H. R. 434—45
with the Secretary of Agriculture and the Secretary of Commerce,
shall submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate
a report that—
(1) examines the applicability to agricultural commodity
producers of trade adjustment assistance programs established
under title II of the Trade Act of 1974; and
(2) sets forth recommendations to improve the operation
of those programs as the programs apply to agricultural com-
modity producers or to establish a new trade adjustment assist-
ance program for agricultural commodity producers.
(b) CONTENTS.—In preparing the report required by subsection
(a), the Secretary of Labor shall—
(1) assess the degree to which the existing trade adjustment
assistance programs address the adverse effects on agricultural
commodity producers due to price suppression caused by
increased imports of like or directly competitive agricultural
commodities; and
(2) examine the effectiveness of the program benefits
authorized under subchapter B of chapter 2 and chapter 3
of title II of the Trade Act of 1974 in remedying the adverse
effects, including price suppression, caused by increased imports
of like or directly competitive agricultural commodities.
(c) DEFINITIONS.—In this section:
(1) AGRICULTURAL
COMMODITY.—The term ‘‘agricultural
commodity’’ means any agricultural commodity, including live-
stock, fish or harvested seafood in its raw or natural state.
(2) AGRICULTURAL COMMODITY PRODUCER.—The term ‘‘agri-
cultural commodity producer’’ means any person who is engaged
in the production and sale of an agricultural commodity in
the United States and who owns or shares the ownership
and risk of loss of the agricultural commodity.
SEC. 409. AGRICULTURAL TRADE NEGOTIATING OBJECTIVES AND CON-
SULTATIONS WITH CONGRESS.
(a) FINDINGS.—Congress finds that—
(1) United States agriculture contributes positively to the
United States balance of trade and United States agricultural
exports support in excess of 1,000,000 United States jobs;
(2) United States agriculture competes successfully world-
wide despite the fact that United States producers are at a
competitive disadvantage because of the trade distorting sup-
port and subsidy practices of other countries and despite the
fact that significant tariff and nontariff barriers exist to United
States exports; and
(3) a successful conclusion of the current World Trade
Organization agricultural negotiations is critically important
to the United States agricultural sector.
(b) OBJECTIVES.—The agricultural trade negotiating objectives
of the United States with respect to the current World Trade
Organization agricultural negotiations include as matters of the
highest priority—
(1) the expeditious elimination of all export subsidies world-
wide while maintaining bona fide food aid and preserving
United States market development and export credit programs
that allow the United States to compete with other foreign
export promotion efforts;
H. R. 434—46
(2) leveling the playing field for United States producers
of agricultural products by eliminating blue box subsidies and
disciplining domestic supports in a way that forces producers
to face world prices on all production in excess of domestic
food security needs while allowing the preservation of nontrade
distorting programs to support family farms and rural commu-
nities;
(3) the elimination of state trading enterprises or the adop-
tion of rigorous disciplines that ensure operational trans-
parency, competition, and the end of discriminatory pricing
practices, including policies supporting cross-subsidization and
price undercutting in export markets;
(4) affirming that the World Trade Organization Agreement
on the Application of Sanitary and Phytosanitary Measures
applies to new technologies, including biotechnology, and that
labeling requirements to allow consumers to make choices
regarding biotechnology products or other regulatory require-
ments may not be used as disguised barriers to trade;
(5) increasing opportunities for United States exports of
agricultural products by reducing tariffs to the same levels
that exist in the United States or to lower levels and by elimi-
nating all nontariff barriers, including—
(A) restrictive or trade distorting practices, including
those that adversely impact perishable or cyclical products;
(B) restrictive rules in the administration of tariff-
rate quotas; and
(C) other barriers to agriculture trade, including
unjustified 
restrictions 
or 
commercial 
requirements
affecting new technologies, including biotechnology;
(6) eliminating government policies that create price-
depressing surpluses; and
(7) strengthening dispute settlement procedures to ensure
prompt compliance by foreign governments with their World
Trade Organization obligations including commitments not to
maintain unjustified restrictions on United States exports.
(c) CONSULTATION WITH CONGRESSIONAL COMMITTEES.—
(1) CONSULTATION BEFORE OFFER MADE.—In developing and
before submitting an initial or revised negotiating proposal
that would reduce United States tariffs on agricultural products
or require a change in United States agricultural law, the
United States Trade Representative shall consult with the Com-
mittee on Agriculture, Nutrition, and Forestry and the Com-
mittee on Finance of the Senate and the Committee on Agri-
culture and the Committee on Ways and Means of the House
of Representatives.
(2) CONSULTATION WITH CONGRESSIONAL TRADE ADVISERS.—
Prior to and during the course of current negotiations on agri-
cultural trade, the United States Trade Representative shall
consult closely with the congressional trade advisers.
(3) CONSULTATION BEFORE AGREEMENT INITIALED.—Not less
than 48 hours before initialing an agreement reached as part
of current World Trade Organization agricultural negotiations,
the United States Trade Representative shall consult closely
with the committees referred to in paragraph (1) regarding—
(A) the details of the agreement;
(B) the potential impact of the agreement on United
States agricultural producers; and
H. R. 434—47
(C) any changes in United States law necessary to
implement the agreement.
(4) DISCLOSURE OF COMMITMENTS.—Any agreement or other
understanding addressing agricultural trade with a foreign
government or governments (whether oral or in writing) that
relates to a trade agreement with respect to which Congress
must enact implementing legislation and that is not disclosed
to Congress before legislation implementing that agreement
is introduced in either House of Congress shall not be consid-
ered to be part of the agreement approved by Congress and
shall have no force and effect under United States law or
in any dispute settlement body.
(d) SENSE OF THE CONGRESS.—It is the sense of the Congress
that—
(1) granting the President trade negotiating authority is
essential to the successful conclusion of the new round of World
Trade Organization agricultural negotiations;
(2) reaching a successful agreement on agriculture should
be the top priority of United States negotiators; and
(3) if by the conclusion of the negotiations, the primary
agricultural competitors of the United States do not agree to
reduce their trade distorting domestic supports and eliminate
export subsidies in accordance with the negotiating objectives
expressed in this section, the United States should take steps
to increase the leverage of United States negotiators and level
the playing field for United States producers.
SEC. 410. ENTRY PROCEDURES FOR FOREIGN TRADE ZONE OPER-
ATIONS.
(a) IN GENERAL.—Section 484 of the Tariff Act of 1930 (19
U.S.C. 1484) is amended by adding at the end the following new
subsection:
‘‘(i) SPECIAL RULE FOR FOREIGN TRADE ZONE OPERATIONS.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
law and except as provided in paragraph (3), all merchandise
(including merchandise of different classes, types, and cat-
egories), withdrawn from a foreign trade zone during any 7-
day period, shall, at the option of the operator or user of
the zone, be the subject of a single estimated entry or release
filed on or before the first day of the 7-day period in which
the merchandise is to be withdrawn from the zone. The esti-
mated entry or release shall be treated as a single entry and
a single release of merchandise for purposes of section
13031(a)(9)(A) of the Consolidated Omnibus Budget Reconcili-
ation Act of 1985 (19 U.S.C. 58c(a)(9)(A)) and all fee exclusions
and limitations of such section 13031 shall apply, including
the maximum and minimum fee amounts provided for under
subsection (b)(8)(A)(i) of such section. The entry summary for
the estimated entry or release shall cover only the merchandise
actually withdrawn from the foreign trade zone during the
7-day period.
‘‘(2) OTHER REQUIREMENTS.—The Secretary of the Treasury
may require that the operator or user of the zone—
‘‘(A) use an electronic data interchange approved by
the Customs Service—
‘‘(i) to file the entries described in paragraph (1);
and
H. R. 434—48
‘‘(ii) to pay the applicable duties, fees, and taxes
with respect to the entries; and
‘‘(B) satisfy the Customs Service that accounting,
transportation, and other controls over the merchandise
are adequate to protect the revenue and meet the require-
ments of other Federal agencies.
