H. R. 3450—105
be available for reimbursement of inspectional costs (including
passenger processing costs) not otherwise reimbursed under
this section, and shall be available only to the extent provided
in appropriations Acts.’’, and
(4) in paragraph (3) of subsection (j), by striking ‘‘September
30, 1998’’ and inserting ‘‘September 30, 2003’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date the Agreement enters into force with
respect to the United States.
PART 2—INTERNAL REVENUE CODE
AMENDMENTS
SEC. 522. AUTHORITY TO DISCLOSE CERTAIN TAX INFORMATION TO
THE UNITED STATES CUSTOMS SERVICE.
(a) IN GENERAL.—Subsection (l) of section 6103 of the Internal
Revenue Code of 1986 (relating to confidentiality and disclosure
of returns and return information) is amended by adding at the
end thereof the following new paragraph:
‘‘(14) DISCLOSURE
OF
RETURN
INFORMATION
TO
UNITED
STATES CUSTOMS SERVICE.—The Secretary may, upon written
request from the Commissioner of the United States Customs
Service, disclose to officers and employees of the Department
of the Treasury such return information with respect to taxes
imposed by chapters 1 and 6 as the Secretary may prescribe
by regulations, solely for the purpose of, and only to the extent
necessary in—
‘‘(A) ascertaining the correctness of any entry in audits
as provided for in section 509 of the Tariff Act of 1930
(19 U.S.C. 1509), or
‘‘(B) other actions to recover any loss of revenue, or
to collect duties, taxes, and fees, determined to be due
and owing pursuant to such audits.’’
(b) CONFORMING AMENDMENTS.—Paragraphs (3)(A) and (4) of
section 6103(p) of such Code are each amended by striking ‘‘or
(13)’’ each place it appears and inserting ‘‘(13), or (14)’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
shall take effect on the date the Agreement enters into force
with respect to the United States.
(2) REGULATIONS.—Not later than 90 days after the date
of the enactment of this Act, the Secretary of the Treasury
or his delegate shall issue temporary regulations to carry out
section 6103(l)(14) of the Internal Revenue Code of 1986, as
added by this section.
SEC. 523. USE 
OF 
ELECTRONIC 
FUND 
TRANSFER 
SYSTEM 
FOR
COLLECTION OF CERTAIN TAXES.
(a) GENERAL RULE.—Section 6302 of the Internal Revenue Code
of 1986 (relating to mode or time of collection) is amended by
redesignating subsection (h) as subsection (i) and by inserting after
subsection (g) the following new subsection:
‘‘(h) USE OF ELECTRONIC FUND TRANSFER SYSTEM FOR COLLEC-
TION OF CERTAIN TAXES.—
‘‘(1) ESTABLISHMENT OF SYSTEM.—
‘‘(A) IN GENERAL.—The Secretary shall prescribe such
regulations as may be necessary for the development and
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H. R. 3450—106
implementation of an electronic fund transfer system which
is required to be used for the collection of depository taxes.
Such system shall be designed in such manner as may
be necessary to ensure that such taxes are credited to
the general account of the Treasury on the date on which
such taxes would otherwise have been required to be depos-
ited under the Federal tax deposit system.
‘‘(B) EXEMPTIONS.—The regulations prescribed under
subparagraph (A) may contain such exemptions as the
Secretary may deem appropriate.
‘‘(2) PHASE-IN REQUIREMENTS.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the regulations referred to in paragraph (1)—
‘‘(i) shall contain appropriate procedures to assure
that an orderly conversion from the Federal tax deposit
system to the electronic fund transfer system is accom-
plished, and
‘‘(ii) may provide for a phase-in of such electronic
fund transfer system by classes of taxpayers based
on the aggregate undeposited taxes of such taxpayers
at the close of specified periods and any other factors
the Secretary may deem appropriate.
‘‘(B) PHASE-IN
REQUIREMENTS.—The phase-in of the
electronic fund transfer system shall be designed in such
manner as may be necessary to ensure that—
‘‘(i) during each fiscal year beginning after Septem-
ber 30, 1993, at least the applicable required percent-
age of the total depository taxes imposed by chapters
21, 22, and 24 shall be collected by means of electronic
fund transfer, and
‘‘(ii) during each fiscal year beginning after
September 30, 1993, at least the applicable required
percentage of the total other depository taxes shall
be collected by means of electronic fund transfer.
