619
‘‘(A) with a compensable service-connected dis-
ability;
‘‘(B) whose discharge or release from active
military, naval, or air service was for a compensable
disability that was incurred or aggravated in the line
of duty;
‘‘(C) who is in receipt of, or who, but for a sus-
pension pursuant to section 1151 of this title (or
both a suspension and the receipt of retired pay),
would be entitled to disability compensation, but
only to the extent that such veteran’s continuing eli-
gibility for such care is provided for in the judgment
or settlement provided for in such section;
‘‘(D) who is a former prisoner of war;
‘‘(E) of the Mexican border period or of World
War I;
‘‘(F) who was exposed to a toxic substance, ra-
diation, or environmental hazard, as provided in sub-
section (e); and
‘‘(G) who is unable to defray the expenses of
necessary care as determined under section 1722(a)
of this title.
‘‘(2) In the case of a veteran who is not described
in paragraph (1), the Secretary may, to the extent re-
sources and facilities are available and subject to the pro-
620
visions of subsection (f), furnish hospital care, medical
services, and nursing home care which the Secretary deter-
mines is needed.’’.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
1710(e) of such title is amended—
(A) in paragraph (1), by striking out ‘‘hospital
care and nursing home care’’ in subparagraphs (A),
(B), and (C) and inserting in lieu thereof ‘‘hospital
care, medical services, and nursing home care’’;
(B) in paragraph (2), by inserting ‘‘and medical
services’’ after ‘‘Hospital and nursing home care’’;
and
(C) by striking out ‘‘subsection (a)(1)(G) of
this section’’ each place it appears and inserting in
lieu thereof ‘‘subsection (a)(1)(F)’’.
(2) Chapter 17 of such title is amended—
(A) by redesignating subsection (g) of section
1710 as subsection (h); and
(B) by transferring subsection (f) of section
1712 of such title to section 1710 so as to appear
after subsection (f), redesignating such subsection as
subsection (g), and amending such subsection by
striking out ‘‘section 1710(a)(2) of this title’’ in
paragraph (1) and inserting in lieu thereof ‘‘sub-
section (a)(2) of this section’’.
621
(3) Section 1712 of such title is amended—
(A) by striking out subsections (a) and (i); and
(B) by redesignating subsections (b), (c), (d),
(h) and (j), as subsections (a), (b), (c), (d), and (e),
respectively.
SEC. 11032. EXTENSION OF AUTHORITY TO PRIORITY
HEALTH CARE FOR PERSIAN GULF VETER-
ANS.
Section 1710(e)(3) of title 38, United States Code,
is amended by striking out ‘‘December 31, 1995’’ and in-
serting in lieu thereof ‘‘December 31, 1998’’.
SEC. 11033. PROSTHETICS.
(a) 
ELIGIBILITY
FOR
PROSTHETICS.—Section
1701(6)(A)(i) of title 38, United States Code, is amend-
ed—
(1) by striking out ‘‘(in the case of a person
otherwise receiving care or services under this chap-
ter)’’ and ‘‘(except under the conditions described in
section 1712(a)(5)(A) of this title),’’;
(2) by inserting ‘‘(in the case of a person other-
wise receiving care or services under this chapter)’’
before ‘‘wheelchairs,’’; and
(3) by inserting ‘‘except that the Secretary may
not furnish sensori-neural aids other than in accord-
622
ance with guidelines which the Secretary shall pre-
scribe,’’ after ‘‘reasonable and necessary,’’.
(b) REGULATIONS.—Not later than 30 days after the
date of the enactment of this Act, the Secretary of Veter-
ans Affairs shall prescribe the guidelines required by the
amendments made by subsection (a) and shall furnish a
copy of those guidelines to the Committees on Veterans’
Affairs of the Senate and House of Representatives.
SEC. 11034. MANAGEMENT OF HEALTH CARE.
(a) IN GENERAL.—(1) Chapter 17 of title 38, United
States Code, is amended by inserting after section 1704
the following new sections:
‘‘§ 1705. Management of health care: patient enroll-
ment system
‘‘(a) In managing the provision of hospital care and
medical services under section 1710(a)(1) of this title, the
Secretary, in accordance with regulations the Secretary
shall prescribe, shall establish and operate a system of an-
nual patient enrollment. The Secretary shall manage the
enrollment of veterans in accordance with the following
priorities, in the order listed:
‘‘(1) Veterans with service-connected disabilities
rated 30 percent or greater.
623
‘‘(2) Veterans who are former prisoners of war
and veterans with service connected disabilities rated
10 percent or 20 percent.
‘‘(3) Veterans who are in receipt of increased
pension based on a need of regular aid and attend-
ance or by reason of being permanently housebound
and other veterans who are catastrophically disabled.
‘‘(4) Veterans not covered by paragraphs (1)
through (3) who are unable to defray the expenses
of necessary care as determined under section
1722(a) of this title.
‘‘(5) All other veterans eligible for hospital care,
medical services, and nursing home care under sec-
tion 1710(a)(1) of this title.
‘‘(b) In the design of an enrollment system under
subsection (a), the Secretary—
‘‘(1) shall ensure that the system will be man-
aged in a manner to ensure that the provision of
care to enrollees is timely and acceptable in quality;
‘‘(2) may establish additional priorities within
each priority group specified in subsection (a), as
the Secretary determines necessary; and
‘‘(3) may provide for exceptions to the specified
priorities where dictated by compelling medical rea-
sons.
624
‘‘§ 1706. Management of health care: other require-
ments
‘‘(a) In managing the provision of hospital care and
medical services under section 1710(a) of this title, the
Secretary shall, to the extent feasible, design, establish
and manage health care programs in such a manner as
to promote cost-effective delivery of health care services
in the most clinically appropriate setting.
‘‘(b) In managing the provision of hospital care and
medical services under section 1710(a) of this title, the
Secretary—
‘‘(1) may contract for hospital care and medical
services when Department facilities are not capable
of furnishing such care and services economically,
and
‘‘(2) shall make such rules and regulations re-
garding acquisition procedures or policies as the Sec-
retary considers appropriate to provide such needed
care and services.
‘‘(c) In managing the provision of hospital care and
medical services under section 1710(a) of this title, the
Secretary shall ensure that the Department maintains its
capacity to provide for the specialized treatment and reha-
bilitative needs of disabled veterans described in section
1710(a) of this title (including veterans with spinal cord
dysfunction, blindness, amputations, and mental illness)
625
within distinct programs or facilities of the Department
that are dedicated to the specialized needs of those veter-
ans in a manner that (1) affords those veterans reasonable
access to care and services for those specialized needs, and
(2) ensures that overall capacity of the Department to pro-
vide such services is not reduced below the capacity of the
Department, nationwide, to provide those services, as of
the date of the enactment of this section.
‘‘(d) In managing the provision of hospital care and
medical services under section 1710(a) of this title, the
Secretary shall ensure that any veteran with a service-con-
nected disability is provided all benefits under this chapter
for which that veteran was eligible before the date of the
enactment of this section.’’.
(2) The table of sections at the beginning of chapter
17 of such title is amended by inserting after the item
relating to section 1704 the following new items:
‘‘1705. Management of health care: patient enrollment system.
‘‘1706. Management of health care: other requirements.’’.
(b) 
CONFORMING
AMENDMENTS
TO
SECTION
1703.—(1) Section 1703 of such title is amended—
(A) by striking out subsections (a) and (b); and
(B) in subsection (c) by—
(i) striking out ‘‘(c)’’, and
(ii) striking out ‘‘this section, sections’’
and inserting in lieu thereof ‘‘sections 1710,’’.
626
(2)(A) The heading of such section is amended to
read as follows:
‘‘§ 1703. Annual report on furnishing of care and
services by contract’’.
(B) The item relating to such section in the table of
sections at the beginning of chapter 17 of such title is
amended to read as follows:
‘‘1703. Annual report on furnishing of care and services by contract.’’.
SEC. 11035. IMPROVED EFFICIENCY IN HEALTH CARE RE-
SOURCE MANAGEMENT.
(a) REPEAL OF SUNSET PROVISION.—Section 204 of
the Veterans Health Care Act of 1992 (Public Law 102–
585; 106 Stat. 4950) is repealed.
(b) COST RECOVERY.—Title II of such Act is further
amended by adding at the end the following new section:
‘‘SEC. 207. AUTHORITY TO BILL HEALTH-PLAN CONTRACTS.
‘‘(a) RIGHT TO RECOVER.—In the case of a primary
beneficiary (as described in section 201(2)(B)) who has
coverage under a health-plan contract, as defined in sec-
tion 1729(i)(1)(A) of title 38, United States Code, and
who is furnished care or services by a Department medical
facility pursuant to this title, the United States shall have
the right to recover or collect charges for such care or
services from such health-plan contract to the extent that
the beneficiary (or the provider of the care or services)
would be eligible to receive payment for such care or serv-
627
ices from such health-plan contract if the care or services
had not been furnished by a department or agency of the
United States. Any funds received from such health-plan
contract shall be credited to funds that have been allotted
to the facility that furnished the care or services.
‘‘(b) ENFORCEMENT.—The right of the United
States to recover under such a beneficiary’s health-plan
contract shall be enforceable in the same manner as that
provided by subsections (a)(3), (b), (c)(1), (d), (f), (h),
and (i) of section 1729 of title 38, United States Code.’’.
SEC. 11036. SHARING AGREEMENTS FOR SPECIALIZED MED-
ICAL RESOURCES.
(a) REPEAL OF SECTION 8151.—(1) Subchapter IV
of chapter 81 of title 38, United States Code, is amend-
ed—
(A) by striking out section 8151; and
(B) by redesignating sections 8152, 8153,
8154, 8155, 8156, 8157, and 8158 as sections 8151,
8152, 8153, 8154, 8155, 8156, and 8157, respec-
tively.
(2) The table of sections at the beginning of chapter
81 is amended—
(A) by striking out the item relating to section
8151; and
628
(B) by revising the items relating to sections
8152, 8153, 8154, 8155, 8156, 8157, and 8158 to
reflect the redesignations by paragraph (1)(B).
(b) REVISED AUTHORITY
FOR SHARING AGREE-
MENTS.—Section 8152 of such title, as redesignated by
subsection (a)(1)(B), is amended—
(1) in subsection (a)(1)(A)—
(A) by striking out ‘‘specialized medical re-
sources’’ and inserting in lieu thereof ‘‘health-
care resources’’; and
(B) by striking out ‘‘other’’ and all that
follows through ‘‘medical schools’’ and inserting
in lieu thereof ‘‘any medical school, health-care
provider, health-care plan, insurer, or other en-
tity or individual’’;
(2) in subsection (a)(2) by striking out ‘‘only’’
and all that follows through ‘‘are not’’ and inserting
in lieu thereof ‘‘if such resources are not, or would
not be,’’;
(3) in subsection (b), by striking out ‘‘reciprocal
reimbursement’’ in the first sentence and all that
follows through the period at the end of that sen-
tence and inserting in lieu thereof ‘‘payment to the
Department in accordance with procedures that pro-
629
vide appropriate flexibility to negotiate payment
which is in the best interest of the Government.’’;
(4) in subsection (d), by striking out ‘‘preclude
such payment, in accordance with—’’ and all that
follows through ‘‘to such facility therefor’’ and in-
serting in lieu thereof ‘‘preclude such payment to
such facility for such care or services’’;
(5) by redesignating subsection (e) as sub-
section (f); and
(6) by inserting after subsection (d) the follow-
ing new subsection (e):
‘‘(e) The Secretary may make an arrangement that
authorizes the furnishing of services by the Secretary
under this section to individuals who are not veterans only
if the Secretary determines—
‘‘(1) that such an arrangement will not result
in the denial of, or a delay in providing access to,
care to any veteran at that facility; and
‘‘(2) that such an arrangement—
‘‘(A) is necessary to maintain an accept-
able level and quality of service to veterans at
that facility; or
‘‘(B) will result in the improvement of
services to eligible veterans at that facility.’’.
630
(c) CROSS-REFERENCE AMENDMENTS.—(1) Section
8110(c)(3)(A) of such title is amended by striking out
‘‘8153’’ and inserting in lieu thereof ‘‘8152’’.
(2) Subsection (b) of section 8154 of such title (as
redesignated by subsection (a)(1)(B)) is amended by strik-
ing out ‘‘section 8154’’ and inserting in lieu thereof ‘‘sec-
tion 8153’’.
(3) Section 8156 of such title (as redesignated by
subsection (a)(1)(B)) is amended—
(A) in subsection (a), by striking out ‘‘section
8153(a)’’ and inserting in lieu thereof ‘‘section
8152(a)’’; and
(B) in subsection (b)(3), by striking out ‘‘sec-
tion 8153’’ and inserting in lieu thereof ‘‘section
8152’’.
(4) Subsection (a) of section 8157 of such title (as
redesignated by subsection (a)(1)(B)) is amended—
(A) in the matter preceding paragraph (1), by
striking out ‘‘section 8157’’ and ‘‘section 8153(a)’’
and inserting in lieu thereof ‘‘section 8156’’ and
‘‘section 8152(a)’’, respectively; and
(B) in paragraph (1), by striking out ‘‘section
8157(b)(4)’’ and inserting in lieu thereof ‘‘section
8156(b)(4)’’.
631
SEC. 11037. PERSONNEL FURNISHING SHARED RESOURCES.
Section 712(b)(2) of title 38, United States Code, is
amended—
(1) by striking out ‘‘the sum of—’’ and insert-
ing in lieu thereof ‘‘the sum of the following:’’;
(2) by capitalizing the first letter of the first
word of each of subparagraphs (A) and (B);
(3) by striking out ‘‘; and’’ at the end of sub-
paragraph (A) and inserting in lieu thereof a period;
and
(4) by adding at the end the following:
‘‘(C) The number of such positions in the
Department during that fiscal year held by per-
sons involved in providing health-care resources
under section 8111 or 8152 of this title.’’.
TITLE XII—COMMITTEE ON
WAYS AND MEANS—TRADE
Subtitle A—Technical Corrections
and Miscellaneous Trade Provi-
sions
SEC. 12001. PAYMENT OF DUTIES AND FEES.
(a) INTEREST ACCRUAL.—Section 505(c) of the Tar-
iff Act of 1930 (19 U.S.C. 1505(c)) is amended in the
second sentence by inserting after ‘‘duties, fees, and inter-
est’’ the following: ‘‘or, in a case in which a claim is made
632
under section 520(d), from the date on which such claim
is made,’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to claims made pursuant to sec-
tion 520(d) of the Tariff Act of 1930 on or after April
25, 1995.
SEC. 12002. OTHER TECHNICAL AND CONFORMING AMEND-
MENTS.
(a) EXAMINATION OF BOOKS AND WITNESSES.—Sec-
tion 509(a)(2) of the Tariff Act of 1930 (19 U.S.C.
1509(a)(2)) is amended by striking ‘‘(c)(1)(A)’’ and in-
serting ‘‘(d)(1)(A)’’.
(b) REQUIREMENT FOR CERTIFICATE FOR IMPORTA-
TION OF ALCOHOLIC LIQUORS IN SMALL VESSELS.—Sec-
tion 7 of the Act of August 5, 1935 (19 U.S.C. 1707;
49 Stat. 520), is repealed.
(c) MANIFESTS.—Section 431(c)(1) of the Tariff Act
of 1930 (19 U.S.C. 1431(c)(1)) is amended in the matter
preceding subparagraph (A) by striking ‘‘such manifest’’
and inserting ‘‘a vessel manifest’’.
(d) DOCUMENTATION
FOR ENTRY
OF MERCHAN-
DISE.—Section 484(a)(1) of the Tariff Act of 1930 (19
U.S.C. 1484(a)(1)) is amended in the matter preceding
subparagraph (A) by striking ‘‘553, and 336(j)’’ and in-
serting ‘‘and 553’’.
633
(e) PENALTIES FOR CERTAIN VIOLATIONS.—Section
592 of the Tariff Act of 1930 (19 U.S.C. 1592) is amend-
ed—
(1) in subsection (a)(1), by striking ‘‘lawful
duty’’ and inserting ‘‘lawful duty, tax, or fee’’; and
(2) in subsections (b)(1)(A)(vi), (c)(2)(A)(ii),
(c)(3)(A)(ii), (c)(4)(A)(i), and (c)(4)(B) by striking
‘‘lawful duties’’ each place it appears and inserting
‘‘lawful duties, taxes, and fees’’.
(f) DEPRIVATION OF LAWFUL DUTIES, TAXES, OR
FEES.—Section 592(d) of the Tariff Act of 1930 (19
U.S.C. 1592(d)) is amended by striking ‘‘or fees be re-
stored’’ and inserting ‘‘and fees be restored’’.
(g) RECONCILIATION TREATED AS ENTRY FOR REC-
ORDKEEPING.—
(1) Section 401(s) of the Tariff Act of 1930
(19 U.S.C. 1401(s)) is amended by inserting ‘‘rec-
ordkeeping,’’ after ‘‘reliquidation,’’.
(2) Section 508(c)(1) of such Act (19 U.S.C.
1508(c)(1)) is amended by inserting ‘‘, filing of a
reconciliation,’’ after ‘‘entry’’.
(h) EXTENSION OF LIQUIDATION.—Section 504(d) of
the Tariff Act of 1930 (19 U.S.C. 1504(d)) is amended
by inserting ‘‘, unless liquidation is extended under sub-
section (b),’’ after ‘‘shall liquidate the entry’’.
634
(i) EXEMPTION FROM DUTY FOR PERSONAL AND
HOUSEHOLD GOODS ACCOMPANYING RETURNING RESI-
DENTS.—Section 321(a)(2)(B) of the Tariff Act of 1930
(19 U.S.C. 1321(a)(2)(B)) is amended by inserting ‘‘,
9804.00.65,’’ after ‘‘9804.00.30’’.
(j) DEBT COLLECTION.—Section 631(a) of the Tariff
Act of 1930 (19 U.S.C. 1631(a)) is amended—
(1) by inserting after ‘‘law,’’ the following: ‘‘in-
cluding section 3302 of title 31, United States Code,
and subchapters I and II of chapter 37 of such
title,’’; and
(2) by inserting ‘‘and the expenses associated
with recovering such indebtedness,’’ after ‘‘Govern-
ment,’’.
(k) EXAMINATION OF BOOKS AND WITNESSES.—Sec-
tion 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b))
is amended in paragraphs (3) and (4) by striking ‘‘appro-
priate regional commissioner’’ and inserting ‘‘officer des-
ignated pursuant to regulations’’.
(l) REVIEW OF PROTESTS.—Section 515(d) of the
Tariff Act of 1930 (19 U.S.C. 1515(d)) is amended by
striking ‘‘district director’’ and inserting ‘‘port director’’.
(m) EFFECTIVE DATE.—The amendments made by
this section apply as of December 8, 1993.
635
SEC. 12003. CLARIFICATION REGARDING THE APPLICATION
OF CUSTOMS USER FEES.
(a) IN GENERAL.—Subparagraph (D) of section
13031(b)(8) of the Consolidated Omnibus Budget Rec-
onciliation Act of 1985 (19 U.S.C. 58c(b)(8)(D)) is
amended—
(1) in clause (iv)—
(A) by striking ‘‘subparagraph 9802.00.80
of such Schedules’’ and inserting ‘‘heading
9802.00.80 of such Schedule’’; and
(B) by striking ‘‘and’’ at the end of clause
(iv);
(2) by striking the period at the end of clause
(v) and inserting ‘‘; and’’; and
(3) by inserting after clause (v) the following
new clause:
‘‘(vi) in the case of merchandise entered from
a foreign trade zone (other than merchandise to
which clause (v) applies), be applied only to the
value of the privileged or nonprivileged foreign sta-
tus merchandise under section 3 of the Act of June
18, 1934 (commonly known as the Foreign Trade
Zones Act, 19 U.S.C. 81c).’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply to—
636
(1) any entry made from a foreign trade zone
on or after the 15th day after the date of the enact-
ment of this Act; and
(2) any entry made from a foreign trade zone
after November 30, 1986, and before such 15th day
if liquidation of the entry was not final before such
15th day.
(c) APPLICATION OF FEES TO CERTAIN AGRICUL-
TURAL PRODUCTS.—The amendment made by section
111(b)(2)(D)(iv) of the Customs and Trade Act of 1990
shall apply to—
(1) any entry made from a foreign trade zone
on or after the 15th day after the date of the enact-
ment of this Act; and
(2) any entry made from a foreign trade zone
after November 30, 1986, and before such 15th day
if the liquidation of the entry was not final before
such 15th day.
SEC. 12004. TECHNICAL AMENDMENT TO THE CUSTOMS
AND TRADE ACT OF 1990.
Subsection (b) of section 484H of the Customs and
Trade Act of 1990 (19 U.S.C. 1553 note) is amended by
striking ‘‘, or withdrawn from warehouse for consump-
tion,’’ and inserting ‘‘for transportation in bond’’.
637
SEC. 12005. TECHNICAL AMENDMENTS REGARDING CER-
TAIN BENEFICIARY COUNTRIES.
(a) CARIBBEAN BASIN ECONOMIC RECOVERY ACT.—
Section 213(h)(1) of the Caribbean Basin Economic Re-
covery Act (19 U.S.C. 2703(h)(1)) is amended by adding
at the end thereof the following flush sentence:
‘‘The duty reductions provided for under this paragraph
shall not apply to textile and apparel articles which are
subject to textile agreements.’’.
(b) ANDEAN TRADE PREFERENCE ACT.—Section
204(c)(1) of the Andean Trade Preference Act (19 U.S.C.
3203(c)(1)) is amended by adding at the end thereof the
following flush sentence:
‘‘The duty reductions provided for under this paragraph
shall not apply to textile and apparel articles which are
subject to textile agreements.’’
(c) EFFECTIVE DATE.—The amendments made by
this section apply with respect to—
(1) articles entered, or withdrawn from ware-
house for consumption, on or after the 15th day
after the date of the enactment of this Act, and
(2) articles entered after December 31, 1991,
and before such 15th day, if the liquidation of the
entry of such articles was not final before such 15th
day.
638
SEC. 12006. CLARIFICATION OF FEES FOR CERTAIN CUS-
TOMS SERVICES.
(a) IN GENERAL.—Section 13031(b)(9)(A) of the
Consolidated Omnibus Budget Reconciliation Act of 1985
(19 U.S.C. 58c(b)(9)(A)) is amended—
(1) by striking ‘‘centralized hub facility or’’ in
clause (i); and
(2) in clause (ii)—
(A) by striking ‘‘facility—’’ and inserting
‘‘facility or centralized hub facility—’’,
(B) by striking ‘‘customs inspectional’’ in
subclause (I), and
(C) by striking ‘‘at the facility’’ in
subclause (I) and inserting ‘‘for the facility’’.
(b) DEFINITIONS.—Section 13031(b)(9)(B)(i) of the
Consolidated Omnibus Budget Reconciliation Act of 1985
(19 U.S.C. 58c(b)(9)(B)(i)) is amended—
(1) by striking ‘‘, as in effect on July 30,
1990’’, and
(2) by adding at the end thereof the following
new sentence: ‘‘Nothing in this paragraph shall be
construed as prohibiting the Secretary of the Treas-
ury from processing merchandise that is informally
entered or released at any centralized hub facility or
express consignment carrier facility during the nor-
mal operating hours of the Customs Service, subject
639
to reimbursement and payment under subparagraph
(A).’’.
(c) CITATION.—Section 13031(b)(9)(B)(ii) of the
Consolidated Omnibus Budget Reconciliation Act of 1985
(19 U.S.C. 58c(b)(9)(B)(ii)) is amended by striking ‘‘sec-
tion 236 of the Tariff and Trade Act of 1984’’ and insert-
ing ‘‘section 236 of the Trade and Tariff Act of 1984’’.
SEC. 12007. SPECIAL RULE FOR EXTENDING TIME FOR FIL-
ING DRAWBACK CLAIMS.
Section 313(r) of the Tariff Act of 1930 (19 U.S.C.
1313(r)) is amended by adding at the end the following:
‘‘(3)(A)(i) Subject to clause (ii), the Customs
Service may, notwithstanding the limitation set forth
in paragraph (1), extend the time for filing a draw-
back claim for a period not to exceed 18 months,
if—
‘‘(I) the claimant establishes to the satis-
faction of the Customs Service that the claim-
ant was unable to file the drawback claim be-
cause of an event declared by the President to
be a major disaster on or after January 1,
1994; and
‘‘(II) the claimant files a request for such
extension with the Customs Service within one
641
SEC. 12008. TREATMENT OF CERTAIN ENTRIES.
(a) LIQUIDATION OR RELIQUIDATION OF ENTRIES.—
Notwithstanding sections 514 and 520 of the Tariff Act
of 1930 (19 U.S.C. 1514 and 1520), and any other provi-
sion of law, the United States Customs Service shall liq-
uidate or reliquidate those entry numbers made at New
York, New York, which are listed in subsection (c), in ac-
cordance with the final results of the administrative re-
view, covering the period from May 1, 1984, through
March 31, 1985, undertaken by the International Trade
Administration of the Department of Commerce for such
entries (case number A–580–008).
(b) PAYMENT OF AMOUNTS OWED.—Any amounts
owed by the United States pursuant to the liquidation or
reliquidation of an entry under subsection (a) shall be paid
by the Customs Service within 90 days after such liquida-
tion or reliquidation.
(c) ENTRY LIST.—The entries referred to in sub-
section (a) are the following:
Entry Number
Date of Entry
84–4426808 ...............................................................
August 29, 1984
84–4427823 ...............................................................
September 4, 1984
84–4077985 ...............................................................
July 25, 1984
84–4080859 ...............................................................
August 3, 1984
84–4080817 ...............................................................
August 3, 1984
84–4077723 ...............................................................
August 1, 1984
84–4075194 ...............................................................
July 10, 1984
84–4076481 ...............................................................
July 17, 1984
84–4080930 ...............................................................
August 9, 1984.
642
SEC. 12009. TEMPORARY DUTY SUSPENSION FOR PER-
SONAL EFFECTS OF PARTICIPANTS IN CER-
TAIN WORLD ATHLETIC EVENTS.
(a) IN GENERAL.—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:
‘‘
9902.98.05
Any of the follow-
ing articles not in-
tended for sale or
distribution to the
public: personal ef-
fects of aliens who
are participants in,
officials of, or ac-
credited members
of delegations to,
the 1998 Goodwill
Games, and of per-
sons who are im-
mediate family
members of or
servants to any of
the foregoing per-
sons; equipment
and materials im-
ported in connec-
tion with the fore-
going event by or
on behalf of the
foregoing persons
or the organizing
committee of such
event; articles to
be used in exhibi-
tions depicting the
culture of a coun-
try participating in
such event; and, if
consistent with the
foregoing, such
other articles as
the Secretary of
the Treasury may
allow .....................
Free
No change
Free
On or before
2/1/99
’’.
(b) TAXES AND FEES NOT TO APPLY.—The articles
described in heading 9902.98.05 of the Harmonized Tariff
Schedule of the United States (as added by subsection (a))
643
shall be free of taxes and fees which may be otherwise
applicable.
(c) EFFECTIVE DATE.—The amendment made by
this section applies to articles entered, or withdrawn from
warehouse for consumption, on or after the 15th day after
the date of the enactment of this Act.
SEC. 12010. MISCELLANEOUS TECHNICAL CORRECTIONS.
(a) 
DRAWBACK
AND
REFUNDS.—Section
313(s)(2)(B) of the Tariff Act of 1930 (19 U.S.C.
1313(s)(2)(B)) is amended by striking ‘‘successor’’ the
first place it appears and inserting ‘‘predecessor’’.
(b) TRADE ACT OF 1974.—Section 301(c)(4) of the
Trade Act of 1974 (19 U.S.C. 2411(c)(4)) is amended by
striking ‘‘(1)(C)(iii)’’ and inserting ‘‘(1)(D)(iii)’’.
SEC. 12011. URUGUAY ROUND AGREEMENTS ACT.
Section 405(b) of the Uruguay Round Agreements
Act (19 U.S.C. 3602(b)) is amended—
(1) in paragraph (1) by striking ‘‘1(a)’’ and in-
serting ‘‘1(b)’’; and
(2) in paragraph (2) by striking ‘‘1(b)’’ and in-
serting ‘‘1(a)’’.
SEC. 12012. FILING OF CERTIFICATIONS FOR CIVIL AIR-
CRAFT PARTS.
General Note 6 of the Harmonized Tariff Schedule
of the United States is amended—
644
(1) by inserting ‘‘or electronic’’ after ‘‘shall file
a written’’; and
(2) by striking ‘‘with the appropriate customs
officer’’ and inserting ‘‘with the United States Cus-
toms Service’’.
SEC. 12013. EXEMPTION REGARDING CERTAIN VESSEL RE-
PAIRS.
(a) TEMPORARY EXEMPTION EXTENDED.—Section
484E(b)(2)(B) of the Customs and Trade Act of 1990 (19
U.S.C. 1466 note) is amended by striking ‘‘December 31,
1992’’ and inserting ‘‘December 31, 1994’’.
(b) EFFECTIVE DATE.—The amendment made by
this section applies to any entry made after December 31,
1992, and before January 1, 1995.
SEC. 12014. FEES FOR CERTAIN CUSTOMS SERVICES.
(a) IN GENERAL.—Section 13031(a)(5) of the Con-
solidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(a)(5)) is amended—
(1) in subparagraph (A), by inserting ‘‘a place’’
after ‘‘aircraft from’’; and
(2) in subparagraph (B), by striking ‘‘sub-
section 
(b)(1)(A)’’ 
and 
inserting 
‘‘subsection
(b)(1)(A)(i)’’.
645
(b) LIMITATION ON FEES.—Section 13031(b)(1) of
the Consolidated Omnibus Budget Reconciliation Act of
1985 (19 U.S.C. 58c(b)(1)) is amended to read as follows:
‘‘(b) LIMITATIONS ON FEES.—(1)(A) No fee may be
charged under subsection (a) of this section for customs
services provided in connection with—
‘‘(i) the arrival of any passenger whose jour-
ney—
‘‘(I) originated in—
‘‘(aa) Canada,
‘‘(bb) Mexico,
‘‘(cc) a territory or possession of the
United States, or
‘‘(dd) any adjacent island (within the
meaning of section 101(b)(5) of the Immi-
gration and Nationality Act (8 U.S.C.
1101(b)(5))), or
‘‘(II) originated in the United States and
was limited to—
‘‘(aa) Canada,
‘‘(bb) Mexico,
‘‘(cc) territories and possessions of the
United States, and
‘‘(dd) such adjacent islands;
646
‘‘(ii) the arrival of any railroad car the journey
of which originates and terminates in the same
country, but only if no passengers board or dis-
embark from the train and no cargo is loaded or un-
loaded from such car while the car is within any
country other than the country in which such car
originates and terminates;
‘‘(iii) the arrival of any ferry; or
‘‘(iv) the arrival of any passenger on board a
commercial vessel traveling only between ports which
are within the customs territory of the United
States.
‘‘(B) The exemption provided for in subparagraph
(A) shall not apply in the case of the arrival of any pas-
senger on board a commercial vessel whose journey origi-
nates and terminates at the same place in the United
States if there are no intervening stops.
‘‘(C) The exemption provided for in subparagraph
(A)(i) shall not apply to fiscal years 1994, 1995, 1996,
and 1997.’’.
(c) 
FEE
ASSESSED
ONLY
ONCE.—Section
13031(b)(4) of the Consolidated Omnibus Budget Rec-
onciliation Act of 1985 (19 U.S.C. 58c(b)(4)) is amend-
ed—
647
(1) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively;
(2) by striking ‘‘No fee’’ and inserting ‘‘(A) No
fee’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) In the case of a commercial vessel making a
single voyage involving 2 or more United States ports with
respect to which the passengers would otherwise be
charged a fee pursuant to subsection (a)(5), such fee shall
be charged only 1 time for each passenger.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the amend-
ments made by section 521 of the North American Free
Trade Agreement Implementation Act.
SEC. 12015. TECHNICAL CORRECTION TO CERTAIN CHEMI-
CAL DESCRIPTION.
(a) AMENDMENT TO SUBHEADING 2933.90.02.—The
article description for subheading 2933.90.02 of the Har-
monized Tariff Schedule of the United States is amended
by striking ‘‘(Quizalofop ethyl)’’.
(b) EFFECTIVE DATE.—
(1) GENERAL RULE.—The amendment made by
this section applies to articles entered, or withdrawn
648
from warehouse for consumption, on or after the
15th day after the date of the enactment of this Act.
(2) RETROACTIVE
PROVISION.—Notwithstand-
ing section 514 of the Tariff Act of 1930 or any
other provision of law, upon proper request (which
includes sufficient information to identify and locate
the entry) filed with the Customs Service on or be-
fore the date that is 180 days after the date of the
enactment of this Act, any entry, or withdrawal
from warehouse for consumption, of an article that
occurred—
(A) after December 31, 1994, and before
the date that is 15 days after the date of the
enactment of this Act, and
(B) with respect to which there would have
been no duty or a lesser duty if the amendment
made by subsection (a) applied to such entry or
withdrawal,
shall be liquidated or reliquidated as though such
amendment applied to such entry or withdrawal.
SEC. 12016. MARKING OF IMPORTED ARTICLES AND CON-
TAINERS.
(a) IN GENERAL.—Section 304 of the Tariff Act of
1930 (19 U.S.C.1304) is amended—
649
(1) by redesignating subsections (f), (g), (h),
and (i) as subsections (i), (j), (k), and (l), respec-
tively, and
(2) by inserting after subsection (e) the follow-
ing new subsections:
‘‘(f) MARKING OF METAL FORGINGS.—The marking
requirements of subsections (a) and (b) shall not apply
to—
‘‘(1) metal forgings that—
‘‘(A) are imported for processing into fin-
ished hand tools in the United States, and
‘‘(B) have not been improved in condition
beyond rough burring, trimming, grinding,
turning, hammering, chiseling, or filing; and
‘‘(2) hand tools made from metal forgings de-
scribed in paragraph (1).
‘‘(g) MARKING OF CERTAIN COFFEE AND TEA PROD-
UCTS.—The marking requirements of subsections (a) and
(b) shall not apply to articles described in subheading
0901.21, 0901.22, 0902.10, 0902.20, 0902.30, 0902.40,
2101.10, or 2101.20 of the Harmonized Tariff Schedule
of the United States, as in effect on January 1, 1995.
‘‘(h) MARKING OF SPICES.—The marking require-
ments of subsections (a) and (b) shall not apply to articles
provided for under subheadings 0904.11, 0904.12,
650
0904.20, 0905.00, 0906.10, 0906.20, 0907.00, 0908.10,
0908.20, 0908.30, 0909.10, 0909.20, 0909.30, 0909.40,
0909.50, 0910.10, 0910.20, 0910.30, 0910.40, 0910.50,
0910.91, 0910.99, 1106.20, 1207.40, 1207.50, 1207.91,
1404.90, and 3302.10, and items classifiable in categories
0712.90.60, 0712.90.8080, 1209.91.2000, 1211.90.2000,
1211.90.8040, 
1211.90.8050, 
1211.90.8090,
2006.00.3000, 
2918.13.2000, 
3203.00.8000,
3301.90.1010, 3301.90.1020, and 3301.90.1050 of the
Harmonized Tariff Schedule of the United States, as in
effect on January 1, 1995.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section apply to goods entered, or withdrawn from
warehouse for consumption, on or after the date of the
enactment of this Act.