‘‘(3) EXCEPTION.—The provisions of paragraph (1) shall not
apply to merchandise the entry of which is prohibited by law
or merchandise for which the filing of an entry summary is
required before the merchandise is released from customs cus-
tody.
‘‘(4) FOREIGN TRADE ZONE; ZONE.—In this subsection, the
terms ‘foreign trade zone’ and ‘zone’ mean a zone established
pursuant to the Act of June 18, 1934, commonly known as
the Foreign Trade Zones Act (19 U.S.C. 81a et seq.).’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date that is 60 days after the date of
the enactment of this Act.
SEC. 411. GOODS MADE WITH FORCED OR INDENTURED CHILD LABOR.
(a) IN GENERAL.—Section 307 of the Tariff Act of 1930 (19
U.S.C. 1307) is amended by adding at the end the following new
sentence: ‘‘For purposes of this section, the term ‘forced labor or/
and indentured labor’ includes forced or indentured child labor.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 412. WORST FORMS OF CHILD LABOR.
(a) IN GENERAL.—Section 502(b)(2) of the Trade Act of 1974
(19 U.S.C. 2462(b)(2)) is amended—
(1) by inserting after subparagraph (G) the following new
subparagraph:
‘‘(H) Such country has not implemented its commit-
ments to eliminate the worst forms of child labor.’’; and
(2) in the flush paragraph at the end, by striking ‘‘and
(G)’’ and inserting ‘‘(G), and (H) (to the extent described in
section 507(6)(D))’’.
(b) DEFINITION OF WORST FORMS OF CHILD LABOR.—Section
507 of the Trade Act of 1974 (19 U.S.C. 2467) is amended by
adding at the end the following new paragraph:
‘‘(6) WORST FORMS OF CHILD LABOR.—The term ‘worst forms
of child labor’ means—
‘‘(A) all forms of slavery or practices similar to slavery,
such as the sale or trafficking of children, debt bondage
and serfdom, or forced or compulsory labor, including forced
or compulsory recruitment of children for use in armed
conflict;
‘‘(B) the use, procuring, or offering of a child for pros-
titution, for the production of pornography or for porno-
graphic purposes;
‘‘(C) the use, procuring, or offering of a child for illicit
activities in particular for the production and trafficking
of drugs; and
‘‘(D) work which, by its nature or the circumstances
in which it is carried out, is likely to harm the health,
safety, or morals of children.
H. R. 434—49
The work referred to in subparagraph (D) shall be determined
by the laws, regulations, or competent authority of the bene-
ficiary developing country involved.’’.
(c) ANNUAL REPORT.—Section 504 of the Trade Act of 1974
(19 U.S.C. 2464) is amended by inserting ‘‘, including the findings
of the Secretary of Labor with respect to the beneficiary country’s
implementation of its international commitments to eliminate the
worst forms of child labor’’ before the end period.
TITLE V—IMPORTS OF CERTAIN WOOL
ARTICLES
SEC. 501. TEMPORARY DUTY REDUCTIONS.
(a) CERTAIN WORSTED WOOL FABRICS WITH AVERAGE FIBER
DIAMETERS GREATER THAN 18.5 MICRON.—
(1) IN GENERAL.—Subchapter II of chapter 99 of the Har-
monized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:
‘‘
9902.51.11
Fabrics, of worsted wool,
with average fiber diame-
ters greater than 18.5 mi-
cron, all the foregoing
certified by the importer
as suitable for use in
making suits, suit-type
jackets, or trousers (pro-
vided for in subheading
5111.11.70, 5111.19.60,
5112.11.20, or 5112.19.90)
19.3%
No change
No change
On or before
12/31/2003
’’.
(2) STAGED RATE REDUCTIONS.—Any staged rate reduction
of a rate of duty set forth in subheading 6203.31.00 of the
Harmonized Tariff Schedule of the United States that is pro-
claimed by the President shall also apply to the corresponding
rate of duty set forth in heading 9902.51.11 of such Schedule,
as added by paragraph (1).
(b) CERTAIN WORSTED WOOL FABRICS WITH AVERAGE FIBER
DIAMETERS OF 18.5 MICRON OR LESS.—
(1) IN GENERAL.—Subchapter II of chapter 99 of the Har-
monized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:
‘‘
9902.51.12
Fabrics, of worsted wool,
with average fiber diame-
ters of 18.5 micron or
less, all the foregoing cer-
tified by the importer as
suitable for use in mak-
ing suits, suit-type jack-
ets, or trousers (provided
for in subheading
5111.11.70, 5111.19.60,
5112.11.20, or 5112.19.90)
6%
No change
No change
On or before
12/31/2003
’’.
(2) EQUALIZATION WITH CANADIAN DUTY RATES.—The Presi-
dent is authorized to proclaim a reduction in the rate of duty
applicable to imports of worsted wool fabrics classified under
subheading 9902.51.12 of the Harmonized Tariff Schedule of
the United States, as added by paragraph (1), that is necessary
to equalize such rate of duty with the most favored nation
H. R. 434—50
rate of duty applicable to imports of worsted wool fabrics of
the kind described in such subheading imported into Canada.
(c) DEFINITIONS.—The U.S. Notes to subchapter II of chapter
99 of the Harmonized Tariff Schedule of the United States are
amended by adding at the end the following:
‘‘13. For purposes of headings 9902.51.11 and 9902.51.12, the
term ‘suit’ has the meaning given such term under note 3(a) of
chapter 62 for purposes of headings 6203 and 6204.
‘‘14. For purposes of headings 9902.51.11 and 9902.51.12, the
term ‘making’ means cut and sewn in the United States.’’.
(d) LIMITATION
ON QUANTITY
OF IMPORTS.—The U.S. Notes
to subchapter II of chapter 99 of the Harmonized Tariff Schedule
of the United States, as amended by subsection (c), are further
amended by adding at the end the following:
‘‘15. The aggregate quantity of worsted wool fabrics entered
under heading 9902.51.11 from January 1 to December 31 of each
year, inclusive, shall be limited to 2,500,000 square meter equiva-
lents, or such other quantity proclaimed by the President pursuant
to section 504(b)(3) of the Trade and Development Act of 2000.
‘‘16. The aggregate quantity of worsted wool fabrics entered
under subheading 9902.51.12 from January 1 to December 31 of
each year, inclusive, shall be limited to 1,500,000 square meter
equivalents, or such other quantity proclaimed by the President
pursuant to section 504(b)(3) of the Trade and Development Act
of 2000.’’.
(e) ALLOCATION OF TARIFF-RATE QUOTAS.—In implementing the
limitation on the quantity of imports of worsted wool fabrics under
headings 9902.51.11 and 9902.51.12 of the Harmonized Tariff
Schedule of the United States, as required by U.S. Notes 15 and
16 of subchapter II of chapter 99 of such Schedule, respectively,
for the entry, or withdrawal from warehouse for consumption, the
President, consistent with United States international obligations,
shall take such action as determined appropriate by the President
to ensure that such fabrics are fairly allocated to persons (including
firms, corporations, or other legal entities) who cut and sew men’s
and boys’ worsted wool suits and suit-like jackets and trousers
in the United States and who apply for an allocation based on
the amount of such suits cut and sewn during the prior calendar
year.
(f ) EFFECTIVE DATE.—The amendments made by this section
apply with respect to goods entered, or withdrawn from warehouse
for consumption, on or after January 1, 2001.
SEC. 502. TEMPORARY DUTY SUSPENSIONS.
(a) WOOL YARN WITH AVERAGE FIBER DIAMETERS
OF 18.5
MICRON OR LESS.—Subchapter II of chapter 99 of the Harmonized
Tariff Schedule of the United States is amended by inserting in
numerical sequence the following new heading:
‘‘
9902.51.13
Yarn, of combed wool, not
put up for retail sale, con-
taining 85 percent or
more by weight of wool,
formed with wool fibers
having diameters of 18.5
micron or less (provided
for in subheading
5107.10.00) .......................
Free
No change
No change
On or before
12/31/2003
’’.
H. R. 434—51
(b) WOOL FIBER AND WOOL TOP WITH AVERAGE DIAMETERS
OF 18.5 MICRON
OR LESS.—Subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:
‘‘
9902.51.14
Wool fiber, waste,
garnetted stock, combed
wool, or wool top, having
average fiber diameters of
18.5 micron or less (pro-
vided for in subheading
5101.11, 5101.19,
5101.21, 5101.29,
5101.30, 5103.10,
5103.20, 5104.00,
5105.21, or 5105.29) ........
Free
No change
No change
On or before
12/31/2003
’’.
(c) EFFECTIVE DATE.—The amendments made by this section
apply with respect to goods entered, or withdrawn from warehouse
for consumption, on or after January 1, 2001.
SEC. 503. SEPARATE TARIFF LINE TREATMENT FOR WOOL YARN AND
MEN’S OR BOYS’ SUITS AND SUIT-TYPE JACKETS AND
TROUSERS OF WORSTED WOOL FABRIC.
(a) SEPARATE TARIFF LINE TREATMENT.—The President shall
proclaim 8-digit tariff categories, without changes in existing duty
rates, in chapters 51 and 62 of the Harmonized Tariff Schedule
of the United States in order to provide separate tariff treatment
for—
(1) wool yarn made of wool fiber with an average fiber
diameter of 18.5 micron or less, and wool fabrics made from
yarns with an average fiber diameter of 18.5 micron or less;
and
(2) men’s or boys’ suits, suit-type jackets, and trousers
of worsted wool fabric, made of wool yarn having an average
diameter of 18.5 micron or less.
(b) CONFORMING CHANGES.—The President is authorized to
make conforming changes in headings 9902.51.11, 9902.51.12,
9902.51.13, and 9902.51.14 of the Harmonized Tariff Schedule of
the United States to take into account the new permanent tariff
categories proclaimed under subsection (a).
SEC. 504. MONITORING OF MARKET CONDITIONS AND AUTHORITY TO
MODIFY TARIFF REDUCTIONS.
(a) MONITORING OF MARKET CONDITIONS.—Beginning on the
date of the enactment of this Act, the President shall monitor
market conditions in the United States, including domestic demand,
domestic supply, and increases in domestic production, of worsted
wool fabrics and their components in the market for—
(1) men’s or boys’ worsted wool suits, suit-type jackets,
and trousers;
(2) worsted wool fabric and yarn used in the manufacture
of such suits, jackets, and trousers; and
(3) wool used in the production of such fabrics and yarn.
(b) AUTHORITY TO MODIFY LIMITATION ON QUANTITY OF WOR-
STED WOOL FABRICS SUBJECT TO TARIFF REDUCTION.—
(1) IN GENERAL.—The President shall, on an annual basis,
consider requests made by United States manufacturers of
apparel products made of worsted wool fabrics described in
subsection (a) to modify the limitation on the quantity of
imports of worsted wool fabrics under headings 9902.51.11 and
H. R. 434—52
9902.51.12 of the Harmonized Tariff Schedule of the United
States, as required by U.S. Notes 15 and 16 of subchapter
II of chapter 99 of such Schedule, respectively.
(2) CONSIDERATION OF CERTAIN MARKET CONDITIONS.—In
determining whether to modify the limitation on the quantity
of imports of worsted wool fabrics described in paragraph (1),
the President shall consider the following United States market
conditions:
(A) Increases or decreases in sales of the domestically-
produced worsted wool fabrics described in subsection (a).
(B) Increases or decreases in domestic production of
such fabrics.
