN TRAIN-
ING.—Section 233(f) of the Trade Act of 1974 (19 U.S.C.
2293(f)) is amended in the matter preceding paragraph (1)
by striking ‘‘14 days’’ and inserting ‘‘30 days’’.
(c) ADDITIONAL WEEKS FOR INDIVIDUALS IN NEED OF
REMEDIAL EDUCATION.—Section 233 of the Trade Act of
1974 (19 U.S.C. 2293) is amended by adding at the end
the following:
‘‘(g) Notwithstanding any other provision of this sec-
tion, in order to assist an adversely affected worker to com-
plete training approved for the worker under section 236
which includes a program of remedial education (as de-
scribed in section 236(a)(5)(D)), and in accordance with
regulations prescribed by the Secretary, payments may be
made as trade readjustment allowances for up to 26 addi-
tional weeks in the 26-week period that follows the last week
of entitlement to trade readjustment allowances otherwise
payable under this chapter.’’.
SEC. 117. ANNUAL TOTAL AMOUNT OF PAYMENTS FOR
TRAINING.
Section 236(a)(2)(A) of the Trade Act of 1974 (19
U.S.C. 
2296(a)(2)(A)) 
is 
amended 
by 
striking
‘‘$80,000,000’’ and all that follows through ‘‘$70,000,000’’
and inserting ‘‘$110,000,000’’.
SEC. 118. AUTHORITY OF STATES WITH RESPECT TO COSTS
OF 
APPROVED 
TRAINING 
AND 
SUPPLE-
MENTAL ASSISTANCE.
(a) COSTS OF APPROVED TRAINING.—Section 236(a)
of the Trade Act of 1974 (19 U.S.C. 2296(a)) is amended
by adding at the end the following new paragraph:
‘‘(10) For purposes of carrying out paragraph (1)(F),
the Secretary shall authorize any cooperating State or State
agency to establish, pursuant to guidelines issued by the
Secretary, a uniform limit on the cost of training to be paid
from funds provided under this chapter that may be ap-
proved by such State for an adversely affected worker under
this section.’’.
(b) SUPPLEMENTAL ASSISTANCE.—Section 236(b) of
such Act (19 U.S.C. 2296(b)) is amended by inserting the
following sentence after the first sentence: ‘‘The Secretary
shall authorize any cooperating State or State agency to
take into account the cost of the training approved for an
adversely affected worker under subsection (a) in deter-
mining the appropriate amount of supplemental assistance
to be provided to such worker under this subsection.’’.
SEC. 119. PROVISION OF EMPLOYER-BASED TRAINING.
(a) IN GENERAL.—Section 236(a)(5)(A) of the Trade
Act of 1974 (19 U.S.C. 2296(a)(5)(A)) is amended to read
as follows:
‘‘(A) employer-based training, including—
‘‘(i) on-the-job training, and
‘‘(ii) customized training,’’.
(b) REIMBURSEMENT.—Section 236(c)(8) of such Act
(19 U.S.C. 2296(c)(8)) is amended to read as follows:
‘‘(8) the employer is provided reimbursement of
not more than 50 percent of the wage rate of the par-
ticipant, for the cost of providing the training and
additional supervision related to the training,’’.
(c) DEFINITION.—Section 236 of such Act (19 U.S.C.
2296) is amended by adding the following new subsection:
‘‘(f) For purposes of this section, the term ‘customized
training’ means training that is—
‘‘(1) designed to meet the special requirements of
an employer or group of employers;
‘‘(2) conducted with a commitment by the em-
ployer or group of employers to employ an individual
upon successful completion of the training; and
‘‘(3) for which the employer pays for a signifi-
cant portion (but in no case less than 50 percent) of
the cost of such training, as determined by the Sec-
retary.’’.
SEC. 120. COORDINATION WITH TITLE I OF THE WORK-
FORCE INVESTMENT ACT OF 1998.
(a) COORDINATION WITH ONE-STOP DELIVERY SYS-
TEMS IN THE PROVISION OF EMPLOYMENT SERVICES.—
Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is
amended by inserting before the period at the end of the
first sentence the following: ‘‘, including the services pro-
vided through one-stop delivery systems described in section
134(c) of the Workforce Investment Act of 1998 (29 U.S.C.
2864(c))’’.
(b) COORDINATION WITH TITLE I OF THE WORK-
FORCE INVESTMENT ACT OF 1998.—
(1) IN GENERAL.—Section 239(e) of such Act (19
U.S.C. 2311(e)) is amended to read as follows:
‘‘(e) Any agreement entered into under this section
shall provide for the coordination of the administration of
the provisions for employment services, training, and sup-
plemental assistance under sections 235 and 236 of this
chapter with provisions relating to dislocated worker em-
ployment and training activities (including supportive
services) under chapter 5 of subtitle B of title I of the Work-
force Investment Act of 1998 (29 U.S.C. 2861 et seq.) upon
such terms and conditions, as established by the Secretary
after consultation with the States, that are consistent with
this section. Such terms and conditions shall, at a min-
imum, include requirements that—
‘‘(1) adversely affected workers applying for as-
sistance under this chapter be co-enrolled in the dis-
located worker program authorized under chapter 5 of
subtitle B of title I of the Workforce Investment Act
of 1998;
‘‘(2) training under section 236 shall be provided
in accordance with the provisions relating to con-
sumer choice requirements and the use of individual
training accounts under subparagraphs (F) and (G)
of section 134(d)(4) of the Workforce Investment Act
of 
1998 
(29 
U.S.C. 
2864(d)(4)(F) 
and 
(G)),
including—
‘‘(A) the requirement that only providers el-
igible under section 122 of the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2842) shall be eligi-
ble to provide training; and
‘‘(B) that the exceptions to the use of indi-
vidual training accounts described in section
134(d)(4)(G)(ii) 
of 
such 
Act 
(29 
U.S.C.
2864(d)(4)(G)(ii)) shall be applicable; and
‘‘(3) common reporting systems and elements, in-
cluding common elements relating to participant and
performance data, shall be used by the program au-
thorized under this chapter and the dislocated worker
program authorized under chapter 5 of subtitle B of
title I of such Act.’’.
(2) ADDITIONAL REQUIREMENT.—Section 239(g)
of such Act (19 U.S.C. 2311(g)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(g)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) The agreement under this section shall also pro-
vide that the cooperating State agency shall be a one-stop
partner as described in subparagraphs (A) and (B)(viii)
of section 121(b)(1) of the Workforce Investment Act of 1998
(29 U.S.C. 2841(b)(1)(A) and (B)(viii)) in the one-stop de-
livery system established under section 134(c) of such Act
(29 U.S.C. 2864(c)) for the appropriate local workforce in-
vestment areas, and shall carry out the responsibilities re-
lating to such partners.’’.
(3) 
CONFORMING
AMENDMENTS.—Section
236(a)(1) of such Act (19 U.S.C. 2296(a)(1)) is
amended—
(A) in the matter preceding subparagraph
(A), by inserting ‘‘, pursuant to an interview,
evaluation, assessment, or case management of
the worker,’’ after ‘‘Secretary determines’’; and
(B) in the second sentence of such para-
graph, by striking ‘‘, directly or through a
voucher system’’ and inserting ‘‘through indi-
vidual training accounts pursuant to the agree-
ment under section 239(e)(2)’’.
SEC. 121. EXPENDITURE PERIOD.
Section 245 of the Trade Act of 1974 (19 U.S.C. 2317),
as amended by section 111(a) of this Act, is further
amended—
(1) by striking ‘‘There are authorized’’ and in-
serting ‘‘(a) IN GENERAL.—There are authorized’’;
and
(2) by adding at the end the following subsection:
‘‘(b) PERIOD OF EXPENDITURE.—Funds obligated for
any fiscal year to carry out activities under sections 235
through 238 may be expended by each State receiving such
funds during that fiscal year and the succeeding two fiscal
years.’’.
SEC. 122. DECLARATION OF POLICY; SENSE OF CONGRESS.
(a) DECLARATION
OF POLICY.—Congress reiterates
that, under the trade adjustment assistance program under
chapter 2 of title II of the Trade Act of 1974, workers are
eligible for transportation, childcare, and healthcare assist-
ance, as well as other related assistance under programs
administered by the Department of Labor.
(b) SENSE OF CONGRESS.—It is the sense of Congress
that the Secretary of Labor, working independently and in
conjunction with the States, should, in accordance with sec-
tion 225 of the Trade Act of 1974, provide more specific
information about benefit allowances, training, and other
employment services, and the petition and application pro-
cedures (including appropriate filing dates) for such allow-
ances, training, and services, under the trade adjustment
assistance program under chapter 2 of title II of the Trade
Act of 1974 to workers who are applying for, or are certified
to receive, assistance under that program, including infor-
mation on all other Federal assistance available to such
workers.
TITLE II—CREDIT FOR HEALTH
INSURANCE COSTS OF ELIGI-
BLE INDIVIDUALS
SEC. 201. CREDIT FOR HEALTH INSURANCE COSTS OF INDI-
VIDUALS RECEIVING A TRADE READJUST-
MENT ALLOWANCE OR A BENEFIT FROM THE
PENSION BENEFIT GUARANTY CORPORATION.
(a) IN GENERAL.—Subpart C of part IV of subchapter
A of chapter 1 of the Internal Revenue Code of 1986 (relat-
ing to refundable credits) is amended by redesignating sec-
tion 35 as section 36 and inserting after section 34 the fol-
lowing new section:
‘‘SEC. 35. HEALTH INSURANCE COSTS OF ELIGIBLE INDIVID-
UALS.
‘‘(a) IN GENERAL.—In the case of an individual, there
shall be allowed as a credit against the tax imposed by sub-
title A an amount equal to 60 percent of the amount paid
by the taxpayer for coverage of the taxpayer and qualifying
family members under qualified health insurance for eligi-
ble coverage months beginning in the taxable year.
‘‘(b) LIMITATION BASED
ON MODIFIED ADJUSTED
GROSS INCOME.—For purposes of this section—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if the modified adjusted gross income of the
taxpayer for the taxable year exceeds $20,000, the
amount which would (but for this subsection and sub-
section (h)(1)) be allowed as a credit under subsection
(a) shall be reduced (but not below zero) by the
amount which bears the same ratio to the amount
which would be so allowed as such excess bears to
$20,000.
‘‘(2) FAMILY COVERAGE.—
‘‘(A) SEPARATE
APPLICATION
OF
LIMITA-
TION.—Paragraph (1) shall be applied sepa-
rately with respect to—
‘‘(i) amounts paid for eligible coverage
months as of the first day of which one or
more qualifying family members are covered
by the qualified health insurance covering
the taxpayer, and
‘‘(ii) amounts paid for other eligible
coverage months.
‘‘(B) LIMITATION AMOUNT.—With respect to
amounts described in subparagraph (A)(i), para-
graph (1) shall be applied by substituting
‘$40,000’ for ‘$20,000’ each place it appears.
‘‘(3) MODIFIED ADJUSTED GROSS INCOME.—The
term ‘modified adjusted gross income’ means adjusted
gross income determined without regard to sections
911, 931, and 933.
‘‘(c) ELIGIBLE COVERAGE MONTH.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘eligible coverage
month’ means any month if—
‘‘(A) as of the first day of such month, the
taxpayer—
‘‘(i) is an eligible individual,
‘‘(ii) is covered by qualified health in-
surance, the premium for which is paid by
the taxpayer, and
‘‘(iii) does not have other specified cov-
erage,
‘‘(B) such month begins more than 90 days
after the date of the enactment of the Trade Act
of 2002, and
‘‘(C) in the case of any eligible TAA recipi-
ent, such month is designated under paragraph
(2).
‘‘(2) DESIGNATION
OF
ELIGIBLE
COVERAGE
MONTHS.—Any eligible TAA recipient may designate,
with respect to any period of 36 months, not more
than 12 months of such period as eligible coverage
months.
‘‘(3) JOINT RETURNS.—In the case of a joint re-
turn, the requirements of paragraph (1)(A) shall be
treated as met with respect to any month if at least
1 spouse satisfies such requirements.
‘‘(d) ELIGIBLE INDIVIDUAL.—For purposes of this
section—
‘‘(1) IN
GENERAL.—The term ‘eligible indi-
vidual’ means—
‘‘(A) an eligible TAA recipient, or
‘‘(B) an eligible PBGC pension recipient.
‘‘(2) ELIGIBLE TAA RECIPIENT.—The term ‘eligi-
ble TAA recipient’ means, with respect to any month,
any individual—
‘‘(A) who is receiving for any day of such
month a trade readjustment allowance under
part I of subchapter B, or subchapter D, of chap-
ter 2 of title II of the Trade Act of 1974 (19
U.S.C. 2291 et seq. or 2331 et seq.) or who would
be eligible to receive such allowance if section
231 of such Act (19 U.S.C. 2291) were applied
without regard to subsection (a)(3)(B) of such
section, and
‘‘(B) who, with respect to such allowance, is
covered under a certification issued—
‘‘(i) under subchapter A or D of chap-
ter 2 of title II of the Trade Act of 1974 (19
U.S.C. 2271 et seq. or 2331 et seq.), and
‘‘(ii) after the date which is 90 days
after the date of the enactment of the Trade
Act of 2002.
An individual shall continue to be treated as an eligi-
ble TAA recipient during the first month that such
individual would otherwise cease to be an eligible
TAA recipient.
‘‘(3) ELIGIBLE PBGC PENSION RECIPIENT.—The
term ‘eligible PBGC pension recipient’ means, with
respect to any month, any individual who—
‘‘(A) has attained age 55 as of the first day
of such month, and
‘‘(B) is receiving a benefit for such month
any portion of which is paid by the Pension
Benefit Guaranty Corporation under title IV of
the Employee Retirement Income Security Act of
1974.
‘‘(e) QUALIFYING FAMILY MEMBER.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘qualifying family
member’ means—
‘‘(A) the taxpayer’s spouse, and
‘‘(B) any dependent of the taxpayer with re-
spect to whom the taxpayer is entitled to a de-
duction under section 151(c).
Such term does not include any individual who has
other specified coverage.
‘‘(2) SPECIAL DEPENDENCY TEST IN CASE OF DI-
VORCED PARENTS, ETC.—If paragraph (2) or (4) of
section 152(e) applies to any child with respect to
any calendar year, in the case of any taxable year be-
ginning in such calendar year, such child shall be
treated as described in paragraph (1)(B) with respect
to the custodial parent (within the meaning of section
152(e)(1)) and not with respect to the noncustodial
parent.
‘‘(f) QUALIFIED HEALTH INSURANCE.—For purposes
of this section, the term ‘qualified health insurance’ means
insurance which constitutes medical care; except that such
term shall not include any insurance if substantially all
of its coverage is of excepted benefits described in section
9832(c).
‘‘(g) OTHER SPECIFIED COVERAGE.—
‘‘(1) IN GENERAL.—For purposes of this section,
an individual has other specified coverage for any
month if, as of the first day of such month—
‘‘(A) SUBSIDIZED COVERAGE.—Such indi-
vidual is covered under any qualified health in-
surance under any health plan maintained by
any employer (or former employer) of the tax-
payer or the taxpayer’s spouse and at least 50
percent of the cost of such coverage (determined
under section 4980B) is paid or incurred by the
employer.
