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. 152. 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. 153. 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 101(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.
TITLE 
II—OFFICE 
OF 
THE
UNITED STATES TRADE REP-
RESENTATIVE
SEC. 201. 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.’’; and
(C) in clause (ii) to read as follows:
‘‘(ii) $31,000,000 for fiscal year 2003.’’; 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.
TITLE 
III—UNITED 
STATES
INTERNATIONAL TRADE COM-
MISSION
SEC. 301. 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) $51,400,000 for fiscal year 2002.’’; and
(2) in clause (ii) to read as follows:
‘‘(ii) $53,400,000 for fiscal year 2003.’’.
(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.’’.
TITLE IV—OTHER TRADE
PROVISIONS
SEC. 401. 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. 402. 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.’’.
Union Calendar No. 195
107TH CONGRESS
1ST SESSION
H. R. 3129
[Report No. 107–320]
A BILL
To authorize appropriations for fiscal years 2002
and 2003 for the United States Customs Service
for antiterrorism, drug interdiction, and other
operations, for the Office of the United States
Trade Representative, for the United States
International Trade Commission, and for other
purposes.
DECEMBER 5, 2001
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed