(18) such behavior effectively prevents market 
forces from operating efficiently in the People’s Re-
public of China, which distorts world trade; 
(19) furthermore, based on the fact that the 
Secretary of the Treasury has determined the cur-
rency policy of the People’s Republic of China to be 
‘‘distortionary’’, the United States Trade Represent-
ative and the Secretary of the Treasury should place 
particular emphasis on determining whether China is 
violating its international obligations and identify to 
Congress the actions it is taking to address distor-
tions to world trade; 
(20) in addition, Japan’s policy of intervening 
to influence the value of its currency and its prolific 
barriers to trade create distortions that disadvantage 
United States exporters; 
(21) this adverse impact is magnified by Ja-
pan’s role in the global marketplace, combined with 
its chronic surplus, weak economy, deflationary 
economy, low growth rate, and lack of consumer 
spending; and 
(22) accordingly, the United States Trade Rep-
resentative should have additional resources in the 
Office of the General Counsel, the Office of Moni-
toring and Enforcement, the Office of China Affairs,
and the Office of Japan, Korea, and APEC Affairs 
to address a variety of needs that will best enable 
United States companies, farmers, and workers to 
benefits from the trade agreements to which the 
United States has around the world. 
SEC. 3. APPLICATION OF COUNTERVAILING DUTIES TO 
NONMARKET ECONOMY COUNTRIES. 
(a) AMENDMENTS.— 
(1) COUNTERVAILING DUTIES IMPOSED.—Sec-
tion 701(a)(1) of the Tariff Act of 1930 (19 U.S.C. 
1671(a)(1)) is amended by inserting ‘‘(including a 
nonmarket economy country)’’ after ‘‘country’’ each 
place it appears. 
(2) DEFINITION
OF
COUNTERVAILABLE
SUB-
SIDY.—Section 771(5)(E) of such Act (19 U.S.C. 
1677(5)(E)) is amended by adding at the end the 
following new sentences: ‘‘With respect to the Peo-
ple’s Republic of China, if the administering author-
ity encounters special difficulties in calculating the 
amount of a benefit under clause (i), (ii), (iii), or 
(iv) of this subparagraph, the administering author-
ity may use methodologies for identifying and meas-
uring the subsidy benefit which take into account 
the possibility that prevailing terms and conditions 
in China may not always be available as appropriate
benchmarks. When applying such methodologies, the 
administering authority should adjust such pre-
vailing terms and conditions before considering the 
use of terms and conditions prevailing outside 
China.’’. 
(b) PROHIBITION ON DOUBLE COUNTING.—In apply-
ing section 701(a)(1) of the Tariff Act of 1930, as amend-
ed by subsection (a), to a class or kind of merchandise 
of a nonmarket economy country, the administering au-
thority shall ensure that— 
(1) any countervailable subsidy is not double 
counted in an antidumping order under section 731 
of such Act (19 U.S.C. 1673) on the same class or 
kind of merchandise of the country; and 
(2) the application of section 701(a)(1) of such 
Act is consistent with the international obligations of 
the United States. 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply to any petition filed under section 702 
of the Tariff Act of 1930 (19 U.S.C. 1671a) on or after 
30 days after the date of the enactment of this Act, and 
the provisions contained in subsection (b) apply to any 
subsequent determination made under section 733, 735, 
or 751 of such Act (19 U.S.C. 1673b, 1673d, or 1675).
SEC. 4. NEW SHIPPER REVIEW AMENDMENT. 
(a) SUSPENSION OF THE AVAILABILITY OF BONDS 
TO NEW SHIPPERS.—Clause (iii) of section 751(a)(2)(B) 
of the Tariff Act of 1930 (19 U.S.C. 1675(a)(2)(B)(iii)) 
shall not be effective during the 3-year period beginning 
on the date of the enactment of this Act. 
(b) REPORT ON THE IMPACT OF THE SUSPENSION.— 
Not later than 2 years after the date of the enactment 
of this Act, the Secretary of the Treasury, in consultation 
with the Secretary of Commerce, the United States Trade 
Representative, and the Secretary of Homeland Security, 
shall submit to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of 
Representatives a report containing— 
(1) recommendations on whether the suspension 
of the effectiveness of section 751(a)(2)(B)(iii) of 
the Tariff Act of 1930 should be extended beyond 
the date provided in subsection (a) of this section; 
and 
(2) assessments of the effectiveness of any ad-
ministrative measures that have been implemented 
to address the difficulties giving rise to the suspen-
sion under subsection (a) of this section, including— 
(A) problems in assuring the collection of 
antidumping duties on imports from new ship-
pers; and
(B) burdens imposed on legitimate trade 
and commerce by the suspension of availability 
of bonds to new shippers by reason of the sus-
pension under subsection (a). 
(c) REPORT ON COLLECTION PROBLEMS AND ANAL-
YSIS OF PROPOSED SOLUTIONS.— 
(1) REPORT.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of 
the Treasury, in consultation with the Commissioner 
of the Bureau of Customs and Border Protection 
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 describing the major problems 
experienced in the collection of duties, including 
fraudulent activities intended to avoid payment of 
duties, with an estimate of the total amount of un-
collected duties for the previous fiscal year and a 
breakdown across product lines describing the rea-
sons duties were uncollected. 
(2) RECOMMENDATIONS.—The report shall 
make recommendations on additional actions to ad-
dress remaining problems related to duty collections 
and, for each recommendation, provide an analysis 
of how the recommendation would address the spe-
cific problem or problems cited and the impact that 
implementing the recommendation would have on 
international trade and commerce (including any ad-
ditional costs imposed on United States businesses 
and whether the implementation of the revision is 
likely to violate any international trade laws). 
SEC. 5. COMPREHENSIVE MONITORING OF COMPLIANCE BY 
THE PEOPLE’S REPUBLIC OF CHINA WITH ITS 
INTERNATIONAL TRADE OBLIGATIONS. 
(a) INTELLECTUAL
PROPERTY
RIGHTS
COMPLI-
ANCE.— 
(1) IN
GENERAL.—In accordance with the 
terms of the Agreement of WTO Accession for the 
People’s Republic of China, subsequent agreements 
by Chinese authorities through the U.S.-China Joint 
Commission on Commerce and Trade (JCCT), and 
other obligations by Chinese officials related to its 
trade obligations, the United States Trade Rep-
resentative and the Secretary of Commerce shall un-
dertake to ensure that the Government of the Peo-
ple’s Republic China has taken the following steps: 
(A) The Chinese Government has increased 
the number of civil and criminal prosecutions of 
intellectual property rights violators by the end 
of 2005 to a level that significantly decreases
the current amount of infringing products for 
sale within China. 
(B) China’s Supreme People’s Court, Su-
preme People’s Procuratorate, and Ministry of 
Public Security have issued draft guidelines for 
public comment to ensure the timely referral of 
intellectual property rights violations from ad-
ministrative bodies to criminal prosecution. 
(C) The Chinese Ministry of Public Secu-
rity and the General Administration of Customs 
have issued regulations to ensure the timely 
transfer of intellectual property rights cases for 
criminal investigation. 
(D) The Chinese Ministry of Public Secu-
rity has established a leading group responsible 
for overall research, planning, and coordination 
of all intellectual property rights criminal en-
forcement to ensure a focused and coordinated 
nationwide enforcement effort. 
(E) The Chinese Government has estab-
lished a bilateral intellectual property rights law 
enforcement working group in cooperation with 
the United States whose members will cooper-
ate on enforcement activities to reduce cross- 
border infringing activities.
(F) The Chinese Government has aggres-
sively countered movie piracy by dedicating en-
forcement teams to pursue enforcement actions 
against pirates and has regularly instructed en-
forcement authorities nationwide that copies of 
films and audio-visual products still in censor-
ship or import review or otherwise not yet au-
thorized for distribution are deemed pirated and 
subject to enhanced enforcement. 
(G) By the end of 2005, the Chinese Gov-
ernment has completed its legalization program 
to ensure that all central, provincial, and local 
government offices are using only licensed soft-
ware and by the end of 2006 has extended the 
program to enterprises (including state-owned 
enterprises). 
(H) The Chinese Government, having de-
clared that software end-user piracy is consid-
ered to constitute ‘‘harm to the public interest’’ 
and as such will be subject to administrative 
penalties nationwide, has initiated civil and 
criminal prosecutions of software end-user vio-
lators. 
(I) The Chinese Government has appointed 
an Intellectual Property Rights Ombudsman at
the Chinese Embassy in Washington, D.C., to 
serve as the point of contact for United States 
companies, particularly small- and medium- 
sized businesses, seeking to secure and enforce 
their intellectual property rights in China or ex-
periencing intellectual property rights problems 
in China. 
(J) The relevant Chinese agencies, includ-
ing the Ministry of Commerce, the China 
Trademark Office, the State Intellectual Prop-
erty Office, and the National Copyright Admin-
istration of China have significantly improved 
intellectual property rights enforcement at trade 
shows and issued new regulations to achieve 
this goal. 
(K) Not later than June 30, 2006, the 
Chinese State Council has submitted to the Na-
tional People’s Congress the legislative package 
needed for China to accede to the World Intel-
lectual Property Organization (WIPO) Internet 
treaties. 
(L) The Chinese Government has taken 
steps to enforce intellectual property right laws 
against Internet piracy, including through en-
forcement at Internet cafes.
(M) The Chinese Government, having con-
firmed that the criminal penalty thresholds in 
the 2004 Judicial Interpretation are applicable 
to sound recordings, has instituted civil and 
criminal prosecutions against such violators. 
(N) The Chinese Government has initiated 
civil and criminal prosecutions against exporters 
of infringing recordings. 
(2) DISPUTE
SETTLEMENT
PROCEEDINGS
IN 
WTO.—If the President determines that the People’s 
Republic of China has not met each of the obliga-
tions described in subparagraphs (A) through (N) of 
paragraph (1) or taken steps that result in signifi-
cant improvements in protection of intellectual prop-
erty rights in accordance with its trade obligations, 
then the President shall assign such resources as are 
necessary to collect evidence of such trade agreement 
violations for use in dispute settlement proceedings 
against China in the World Trade Organization. 
(b) ACCESS
FOR EXPORTS
OF UNITED STATES 
GOODS.—In accordance with the terms of the Agreement 
of WTO Accession for the People’s Republic of China, sub-
sequent agreements by Chinese authorities through the 
U.S.-China Joint Commission on Commerce and Trade 
(JCCT), and other obligations by Chinese officials related
to its trade obligations, the United States Trade Rep-
resentative and the Secretary of Commerce shall under-
take to ensure that the Government of the People’s Re-
public of China has taken the following steps: 
(1) China has taken steps to ensure that United 
States products can be freely distributed in China, 
including by approving a significant backlog of dis-
tribution license applications and by preparing a reg-
ulatory guide for businesses seeking to acquire dis-
tribution rights that expands on the guidelines an-
nounced in April 2005. 
(2) Chinese officials have permitted all enter-
prises in China, including those located in bonded 
zones, to acquire licenses to distribute goods 
throughout China. 
(3) The Chinese Government has submitted 
regulations on management of direct selling to the 
Chinese State Council for review and taken any ad-
ditional steps necessary to provide a legal basis for 
United States direct sales firms to sell United States 
goods directly to households in China. 
(4) The Chinese Government has issued final 
regulations on direct selling, including with respect 
to distribution of imported goods and fixed location 
requirements.
(c) ACCESS FOR EXPORTS OF UNITED STATES SERV-
ICES.—In accordance with the terms of the Agreement of 
WTO Accession for the People’s Republic of China, subse-
quent agreements by Chinese authorities through the 
U.S.-China Joint Commission on Commerce and Trade 
(JCCT), and other obligations by Chinese officials related 
to its trade obligations, the United States Trade Rep-
resentative and the Secretary of Commerce shall under-
take to ensure that the Government of the People’s Re-
public of China has taken the following steps: 
(1) The Chinese Government has convened a 
meeting of the U.S.-China Insurance Dialogue be-
fore the end of 2005 to discuss regulatory concerns 
and barriers to further liberalization of the sector. 
(2) The Chinese Government has made senior 
level officials available to meet under the JCCT In-
formation Technology Working Group to discuss 
capitalization requirements, resale services, and 
other issues as agreed to by the two sides. 
(d) ACCESS FOR UNITED STATES AGRICULTURE.— 
In accordance with the terms of the Agreement of WTO 
Accession for the People’s Republic of China, subsequent 
agreements by Chinese authorities through the U.S.-China 
Joint Commission on Commerce and Trade (JCCT), and 
other obligations by Chinese officials related to its trade
obligations, the United States Trade Representative and 
the Secretary of Agriculture shall undertake to ensure that 
the Government of the People’s Republic of China has 
taken the following steps: 
(1) China has completed the regulatory ap-
proval process for a United States-produced corn 
biotech variety. 
(2) China’s Administration of Quality Super-
vision, Inspection and Quarantine has implemented 
the 2005 Memorandum of Understanding between 
the United States and China designed to facilitate 
cooperation on animal and plant health safety issues 
and improve efforts to expand United States access 
to China’s markets for agricultural commodities. 
(e) ACCOUNTING OF CHINESE SUBSIDIES.—In ac-
cordance with the terms of the Agreement of WTO Acces-
sion for the People’s Republic of China, subsequent agree-
ments by Chinese authorities through the U.S.-China 
Joint Commission on Commerce and Trade (JCCT), and 
other obligations by Chinese officials related to its trade 
obligations, the United States Trade Representative and 
the Secretary of Commerce shall undertake to ensure that 
the Government of the People’s Republic of China has pro-
vided a detailed accounting of its subsidies to the World 
Trade Organization by the end of 2005.
(f) REPORTS.— 
(1) BIANNUAL
REPORT.—Not later than six 
months after the date of the enactment of this Act, 
and every six months thereafter, the President 
should transmit to the Committee on Ways and 
Means of the House of Representatives and the 
Committee on Finance of the Senate a report that 
contains— 
(A) a description of the specific steps 
taken by the Government of the People’s Re-
public of China to meet its obligations described 
in subsections (a) through (e) of this section 
(other than obligations described in subsections 
(a)(1)(A) and (G), (b)(1), (c)(1), and (e)); 
(B) an analysis of the extent to which Chi-
nese officials are attempting in good faith to 
meet such obligations; and 
(C) a description of the actions, if any, the 
President will take to obtain compliance by 
China if the President determines that the Chi-
nese Government is failing to meet such obliga-
tions, including pursuing United States rights 
under the dispute settlement provisions of the 
World Trade Organization, as appropriate.
(2) MONTHLY
REPORT.—Not later than 30 
days after the date of the enactment of this Act, and 
every 30 days thereafter, the President should trans-
mit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Fi-
nance of the Senate a report that contains— 
(A) a description of the specific steps 
taken by the Government of the People’s Re-
public of China to meet its obligations described 
in subsections (a)(1)(A) and (G), (b)(1), (c)(1), 
and (e); 
(B) an analysis of the extent to which Chi-
nese officials are attempting in good faith to 
meet such obligations; and 
(C) a description of the actions, if any, the 
President will take to obtain compliance by 
China if the President determines that the Chi-
nese Government is failing to meet such obliga-
tions, including pursuing United States rights 
under the dispute settlement provisions of the 
World Trade Organization, as appropriate. 
SEC. 6. REPORT ON CURRENCY MANIPULATION BY FOR-
EIGN COUNTRIES. 
Not later than 60 days after the date of the enact-
ment of this Act, the Secretary of the Treasury shall sub-
mit to the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the 
Senate a report that— 
(1) defines currency manipulation; 
(2) describes actions of foreign countries that 
will be considered to be currency manipulation; and 
(3) describes how statutory provisions address-
ing currency manipulation by trading partners of the 
United States contained in, and relating to, section 
40 of the Bretton Woods Agreements Act (22 
U.S.C. 286y) and sections 3004 and 3005 of the Ex-
change Rates and International Economic Policy Co-
ordination Act of 1988 (22 U.S.C. 5304 and 5305) 
can be better clarified administratively to provide for 
improved and more predictable evaluation. 
SEC. 7. AUTHORIZATION OF APPROPRIATIONS FOR THE OF-
FICE OF THE UNITED STATES TRADE REP-
RESENTATIVE. 
(a) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—Section 141(g)(1)(A) of the 
Trade Act of 1974 (19 U.S.C. 2171(g)(1)(A)) is 
amended by striking clauses (i) and (ii) and insert-
ing the following: 
‘‘(i) $44,779,000 for fiscal year 2006. 
‘‘(ii) $47,018,000 for fiscal year 2007.’’.
(2) RULE OF CONSTRUCTION.—The amendment 
made by paragraph (1) shall not be construed to af-
fect the availability of funds appropriated pursuant 
to section 141(g)(1)(A) of the Trade Act of 1974 be-
fore the date of the enactment of this Act. 
(b) AUTHORIZATION OF APPROPRIATIONS FOR THE 
OFFICE
OF
THE GENERAL COUNSEL
AND CERTAIN 
OTHER OFFICES.—There are authorized to be appro-
priated to the Office of the United States Trade Rep-
resentative for the appointment of additional staff in or 
enhanced activities by the Office of the General Counsel, 
the Office of Monitoring and Enforcement, the Office of 
China Affairs, and the Office of Japan, Korea, and APEC 
Affairs— 
(1) $4,000,000 for fiscal year 2006; and 
(2) $4,000,000 for fiscal year 2007. 
SEC. 8. AUTHORIZATION OF APPROPRIATIONS FOR THE 
UNITED 
STATES 
INTERNATIONAL 
TRADE 
COMMISSION. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 
330(e)(2)(A) of the Tariff Act of 1930 (19 U.S.C. 
1330(e)(2)(A)) is amended by striking clauses (i) and (ii) 
and inserting the following: 
‘‘(i) $62,752,000 for fiscal year 2006. 
‘‘(ii) $65,890,000 for fiscal year 2007.’’.
(b) RULE
OF
CONSTRUCTION.—The amendment 
made by subsection (a) shall not be construed to affect 
the availability of funds appropriated pursuant to section 
section 330(e)(2)(A) of the Tariff Act of 1930 before the 
date of the enactment of this Act. 
(c) STUDY AND REPORT ON TRADE AND ECONOMIC 
RELATIONS WITH CHINA.— 
(1) STUDY.— 
(A) IN
GENERAL.—The United States 
International Trade Commission shall carry out 
a comprehensive study on trade and economic 
relations between the United States and the 
People’s Republic of China which focuses on 
China’s macroeconomic policy, including its 
fixed exchange rate policy, the competitiveness 
of its industries, the composition and nature of 
its trade patterns, and the impact of these ele-
ments on the United States trade account, in-
dustry, competitiveness, and employment. 
(B) REQUIREMENTS.—In carrying out the 
study under subparagraph (A), the United 
States International Trade Commission shall 
undertake the following: 
(i) An analysis of the United States 
trade and investment relationship with
China, with a focus on the United States- 
China trade balance and trends affecting 
particular industries, products, and sectors 
in agriculture, manufacturing, and serv-
ices. The analysis shall provide context for 
understanding the U.S.-China trade and 
investment relationship, by including infor-
mation regarding China’s economic rela-
tionships with third countries and China’s 
changing policy regime and business envi-
ronment. The analysis shall include a focus 
on United States-China trade in goods and 
services, United States direct investment in 
China, China’s foreign direct investment in 
the United States, and the relationship be-
tween trade and investment. The analysis 
shall make adjustments, where possible, for 
merchandise passed through Hong Kong. 
(ii) An analysis of the competitive 
conditions in China affecting United States 
exports and United States direct invest-
ment. The analysis shall take into account, 
to the extent feasible, significant factors 
including tariffs and non-tariff measures, 
competition from Chinese domestic firms