‘‘(B) COVERAGE
UNDER
MEDICARE, MED-
ICAID, OR SCHIP.—Such individual—
‘‘(i) is entitled to benefits under part A
of title XVIII of the Social Security Act or
is enrolled under part B of such title, or
‘‘(ii) is enrolled in the program under
title XIX or XXI of such Act.
‘‘(C) CERTAIN
OTHER
COVERAGE.—Such
individual—
‘‘(i) is enrolled in a health benefits
plan under chapter 89 of title 5, United
States Code, or
‘‘(ii) is entitled to receive benefits
under chapter 55 of title 10, United States
Code.
‘‘(2) SPECIAL RULES RELATED TO SUBSIDIZED
COVERAGE.—
‘‘(A) EMPLOYER CONTRIBUTIONS TO CAFE-
TERIA
PLANS, FLEXIBLE
SPENDING
ARRANGE-
MENTS, AND MEDICAL SAVINGS ACCOUNTS.—Em-
ployer contributions to a cafeteria plan (as de-
fined in section 125(d)), a flexible spending or
similar arrangement, or a medical savings ac-
count which are excluded from gross income
under section 106 shall be treated for purposes of
paragraph (1)(A) as paid by the employer.
‘‘(B) AGGREGATION
OF
PLANS
OF
EM-
PLOYER.—A health plan which is not otherwise
described in paragraph (1)(A) shall be treated as
described in such paragraph if such plan would
be so described if all health plans of persons
treated as a single employer under subsection
(b), (c), (m), or (o) of section 414 were treated
as one health plan.
‘‘(3) IMMUNIZATIONS NOT TREATED AS MEDICAID
COVERAGE.—For purposes of paragraph (1)(B), an
individual shall not be treated as enrolled in the pro-
gram under title XIX of the Social Security Act solely
on the basis of receiving a benefit under section 1928
of such Act.
‘‘(h) SPECIAL RULES.—
‘‘(1) COORDINATION WITH ADVANCE PAYMENTS
OF CREDIT.—With respect to any taxable year, the
amount which would (but for this subsection) be al-
lowed as a credit to the taxpayer under subsection (a)
shall be reduced (but not below zero) by the aggregate
amount paid on behalf of such taxpayer under section
7527 for months beginning in such taxable year.
‘‘(2) 
COORDINATION
WITH
OTHER
DEDUC-
TIONS.—Amounts taken into account under subsection
(a) shall not be taken into account in determining
any deduction allowed under section 162(l) or 213.
‘‘(3) MSA DISTRIBUTIONS.—Amounts distributed
from an Archer MSA (as defined in section 220(d))
shall not be taken into account under subsection (a).
‘‘(4) DENIAL OF CREDIT TO DEPENDENTS.—No
credit shall be allowed under this section to any indi-
vidual with respect to whom a deduction under sec-
tion 151 is allowable to another taxpayer for a tax-
able year beginning in the calendar year in which
such individual’s taxable year begins.
‘‘(5) MARRIED COUPLES MUST FILE JOINT RE-
TURN.—If the taxpayer is married at the close of the
taxable year, the credit shall be allowed under sub-
section (a) only if the taxpayer and his spouse file a
joint return for the taxable year.
‘‘(6) MARITAL STATUS; CERTAIN MARRIED INDI-
VIDUALS LIVING APART.—Rules similar to the rules of
paragraphs (3) and (4) of section 21(e) shall apply
for purposes of this section.
‘‘(7) INSURANCE WHICH COVERS OTHER INDIVID-
UALS.—For purposes of this section, rules similar to
the rules of section 213(d)(6) shall apply with respect
to any contract for qualified health insurance under
which amounts are payable for coverage of an indi-
vidual other than the taxpayer and qualifying family
members.
‘‘(8) TREATMENT OF PAYMENTS.—For purposes
of this section—
‘‘(A) PAYMENTS BY SECRETARY.—Payments
made by the Secretary on behalf of any indi-
vidual under section 7527 (relating to advance
payment of credit for health insurance costs of
eligible TAA recipients) shall be treated as hav-
ing been made by the taxpayer on the first day
of the month for which such payment was made.
‘‘(B) PAYMENTS BY TAXPAYER.—Payments
made by the taxpayer for eligible coverage
months shall be treated as having been made by
the taxpayer on the first day of the month for
which such payment was made.
‘‘(9) REGULATIONS.—The Secretary may pre-
scribe such regulations and other guidance as may be
necessary or appropriate to carry out this section,
section 6050T, and section 7527.’’.
(b) INCREASED ACCESS TO HEALTH INSURANCE FOR
INDIVIDUALS ELIGIBLE FOR TAX CREDIT THROUGH USE
OF GUARANTEED ISSUE, QUALIFIED HIGH RISK POOLS,
AND OTHER APPROPRIATE STATE MECHANISMS.—
(1) IN
GENERAL.—Notwithstanding any other
provision of law, in applying section 2741 of the Pub-
lic Health Service Act (42 U.S.C. 300gg–41)) and
any alternative State mechanism under section 2744
of such Act (42 U.S.C.300gg–44)), in determining
who is an eligible individual (as defined in section
2741(b) of such Act) in the case of an individual who
may be covered by insurance for which credit is al-
lowable under section 35 of the Internal Revenue Code
of 1986 for an eligible coverage month, if the indi-
vidual seeks to obtain health insurance coverage under
such section during an eligible coverage month under
such section—
(A) paragraph (1) of such section 2741(b)
shall be applied as if any reference to 18 months
is deemed a reference to 12 months, and
(B) paragraphs (4) and (5) of such section
2741(b) shall not apply.
(2) PROMOTION OF STATE HIGH RISK POOLS.—
Title XXVII of the Public Health Service Act is
amended by inserting after section 2744 the following
new section:
‘‘SEC. 2745. PROMOTION OF QUALIFIED HIGH RISK POOLS.
‘‘(a) SEED GRANTS TO STATES.—The Secretary shall
provide from the funds appropriated under subsection (c)(1)
a grant of up to $1,000,000 to each State that has not cre-
ated a qualified high risk pool as of the date of the enact-
ment of this section for the State’s costs of creation and
initial operation of such a pool.
‘‘(b) MATCHING FUNDS FOR OPERATION OF POOLS.—
‘‘(1) IN GENERAL.—In the case of a State that
has established a qualified high risk pool that—
‘‘(A) restricts premiums charged under the
pool to no more than 150 percent of the premium
for applicable standard risk rates;
‘‘(B) that offers a choice of two or more cov-
erage options through the pool; and
‘‘(C) has in effect a mechanism reasonably
designed to ensure continued funding of losses in-
curred by the State after the end of fiscal year
2004 in connection with operation of the pool;
the Secretary shall provide, from the funds appro-
priated under subsection (c)(2) and allotted to the
State under paragraph (2), a grant of up to 50 per-
cent of the losses incurred by the State in connection
with the operation of the pool.
‘‘(2) ALLOTMENT.—The amounts appropriated
under subsection (c)(2) for a fiscal year shall be made
available to the States in accordance with a formula
that is based upon the number of uninsured individ-
uals in the States.
‘‘(3) CONSTRUCTION.—Nothing in this subsection
shall be construed as preventing a State from
supplementing the funds made available under this
subsection for the support and operation of qualified
high risk pools.
‘‘(c) FUNDING.—Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated—
‘‘(1) $20,000,000 for fiscal year 2003 to carry
out subsection (a); and
‘‘(2) $40,000,000 for each of fiscal years 2003
and 2004.
Funds appropriated under this subsection for a fiscal year
shall remain available for obligation through the end of the
following fiscal year. Nothing in this section shall be con-
strued as providing a State with an entitlement to a grant
under this section.
‘‘(d) QUALIFIED HIGH RISK POOL AND STATE DE-
FINED.—For purposes of this section, the term ‘qualified
high risk pool’ has the meaning given such term in section
2744(c)(2) and the term ‘State’ means any of the 50 States
and the District of Columbia.’’.
(3) CONSTRUCTION.—Nothing in this subsection
shall be construed as affecting the ability of a State
to use mechanisms, described in sections 2741(c) and
2744 of the Public Health Service Act, as an alter-
native to applying the guaranteed availability provi-
sions of section 2741(a) of such Act.
(c) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title 31,
United States Code, is amended by inserting before
the period ‘‘, or from section 35 of such Code’’.
(2) The table of sections for subpart C of part IV
of chapter 1 of the Internal Revenue Code of 1986 is
amended by striking the last item and inserting the
following new items:
‘‘Sec. 35. Health insurance costs of eligible individuals.
‘‘Sec. 36. Overpayments of tax.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2001.
SEC. 202. ADVANCE PAYMENT OF CREDIT FOR HEALTH IN-
SURANCE COSTS OF ELIGIBLE INDIVIDUALS.
(a) IN GENERAL.—Chapter 77 of the Internal Revenue
Code of 1986 (relating to miscellaneous provisions) is
amended by adding at the end the following new section:
‘‘SEC. 7527. ADVANCE PAYMENT OF CREDIT FOR HEALTH IN-
SURANCE COSTS OF ELIGIBLE INDIVIDUALS.
‘‘(a) GENERAL RULE.—Not later than July 1, 2003,
the Secretary shall establish a program for making pay-
ments on behalf of certified individuals to providers of
qualified health insurance (as defined in section 35(f)) for
such individuals.
‘‘(b) LIMITATION ON ADVANCE PAYMENTS DURING ANY
TAXABLE YEAR.—
‘‘(1) IN
GENERAL.—The Secretary may make
payments under subsection (a) only to the extent that
the total amount of such payments made on behalf of
any individual during the taxable year does not ex-
ceed such individual’s advance payment limitation
amount for such year.
‘‘(2) ADVANCE PAYMENT LIMITATION AMOUNT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), with respect to any certified
individual, the advance payment limitation
amount for any taxable year shall be an amount
equal to the amount that such individual would
be allowed as a credit under section 35 for such
taxable year if such individual’s modified ad-
justed gross income (as defined in section
35(b)(3)) for such taxable year were an amount
equal to the amount of such individual’s modi-
fied adjusted gross income shown on the return
for the prior taxable year.
‘‘(B) SUBSTITUTE AMOUNT.—For purposes
of this section, the Secretary may substitute an
amount for an individual’s advance payment
limitation amount for any taxable year if the
Secretary 
determines 
that 
such 
substitute
amount more accurately reflects such individ-
ual’s modified adjusted gross income for such
taxable year.
‘‘(c) CERTIFIED INDIVIDUAL.—For purposes of this
section, the term ‘certified individual’ means any indi-
vidual for whom a qualified health insurance costs credit
eligibility certificate is in effect.
‘‘(d) QUALIFIED HEALTH INSURANCE COSTS CREDIT
ELIGIBILITY CERTIFICATE.—For purposes of this section,
a qualified health insurance costs credit eligibility certifi-
cate is a statement certified by the Secretary of Labor or
the Pension Benefit Guaranty Corporation (or by any other
person or entity designated by the Secretary) which—
‘‘(1) certifies that the individual was an eligible
individual (within the meaning of section 35(d)) as
of the first day of any month, and
‘‘(2) provides such other information as the Sec-
retary may require for purposes of this section.’’.
(b) DISCLOSURE OF RETURN INFORMATION FOR PUR-
POSES OF CARRYING OUT A PROGRAM FOR ADVANCE PAY-
MENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELI-
GIBLE INDIVIDUALS.—
(1) IN GENERAL.—Subsection (l) of section 6103
of such Code (relating to disclosure of returns and re-
turn information for purposes other than tax admin-
istration) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(18) DISCLOSURE
OF
RETURN
INFORMATION
FOR PURPOSES OF CARRYING OUT A PROGRAM FOR
ADVANCE PAYMENT OF CREDIT FOR HEALTH INSUR-
ANCE
COSTS
OF
ELIGIBLE
INDIVIDUALS.—The Sec-
retary may disclose to providers of health insurance
for any certified individual (as defined in section
7527(c)) return information with respect to such cer-
tified individual only to the extent necessary to carry
out the program established by section 7527 (relating
to advance payment of health insurance cost credit).’’.
(2) PROCEDURES
AND
RECORDKEEPING
RE-
LATED TO DISCLOSURES.—Subsection (p) of such sec-
tion is amended—
(A) in paragraph (3)(A) by striking ‘‘or
(17)’’ and inserting ‘‘(17), or (18)’’, and
(B) in paragraph (4) by inserting ‘‘or (17)’’
after ‘‘any other person described in subsection
(l)(16)’’ each place it appears.
(3) UNAUTHORIZED INSPECTION OF RETURNS OR
RETURN
INFORMATION.—Section 7213A(a)(1)(B) of
such Code is amended by striking ‘‘section 6103(n)’’
and inserting ‘‘subsection (l)(18) or (n) of section
6103’’.
(c) INFORMATION REPORTING.—
(1) IN GENERAL.—Subpart B of part III of sub-
chapter A of chapter 61 of the Internal Revenue Code
of 1986 (relating to information concerning trans-
actions with other persons) is amended by inserting
after section 6050S the following new section:
‘‘SEC. 6050T. RETURNS RELATING TO CREDIT FOR HEALTH
INSURANCE COSTS OF ELIGIBLE INDIVID-
UALS.
‘‘(a) REQUIREMENT OF REPORTING.—Every person
who is entitled to receive payments for any month of any
calendar year under section 7527 (relating to advance pay-
ment of credit for health insurance costs of eligible individ-
uals) with respect to any certified individual (as defined
in section 7527(c)) shall, at such time as the Secretary may
prescribe, make the return described in subsection (b) with
respect to each such individual.
‘‘(b) FORM AND MANNER OF RETURNS.—A return is
described in this subsection if such return—
‘‘(1) is in such form as the Secretary may pre-
scribe, and
‘‘(2) contains—
‘‘(A) the name, address, and TIN of each
individual referred to in subsection (a),
‘‘(B) the number of months for which
amounts were entitled to be received with respect
to such individual under section 7527 (relating
to advance payment of credit for health insur-
ance costs of eligible individuals),
‘‘(C) the amount entitled to be received for
each such month, and
‘‘(D) such other information as the Sec-
retary may prescribe.
‘‘(c) STATEMENTS TO BE FURNISHED TO INDIVIDUALS
WITH RESPECT TO WHOM INFORMATION IS REQUIRED.—
Every person required to make a return under subsection
(a) shall furnish to each individual whose name is required
to be set forth in such return a written statement showing—
‘‘(1) the name and address of the person required
to make such return and the phone number of the in-
formation contact for such person, and
‘‘(2) the information required to be shown on the
return with respect to such individual.
The written statement required under the preceding sen-
tence shall be furnished on or before January 31 of the year
following the calendar year for which the return under sub-
section (a) is required to be made.’’.
(2) ASSESSABLE PENALTIES.—
(A) Subparagraph (B) of section 6724(d)(1)
of such Code (relating to definitions) is amended
by redesignating clauses (xi) through (xvii) as
clauses (xii) through (xviii), respectively, and by
inserting after clause (x) the following new
clause:
‘‘(xi) section 6050T (relating to returns
relating to credit for health insurance costs
of eligible individuals),’’.
(B) Paragraph (2) of section 6724(d) of
such Code is amended by striking ‘‘or’’ at the
end of subparagraph (Z), by striking the period
at the end of subparagraph (AA) and inserting
‘‘, or’’, and by adding after subparagraph (AA)
the following new subparagraph:
‘‘(BB) section 6050T (relating to returns re-
lating to credit for health insurance costs of eli-
gible individuals).’’.
(d) CLERICAL AMENDMENTS.—
(1) ADVANCE PAYMENT.—The table of sections
for chapter 77 of such Code is amended by adding at
the end the following new item:
‘‘Sec. 7527. Advance payment of credit for health insurance costs
of eligible individuals.’’.
(2) INFORMATION REPORTING.—The table of sec-
tions for subpart B of part III of subchapter A of
chapter 61 of such Code is amended by inserting after
the item relating to section 6050S the following new
item:
‘‘Sec. 6050T. Returns relating to credit for health insurance costs
of eligible individuals.’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of the enactment of this
Act.
TITLE III—CUSTOMS
REAUTHORIZATION
SEC. 301. SHORT TITLE.
This Act may be cited as the ‘‘Customs Border Secu-
rity Act of 2002’’.
Subtitle A—United States Customs
Service
CHAPTER 1—DRUG ENFORCEMENT AND
OTHER NONCOMMERCIAL AND COM-
MERCIAL OPERATIONS
SEC. 311. AUTHORIZATION OF APPROPRIATIONS FOR NON-
COMMERCIAL OPERATIONS, COMMERCIAL OP-
ERATIONS, AND AIR AND MARINE INTERDIC-
TION.
(a) NONCOMMERCIAL OPERATIONS.—Section 301(b)(1)
of the Customs Procedural Reform and Simplification Act
of 1978 (19 U.S.C. 2075(b)(1)) is amended—
(1) in subparagraph (A) to read as follows:
‘‘(A) $899,121,000 for fiscal year 2002.’’;
(2) in subparagraph (B) to read as follows:
‘‘(B) $1,365,456,000 for fiscal year 2003.’’;
and
(3) by adding at the end the following:
‘‘(C) $1,399,592,400 for fiscal year 2004.’’.
(b) COMMERCIAL OPERATIONS.—
(1) IN GENERAL.—Section 301(b)(2)(A) of the
Customs Procedural Reform and Simplification Act
of 1978 (19 U.S.C. 2075(b)(2)(A)) is amended—
(A) in clause (i) to read as follows:
‘‘(i) $1,606,068,000 for fiscal year 2002.’’;
(B) in clause (ii) to read as follows:
‘‘(ii) $1,642,602,000 for fiscal year 2003.’’;
and
(C) by adding at the end the following:
‘‘(iii) $1,683,667,050 for fiscal year 2004.’’.
(2) AUTOMATED
COMMERCIAL
ENVIRONMENT
COMPUTER SYSTEM.—Of the amount made available
for each of fiscal years 2002 through 2004 under sec-
tion 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 paragraph (1),
$308,000,000 shall be available until expended for
each such fiscal year for the development, establish-
ment, and implementation of the Automated Commer-
cial Environment computer system.
(3) REPORTS.—Not later than 90 days after the
date of the enactment of this Act, and not later than
each subsequent 90-day period, the Commissioner of
Customs shall prepare and submit to the Committee
on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a report
demonstrating that the development and establish-
ment of the Automated Commercial Environment
computer system is being carried out in a cost-effec-
tive manner and meets the modernization require-
ments of title VI of the North American Free Trade
Agreement Implementation Act.
(c) 
AIR
AND
MARINE
INTERDICTION.—Section
301(b)(3) of the Customs Procedural Reform and Sim-
plification Act of 1978 (19 U.S.C. 2075(b)(3)) is
amended—
(1) in subparagraph (A) to read as follows:
‘‘(A) $177,860,000 for fiscal year 2002.’’;
(2) in subparagraph (B) to read as follows:
‘‘(B) $170,829,000 for fiscal year 2003.’’;
and
(3) by adding at the end the following:
‘‘(C) $175,099,725 for fiscal year 2004.’’.
(d) SUBMISSION
OF OUT-YEAR BUDGET PROJEC-
TIONS.—Section 301(a) of the Customs Procedural Reform
and Simplification Act of 1978 (19 U.S.C. 2075(a)) 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 Govern-
ment for a fiscal year, the Commissioner of Customs shall
submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate the projected amount of funds for the succeeding fis-
cal year that will be necessary for the operations of the Cus-
toms Service as provided for in subsection (b).’’.
SEC. 312. ANTITERRORIST AND ILLICIT NARCOTICS DETEC-
TION EQUIPMENT FOR THE UNITED STATES-
MEXICO BORDER, UNITED STATES-CANADA
BORDER, 
AND 
FLORIDA 
AND 
THE 
GULF
COAST SEAPORTS.
(a) FISCAL YEAR 2002.—Of the amounts made avail-
able for fiscal year 2002 under section 301(b)(1)(A) of the
Customs Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)(1)(A)), as amended by section 311(a)
of this Act, $90,244,000 shall be available until expended
for acquisition and other expenses associated with imple-
mentation and deployment of antiterrorist and illicit nar-
cotics detection equipment along the United States-Mexico
border, the United States-Canada border, and Florida and
the Gulf Coast seaports, as follows:
(1) UNITED STATES-MEXICO BORDER.—For the
United States-Mexico border, the following:
(A) $6,000,000 for 8 Vehicle and Container
Inspection Systems (VACIS).
(B) $11,200,000 for 5 mobile truck x-rays
with transmission and backscatter imaging.
(C) $13,000,000 for the upgrade of 8 fixed-
site truck x-rays from the present energy level of
450,000 electron volts to 1,000,000 electron volts
(1–MeV).
(D) $7,200,000 for 8 1–MeV pallet x-rays.
(E) $1,000,000 for 200 portable contraband
detectors (busters) to be distributed among ports
where the current allocations are inadequate.
(F) $600,000 for 50 contraband detection
kits to be distributed among all southwest border
ports based on traffic volume.
(G) $500,000 for 25 ultrasonic container in-
spection units to be distributed among all ports
receiving liquid-filled cargo and to ports with a
hazardous material inspection facility.
(H) $2,450,000 for 7 automated targeting
systems.
(I) $360,000 for 30 rapid tire deflator sys-
tems to be distributed to those ports where port
runners are a threat.
(J) $480,000 for 20 portable Treasury En-
forcement Communications Systems (TECS) ter-
minals to be moved among ports as needed.
(K) $1,000,000 for 20 remote watch surveil-
lance camera systems at ports where there are
suspicious activities at loading docks, vehicle
queues, secondary inspection lanes, or areas
where visual surveillance or observation is ob-
scured.
(L) $1,254,000 for 57 weigh-in-motion sen-
sors to be distributed among the ports with the
greatest volume of outbound traffic.
(M) $180,000 for 36 AM traffic information
radio stations, with 1 station to be located at
each border crossing.
(N) $1,040,000 for 260 inbound vehicle
counters to be installed at every inbound vehicle
lane.
(O) $950,000 for 38 spotter camera systems
to counter the surveillance of customs inspection
activities by persons outside the boundaries of
ports where such surveillance activities are oc-
curring.
(P) $390,000 for 60 inbound commercial
truck transponders to be distributed to all ports
of entry.
(Q) $1,600,000 for 40 narcotics vapor and
particle detectors to be distributed to each border
crossing.
(R) $400,000 for license plate reader auto-
matic targeting software to be installed at each
port to target inbound vehicles.
(2) UNITED STATES-CANADA BORDER.—For the
United States-Canada border, the following:
(A) $3,000,000 for 4 Vehicle and Container
Inspection Systems (VACIS).
(B) $8,800,000 for 4 mobile truck x-rays
with transmission and backscatter imaging.
(C) $3,600,000 for 4 1–MeV pallet x-rays.
(D) $250,000 for 50 portable contraband de-
tectors (busters) to be distributed among ports
where the current allocations are inadequate.
(E) $300,000 for 25 contraband detection
kits to be distributed among ports based on traf-
fic volume.
(F) $240,000 for 10 portable Treasury En-
forcement Communications Systems (TECS) ter-
minals to be moved among ports as needed.
(G) $400,000 for 10 narcotics vapor and
particle detectors to be distributed to each border
crossing based on traffic volume.
(3) FLORIDA AND GULF COAST SEAPORTS.—For
Florida and the Gulf Coast seaports, the following:
(A) $4,500,000 for 6 Vehicle and Container
Inspection Systems (VACIS).
(B) $11,800,000 for 5 mobile truck x-rays
with transmission and backscatter imaging.
(C) $7,200,000 for 8 1–MeV pallet x-rays.
(D) $250,000 for 50 portable contraband de-
tectors (busters) to be distributed among ports
where the current allocations are inadequate.
(E) $300,000 for 25 contraband detection
kits to be distributed among ports based on traf-
fic volume.
(b) FISCAL YEAR 2003.—Of the amounts made avail-
able for fiscal year 2003 under section 301(b)(1)(B) of the
Customs Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)(1)(B)), as amended by section 311(a)
of this Act, $9,000,000 shall be available until expended for
the maintenance and support of the equipment and train-
ing of personnel to maintain and support the equipment
described in subsection (a).
(c) ACQUISITION
OF TECHNOLOGICALLY SUPERIOR
EQUIPMENT; TRANSFER OF FUNDS.—
(1) IN GENERAL.—The Commissioner of Customs
may use amounts made available for fiscal year 2002
under section 301(b)(1)(A) of the Customs Procedural
Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(1)(A)), as amended by section 311(a) of this
Act, for the acquisition of equipment other than the
equipment described in subsection (a) if such other
equipment—
(A)(i) is technologically superior to the
equipment described in subsection (a); and
(ii) will achieve at least the same results at
a cost that is the same or less than the equip-
ment described in subsection (a); or
(B) can be obtained at a lower cost than the
equipment described in subsection (a).
(2) TRANSFER OF FUNDS.—Notwithstanding any
other provision of this section, the Commissioner of
Customs may reallocate an amount not to exceed 10
percent of—
(A) the amount specified in any of subpara-
graphs (A) through (R) of subsection (a)(1) for
equipment specified in any other of such sub-
paragraphs (A) through (R);
(B) the amount specified in any of subpara-
graphs (A) through (G) of subsection (a)(2) for
equipment specified in any other of such sub-
paragraphs (A) through (G); and
(C) the amount specified in any of subpara-
graphs (A) through (E) of subsection (a)(3) for
equipment specified in any other of such sub-
paragraphs (A) through (E).
SEC. 313. COMPLIANCE WITH PERFORMANCE PLAN RE-
QUIREMENTS.
As part of the annual performance plan for each of
the fiscal years 2002 and 2003 covering each program activ-
ity set forth in the budget of the United States Customs
Service, as required under section 1115 of title 31, United
States Code, the Commissioner of Customs shall establish
performance goals, performance indicators, and comply
with all other requirements contained in paragraphs (1)
through (6) of subsection (a) of such section with respect
to each of the activities to be carried out pursuant to section
312.
CHAPTER 2—CHILD CYBER-SMUGGLING
CENTER OF THE CUSTOMS SERVICE
SEC. 321. AUTHORIZATION OF APPROPRIATIONS FOR PRO-
GRAM TO PREVENT CHILD PORNOGRAPHY/
CHILD SEXUAL EXPLOITATION.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Customs Service
$10,000,000 for fiscal year 2002 to carry out the program
to prevent child pornography/child sexual exploitation es-
tablished by the Child Cyber-Smuggling Center of the Cus-
toms Service.
(b) USE
OF AMOUNTS
FOR CHILD PORNOGRAPHY
CYBER TIPLINE.—Of the amount appropriated under sub-
section (a), the Customs Service shall provide 3.75 percent
of such amount to the National Center for Missing and Ex-
ploited Children for the operation of the child pornography
cyber tipline of the Center and for increased public aware-
ness of the tipline.
CHAPTER 3—MISCELLANEOUS
PROVISIONS
SEC. 331. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR
UNITED STATES-CANADA BORDER.
Of the amount made available for fiscal year 2002
under paragraphs (1) and (2)(A) of section 301(b) of the
Customs Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)), as amended by section 311 of this Act,
$28,300,000 shall be available until expended for the Cus-
toms Service to hire approximately 285 additional Customs
Service officers to address the needs of the offices and ports
along the United States-Canada border.
SEC. 332. STUDY AND REPORT RELATING TO PERSONNEL
PRACTICES OF THE CUSTOMS SERVICE.
(a) STUDY.—The Commissioner of Customs shall con-
duct a study of current personnel practices of the Customs
Service, including an overview of performance standards
and the effect and impact of the collective bargaining proc-
ess on drug interdiction efforts of the Customs Service and
a comparison of duty rotation policies of the Customs Serv-
ice and other Federal agencies that employ similarly-situ-
ated personnel.
(b) REPORT.—Not later than 120 days after the date
of the enactment of this Act, the Commissioner of Customs
shall submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate a report containing the results of the study
conducted under subsection (a).
SEC. 333. STUDY AND REPORT RELATING TO ACCOUNTING
AND AUDITING PROCEDURES OF THE CUS-
TOMS SERVICE.
(a) STUDY.—(1) The Commissioner of Customs shall
conduct a study of actions by the Customs Service to ensure
that appropriate training is being provided to Customs
Service personnel who are responsible for financial auditing
of importers.
(2) In conducting the study, the Commissioner—
(A) shall specifically identify those actions taken
to comply with provisions of law that protect the pri-
vacy and trade secrets of importers, such as section
552(b) of title 5, United States Code, and section
1905 of title 18, United States Code; and
(B) shall provide for public notice and comment
relating to verification of the actions described in sub-
paragraph (A).
(b) REPORT.—Not later than 6 months after the date
of the enactment of this Act, the Commissioner of Customs
shall submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate a report containing the results of the study
conducted under subsection (a).
SEC. 334. ESTABLISHMENT AND IMPLEMENTATION OF COST
ACCOUNTING SYSTEM; REPORTS.
(a) ESTABLISHMENT AND IMPLEMENTATION.—
(1) IN GENERAL.—Not later than September 30,
2003, the Commissioner of Customs shall, in accord-
ance with the audit of the Customs Service’s fiscal
years 2000 and 1999 financial statements (as con-
tained in the report of the Office of the Inspector Gen-
eral of the Department of the Treasury issued on Feb-
ruary 23, 2001), establish and implement a cost ac-
counting system for expenses incurred in both com-
mercial and noncommercial operations of the Customs
Service.