‘‘(C) APPLICABLE REQUIRED PERCENTAGE.—
‘‘(i) In the case of the depository taxes imposed
by chapters 21, 22, and 24, the applicable required
percentage is—
‘‘(I) 3 percent for fiscal year 1994,
‘‘(II) 16.9 percent for fiscal year 1995,
‘‘(III) 20.1 percent for fiscal year 1996,
‘‘(IV) 58.3 percent for fiscal years 1997 and
1998, and
‘‘(V) 94 percent for fiscal year 1999 and all
fiscal years thereafter.
‘‘(ii) In the case of other depository taxes, the
applicable required percentage is—
‘‘(I) 3 percent for fiscal year 1994,
‘‘(II) 20 percent for fiscal year 1995,
‘‘(III) 30 percent for fiscal year 1996,
‘‘(IV) 60 percent for fiscal years 1997 and 1998,
and
‘‘(V) 94 percent for fiscal year 1999 and all
fiscal years thereafter.
‘‘(3) DEFINITIONS.—For purposes of this subsection—
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H. R. 3450—107
‘‘(A) DEPOSITORY TAX.—The term ‘depository tax’ means
any tax if the Secretary is authorized to require deposits
of such tax.
‘‘(B) ELECTRONIC
FUND
TRANSFER.—The term ‘elec-
tronic fund transfer’ means any transfer of funds, other
than a transaction originated by check, draft, or similar
paper instrument, which is initiated through an electronic
terminal, telephonic instrument, or computer or magnetic
tape so as to order, instruct, or authorize a financial institu-
tion or other financial intermediary to debit or credit an
account.
‘‘(4) COORDINATION WITH OTHER ELECTRONIC FUND TRANS-
FER REQUIREMENTS.—
‘‘(A) COORDINATION WITH CERTAIN EXCISE TAXES.—In
determining whether the requirements of subparagraph
(B) of paragraph (2) are met, taxes required to be paid
by electronic fund transfer under sections 5061(e) and
5703(b) shall be disregarded.
‘‘(B) ADDITIONAL
REQUIREMENT.—Under regulations,
any tax required to be paid by electronic fund transfer
under section 5061(e) or 5703(b) shall be paid in such
a manner as to ensure that the requirements of the second
sentence of paragraph (1)(A) of this subsection are satis-
fied.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
shall take effect on the date the Agreement enters into force
with respect to the United States.
(2) REGULATIONS.—Not later than 210 days after the date
of enactment of this Act, the Secretary of the Treasury or
his delegate shall prescribe temporary regulations under section
6302(h) of the Internal Revenue Code of 1986 (as added by
this section).
Subtitle D—Implementation of NAFTA
Supplemental Agreements
PART 1—AGREEMENTS RELATING TO LABOR
AND ENVIRONMENT
SEC. 531. AGREEMENT ON LABOR COOPERATION.
(a) COMMISSION FOR LABOR COOPERATION.—
(1) MEMBERSHIP.—The United States is authorized to
participate in the Commission for Labor Cooperation in accord-
ance with the North American Agreement on Labor Coopera-
tion.
(2) CONTRIBUTIONS TO BUDGET.—There are authorized to
be appropriated to the President (or such agency as the Presi-
dent may designate) $2,000,000 for each of fiscal years 1994
and 1995 for United States contributions to the annual budget
of the Commission for Labor Cooperation pursuant to Article
47 of the North American Agreement on Labor Cooperation.
Funds authorized to be appropriated for such contributions
by this paragraph are in addition to any funds otherwise avail-
able for such contributions. Funds authorized to be appropriated
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H. R. 3450—108
by this paragraph are authorized to be made available until
expended.
(b) DEFINITIONS.—As used in this section—
(1) the term ‘‘Commission for Labor Cooperation’’ means
the commission established by Part Three of the North Amer-
ican Agreement on Labor Cooperation; and
(2) the term ‘‘North American Agreement on Labor
Cooperation’’ means the North American Agreement on Labor
Cooperation Between the Government of the United States
of America, the Government of Canada, and the Government
of the United Mexican States (signed at Mexico City, Washing-
ton, and Ottawa on September 8, 9, 12, and 14, 1993).
SEC. 532. AGREEMENT ON ENVIRONMENTAL COOPERATION.
(a) COMMISSION FOR ENVIRONMENTAL COOPERATION.—
(1) MEMBERSHIP.—The United States is authorized to
participate in the Commission for Environmental Cooperation
in accordance with the North American Agreement on Environ-
mental Cooperation.