(C) Increases or decreases in domestic production and
consumption of the apparel items described in subsection
(a).
(D) The ability of domestic producers of worsted wool
fabrics described in subsection (a) to meet the needs of
domestic manufacturers of the apparel items described in
subsection (a) in terms of quantity and ability to meet
market demands for the apparel items.
(E) Evidence that domestic manufacturers of worsted
wool fabrics have lost sales due to the temporary duty
reductions on certain worsted wool fabrics under headings
9902.51.11 and 9902.51.12 of the Harmonized Tariff
Schedule of the United States (as added by subsections
(a) and (b) of section 501).
(F) Evidence that domestic manufacturers of apparel
items described in subsection (a) have lost sales due to
the inability to purchase adequate supplies of worsted wool
fabrics on a cost competitive basis.
(G) Price per square meter of imports and domestic
sales of worsted wool fabrics.
(3) MODIFICATION
OF
LIMITATION
ON
QUANTITY
OF
FAB-
RICS.—
(A) IN GENERAL.—If the President determines that the
limitation on the quantity of imports of worsted wool fabrics
under headings 9902.51.11 and 9902.51.12 of the Har-
monized Tariff Schedule of the United States should be
modified, the President shall proclaim such changes to
U.S. Note 15 or 16 to subchapter II of chapter 99 of such
Schedule (as added by section 501(d)), as the President
determines to be appropriate.
(B) ADDITIONAL REQUIREMENT.—In any calendar year,
any modification of the limitation on the quantity of
imports of worsted wool fabrics under headings 9902.51.11
and 9902.51.12 of the Harmonized Tariff Schedule of the
United States shall not exceed—
(i) 1,000,000 square meter equivalents for worsted
wool fabrics under heading 9902.51.11; and
(ii) 1,000,000 square meter equivalents for worsted
wool fabrics under heading 9902.51.12.
(c) IMPLEMENTATION.—The President shall issue regulations
necessary to implement the provisions of this section.
H. R. 434—53
SEC. 505. REFUND OF DUTIES PAID ON IMPORTS OF CERTAIN WOOL
ARTICLES.
(a) WORSTED WOOL FABRICS.—In each of the calendar years
2000, 2001, and 2002, a manufacturer of men’s or boys’ suits,
suit-type jackets, or trousers (not a broker or other individual
acting on behalf of the manufacturer to process the import) of
imported worsted wool fabrics of the kind described in heading
9902.51.11 or 9902.51.12 of the Harmonized Tariff Schedule of
the United States shall be eligible for a refund of duties paid
on entries of such fabrics in each such calendar year in an amount
equal to one-third of the amount of duties paid by the importer
on such worsted wool fabrics (without regard to micron level)
imported in calendar year 1999.
(b) WOOL YARN.—In each of the calendar years 2000, 2001,
and 2002, a manufacturer of worsted wool fabrics who imports
wool yarn of the kind described in heading 9902.51.13 of the Har-
monized Tariff Schedule of the United States shall be eligible for
a refund of duties paid on entries of such wool yarn in each
such calendar year in an amount equal to one-third of the amount
of duties paid by the manufacturer on such wool yarn (without
regard to micron level) imported in calendar year 1999.
(c) WOOL FIBER AND WOOL TOP.—In each of the calendar years
2000, 2001, and 2002, a manufacturer of wool yarn or wool fabric
who imports wool fiber or wool top of the kind described in heading
9902.51.14 of the Harmonized Tariff Schedule of the United States
shall be eligible for a refund of duties paid on entries of such
wool fiber in each such calendar year in an amount equal to one-
third of the amount of duties paid by the manufacturer on such
wool fiber (without regard to micron level) imported in calendar
year 1999.
(d) PROPER IDENTIFICATION AND APPROPRIATE CLAIM.—Any per-
son applying for a rebate under this section shall properly identify
and make appropriate claim to the United States Customs Service
for each entry involved.