(2) ADDITIONAL
REQUIREMENT.—The cost ac-
counting system described in paragraph (1) shall pro-
vide for an identification of expenses based on the
type of operation, the port at which the operation
took place, the amount of time spent on the operation
by personnel of the Customs Service, and an identi-
fication of expenses based on any other appropriate
classification necessary to provide for an accurate
and complete accounting of the expenses.
(b) REPORTS.—Beginning on the date of the enactment
of this Act and ending on the date on which the cost ac-
counting system described in subsection (a) is fully imple-
mented, the Commissioner of Customs shall prepare and
submit to Congress on a quarterly basis a report on the
progress of implementing the cost accounting system pursu-
ant to subsection (a).
SEC. 335. STUDY AND REPORT RELATING TO TIMELINESS
OF PROSPECTIVE RULINGS.
(a) STUDY.—The Comptroller General shall conduct a
study on the extent to which the Office of Regulations and
Rulings of the Customs Service has made improvements to
decrease the amount of time to issue prospective rulings
from the date on which a request for the ruling is received
by the Customs Service.
(b) REPORT.—Not later than 1 year after the date of
the enactment of this Act, the Comptroller General shall
submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate a report containing the results of the study con-
ducted under subsection (a).
(c) DEFINITION.—In this section, the term ‘‘prospec-
tive ruling’’ means a ruling that is requested by an im-
porter on goods that are proposed to be imported into the
United States and that relates to the proper classification,
valuation, or marking of such goods.
SEC. 336. STUDY AND REPORT RELATING TO CUSTOMS
USER FEES.
(a) STUDY.—The Comptroller General shall conduct a
study on the extent to which the amount of each customs
user fee imposed under section 13031(a) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(a)) is commensurate with the level of services provided
by the Customs Service relating to the fee so imposed.
(b) REPORT.—Not later than 120 days after the date
of the enactment of this Act, the Comptroller General shall
submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate a report in classified form containing—
(1) the results of the study conducted under sub-
section (a); and
(2) recommendations for the appropriate amount
of the customs user fees if such results indicate that
the fees are not commensurate with the level of serv-
ices provided by the Customs Service.
SEC. 337. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS
COURIER FACILITIES.
(a) IN GENERAL.—Section 13031(b)(9) of the Consoli-
dated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(b)(9)) is amended as follows:
(1) In subparagraph (A)—
(A) in the matter preceding clause (i), by
striking ‘‘the processing of merchandise that is
informally entered or released’’ and inserting
‘‘the processing of letters, documents, records,
shipments, merchandise, or any other item that
is valued at an amount under $2,000 (or such
higher amount as the Secretary may set by regu-
lation pursuant to section 498 of the Tariff Act
of 1930), whether or not such items are infor-
mally entered or released (except items entered or
released for immediate exportation),’’; and
(B) in clause (ii) to read as follows:
‘‘(ii) In the case of an express consignment
carrier facility or centralized hub facility, $.66
per individual airway bill or bill of lading.’’.
(2) By redesignating subparagraph (B) as sub-
paragraph (C) and inserting after subparagraph (A)
the following:
‘‘(B)(i) For fiscal year 2004 and subsequent fis-
cal years, the Secretary of the Treasury may adjust
(not more than once per fiscal year) the amount de-
scribed in subparagraph (A)(ii) to not less than $.35
but not more than $1.00 per individual airway bill
or bill of lading. The Secretary shall provide notice
in the Federal Register of a proposed adjustment
under the preceding sentence and the reasons therefor
and shall allow for public comment on the proposed
adjustment.
‘‘(ii) The payment required by subparagraph
(A)(ii) shall be the only payment required for reim-
bursement of the Customs Service in connection with
the processing of an individual airway bill or bill of
lading in accordance with such subparagraph, except
that the Customs Service may charge a fee to cover
expenses of the Customs Service for adequate office
space, equipment, furnishings, supplies, and security.
‘‘(iii)(I) The payment required by subparagraph
(A)(ii) and clause (ii) shall be paid on a quarterly
basis to the Customs Service in accordance with regu-
lations prescribed by the Secretary of the Treasury.
‘‘(II) 50 percent of the amount of payments re-
ceived under subparagraph (A)(ii) and clause (ii)
shall, in accordance with section 524 of the Tariff Act
of 1930, be deposited as a refund to the appropriation
for the amount paid out of that appropriation for the
costs incurred in providing services to express con-
signment carrier facilities or centralized hub facili-
ties. Amounts deposited in accordance with the pre-
ceding sentence shall be available until expended for
the provision of customs services to express consign-
ment carrier facilities or centralized hub facilities.
‘‘(III) Notwithstanding section 524 of the Tariff
Act of 1930, the remaining 50 percent of the amount
of payments received under subparagraph (A)(ii) and
clause (ii) shall be paid to the Secretary of the Treas-
ury, which is in lieu of the payment of fees under
subsection (a)(10) of this section.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) take effect on October 1, 2002.
SEC. 338. NATIONAL CUSTOMS AUTOMATION PROGRAM.
Section 411(b) of the Tariff Act of 1930 (19 U.S.C.
1411(b)) is amended by striking the second sentence and
inserting the following: ‘‘The Secretary may, by regulation,
require the electronic submission of information described
in subsection (a) or any other information required to be
submitted to the Customs Service separately pursuant to
this subpart.’’.
CHAPTER 4—ANTITERRORISM
PROVISIONS
SEC. 341. IMMUNITY FOR UNITED STATES OFFICIALS THAT
ACT IN GOOD FAITH.
(a) IMMUNITY.—Section 3061 of the Revised Statutes
(19 U.S.C. 482) is amended—
(1) by striking ‘‘Any of the officers’’ and insert-
ing ‘‘(a) Any of the officers’’; and
(2) by adding at the end the following:
‘‘(b) Any officer or employee of the United States con-
ducting a search of a person pursuant to subsection (a)
shall not be held liable for any civil damages as a result
of such search if the officer or employee performed the search
in good faith.’’.
(b) REQUIREMENT TO POST POLICY AND PROCEDURES
FOR SEARCHES OF PASSENGERS.—Not later than 30 days
after the date of the enactment of this Act, the Commissioner
of the Customs Service shall ensure that at each Customs
border facility appropriate notice is posted that provides
a summary of the policy and procedures of the Customs
Service for searching passengers, including a statement of
the policy relating to the prohibition on the conduct of
profiling of passengers based on gender, race, color, religion,
or ethnic background.
SEC. 342. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS
OF ENTRY, OR STAFFING OF THE CUSTOMS
SERVICE.
Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318)
is amended—
(1) by striking ‘‘Whenever the President’’ and in-
serting ‘‘(a) Whenever the President’’; and
(2) by adding at the end the following:
‘‘(b)(1) Notwithstanding any other provision of law,
the Secretary of the Treasury, when necessary to respond
to a national emergency declared under the National Emer-
gencies Act (50 U.S.C. 1601 et seq.) or to a specific threat
to human life or national interests, is authorized to take
the following actions on a temporary basis:
‘‘(A) Eliminate, consolidate, or relocate any of-
fice or port of entry of the Customs Service.
‘‘(B) Modify hours of service, alter services ren-
dered at any location, or reduce the number of em-
ployees at any location.
‘‘(C) Take any other action that may be nec-
essary to directly respond to the national emergency
or specific threat.
‘‘(2) Notwithstanding any other provision of law, the
Commissioner of Customs, when necessary to respond to a
specific threat to human life or national interests, is author-
ized to close temporarily any Customs office or port of entry
or take any other lesser action that may be necessary to
respond to the specific threat.
‘‘(3) The Secretary of the Treasury or the Commis-
sioner of Customs, as the case may be, shall notify the Com-
mittee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate not later than
72 hours after taking any action under paragraph (1) or
(2).’’.
SEC. 343. MANDATORY ADVANCED ELECTRONIC INFORMA-
TION FOR CARGO AND PASSENGERS.
(a) CARGO INFORMATION.—
(1) IN GENERAL.—Section 431(b) of the Tariff
Act of 1930 (19 U.S.C. 1431(b)) is amended—
(A) in the first sentence, by striking ‘‘Any
manifest’’ and inserting ‘‘(1) Any manifest’’;
and
(B) by adding at the end the following:
‘‘(2)(A) In addition to any other requirement under
this section, for each land, air, or vessel carrier required
to make entry under the customs laws of the United States,
the pilot, the master, operator, or owner of such carrier (or
the authorized agent of such operator or owner) shall pro-
vide by electronic transmission cargo manifest information
in advance of such entry in such manner, time, and form
as prescribed under regulations by the Secretary. The Sec-
retary may exclude any class of land, air, or vessel carrier
for which the Secretary concludes the requirements of this
subparagraph are not necessary.
‘‘(B) The Secretary shall cooperate with other appro-
priate Federal departments and agencies for the purpose
of providing to such departments and agencies as soon as
practicable cargo manifest information obtained pursuant
to subparagraph (A). In carrying out the preceding sen-
tence, the Secretary, to the maximum extent practicable,
shall protect the privacy and property rights with respect
to the cargo involved.’’.
(2) CONFORMING AMENDMENTS.—Subparagraphs
(A) and (C) of section 431(d)(1) of such Act are each
amended by inserting before the semicolon ‘‘or sub-
section (b)(2)’’.
(b) PASSENGER INFORMATION.—Part II of title IV of
the Tariff Act of 1930 (19 U.S.C. 1431 et seq.) is amended
by inserting after section 431 the following:
‘‘SEC. 432. PASSENGER AND CREW INFORMATION RE-
QUIRED FOR LAND, AIR, OR VESSEL CAR-
RIERS.
‘‘(a) IN GENERAL.—For every person arriving or de-
parting on a land, air, or vessel carrier required to make
entry or obtain clearance under the customs laws of the
United States, the pilot, the master, operator, or owner of
such carrier (or the authorized agent of such operator or
owner) shall provide by electronic transmission information
described in subsection (b) in advance of such entry or
clearance in such manner, time, and form as prescribed
under regulations by the Secretary.
‘‘(b) INFORMATION DESCRIBED.—The information de-
scribed in this subsection shall include for each person de-
scribed in subsection (a), if applicable, the person’s—
‘‘(1) full name;
‘‘(2) date of birth and citizenship;
‘‘(3) gender;
‘‘(4) passport number and country of issuance;
‘‘(5) United States visa number or resident alien
card number;
‘‘(6) passenger name record; and
‘‘(7) such additional information that the Sec-
retary, by regulation, determines is reasonably nec-
essary to ensure aviation and maritime safety pursu-
ant to the laws enforced or administered by the Cus-
toms Service.
‘‘(c) SHARING OF INFORMATION.—The Secretary shall
cooperate with other appropriate Federal departments and
agencies for the purpose of providing to such departments
and agencies as soon as practicable electronic transmission
information obtained pursuant to subsection (a). In car-
rying out the preceding sentence, the Secretary, to the max-
imum extent practicable, shall protect the privacy rights of
the person with respect to which the information relates.’’.
(c) DEFINITION.—Section 401 of the Tariff Act of 1930
(19 U.S.C. 1401) is amended by adding at the end the fol-
lowing:
‘‘(t) The term ‘land, air, or vessel carrier’ means a
land, air, or vessel carrier, as the case may be, that trans-
ports goods or passengers for payment or other consider-
ation, including money or services rendered.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall take effect beginning 45 days after the date
of the enactment of this Act.
SEC. 344. BORDER SEARCH AUTHORITY FOR CERTAIN CON-
TRABAND IN OUTBOUND MAIL.
The Tariff Act of 1930 is amended by inserting after
section 582 the following:
‘‘SEC. 583. EXAMINATION OF OUTBOUND MAIL.
‘‘(a) EXAMINATION.—
‘‘(1) IN
GENERAL.—For purposes of ensuring
compliance with the Customs laws of the United
States and other laws enforced by the Customs Serv-
ice, including the provisions of law described in para-
graph (2), a Customs officer may, subject to the provi-
sions of this section, stop and search at the border,
without a search warrant, mail of domestic origin
transmitted for export by the United States Postal
Service and foreign mail transiting the United States
that is being imported or exported by the United
States Postal Service.
‘‘(2) PROVISIONS OF LAW DESCRIBED.—The pro-
visions of law described in this paragraph are the fol-
lowing:
‘‘(A) Section 5316 of title 31, United States
Code (relating to reports on exporting and im-
porting monetary instruments).
‘‘(B) Sections 1461, 1463, 1465, and 1466
and chapter 110 of title 18, United States Code
(relating to obscenity and child pornography).
‘‘(C) Section 1003 of the Controlled Sub-
stances Import and Export Act (21 U.S.C. 953;
relating to exportation of controlled substances).
‘‘(D) The Export Administration Act of
1979 (50 U.S.C. app. 2401 et seq.).
‘‘(E) Section 38 of the Arms Export Control
Act (22 U.S.C. 2778).
‘‘(F) The International Emergency Eco-
nomic Powers Act (50 U.S.C. 1701 et seq.).
‘‘(b) SEARCH OF MAIL NOT SEALED AGAINST INSPEC-
TION AND OTHER MAIL.—Mail not sealed against inspec-
tion under the postal laws and regulations of the United
States, mail which bears a customs declaration, and mail
with respect to which the sender or addressee has consented
in writing to search, may be searched by a Customs officer.
‘‘(c) SEARCH
OF MAIL SEALED AGAINST INSPEC-
TION.—(1) Mail sealed against inspection under the postal
laws and regulations of the United States may be searched
by a Customs officer, subject to paragraph (2), upon reason-
able cause to suspect that such mail contains one or more
of the following:
‘‘(A) Monetary instruments, as defined in section
1956 of title 18, United States Code.
‘‘(B) A weapon of mass destruction, as defined
in section 2332a(b) of title 18, United States Code.
‘‘(C) A drug or other substance listed in schedule
I, II, III, or IV in section 202 of the Controlled Sub-
stances 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 Ex-
port 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 en-
forced by the Customs Service.
‘‘(2) No person acting under 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, Federal Rules of Criminal Procedure; or
‘‘(B) the sender or addressee has given written
authorization for such reading.’’.
SEC. 345. AUTHORIZATION OF APPROPRIATIONS FOR REES-
TABLISHMENT OF CUSTOMS OPERATIONS IN
NEW YORK CITY.
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be ap-
propriated for the reestablishment of operations of the
Customs Service in New York, New York, such sums
as may be necessary for fiscal year 2002.
(2) OPERATIONS
DESCRIBED.—The operations
referred to in paragraph (1) include, but are not lim-
ited to, the following:
(A) Operations relating to the Port Director
of New York City, the New York Customs Man-
agement Center (including the Director of Field
Operations), and the Special Agent-In-Charge
for New York.
(B) Commercial operations, including tex-
tile enforcement operations and salaries and ex-
penses 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 mak-
ers 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 MONI-
TORING BY CUSTOMS SERVICE.
(a) GAO AUDIT.—The Comptroller General of the
United States shall conduct an audit of the system estab-
lished and carried out by the Customs Service to monitor
textile transshipment.
(b) REPORT.—Not later than 9 months after the date
of enactment of this Act, the Comptroller General shall sub-
mit 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 im-
provements to the transshipment monitoring system if ap-
plicable.