(2) CONTRIBUTIONS TO BUDGET.—There are authorized to
be appropriated to the President (or such agency as the Presi-
dent may designate) $5,000,000 for each of fiscal years 1994
and 1995 for United States contributions to the annual budget
of the Commission for Environmental Cooperation pursuant
to Article 43 of the North American Agreement on Environ-
mental Cooperation. Funds authorized to be appropriated for
such contributions by this paragraph are in addition to any
funds otherwise available for such contributions. Funds author-
ized to be appropriated by this paragraph are authorized to
be made available until expended.
(b) DEFINITIONS.—As used in this section—
(1) the term ‘‘Commission for Environmental Cooperation’’
means the commission established by Part Three of the North
American Agreement on Environmental Cooperation; and
(2) the term ‘‘North American Agreement on Environmental
Cooperation’’ means the North American Agreement on
Environmental Cooperation Between the Government of the
United States of America, the Government of Canada, and
the Government of the United Mexican States (signed at Mexico
City, Washington, and Ottawa on September 8, 9, 12, and
14, 1993).
SEC. 533. AGREEMENT ON BORDER ENVIRONMENT COOPERATION
COMMISSION.
(a) BORDER ENVIRONMENT COOPERATION COMMISSION.—
(1) MEMBERSHIP.—The United States is authorized to
participate in the Border Environment Cooperation Commission
in accordance with the Border Environment Cooperation Agree-
ment.
(2) CONTRIBUTIONS
TO
THE
COMMISSION
BUDGET.—There
are authorized to be appropriated to the President (or such
agency as the President may designate) $5,000,000 for fiscal
year 1994 and each fiscal year thereafter for United States
contributions to the budget of the Border Environment Coopera-
tion Commission pursuant to section 7 of Article III of Chapter
I of the Border Environment Cooperation Agreement. Funds
authorized to be appropriated for such contributions by this
paragraph are in addition to any funds otherwise available
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H. R. 3450—109
for such contributions. Funds authorized to be appropriated
by this paragraph are authorized to be made available until
expended.
(b) CIVIL ACTIONS INVOLVING THE COMMISSION.—For the pur-
pose of any civil action which may be brought within the United
States by or against the Border Environment Cooperation Commis-
sion in accordance with the Border Environment Cooperation Agree-
ment (including an action brought to enforce an arbitral award
against the Commission), the Commission shall be deemed to be
an inhabitant of the Federal judicial district in which its principal
office within the United States, or its agent appointed for the
purpose of accepting service or notice of service, is located. Any
such action to which the Commission is a party shall be deemed
to arise under the laws of the United States, and the district
courts of the United States (including the courts enumerated in
section 460 of title 28, United States Code) shall have original
jurisdiction of any such action. When the Commission is a defendant
in any action in a State court, it may at any time before trial
remove the action into the appropriate district court of the United
States by following the procedure for removal provided in section
1446 of title 28, United States Code.
(c) DEFINITIONS.—As used in this section—
(1) the term ‘‘Border Environment Cooperation Agreement’’
means the November 1993 Agreement Between the Government
of the United States of America and the Government of the
United Mexican States Concerning the Establishment of a Bor-
der Environment Cooperation Commission and a North Amer-
ican Development Bank;
(2) the terms ‘‘Border Environment Cooperation Commis-
sion’’ and ‘‘Commission’’ mean the commission established
pursuant to Chapter I of the Border Environment Cooperation
Agreement; and
(3) the term ‘‘United States’’ means the United States,
its territories and possessions, and the Commonwealth of
Puerto Rico.
PART 2—NORTH AMERICAN DEVELOPMENT
BANK AND RELATED PROVISIONS
SEC. 541. NORTH AMERICAN DEVELOPMENT BANK.
(a) ACCEPTANCE
OF MEMBERSHIP.—The President is hereby
authorized to accept membership for the United States in the North
American Development Bank (hereafter in this part referred to
as the ‘‘Bank’’) provided for in Chapter II of the Border Environment
Cooperation Agreement (hereafter in this part referred to as the
‘‘Cooperation Agreement’’).
(b) SUBSCRIPTION OF STOCK.—
(1) SUBSCRIPTION AUTHORITY.—
(A) IN GENERAL.—The Secretary of the Treasury may
subscribe on behalf of the United States up to 150,000
shares of the capital stock of the Bank.
(B) EFFECTIVENESS OF SUBSCRIPTION.—Except as pro-
vided in paragraph (3), any such subscription shall be
effective only to such extent or in such amounts as are
provided in advance in appropriations Acts.
(2) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—
For payment by the Secretary of the Treasury of the subscrip-
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