SEC. 506. WOOL RESEARCH, DEVELOPMENT, AND PROMOTION TRUST
FUND.
(a) ESTABLISHMENT.—There is hereby established within the
Treasury of the United States a trust fund to be known as the
Wool Research, Development, and Promotion Trust Fund (hereafter
in this section referred to as the ‘‘Trust Fund’’), consisting of such
amounts as may be transferred to the Trust Fund under subsection
(b)(1) and any amounts as may be credited to the Trust Fund
under subsection (c)(2).
(b) TRANSFER OF AMOUNTS.—
(1) IN
GENERAL.—The Secretary of the Treasury shall
transfer to the Trust Fund out of the general fund of the
Treasury of the United States amounts determined by the
Secretary of the Treasury to be equivalent to the amounts
received into such general fund that are attributable to the
duty received on articles under chapters 51 and 52 of the
Harmonized Tariff Schedule of the United States, subject to
the limitation in paragraph (2).
(2) LIMITATION.—The Secretary shall not transfer more
than $2,250,000 to the Trust Fund in any fiscal year.
H. R. 434—54
(3) TRANSFERS
BASED
ON
ESTIMATES.—The amounts
required to be transferred under paragraph (1) shall be trans-
ferred at least quarterly from the general fund of the Treasury
of the United States to the Trust Fund on the basis of estimates
made by the Secretary of the Treasury of the amounts referred
to in paragraph (1) that are received into the Treasury. Proper
adjustments shall be made in the amounts subsequently trans-
ferred to the extent prior estimates were in excess of, or less
than, the amounts required to be transferred.
(c) INVESTMENT OF TRUST FUND.—
(1) IN GENERAL.—It shall be the duty of the Secretary
of the Treasury to invest such portion of the Trust Fund as
is not, in the Secretary’s judgment, required to meet current
withdrawals. Such investments may be made only in interest-
bearing obligations of the United States or in obligations
guaranteed as to both principal and interest by the United
States. For such purpose, such obligations may be acquired
on original issue at the issue price or by purchase of outstanding
obligations at the market price. Any obligation acquired by
the Trust Fund may be sold by the Secretary of the Treasury
at the market price.
(2) INTEREST AND PROCEEDS FROM SALE OR REDEMPTION
OF OBLIGATIONS.—The interest on, and the proceeds from the
sale or redemption of, any obligations held in the Trust Fund
shall be credited to and form a part of the Trust Fund.
(d) AVAILABILITY
OF
AMOUNTS
FROM
TRUST
FUND.—From
amounts available in the Trust Fund (including any amounts not
obligated in previous fiscal years), the Secretary of Agriculture
is authorized to provide grants to a nationally-recognized council
established for the development of the United States wool market
for the following purposes:
(1) Assist United States wool producers to improve the
quality of wool produced in the United States, including to
improve wool production methods.
(2) Disseminate information on improvements described
in paragraph (1) to United States wool producers generally.
(3) Assist United States wool producers in the development
and promotion of the wool market.
(e) REPORTS TO CONGRESS.—The Secretary of the Treasury,
in consultation with the Secretary of Agriculture, shall prepare
and submit to Congress an annual report on the financial condition
and the results of the operations of the Trust Fund, including
a description of the use of amounts of grants provided under sub-
section (d), during the preceding fiscal year and on its expected
condition and operations during the next fiscal year.
(f ) SUNSET PROVISION.—Effective January 1, 2004, the Trust
Fund shall be abolished and all amounts in the Trust Fund on
such date shall be transferred to the general fund of the Treasury
of the United States.
H. R. 434—55
TITLE VI—REVENUE PROVISIONS
SEC. 601. APPLICATION OF DENIAL OF FOREIGN TAX CREDIT
REGARDING TRADE AND INVESTMENT WITH RESPECT TO
CERTAIN FOREIGN COUNTRIES.