(c) 
TRANSSHIPMENT
DESCRIBED.—Transshipment
within the meaning of this section has occurred when pref-
erential treatment under any provision of law has been
claimed for a textile or apparel article on the basis of mate-
rial 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 infor-
mation would mean or would have meant that the article
is or was ineligible for preferential treatment under the pro-
vision of law in question.
SEC. 352. AUTHORIZATION OF APPROPRIATIONS FOR TEX-
TILE TRANSSHIPMENT ENFORCEMENT OPER-
ATIONS.
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be ap-
propriated for textile transshipment enforcement oper-
ations of the Customs Service $9,500,000 for fiscal
year 2002.
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under
paragraph (1) are authorized to remain available
until expended.
(b) USE OF FUNDS.—Of the amount appropriated
pursuant to the authorization of appropriations under sub-
section (a), the following amounts are authorized to be made
available for the following 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 spe-
cialist assigned to the Customs headquarters textile
program to administer the program and provide over-
sight.
(2) INSPECTORS.—$652,080 for 10 Customs in-
spectors to be assigned to selected ports to examine
targeted high-risk shipments.
(3) INVESTIGATORS.—(A) $1,165,380 for 10 in-
vestigators to be assigned to selected ports to inves-
tigate instances of smuggling, quota and trade agree-
ment circumvention, and use of counterfeit visas to
enter inadmissible goods.
(B) $149,603 for 1 investigator to be assigned to
Customs headquarters textile program to coordinate
and ensure implementation of textile production
verification team results from an investigation per-
spective.
(4) 
INTERNATIONAL
TRADE
SPECIALISTS.—
$226,500 for 3 international trade specialists to be
assigned to Customs headquarters to be dedicated to
illegal textile transshipment policy issues 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 as-
signed to Hong Kong to work with Hong Kong and
other government authorities in Southeast Asia to as-
sist such authorities pursue 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 Customs attache´ office in Central America to
address trade enforcement issues for that region.
(B) 2 permanent positions to be assigned to
the Customs attache´ office in South Africa to ad-
dress trade enforcement issues pursuant to the
African Growth and Opportunity Act (title I of
Public Law 106–200).
(C) 4 permanent positions to be assigned to
the Customs attache´ office in Mexico to address
the threat of illegal textile transshipment through
Mexico and other related issues under the North
American Free Trade Agreement Act.
(D) 2 permanent positions to be assigned to
the Customs attache´ office in Seoul, South Korea,
to address the trade issues in the geographic re-
gion.
(E) 2 permanent positions to be assigned to
the proposed Customs attache´ office in New
Delhi, India, to address the threat of illegal tex-
tile transshipment and other trade enforcement
issues.
(F) 2 permanent positions to be assigned to
the Customs attache´ office in Rome, Italy, to ad-
dress trade enforcement issues in the geographic
region, including issues under free trade agree-
ments 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 trans-
shipment.
(8) AUDITORS.—$510,000 for 6 Customs audi-
tors 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-Saharan Africa.
(10) TRAINING.—(A) $75,000 for training of
Customs personnel.
(B) $200,000 for training for foreign counter-
parts 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
OPPORTUNITY ACT.
Of the amount made available for fiscal year 2002
under section 301(b)(2)(A) of the Customs Procedural Re-
form 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
Africa 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 spe-
cialists, special agents, and other qualified Customs
personnel to travel to sub-Saharan Africa countries to
provide technical assistance in developing and imple-
menting effective visa and anti-transshipment sys-
tems.
(2) IMPORT SPECIALISTS.—$266,000 for 4 im-
port specialists to be assigned to Customs head-
quarters to be dedicated to providing technical assist-
ance 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-Saha-
ran African countries in the performance of investiga-
tions and other enforcement initiatives.
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) in clause (i) to read as follows:
‘‘(i) $30,000,000 for fiscal year 2002.’’;
(C) in clause (ii) to read as follows:
‘‘(ii) $32,300,000 for fiscal year 2003.’’; and
(D) by adding at the end the following:
‘‘(iii) $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 PROJEC-
TIONS.—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 Govern-
ment for a fiscal year, the United States Trade Representa-
tive shall submit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance
of the Senate the projected amount of funds for the suc-
ceeding 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 AF-
FAIRS.—
(1) IN GENERAL.—There is authorized to be ap-
propriated such sums as may be necessary for fiscal
year 2002 for the salaries and expenses of two addi-
tional legislative specialist employee positions within
the Office of the Assistant United States Trade Rep-
resentative for Congressional Affairs.
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under
paragraph (1) are authorized 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)) is amended—
(1) in clause (i) to read as follows:
‘‘(i) $51,440,000 for fiscal year 2002.’’;
(2) in clause (ii) to read as follows:
‘‘(ii) $54,000,000 for fiscal year 2003.’’; and
(3) by adding at the end the following:
‘‘(iii) $57,240,000 for fiscal year 2004.’’.
(b) SUBMISSION
OF OUT-YEAR BUDGET PROJEC-
TIONS.—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 Govern-
ment for a fiscal year, the Commission shall submit to the
Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate the pro-
jected amount of funds for the succeeding fiscal year that
will be necessary for the Commission to carry out its func-
tions.’’.
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 Har-
monized 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 sub-
section (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 con-
cluded under this subsection, the Customs Service
identifies overpayments of duties or fees or over-dec-
larations 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
Customs 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 over-
payments 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 con-
strued to authorize a refund not otherwise authorized
under section 520.’’.
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 ‘‘Bi-
partisan 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. Sta-
ble trading relationships promote security and pros-
perity. Trade agreements today serve the same pur-
poses 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 international trade fosters open markets, de-
mocracy, 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 technology,
telecommunications and other leading technologies,
basic industries, capital equipment, medical equip-
ment, services, agriculture, environmental technology,
and intellectual property. Trade will create new op-
portunities for the United States and preserve the un-
paralleled strength of the United States in economic,
political, and military affairs. The United States, se-
cured by expanding trade and economic opportuni-
ties, will meet the challenges of the twenty-first cen-
tury.
(3) At the same time, the recent pattern of deci-
sions by dispute settlement panels and the Appellate
Body of the World Trade Organization to impose obli-
gations and restrictions on the use of antidumping
and countervailing measures by WTO members under
the Antidumping Agreement and the Agreement on
Subsidies and Countervailing Measures has raised
concerns, and Congress is concerned that dispute set-
tlement panels and the Appellate Body of the WTO
appropriately apply the standard of review contained
in Article 17.6 of the Antidumping Agreement, to pro-
vide deference to a permissible interpretation by a
WTO member of provisions of the Antidumping
Agreement, and to the evaluation by a WTO member
of the facts where that evaluation is unbiased and ob-
jective and the establishment of the facts is proper.
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 recip-
rocal market access;
(2) to obtain the reduction or elimination of bar-
riers 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 inter-
national trading disciplines and procedures, includ-
ing dispute settlement;
(4) to foster economic growth, raise living stand-
ards, and promote full employment in the United
States and to enhance the global economy;
(5) to ensure that trade and environmental poli-
cies are mutually supportive and to seek to protect
and preserve the environment and enhance the inter-
national 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 International Labor Organization (as defined
in section 2111(2)) and an understanding of the rela-
tionship between trade and worker rights; and
(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 environmental and labor laws as an en-
couragement for trade.
(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.—
(1) TRADE BARRIERS AND DISTORTIONS.—The
principal negotiating objectives of the United States
regarding trade barriers and other trade distortions
are—
(A) to expand competitive market opportu-
nities for United States exports and to obtain
fairer and more open conditions of trade by re-
ducing or eliminating tariff and nontariff bar-
riers and policies and practices of foreign gov-
ernments 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 sec-
tion 111(b) of the Uruguay Round Agreements
Act (19 U.S.C. 3521(b)).
(2) TRADE IN SERVICES.—The principal negoti-
ating objective of the United States regarding trade in
services is to reduce or eliminate barriers to inter-
national trade in services, including regulatory and
other barriers that deny national treatment and mar-
ket access or unreasonably restrict the establishment
or operations of service suppliers.
(3) FOREIGN INVESTMENT.—The principal nego-
tiating objective of the United States regarding for-
eign investment is to reduce or eliminate artificial or
trade-distorting barriers to trade-related foreign in-
vestment and, recognizing that United States law on
the whole provides a high level of protection for in-
vestment, consistent with or greater than the level re-
quired by international law, 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
investments;
(C) reducing or eliminating performance re-
quirements, forced technology transfers, and
other unreasonable barriers to the establishment
and operation of investments;
(D) seeking to establish standards for expro-
priation and compensation for expropriation,
consistent with United States legal principles
and practice;
(E) providing meaningful procedures for re-
solving investment disputes;
(F) seeking to improve mechanisms used to
resolve disputes between an investor and a gov-
ernment through—
(i) mechanisms to eliminate frivolous
claims; and
(ii) procedures to ensure the efficient
selection of arbitrators and the expeditious
disposition of claims;
(G) providing an appellate or similar re-
view mechanism to correct manifestly erroneous
interpretations of law; and
(H) ensuring the fullest measure of trans-
parency in the dispute settlement mechanism, to
the extent consistent with the need to protect in-
formation that is classified or business confiden-
tial, by—
(i) ensuring that all requests for dis-
pute 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 ac-
ceptance of amicus curiae submissions from
businesses, unions, and nongovernmental or-
ganizations.
(4) INTELLECTUAL
PROPERTY.—The principal
negotiating objectives of the United States regarding
trade-related intellectual property are—
(A) to further promote adequate and effec-
tive protection of intellectual property rights, in-
cluding through—
(i)(I) ensuring accelerated and full im-
plementation of the Agreement on Trade-Re-
lated Aspects of Intellectual Property Rights
referred to in section 101(d)(15) of the Uru-
guay Round Agreements Act (19 U.S.C.
3511(d)(15)), particularly with respect to
meeting enforcement obligations under that
agreement; and
(II) ensuring that the provisions of
any multilateral or bilateral trade agree-
ment governing intellectual property rights
that is entered into by the United States re-
flect a standard of protection similar to
that found in United States law;
(ii) providing strong protection for
new and emerging technologies and new
methods of transmitting and distributing
products embodying intellectual property;
(iii) preventing or eliminating dis-
crimination with respect to matters affect-
ing the availability, acquisition, scope,
maintenance, use, and enforcement of intel-
lectual property rights;
(iv) ensuring that standards of protec-
tion and enforcement keep pace with techno-
logical developments, and in particular en-
suring that rightholders have the legal and
technological means to control the use of
their works through the Internet and other
global communication media, and to pre-
vent the unauthorized use of their works;
and
(v) providing strong enforcement of in-
tellectual property rights, including through
accessible, expeditious, and effective civil,
administrative, and criminal enforcement
mechanisms; and
(B) to secure fair, equitable, and non-
discriminatory market access opportunities for
United States persons that rely upon intellectual
property protection.
(5) TRANSPARENCY.—The principal negotiating
objective of the United States with respect to trans-
parency is to obtain wider and broader application
of the principle of transparency through—
(A) increased and more timely public access
to information regarding trade issues and the ac-
tivities of international trade institutions;
(B) increased openness at the WTO and
other international trade fora by increasing pub-
lic access to appropriate meetings, proceedings,
and submissions, including with regard to dis-
pute settlement and investment; and
(C) increased and more timely public access
to all notifications and supporting documenta-
tion submitted by parties to the WTO.
(6) ANTI-CORRUPTION.—The principal negoti-
ating objectives of the United States with respect to
the use of money or other things of value to influence
acts, decisions, or omissions of foreign governments or
officials or to secure any improper advantage in a
manner affecting trade are—
(A) to obtain high standards and appro-
priate domestic enforcement mechanisms appli-
cable to persons from all countries participating
in the applicable trade agreement that prohibit
such attempts to influence acts, decisions, or
omissions of foreign governments; and
(B) to ensure that such standards do not
place United States persons at a competitive dis-
advantage in international trade.
(7) IMPROVEMENT OF THE WTO AND MULTILAT-
ERAL
TRADE
AGREEMENTS.—The principal negoti-
ating objectives of the United States regarding the im-
provement of the World Trade Organization, the Uru-
guay Round Agreements, and other multilateral and
bilateral trade agreements are—
(A) to achieve full implementation and ex-
tend the coverage of the World Trade Organiza-
tion and such agreements to products, sectors,
and conditions of trade not adequately covered;
and
(B) to expand country participation in and
enhancement of the Information Technology
Agreement and other trade agreements.
(8) REGULATORY PRACTICES.—The principal ne-
gotiating objectives of the United States regarding the
use of government regulation or other practices by for-
eign governments to provide a competitive advantage
to their domestic producers, service providers, or in-
vestors and thereby reduce market access for United
States goods, services, and investments are—
(A) to achieve increased transparency and
opportunity for the participation of affected par-
ties in the development of regulations;
(B) to require that proposed regulations be
based on sound science, cost-benefit analysis, risk
assessment, or other objective evidence;
(C) to establish consultative mechanisms
among parties to trade agreements to promote
increased transparency in developing guidelines,
rules, regulations, and laws for government pro-
curement and other regulatory regimes; and
(D) to achieve the elimination of govern-
ment measures such as price controls and ref-
erence pricing which deny full market access for
United States products.
(9) ELECTRONIC COMMERCE.—The principal ne-
gotiating objectives of the United States with respect
to electronic commerce are—
(A) to ensure that current obligations, rules,
disciplines, and commitments under the World
Trade Organization apply to electronic com-
merce;
(B) to ensure that—
(i) electronically delivered goods and
services receive no less favorable treatment
under trade rules and commitments than
like products delivered in physical form;
and
(ii) the classification of such goods and
services ensures the most liberal trade treat-
ment possible;
(C) to ensure that governments refrain from
implementing trade-related measures that im-
pede electronic commerce;
(D) where legitimate policy objectives re-
quire domestic regulations that affect electronic
commerce, to obtain commitments that any such
regulations are the least restrictive on trade,
nondiscriminatory, and transparent, and pro-
mote an open market environment; and
(E) to extend the moratorium of the World
Trade Organization on duties on electronic
transmissions.