SEC. 12017. RELIQUIDATING ENTRY OF WARP KNITTING
MACHINES.
Notwithstanding section 514 of the Tariff Act of
1930 (19 U.S.C. 1514) or any other provision of law, upon
proper request filed with the Customs Service before the
180th day after the date of the enactment of this Act,
the Secretary of the Treasury shall—
(1) liquidate or reliquidate as duty free Entry
No. 100–3022436–3, made on July 12, 1989, at the
port of Charleston, South Carolina; and
651
(2) refund any duties and interest paid with re-
spect to such entry.
SEC. 12018. IDENTIFICATION OF TRADE EXPANSION PRIOR-
ITIES.
Section 310(a)(1) of the Trade Act of 1974 (19
U.S.C. 2420(a)(1)) is amended by striking ‘‘calendar year
1995’’ and inserting ‘‘each of calendar years 1995 through
2000’’.
Subtitle B—Generalized System of
Preferences
SEC. 12101. SHORT TITLE.
This subtitle may be cited as the ‘‘GSP Renewal Act
of 1995’’.
SEC. 12102. GENERALIZED SYSTEM OF PREFERENCES.
(a) IN GENERAL.—Title V of the Trade Act of 1974
is amended to read as follows:
‘‘TITLE V—GENERALIZED
SYSTEM OF PREFERENCES
‘‘SEC. 501. AUTHORITY TO EXTEND PREFERENCES.
‘‘The President may provide duty-free treatment for
any eligible article from any beneficiary developing coun-
try in accordance with the provisions of this title. In tak-
ing any such action, the President shall have due regard
for—
652
‘‘(1) the effect such action will have on further-
ing the economic development of developing coun-
tries through the expansion of their exports;
‘‘(2) the extent to which other major developed
countries are undertaking a comparable effort to as-
sist developing countries by granting generalized
preferences with respect to imports of products of
such countries;
‘‘(3) the anticipated impact of such action on
United States producers of like or directly competi-
tive products; and
‘‘(4) the extent of the beneficiary developing
country’s competitiveness with respect to eligible ar-
ticles.
‘‘SEC. 502. DESIGNATION OF BENEFICIARY DEVELOPING
COUNTRIES.
‘‘(a) AUTHORITY TO DESIGNATE COUNTRIES.—
‘‘(1) BENEFICIARY DEVELOPING COUNTRIES.—
The President is authorized to designate countries
as beneficiary developing countries for purposes of
this title.
‘‘(2) LEAST-DEVELOPED BENEFICIARY DEVEL-
OPING COUNTRIES.—The President is authorized to
designate any beneficiary developing country as a
least-developed beneficiary developing country for
653
purposes of this title, based on the considerations in
section 501 and subsection (c) of this section.
‘‘(b) COUNTRIES INELIGIBLE FOR COUNTRY DES-
IGNATION.—
‘‘(1) 
SPECIFIC
COUNTRIES.—The 
following
countries may not be designated as beneficiary devel-
oping countries for purposes of this title:
‘‘(A) Australia.
‘‘(B) Canada.
‘‘(C) European Union member states.
‘‘(D) Iceland.
‘‘(E) Japan.
‘‘(F) Monaco.
‘‘(G) New Zealand.
‘‘(H) Norway.
‘‘(I) Switzerland.
‘‘(2) OTHER BASES FOR INELIGIBILITY.—The
President shall not designate any country a bene-
ficiary developing country under this title if any of
the following applies:
‘‘(A) Such country is a Communist coun-
try, unless—
‘‘(i) the products of such country re-
ceive nondiscriminatory treatment,
654
‘‘(ii) such country is a WTO Member
(as such term is defined in section 2 of the
Uruguay Round Agreements Act,) and a
member of the International Monetary
Fund, and
‘‘(iii) such country is not dominated
or controlled by international communism.
‘‘(B) Such country is a party to an ar-
rangement of countries and participates in any
action pursuant to such arrangement, the effect
of which is—
‘‘(i) to withhold supplies of vital com-
modity resources from international trade
or to raise the price of such commodities
to an unreasonable level, and
‘‘(ii) to cause serious disruption of the
world economy.
‘‘(C) Such country affords preferential
treatment to the products of a developed coun-
try, other than the United States, which has, or
is likely to have, a significant adverse effect on
United States commerce.
‘‘(D)(i) Such country—
‘‘(I) has nationalized, expropriated, or
otherwise seized ownership or control of
655
property, including patents, trademarks, or
copyrights, owned by a United States citi-
zen or by a corporation, partnership, or as-
sociation which is 50 percent or more ben-
eficially owned by United States citizens,
‘‘(II) has taken steps to repudiate or
nullify an existing contract or agreement
with a United States citizen or a corpora-
tion, partnership, or association which is
50 percent or more beneficially owned by
United States citizens, the effect of which
is to nationalize, expropriate, or otherwise
seize ownership or control of property, in-
cluding patents, trademarks, or copyrights,
so owned, or
‘‘(III) has imposed or enforced taxes
or other exactions, restrictive maintenance
or operational conditions, or other meas-
ures with respect to property, including
patents, trademarks, or copyrights, so
owned, the effect of which is to nationalize,
expropriate, or otherwise seize ownership
or control of such property,
unless clause (ii) applies.