(a) IN GENERAL.—Section 901( j) of the Internal Revenue Code
of 1986 (relating to denial of foreign tax credit, etc., regarding
trade and investment with respect to certain foreign countries)
is amended by adding at the end the following new paragraph:
‘‘(5) WAIVER OF DENIAL.—
‘‘(A) IN GENERAL.—Paragraph (1) shall not apply with
respect to taxes paid or accrued to a country if the
President—
‘‘(i) determines that a waiver of the application
of such paragraph is in the national interest of the
United States and will expand trade and investment
opportunities for United States companies in such
country; and
‘‘(ii) reports such waiver under subparagraph (B).
‘‘(B) REPORT.—Not less than 30 days before the date
on which a waiver is granted under this paragraph, the
President shall report to Congress—
‘‘(i) the intention to grant such waiver; and
‘‘(ii) the reason for the determination under
subparagraph (A)(i).’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply on or after February 1, 2001.
SEC. 602. ACCELERATION OF COVER OVER PAYMENTS TO PUERTO
RICO AND VIRGIN ISLANDS.
(a) INITIAL PAYMENT.—Section 512(b) of the Ticket to Work
and Work Incentives Improvement Act of 1999 is amended—
(1) by striking ‘‘October 1, 2000,’’ in the matter preceding
paragraph (1) and inserting ‘‘the first day of the month within
which the date of the enactment of the Trade and Development
Act of 2000 occurs,’’; and
(2) by striking paragraph (2) and inserting the following
new paragraph:
‘‘(2) SECOND TRANSFER OF INCREMENTAL INCREASE IN COVER
OVER ATTRIBUTABLE TO PERIODS BEFORE RESUMPTION OF REG-
ULAR PAYMENTS.—The Secretary of the Treasury shall transfer
on the first payment date after the date of the enactment
of the Trade and Development Act of 2000 an amount equal
to the excess of—
‘‘(A) the amount of such increase otherwise required
to be covered over after June 30, 1999, and before the
first day of the month within which such date of enactment
occurs, over
‘‘(B) the amount of the transfer described in paragraph
(1).’’.
(b) CLARIFICATION
OF
DISPOSITION
OF
TAXES
TO
VIRGIN
ISLANDS.—So much of paragraph (3) of section 7652(b) of the
Internal Revenue Code of 1986 (relating to Virgin Islands) as pre-
cedes subparagraph (B) thereof is amended to read as follows:
‘‘(3) DISPOSITION OF INTERNAL REVENUE COLLECTIONS.—The
Secretary shall determine the amount of all taxes imposed
H. R. 434—56
by, and collected under the internal revenue laws of the United
States on articles produced in the Virgin Islands and trans-
ported to the United States. The amount so determined less
1 percent and less the estimated amount of refunds or credits
shall be subject to disposition as follows:
‘‘(A) The payment of an estimated amount shall be
made to the government of the Virgin Islands before the
commencement of each fiscal year as set forth in section
4(c)(2) of the Act entitled ‘An Act to authorize appropria-
tions for certain insular areas of the United States, and
for other purposes’, approved August 18, 1978 (48 U.S.C.
1645), as in effect on the date of the enactment of the
Trade and Development Act of 2000. The payment so made
shall constitute a separate fund in the treasury of the
Virgin Islands and may be expended as the legislature
may determine.’’.
(c) RESOLUTION OF STATUTORY CONFLICT.—Section 7652 of the
Internal Revenue Code of 1986 (relating to shipments to the United
States) is amended by adding at the end the following new sub-
section:
‘‘(h) MANNER OF COVER OVER OF TAX MUST BE DERIVED FROM
THIS TITLE.—No amount shall be covered into the treasury of Puerto
Rico or the Virgin Islands with respect to taxes for which cover
over is provided under this section unless made in the manner
specified in this section without regard to—
‘‘(1) any provision of law which is not contained in this
title or in a revenue Act; and
‘‘(2) whether such provision of law is a subsequently
enacted provision or directly or indirectly seeks to waive the
application of this subsection.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to transfers or payments made after the
date of the enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.