(10) RECIPROCAL TRADE IN AGRICULTURE.—(A)
The principal negotiating objective of the United
States with respect to agriculture is to obtain com-
petitive opportunities for United States exports of ag-
ricultural commodities in foreign markets substan-
tially equivalent to the competitive opportunities af-
forded foreign exports in United States markets and
to achieve fairer and more open conditions of trade
in bulk, specialty crop, and value-added commodities
by—
(i) reducing or eliminating, by a date cer-
tain, tariffs or other charges that decrease mar-
ket opportunities for United States exports—
(I) giving priority to those products
that are subject to significantly higher tar-
iffs or subsidy regimes of major producing
countries; and
(II) providing reasonable adjustment
periods for United States import-sensitive
products, in close consultation with the
Congress on such products before initiating
tariff reduction negotiations;
(ii) reducing tariffs to levels that are the
same as or lower than those in the United States;
(iii) reducing or eliminating subsidies that
decrease market opportunities for United States
exports or unfairly distort agriculture markets to
the detriment of the United States;
(iv) allowing the preservation of programs
that support family farms and rural commu-
nities but do not distort trade;
(v) developing disciplines for domestic sup-
port programs, so that production that is in ex-
cess of domestic food security needs is sold at
world prices;
(vi) eliminating Government policies that
create price-depressing surpluses;
(vii) eliminating state trading enterprises
whenever possible;
(viii) developing, strengthening, and clari-
fying rules and effective dispute settlement mech-
anisms to eliminate practices that unfairly de-
crease United States market access opportunities
or distort agricultural markets to the detriment
of the United States, particularly with respect to
import-sensitive products, including—
(I) unfair or trade-distorting activities
of state trading enterprises and other ad-
ministrative mechanisms, with emphasis on
requiring price transparency in the oper-
ation of state trading enterprises and such
other mechanisms in order to end cross sub-
sidization, price discrimination, and price
undercutting;
(II) unjustified trade restrictions or
commercial requirements, such as labeling,
that affect new technologies, including bio-
technology;
(III) 
unjustified 
sanitary 
or
phytosanitary restrictions, including those
not based on scientific principles in con-
travention of the Uruguay Round Agree-
ments;
(IV) other unjustified technical bar-
riers to trade; and
(V) restrictive rules in the administra-
tion of tariff rate quotas;
(ix) eliminating practices that adversely af-
fect trade in perishable or cyclical products,
while improving import relief mechanisms to
recognize the unique characteristics of perishable
and cyclical agriculture;
(x) ensuring that the use of import relief
mechanisms for perishable and cyclical agri-
culture are as accessible and timely to growers in
the United States as those mechanisms that are
used by other countries;
(xi) taking into account whether a party to
the negotiations has failed to adhere to the provi-
sions of already existing trade agreements with
the United States or has circumvented obliga-
tions under those agreements;
(xii) taking into account whether a product
is subject to market distortions by reason of a
failure of a major producing country to adhere
to the provisions of already existing trade agree-
ments with the United States or by the cir-
cumvention by that country of its obligations
under those agreements;
(xiii) otherwise ensuring that countries that
accede to the World Trade Organization have
made meaningful market liberalization commit-
ments in agriculture;
(xiv) taking into account the impact that
agreements covering agriculture to which the
United States is a party, including the North
American Free Trade Agreement, have on the
United States agricultural industry; and
(xv) maintaining bona fide food assistance
programs and preserving United States market
development and export credit programs.
(B)(i) Before commencing negotiations with re-
spect to agriculture, the United States Trade Rep-
resentative, in consultation with the Congress, shall
seek to develop a position on the treatment of seasonal
100
and perishable agricultural products to be employed
in the negotiations in order to develop an inter-
national consensus on the treatment of seasonal or
perishable agricultural products in investigations re-
lating to dumping and safeguards and in any other
relevant area.
(ii) During any negotiations on agricultural
subsidies, the United States Trade Representative
shall seek to establish the common base year for calcu-
lating the Aggregated Measurement of Support (as de-
fined in the Agreement on Agriculture) as the end of
each country’s Uruguay Round implementation pe-
riod, as reported in each country’s Uruguay Round
market access schedule.
(iii) The negotiating objective provided in sub-
paragraph (A) applies with respect to agricultural
matters to be addressed in any trade agreement en-
tered into under section 2103(a) or (b), including any
trade agreement entered into under section 2103(a) or
(b) that provides for accession to a trade agreement
to which the United States is already a party, such
as the North American Free Trade Agreement and the
United States-Canada Free Trade Agreement.
101
(11) LABOR AND THE ENVIRONMENT.—The prin-
cipal negotiating objectives of the United States with
respect to labor and the environment are—
(A) to ensure that a party to a trade agree-
ment with the United States does not fail to ef-
fectively enforce its environmental or labor laws,
through a sustained or recurring course of action
or inaction, in a manner affecting trade between
the United States and that party after entry into
force of a trade agreement between those coun-
tries;
(B) to recognize that parties to a trade
agreement retain the right to exercise discretion
with respect to investigatory, prosecutorial, regu-
latory, and compliance matters and to make de-
cisions regarding the allocation of resources to
enforcement with respect to other labor or envi-
ronmental matters determined to have higher
priorities, and to recognize that a country is ef-
fectively enforcing its laws if a course of action
or inaction reflects a reasonable exercise of such
discretion, or results from a bona fide decision
regarding the allocation of resources and no re-
taliation may be authorized based on the exercise
of these rights or the right to establish domestic
102
labor standards and levels of environmental pro-
tection;
(C) to strengthen the capacity of United
States trading partners to promote respect for
core labor standards (as defined in section
2111(2));
(D) to strengthen the capacity of United
States trading partners to protect the environ-
ment through the promotion of sustainable devel-
opment;
(E) to reduce or eliminate government prac-
tices or policies that unduly threaten sustainable
development;
(F) to seek market access, through the elimi-
nation of tariffs and nontariff barriers, for
United States environmental technologies, goods,
and services; and
(G) to ensure that labor, environmental,
health, or safety policies and practices of the
parties to trade agreements with the United
States do not arbitrarily or unjustifiably dis-
criminate against United States exports or serve
as disguised barriers to trade.
(12) DISPUTE
SETTLEMENT
AND
ENFORCE-
MENT.—The principal negotiating objectives of the
103
United States with respect to dispute settlement and
enforcement of trade agreements are—
(A) to seek provisions in trade agreements
providing for resolution of disputes between gov-
ernments under those trade agreements in an ef-
fective, timely, transparent, equitable, and rea-
soned manner, requiring determinations based
on facts and the principles of the agreements,
with the goal of increasing compliance with the
agreements;
(B) to seek to strengthen the capacity of the
Trade Policy Review Mechanism of the World
Trade Organization to review compliance with
commitments;
(C) to seek provisions encouraging the early
identification and settlement of disputes through
consultation;
(D) to seek provisions to encourage the pro-
vision of trade-expanding compensation if a
party to a dispute under the agreement does not
come into compliance with its obligations under
the agreement;
(E) to seek provisions to impose a penalty
upon a party to a dispute under the agreement
that—
104
(i) encourages compliance with the ob-
ligations of the agreement;
(ii) is appropriate to the parties, na-
ture, subject matter, and scope of the viola-
tion; and
(iii) has the aim of not adversely af-
fecting parties or interests not party to the
dispute while maintaining the effectiveness
of the enforcement mechanism; and
(F) to seek provisions that treat United
States principal negotiating objectives equally
with respect to—
(i) the ability to resort to dispute set-
tlement under the applicable agreement;
(ii) the availability of equivalent dis-
pute settlement procedures; and
(iii) the availability of equivalent rem-
edies.
(13) 
WTO 
EXTENDED
NEGOTIATIONS.—The
principal negotiating objectives of the United States
regarding trade in civil aircraft are those set forth in
section 135(c) of the Uruguay Round Agreements Act
(19 U.S.C. 3355(c)) and regarding rules of origin are
the conclusion of an agreement described in section
132 of that Act (19 U.S.C. 3552).
105
(c) PROMOTION OF CERTAIN PRIORITIES.—In order to
address and maintain United States competitiveness in the
global economy, the President shall—
(1) seek greater cooperation between the WTO
and the ILO;
(2) seek to establish consultative mechanisms
among parties to trade agreements to strengthen the
capacity of United States trading partners to promote
respect for core labor standards (as defined in section
2111(2)), and report to the Committee on Ways and
Means of the House of Representatives and the Com-
mittee on Finance of the Senate on the content and
operation of such mechanisms;
(3) seek to establish consultative mechanisms
among parties to trade agreements to strengthen the
capacity of United States trading partners to develop
and implement standards for the protection of the en-
vironment and human health based on sound science,
and report to the Committee on Ways and Means of
the House of Representatives and the Committee on
Finance of the Senate on the content and operation
of such mechanisms;
(4) conduct environmental reviews of future
trade and investment agreements, consistent with Ex-
ecutive Order 13141 of November 16, 1999, and its
106
relevant guidelines, and report to the Committee on
Ways and Means of the House of Representatives and
the Committee on Finance of the Senate on such re-
views;
(5) review the impact of future trade agreements
on United States employment, modeled after Execu-
tive Order 13141, and report to the Committee on
Ways and Means of the House of Representatives and
the Committee on Finance of the Senate on such re-
view;
(6) take into account other legitimate United
States domestic objectives including, but not limited
to, the protection of legitimate health or safety, essen-
tial security, and consumer interests and the law and
regulations related thereto;
(7) have the Secretary of Labor consult with any
country seeking a trade agreement with the United
States concerning that country’s labor laws and pro-
vide technical assistance to that country if needed;
(8) with respect to any trade agreement which
the President seeks to implement under trade authori-
ties procedures, submit to the Congress a report de-
scribing the extent to which the country or countries
that are parties to the agreement have in effect laws
governing exploitative child labor;
107
(9)(A) preserve the ability of the United States
to enforce rigorously its trade laws, including the
antidumping and countervailing duty laws, and
avoid agreements which lessen the effectiveness of do-
mestic and international disciplines on unfair trade,
especially dumping and subsidies, in order to ensure
that United States workers, agricultural producers,
and firms can compete fully on fair terms and enjoy
the benefits of reciprocal trade concessions; and
(B) ensure that United States exports are not
subject to the abusive use of trade laws, including
antidumping and countervailing duty laws, by other
countries.
(10) continue to promote consideration of multi-
lateral environmental agreements and consult with
parties to such agreements regarding the consistency
of any such agreement that includes trade measures
with existing environmental exceptions under Article
XX of the GATT 1994;
(11) report to the Committee on Ways and
Means of the House of Representatives and the Com-
mittee on Finance of the Senate, not later than 12
months after the imposition of a penalty or remedy
by the United States permitted by a trade agreement
to which this title applies, on the effectiveness of the
108
penalty or remedy applied under United States law
in enforcing United States rights under the trade
agreement; and
(12) seek to establish consultative mechanisms
among parties to trade agreements to examine the
trade consequences of significant and unanticipated
currency movements and to scrutinize whether a for-
eign government engaged in a pattern of manipu-
lating its currency to promote a competitive advan-
tage in international trade.
The report under paragraph (11) shall address whether the
penalty or remedy was effective in changing the behavior
of the targeted party and whether the penalty or remedy
had any adverse impact on parties or interests not party
to the dispute.
(d) CONSULTATIONS.—
(1) CONSULTATIONS WITH CONGRESSIONAL AD-
VISERS.—In the course of negotiations conducted
under this title, the United States Trade Representa-
tive shall consult closely and on a timely basis with,
and keep fully apprised of the negotiations, the Con-
gressional Oversight Group convened under section
2107 and all committees of the House of Representa-
tives and the Senate with jurisdiction over laws that
109
would be affected by a trade agreement resulting from
the negotiations.
(2) CONSULTATION
BEFORE
AGREEMENT
INI-
TIALED.—In the course of negotiations conducted
under this title, the United States Trade Representa-
tive shall—
(A) consult closely and on a timely basis
(including immediately before initialing an
agreement) with, and keep fully apprised of the
negotiations, the congressional advisers for trade
policy and negotiations appointed under section
161 of the Trade Act of 1974 (19 U.S.C. 2211),
the Committee on Ways and Means of the House
of Representatives, the Committee on Finance of
the Senate, and the Congressional Oversight
Group convened under section 2107; and
(B) with regard to any negotiations and
agreement relating to agricultural trade, also
consult closely and on a timely basis (including
immediately before initialing an agreement)
with, and keep fully apprised of the negotiations,
the Committee on Agriculture of the House of
Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
110
(e) ADHERENCE TO OBLIGATIONS UNDER URUGUAY
ROUND AGREEMENTS.—In determining whether to enter
into negotiations with a particular country, the President
shall take into account the extent to which that country has
implemented, or has accelerated the implementation of, its
obligations under the Uruguay Round Agreements.
SEC. 2103. TRADE AGREEMENTS AUTHORITY.
(a) AGREEMENTS REGARDING TARIFF BARRIERS.—
(1) IN GENERAL.—Whenever the President deter-
mines that one or more existing duties or other im-
port restrictions of any foreign country or the United
States are unduly burdening and restricting the for-
eign trade of the United States and that the purposes,
policies, priorities, and objectives of this title will be
promoted thereby, the President—
(A) may enter into trade agreements with
foreign countries before—
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities
procedures are extended under subsection
(c); and
(B) may, subject to paragraphs (2) and (3),
proclaim—
(i) such modification or continuance of
any existing duty,
111
(ii) such continuance of existing duty-
free or excise treatment, or
(iii) such additional duties,
as the President determines to be required or ap-
propriate to carry out any such trade agreement.
The President shall notify the Congress of the Presi-
dent’s intention to enter into an agreement under this
subsection.
(2) LIMITATIONS.—No proclamation may be
made under paragraph (1) that—
(A) reduces any rate of duty (other than a
rate of duty that does not exceed 5 percent ad va-
lorem on the date of the enactment of this Act)
to a rate of duty which is less than 50 percent
of the rate of such duty that applies on such date
of enactment;
(B) notwithstanding paragraph (6), reduces
the rate of duty below that applicable under the
Uruguay Round Agreements, on any agricul-
tural product which was the subject of tariff re-
ductions by the United States as a result of the
Uruguay Round Agreements, for which the rate
of duty, pursuant to such Agreements, was re-
duced on January 1, 1995, to a rate which was
113
(B) EXEMPTION FROM STAGING.—No stag-
ing is required under subparagraph (A) with re-
spect to a duty reduction that is proclaimed
under paragraph (1) for an article of a kind
that is not produced in the United States. The
United States International Trade Commission
shall advise the President of the identity of arti-
cles that may be exempted from staging under
this subparagraph.
(4) ROUNDING.—If the President determines that
such action will simplify the computation of reduc-
tions under paragraph (3), the President may round
an annual reduction by an amount equal to the lesser
of—
(A) the difference between the reduction
without regard to this paragraph and the next
lower whole number; or
(B) one-half of 1 percent ad valorem.
(5) OTHER LIMITATIONS.—A rate of duty reduc-
tion that may not be proclaimed by reason of para-
graph (2) may take effect only if a provision author-
izing such reduction is included within an imple-
menting bill provided for under section 5 and that
bill is enacted into law.
114
(6) OTHER
TARIFF
MODIFICATIONS.—Notwith-
standing paragraphs (1)(B), (2)(A), (2)(C), and (3)
through (5), and subject to the consultation and lay-
over requirements of section 115 of the Uruguay
Round Agreements Act, the President may proclaim
the modification of any duty or staged rate reduction
of any duty set forth in Schedule XX, as defined in
section 2(5) of that Act, if the United States agrees
to such modification or staged rate reduction in a ne-
gotiation for the reciprocal elimination or harmoni-
zation of duties under the auspices of the World Trade
Organization.
(7) AUTHORITY UNDER URUGUAY ROUND AGREE-
MENTS ACT NOT AFFECTED.—Nothing in this sub-
section shall limit the authority provided to the Presi-
dent under section 111(b) of the Uruguay Round
Agreements Act (19 U.S.C. 3521(b)).
(b) AGREEMENTS REGARDING TARIFF AND NONTARIFF
BARRIERS.—
(1) IN GENERAL.—(A) Whenever the President
determines that—
(i) one or more existing duties or any other
import restriction of any foreign country or the
United States or any other barrier to, or other
distortion of, international trade unduly burdens
115
or restricts the foreign trade of the United States
or adversely affects the United States economy;
or
(ii) the imposition of any such barrier or
distortion is likely to result in such a burden, re-
striction, or effect;
and that the purposes, policies, priorities, and objec-
tives of this title will be promoted thereby, the Presi-
dent may enter into a trade agreement described in
subparagraph (B) during the period described in sub-
paragraph (C).
(B) The President may enter into a trade agree-
ment under subparagraph (A) with foreign countries
providing for—
(i) the reduction or elimination of a duty,
restriction, barrier, or other distortion described
in subparagraph (A), or
(ii) the prohibition of, or limitation on the
imposition of, such barrier or other distortion.
(C) The President may enter into a trade agree-
ment under this paragraph before—
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities proce-
dures are extended under subsection (c).
116
(2) CONDITIONS.—A trade agreement may be en-
tered into under this subsection only if such agree-
ment makes progress in meeting the applicable objec-
tives described in section 2102(a) and (b) and the
President satisfies the conditions set forth in section
2104.
(3) BILLS QUALIFYING FOR TRADE AUTHORITIES
PROCEDURES.—(A) The provisions of section 151 of
the Trade Act of 1974 (in this title referred to as
‘‘trade authorities procedures’’) apply to a bill of ei-
ther House of Congress which contains provisions de-
scribed in subparagraph (B) to the same extent as
such section 151 applies to implementing bills under
that section. A bill to which this paragraph applies
shall hereafter in this title be referred to as an ‘‘im-
plementing bill’’.
(B) The provisions referred to in subparagraph
(A) are—
(i) a provision approving a trade agreement
entered into under this subsection and approving
the statement of administrative action, if any,
proposed to implement such trade agreement;
and
(ii) if changes in existing laws or new stat-
utory authority are required to implement such
117
trade agreement or agreements, provisions, nec-
essary or appropriate to implement such trade
agreement or agreements, either repealing or
amending existing laws or providing new statu-
tory authority.
(c) EXTENSION DISAPPROVAL PROCESS FOR CONGRES-
SIONAL TRADE AUTHORITIES PROCEDURES.—
(1) IN GENERAL.—Except as provided in section
2105(b)—
(A) the trade authorities procedures apply
to implementing bills submitted with respect to
trade agreements entered into under subsection
(b) before July 1, 2005; and
(B) the trade authorities procedures shall be
extended to implementing bills submitted with
respect to trade agreements entered into under
subsection (b) after June 30, 2005, and before
July 1, 2007, if (and only if)—
(i) the President requests such exten-
sion under paragraph (2); and
(ii) neither House of the Congress
adopts an extension disapproval resolution
under paragraph (5) before June 1, 2005.
(2) REPORT
TO
CONGRESS
BY
THE
PRESI-
DENT.—If the President is of the opinion that the
118
trade authorities procedures should be extended to im-
plementing bills described in paragraph (1)(B), the
President shall submit to the Congress, not later than
March 1, 2005, a written report that contains a re-
quest for such extension, together with—
(A) a description of all trade agreements
that have been negotiated under subsection (b)
and the anticipated schedule for submitting such
agreements to the Congress for approval;
(B) a description of the progress that has
been made in negotiations to achieve the pur-
poses, policies, priorities, and objectives of this
title, and a statement that such progress justifies
the continuation of negotiations; and
(C) a statement of the reasons why the ex-
tension is needed to complete the negotiations.
(3) REPORT
TO
CONGRESS
BY
THE
ADVISORY
COMMITTEE.—The President shall promptly inform
the Advisory Committee for Trade Policy and Nego-
tiations established under section 135 of the Trade
Act of 1974 (19 U.S.C. 2155) of the President’s deci-
sion to submit a report to the Congress under para-
graph (2). The Advisory Committee shall submit to
the Congress as soon as practicable, but not later than
May 1, 2005, a written report that contains—
119
(A) its views regarding the progress that
has been made in negotiations to achieve the
purposes, policies, priorities, and objectives of
this title; and
(B) a statement of its views, and the rea-
sons therefor, regarding whether the extension re-
quested under paragraph (2) should be approved
or disapproved.
(4) STATUS
OF
REPORTS.—The reports sub-
mitted to the Congress under paragraphs (2) and (3),
or any portion of such reports, may be classified to
the extent the President determines appropriate.
(5) EXTENSION
DISAPPROVAL
RESOLUTIONS.—
(A) For purposes of paragraph (1), the term ‘‘exten-
sion disapproval resolution’’ means a resolution of ei-
ther House of the Congress, the sole matter after the
resolving clause of which is as follows: ‘‘That the ll
disapproves the request of the President for the exten-
sion, under section 2103(c)(1)(B)(i) of the Bipartisan
Trade Promotion Authority Act of 2002, of the trade
authorities procedures under that Act to any imple-
menting bill submitted with respect to any trade
agreement entered into under section 2103(b) of that
Act after June 30, 2005.’’, with the blank space being
120
filled with the name of the resolving House of the
Congress.
(B) Extension disapproval resolutions—
(i) may be introduced in either House of the
Congress by any member of such House; and
(ii) shall be referred, in the House of Rep-
resentatives, to the Committee on Ways and
Means and, in addition, to the Committee on
Rules.
(C) The provisions of section 152(d) and (e) of
the Trade Act of 1974 (19 U.S.C. 2192(d) and (e))
(relating to the floor consideration of certain resolu-
tions in the House and Senate) apply to extension
disapproval resolutions.
(D) It is not in order for—
(i) the Senate to consider any extension dis-
approval resolution not reported by the Com-
mittee on Finance;
(ii) the House of Representatives to consider
any extension disapproval resolution not re-
ported by the Committee on Ways and Means
and, in addition, by the Committee on Rules; or
(iii) either House of the Congress to con-
sider an extension disapproval resolution after
June 30, 2005.
121
(d) COMMENCEMENT OF NEGOTIATIONS.—In order to
contribute to the continued economic expansion of the
United States, the President shall commence negotiations
covering tariff and nontariff barriers affecting any indus-
try, product, or service sector, and expand existing sectoral
agreements to countries that are not parties to those agree-
ments, in cases where the President determines that such
negotiations are feasible and timely and would benefit the
United States. Such sectors include agriculture, commercial
services, intellectual property rights, industrial and capital
goods, government procurement, information technology
products, environmental technology and services, medical
equipment and services, civil aircraft, and infrastructure
products. In so doing, the President shall take into account
all of the principal negotiating objectives set forth in section
2102(b).
SEC. 2104. CONSULTATIONS AND ASSESSMENT.
(a) NOTICE AND CONSULTATION BEFORE NEGOTIA-
TION.—The President, with respect to any agreement that
is subject to the provisions of section 2103(b), shall—
(1) provide, at least 90 calendar days before ini-
tiating negotiations, written notice to the Congress of
the President’s intention to enter into the negotiations
and set forth therein the date the President intends to
initiate such negotiations, the specific United States
122
objectives for the negotiations, and whether the Presi-
dent intends to seek an agreement, or changes to an
existing agreement;
(2) before and after submission of the notice, con-
sult regarding the negotiations with the Committee on
Finance of the Senate and the Committee on Ways
and Means of the House of Representatives, such other
committees of the House and Senate as the President
deems appropriate, and the Congressional Oversight
group convened under section 2107; and
(3) upon the request of a majority of the mem-
bers of the Congressional Oversight Group under sec-
tion 2107(c), meet with the Congressional Oversight
Group before initiating the negotiations or at any
other time concerning the negotiations.
(b) NEGOTIATIONS REGARDING AGRICULTURE.—
(1) IN
GENERAL.—Before initiating or con-
tinuing negotiations the subject matter of which is di-
rectly related to the subject matter under section
2102(b)(10)(A)(i) with any country, the President
shall assess whether United States tariffs on agricul-
tural products that were bound under the Uruguay
Round Agreements are lower than the tariffs bound
by that country. In addition, the President shall con-
sider whether the tariff levels bound and applied
123
throughout the world with respect to imports from the
United States are higher than United States tariffs
and whether the negotiation provides an opportunity
to address any such disparity. The President shall
consult with the Committee on Ways and Means and
the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Finance and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate concerning the results of the assessment,
whether it is appropriate for the United States to
agree to further tariff reductions based on the conclu-
sions reached in the assessment, and how all applica-
ble negotiating objectives will be met.
(2) SPECIAL CONSULTATIONS ON IMPORT SEN-
SITIVE PRODUCTS.—(A) Before initiating negotiations
with regard to agriculture, and, with respect to the
Free Trade Area for the Americas and negotiations
with regard to agriculture under the auspices of the
World Trade Organization, as soon as practicable
after the enactment of this Act, the United States
Trade Representative shall—
(i) identify those agricultural products sub-
ject to tariff reductions by the United States as
a result of the Uruguay Round Agreements, for
which the rate of duty was reduced on January
124
1, 1995, to a rate which was not less than 97.5
percent of the rate of duty that applied to such
article on December 31, 1994;
(ii) consult with the Committee on Ways
and Means and the Committee on Agriculture of
the House of Representatives and the Committee
on Finance and the Committee on Agriculture,
Nutrition, 
and 
Forestry 
of 
the 
Senate
concerning—
(I) whether any further tariff reduc-
tions on the products identified under
clause (i) should be appropriate, taking into
account the impact of any such tariff reduc-
tion on the United States industry pro-
ducing the product concerned; and
(II) whether the products so identified
face unjustified sanitary or phytosanitary
restrictions, including those not based on
scientific principles in contravention of the
Uruguay Round Agreements;
(iii) request that the International Trade
Commission prepare an assessment of the prob-
able economic effects of any such tariff reduction
on the United States industry producing the
125
product concerned and on the United States
economy as a whole; and
(iv) upon complying with clauses (i), (ii),
and (iii), notify the Committee on Ways and
Means and the Committee on Agriculture of the
House of Representatives and the Committee on
Finance and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate of those prod-
ucts identified under clause (i) for which the
Trade Representative intends to seek tariff liber-
alization in the negotiations and the reasons for
seeking such tariff liberalization.
(B) If, after negotiations described in subpara-
graph (A) are commenced—
(i) the United States Trade Representative
identifies any additional agricultural product
described in subparagraph (A)(i) for tariff re-
ductions which were not the subject of a notifica-
tion under subparagraph (A)(iv), or
(ii) any additional agricultural product de-
scribed in subparagraph (A)(i) is the subject of
a request for tariff reductions by a party to the
negotiations,
the Trade Representative shall, as soon as practicable,
notify the committees referred to in subparagraph
126
(A)(iv) of those products and the reasons for seeking
such tariff reductions.
(c) NEGOTIATIONS
REGARDING
TEXTILES.—Before
initiating or continuing negotiations the subject matter of
which is directly related to textiles and apparel products
with any country, the President shall assess whether United
States tariffs on textile and apparel products that were
bound under the Uruguay Round Agreements are lower
than the tariffs bound by that country and whether the ne-
gotiation provides an opportunity to address any such dis-
parity. The President shall consult with the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate concerning the results
of the assessment, whether it is appropriate for the United
States to agree to further tariff reductions based on the con-
clusions reached in the assessment, and how all applicable
negotiating objectives will be met.
(d) CONSULTATION WITH CONGRESS BEFORE AGREE-
MENTS ENTERED INTO.—
(1) CONSULTATION.—Before entering into any
trade agreement under section 2103(b), the President
shall consult with—
(A) the Committee on Ways and Means of
the House of Representatives and the Committee
on Finance of the Senate;
127
(B) each other committee of the House and
the Senate, and each joint committee of the Con-
gress, which has jurisdiction over legislation in-
volving subject matters which would be affected
by the trade agreement; and
(C) the Congressional Oversight Group con-
vened under section 2107.
(2) SCOPE.—The consultation described in para-
graph (1) shall include consultation with respect to—
(A) the nature of the agreement;
(B) how and to what extent the agreement
will achieve the applicable purposes, policies,
priorities, and objectives of this title; and
(C) the implementation of the agreement
under section 2105, including the general effect
of the agreement on existing laws.
(e) ADVISORY COMMITTEE REPORTS.—The report re-
quired under section 135(e)(1) of the Trade Act of 1974 re-
garding any trade agreement entered into under section
2103(a) or (b) of this Act shall be provided to the President,
the Congress, and the United States Trade Representative
not later than 30 days after the date on which the President
notifies 
the 
Congress 
under 
section 
2103(a)(1) 
or
2105(a)(1)(A) of the President’s intention to enter into the
agreement.
128
(f) ITC ASSESSMENT.—
(1) IN GENERAL.—The President, at least 90 cal-
endar days before the day on which the President en-
ters into a trade agreement under section 2103(b),
shall provide the International Trade Commission
(referred to in this subsection as ‘‘the Commission’’)
with the details of the agreement as it exists at that
time and request the Commission to prepare and sub-
mit an assessment of the agreement as described in
paragraph (2). Between the time the President makes
the request under this paragraph and the time the
Commission submits the assessment, the President
shall keep the Commission current with respect to the
details of the agreement.
(2) ITC ASSESSMENT.—Not later than 90 cal-
endar days after the President enters into the agree-
ment, the Commission shall submit to the President
and the Congress a report assessing the likely impact
of the agreement on the United States economy as a
whole and on specific industry sectors, including the
impact the agreement will have on the gross domestic
product, exports and imports, aggregate employment
and employment opportunities, the production, em-
ployment, and competitive position of industries like-
129
ly to be significantly affected by the agreement, and
the interests of United States consumers.
(3) REVIEW
OF
EMPIRICAL
LITERATURE.—In
preparing the assessment, the Commission shall re-
view available economic assessments regarding the
agreement, including literature regarding any sub-
stantially equivalent proposed agreement, and shall
provide in its assessment a description of the analyses
used and conclusions drawn in such literature, and a
discussion of areas of consensus and divergence be-
tween the various analyses and conclusions, including
those of the Commission regarding the agreement.
SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.
(a) IN GENERAL.—
(1) NOTIFICATION AND SUBMISSION.—Any agree-
ment entered into under section 2103(b) shall enter
into force with respect to the United States if (and
only if)—
(A) the President, at least 90 calendar days
before the day on which the President enters into
the trade agreement, notifies the House of Rep-
resentatives and the Senate of the President’s in-
tention to enter into the agreement, and prompt-
ly thereafter publishes notice of such intention in
the Federal Register;
130
(B) within 60 days after entering into the
agreement, the President submits to the Congress
a description of those changes to existing laws
that the President considers would be required in
order to bring the United States into compliance
with the agreement;
(C) after entering into the agreement, the
President submits to the Congress, on a day on
which both Houses of Congress are in session, a
copy of the final legal text of the agreement, to-
gether with—
(i) a draft of an implementing bill de-
scribed in section 2103(b)(3);
(ii) a statement of any administrative
action proposed to implement the trade
agreement; and
(iii) the supporting information de-
scribed in paragraph (2); and
(D) the implementing bill is enacted into
law.
(2) SUPPORTING INFORMATION.—The supporting
information required under paragraph (1)(C)(iii)
consists of—
131
(A) an explanation as to how the imple-
menting bill and proposed administrative action
will change or affect existing law; and
(B) a statement—
(i) asserting that the agreement makes
progress in achieving the applicable pur-
poses, policies, priorities, and objectives of
this title; and
(ii) setting forth the reasons of the
President regarding—
(I) how and to what extent the
agreement makes progress in achieving
the applicable purposes, policies, and
objectives referred to in clause (i);
(II) whether and how the agree-
ment changes provisions of an agree-
ment previously negotiated;
(III) how the agreement serves the
interests of United States commerce;
(IV) how the implementing bill
meets the standards set forth in section
2103(b)(3); and
(V) how and to what extent the
agreement makes progress in achieving
the applicable purposes, policies, and
132
objectives referred to in section 2102(c)
regarding the promotion of certain pri-
orities.
(3) RECIPROCAL BENEFITS.—In order to ensure
that a foreign country that is not a party to a trade
agreement entered into under section 2103(b) does not
receive benefits under the agreement unless the coun-
try is also subject to the obligations under the agree-
ment, the implementing bill submitted with respect to
the agreement shall provide that the benefits and obli-
gations under the agreement apply only to the parties
to the agreement, if such application is consistent
with the terms of the agreement. The implementing
bill may also provide that the benefits and obligations
under the agreement do not apply uniformly to all
parties to the agreement, if such application is con-
sistent with the terms of the agreement.
(b) LIMITATIONS
ON TRADE AUTHORITIES PROCE-
DURES.—
(1) FOR LACK OF NOTICE OR CONSULTATIONS.—
(A) IN
GENERAL.—The trade authorities
procedures shall not apply to any implementing
bill submitted with respect to a trade agreement
or trade agreements entered into under section
2103(b) if during the 60-day period beginning
133
on the date that one House of Congress agrees to
a procedural disapproval resolution for lack of
notice or consultations with respect to such trade
agreement or agreements, the other House sepa-
rately agrees to a procedural disapproval resolu-
tion with respect to such trade agreement or
agreements.
(B) PROCEDURAL
DISAPPROVAL
RESOLU-
TION.—(i) For purposes of this paragraph, the
term ‘‘procedural disapproval resolution’’ means
a resolution of either House of Congress, the sole
matter after the resolving clause of which is as
follows: ‘‘That the President has failed or refused
to notify or consult in accordance with the Bi-
partisan Trade Promotion Authority Act of 2002
on negotiations with respect to llllll
and, therefore, the trade authorities procedures
under that Act shall not apply to any imple-
menting bill submitted with respect to such trade
agreement or agreements.’’, with the blank space
being filled with a description of the trade agree-
ment or agreements with respect to which the
President is considered to have failed or refused
to notify or consult.
134
(ii) For purposes of clause (i), the President
has ‘‘failed or refused to notify or consult in ac-
cordance with the Bipartisan Trade Promotion
Authority Act of 2002’’ on negotiations with re-
spect to a trade agreement or trade agreements
if—
(I) the President has failed or refused
to consult (as the case may be) in accord-
ance with section 2104 or 2105 with respect
to the negotiations, agreement, or agree-
ments;
(II) guidelines under section 2107(b)
have not been developed or met with respect
to the negotiations, agreement, or agree-
ments;
(III) the President has not met with
the Congressional Oversight Group pursu-
ant to a request made under section 2107(c)
with respect to the negotiations, agreement,
or agreements; or
(IV) the agreement or agreements fail
to make progress in achieving the purposes,
policies, priorities, and objectives of this
title.
135
(2) PROCEDURES
FOR
CONSIDERING
RESOLU-
TIONS.—(A) Procedural disapproval resolutions—
(i) in the House of Representatives—
(I) may be introduced by any Member
of the House;
(II) shall be referred to the Committee
on Ways and Means and, in addition, to
the Committee on Rules; and
(III) may not be amended by either
Committee; and
(ii) in the Senate may be introduced by any
Member of the Senate.
(B) The provisions of section 152(d) and (e) of
the Trade Act of 1974 (19 U.S.C. 2192(d) and (e))
(relating to the floor consideration of certain resolu-
tions in the House and Senate) apply to a procedural
disapproval resolution introduced with respect to a
trade agreement if no other procedural disapproval
resolution with respect to that trade agreement has
previously been considered under such provisions of
section 152 of the Trade Act of 1974 in that House
of Congress during that Congress.
(C) It is not in order for the House of Represent-
atives to consider any procedural disapproval resolu-
136
tion not reported by the Committee on Ways and
Means and, in addition, by the Committee on Rules.
(c) RULES OF HOUSE OF REPRESENTATIVES AND SEN-
ATE.—Subsection (b) of this section and section 2103(c) are
enacted by the Congress—
(1) as an exercise of the rulemaking power of the
House of Representatives and the Senate, respectively,
and as such are deemed a part of the rules of each
House, respectively, and such procedures supersede
other rules only to the extent that they are incon-
sistent with such other rules; and
(2) with the full recognition of the constitutional
right of either House to change the rules (so far as re-
lating to the procedures of that House) at any time,
in the same manner, and to the same extent as any
other rule of that House.
SEC. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS
FOR WHICH NEGOTIATIONS HAVE ALREADY
BEGUN.
(a) CERTAIN AGREEMENTS.—Notwithstanding section
2103(b)(2), if an agreement to which section 2103(b)
applies—
(1) is entered into under the auspices of the
World Trade Organization,
(2) is entered into with Chile,
137
(3) is entered into with Singapore, or
(4) establishes a Free Trade Area for the Amer-
icas,
and results from negotiations that were commenced before
the date of the enactment of this Act, subsection (b) shall
apply.
(b) TREATMENT OF AGREEMENTS.—In the case of any
agreement to which subsection (a) applies—
(1) the applicability of the trade authorities pro-
cedures to implementing bills shall be determined
without regard to the requirements of section 2104(a)
(relating only to 90 days notice prior to initiating
negotiations), and any procedural disapproval resolu-
tion under section 2105(b)(1)(B) shall not be in order
on the basis of a failure or refusal to comply with the
provisions of section 2104(a); and
(2) the President shall, as soon as feasible after
the enactment of this Act—
(A) notify the Congress of the negotiations
described in subsection (a), the specific United
States objectives in the negotiations, and whether
the President is seeking a new agreement or
changes to an existing agreement; and
(B) before and after submission of the no-
tice, consult regarding the negotiations with the
138
committees referred to in section 2104(a)(2) and
the Congressional Oversight Group.
SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP.
(a) MEMBERS AND FUNCTIONS.—
(1) IN GENERAL.—By not later than 60 days
after the date of the enactment of this Act, and not
later than 30 days after the convening of each Con-
gress, the chairman of the Committee on Ways and
Means of the House of Representatives and the chair-
man of the Committee on Finance of the Senate shall
convene the Congressional Oversight Group.
(2) MEMBERSHIP FROM THE HOUSE.—In each
Congress, the Congressional Oversight Group shall be
comprised of the following Members of the House of
Representatives:
(A) The chairman and ranking member of
the Committee on Ways and Means, and 3 addi-
tional members of such Committee (not more
than 2 of whom are members of the same polit-
ical party).
(B) The chairman and ranking member, or
their designees, of the committees of the House of
Representatives which would have, under the
Rules of the House of Representatives, jurisdic-
tion over provisions of law affected by a trade
139
agreement negotiations for which are conducted
at any time during that Congress and to which
this title would apply.
(3) MEMBERSHIP FROM THE SENATE.—In each
Congress, the Congressional Oversight Group shall
also be comprised of the following members of the Sen-
ate:
(A) The chairman and ranking Member of
the Committee on Finance and 3 additional
members of such Committee (not more than 2 of
whom are members of the same political party).
(B) The chairman and ranking member, or
their designees, of the committees of the Senate
which would have, under the Rules of the Senate,
jurisdiction over provisions of law affected by a
trade agreement negotiations for which are con-
ducted at any time during that Congress and to
which this title would apply.
(4) ACCREDITATION.—Each member of the Con-
gressional Oversight Group described in paragraph
(2)(A) and (3)(A) shall be accredited by the United
States Trade Representative on behalf of the President
as official advisers to the United States delegation in
negotiations for any trade agreement to which this
title applies. Each member of the Congressional Over-
140
sight Group described in paragraph (2)(B) and
(3)(B) shall be accredited by the United States Trade
Representative on behalf of the President as official
advisers to the United States delegation in the nego-
tiations by reason of which the member is in the Con-
gressional Oversight Group. The Congressional Over-
sight Group shall consult with and provide advice to
the Trade Representative regarding the formulation of
specific objectives, negotiating strategies and posi-
tions, the development of the applicable trade agree-
ment, and compliance and enforcement of the nego-
tiated commitments under the trade agreement.
(5) CHAIR.—The Congressional Oversight Group
shall be chaired by the Chairman of the Committee on
Ways and Means of the House of Representatives and
the Chairman of the Committee on Finance of the
Senate.
(b) GUIDELINES.—
(1) PURPOSE AND REVISION.—The United States
Trade Representative, in consultation with the chair-
men and ranking minority members of the Committee
on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate—
(A) shall, within 120 days after the date of
the enactment of this Act, develop written guide-
141
lines to facilitate the useful and timely exchange
of information between the Trade Representative
and the Congressional Oversight Group estab-
lished under this section; and
(B) may make such revisions to the guide-
lines as may be necessary from time to time.
(2) CONTENT.—The guidelines developed under
paragraph (1) shall provide for, among other
things—
(A) regular, detailed briefings of the Con-
gressional Oversight Group regarding negoti-
ating objectives, including the promotion of cer-
tain priorities referred to in section 2102(c), and
positions and the status of the applicable nego-
tiations, beginning as soon as practicable after
the Congressional Oversight Group is convened,
with more frequent briefings as trade negotia-
tions enter the final stage;
(B) access by members of the Congressional
Oversight Group, and staff with proper security
clearances, to pertinent documents relating to the
negotiations, including classified materials;
(C) the closest practicable coordination be-
tween the Trade Representative and the Congres-
sional Oversight Group at all critical periods
142
during the negotiations, including at negotiation
sites; and
(D) after the applicable trade agreement is
concluded, consultation regarding ongoing com-
pliance and enforcement of negotiated commit-
ments under the trade agreement.
(c) REQUEST FOR MEETING.—Upon the request of a
majority of the Congressional Oversight Group, the Presi-
dent shall meet with the Congressional Oversight Group be-
fore initiating negotiations with respect to a trade agree-
ment, or at any other time concerning the negotiations.
SEC. 2108. ADDITIONAL IMPLEMENTATION AND ENFORCE-
MENT REQUIREMENTS.
(a) IN GENERAL.—At the time the President submits
to the Congress the final text of an agreement pursuant to
section 2105(a)(1)(C), the President shall also submit a
plan for implementing and enforcing the agreement. The
implementation and enforcement plan shall include the fol-
lowing:
(1) BORDER PERSONNEL REQUIREMENTS.—A de-
scription of additional personnel required at border
entry points, including a list of additional customs
and agricultural inspectors.
(2) AGENCY STAFFING REQUIREMENTS.—A de-
scription of additional personnel required by Federal
143
agencies responsible for monitoring and implementing
the trade agreement, including personnel required by
the Office of the United States Trade Representative,
the Department of Commerce, the Department of Ag-
riculture (including additional personnel required to
implement sanitary and phytosanitary measures in
order to obtain market access for United States ex-
ports), the Department of the Treasury, and such
other agencies as may be necessary.
(3) 
CUSTOMS
INFRASTRUCTURE
REQUIRE-
MENTS.—A description of the additional equipment
and facilities needed by the United States Customs
Service.
(4) IMPACT
ON
STATE
AND
LOCAL
GOVERN-
MENTS.—A description of the impact the trade agree-
ment will have on State and local governments as a
result of increases in trade.
(5) COST ANALYSIS.—An analysis of the costs as-
sociated with each of the items listed in paragraphs
(1) through (4).
(b) BUDGET SUBMISSION.—The President shall in-
clude a request for the resources necessary to support the
plan described in subsection (a) in the first budget that the
President submits to the Congress after the submission of
the plan.
144
SEC. 2109. COMMITTEE STAFF.
The grant of trade promotion authority under this title
is likely to increase the activities of the primary committees
of jurisdiction in the area of international trade. In addi-
tion, the creation of the Congressional Oversight Group
under section 2107 will increase the participation of a
broader number of Members of Congress in the formulation
of United States trade policy and oversight of the inter-
national trade agenda for the United States. The primary
committees of jurisdiction should have adequate staff to ac-
commodate these increases in activities.
SEC. 2110. CONFORMING AMENDMENTS.
(a) IN GENERAL.—Title I of the Trade Act of 1974
(19 U.S.C. 2111 et seq.) is amended as follows:
(1) IMPLEMENTING BILL.—
(A) 
Section 
151(b)(1) 
(19 
U.S.C.
2191(b)(1)) is amended by striking ‘‘section
1103(a)(1) of the Omnibus Trade and Competi-
tiveness Act of 1988, or section 282 of the Uru-
guay Round Agreements Act’’ and inserting ‘‘sec-
tion 282 of the Uruguay Round Agreements Act,
or section 2105(a)(1) of the Bipartisan Trade
Promotion Authority Act of 2002’’.
(B) 
Section 
151(c)(1) 
(19 
U.S.C.
2191(c)(1)) is amended by striking ‘‘or section
282 of the Uruguay Round Agreements Act’’ and
145
inserting ‘‘, section 282 of the Uruguay Round
Agreements Act, or section 2105(a)(1) of the Bi-
partisan Trade Promotion Authority Act of
2002’’.
(2) ADVICE FROM INTERNATIONAL TRADE COM-
MISSION.—Section 
131 
(19 
U.S.C. 
2151) 
is
amended—
(A) in subsection (a)—
(i) in paragraph (1), by striking ‘‘sec-
tion 123 of this Act or section 1102 (a) or
(c) of the Omnibus Trade and Competitive-
ness Act of 1988,’’ and inserting ‘‘section
123 of this Act or section 2103(a) or (b) of
the Bipartisan Trade Promotion Authority
Act of 2002,’’; and
(ii) in paragraph (2), by striking ‘‘sec-
tion 1102 (b) or (c) of the Omnibus Trade
and Competitiveness Act of 1988’’ and in-
serting ‘‘section 2103(b) of the Bipartisan
Trade Promotion Authority Act of 2002’’;
(B) in subsection (b), by striking ‘‘section
1102(a)(3)(A)’’ 
and 
inserting 
‘‘section
2103(a)(3)(A) of the Bipartisan Trade Pro-
motion Authority Act of 2002’’; and