656
‘‘(ii) This clause applies if the President
determines that—
‘‘(I) prompt, adequate, and effective
compensation has been or is being made to
the citizen, corporation, partnership, or as-
sociation referred to in clause (i),
‘‘(II) good faith negotiations to pro-
vide prompt, adequate, and effective com-
pensation under the applicable provisions
of international law are in progress, or the
country described in clause (i) is otherwise
taking steps to discharge its obligations
under international law with respect to
such citizen, corporation, partnership, or
association, or
‘‘(III) a dispute involving such citizen,
corporation, partnership, or association
over compensation for such a seizure has
been submitted to arbitration under the
provisions of the Convention for the Settle-
ment of Investment Disputes, or in an-
other mutually agreed upon forum,
and the President promptly furnishes a copy of
such determination to the Senate and House of
Representatives.
657
‘‘(E) Such country fails to act in good
faith in recognizing as binding or in enforcing
arbitral awards in favor of United States citi-
zens or a corporation, partnership, or associa-
tion which is 50 percent or more beneficially
owned by United States citizens, which have
been made by arbitrators appointed for each
case or by permanent arbitral bodies to which
the parties involved have submitted their dis-
pute.
‘‘(F) Such country aids or abets, by grant-
ing sanctuary from prosecution to, any individ-
ual or group which has committed an act of
international terrorism.
‘‘(G) Such country has not taken or is not
taking steps to afford internationally recognized
worker rights to workers in the country (includ-
ing any designated zone in that country).
Subparagraphs (D), (E), (F), and (G) shall not pre-
vent the designation of any country as a beneficiary
developing country under this title if the President
determines that such designation will be in the na-
tional economic interest of the United States and re-
ports such determination to the Congress with the
reasons therefor.
658
‘‘(c) FACTORS
AFFECTING
COUNTRY
DESIGNA-
TION.—In determining whether to designate any country
as a beneficiary developing country under this title, the
President shall take into account—
‘‘(1) an expression by such country of its desire
to be so designated;
‘‘(2) the level of economic development of such
country, including its per capita gross national prod-
uct, the living standards of its inhabitants, and any
other economic factors which the President deems
appropriate;
‘‘(3) the extent to which other major developed
countries are extending generalized preferential tar-
iff treatment to such country;
‘‘(4) the extent to which such country has as-
sured the United States that it will provide equitable
and reasonable access to the markets and basic com-
modity resources of such country and the extent to
which such country has assured the United States
that it will refrain from engaging in unreasonable
export practices;
‘‘(5) whether such country is providing ade-
quate and effective protection of intellectual property
rights;
659
‘‘(6) the extent to which such country has taken
action to—
‘‘(A) reduce trade distorting investment
practices and policies (including export per-
formance requirements); and
‘‘(B) reduce or eliminate barriers to trade
in services;
‘‘(7) whether or not such country has taken or
is taking steps to afford to workers in that country
(including any designated zone in that country)
internationally recognized worker rights; and
‘‘(8) the extent to which such country fails to
cooperate with the United States in preventing the
proliferation of nuclear weapons, nuclear weapons
components, and nuclear weapons delivery systems,
or in preventing illegal drug trafficking.
A country may be found to not provide adequate and effec-
tive protection of intellectual property rights under para-
graph (5) and section 503(d)(2)(B), notwithstanding the
fact that it may be in compliance with the specific obliga-
tions of the Agreement on Trade-Related Aspects of Intel-
lectual Property Rights referred to in section 101(d)(15)
of the Uruguay Round Agreements Act.
‘‘(d) WITHDRAWAL, SUSPENSION, OR LIMITATION OF
COUNTRY DESIGNATION.—
660
‘‘(1) IN GENERAL.—The President may with-
draw, suspend, or limit the application of the duty-
free treatment accorded under this title with respect
to any country. Except in exceptional circumstances,
the President, before taking any action under this
subsection, shall provide a period for the submission
of public comments on the matter under consider-
ation, and in taking any action under this sub-
section, the President shall consider the factors set
forth in section 501 and subsection (c) of this sec-
tion, and comments received from the public.
‘‘(2) CHANGED
CIRCUMSTANCES.—The Presi-
dent shall, after complying with the requirements of
subsection (f)(2), withdraw or suspend the designa-
tion of any country as a beneficiary developing coun-
try if, after such designation, the President deter-
mines that as the result of changed circumstances
such country would be barred from designation as a
beneficiary developing country under subsection
(b)(2). Such country shall cease to be a beneficiary
developing country on the day on which the Presi-
dent issues an Executive order or Presidential proc-
lamation revoking the designation of such country
under this title.
661
‘‘(e) MANDATORY GRADUATION
OF BENEFICIARY
DEVELOPING COUNTRIES.—If the President determines
that a beneficiary developing country has become a ‘high
income’ country, as defined by the official statistics of the
International Bank for Reconstruction and Development,
then the President shall terminate the designation of such
country as a beneficiary developing country for purposes
of this title, effective on January 1 of the second year fol-
lowing the year in which such determination is made.
‘‘(f) CONGRESSIONAL NOTIFICATION.—
‘‘(1) NOTIFICATION OF DESIGNATION.—
‘‘(A) IN GENERAL.—Before the President
designates any country as a beneficiary develop-
ing country under this title, the President shall
notify the Congress of the President’s intention
to make such designation, together with the
considerations entering into such decision.
‘‘(B) DESIGNATION AS LEAST-DEVELOPED
BENEFICIARY DEVELOPING COUNTRY.—At least
60 days before the President designates any
country as a least-developed beneficiary develop-
ing country, the President shall notify the Con-
gress of the President’s intention to make such
designation.
662
‘‘(2) NOTIFICATION OF TERMINATION.—If the
President has designated any country as a bene-
ficiary developing country under this title, the Presi-
dent shall not terminate such designation unless, at
least 60 days before such termination, the President
has notified the Congress and has notified such
country of the President’s intention to terminate
such designation, together with the considerations
entering into such decision.
‘‘SEC. 503. DESIGNATION OF ELIGIBLE ARTICLES.
‘‘(a) ELIGIBLE ARTICLES.—
‘‘(1) DESIGNATION.—
‘‘(A) IN GENERAL.—Except as provided in
subsection (b), the President is authorized to
designate articles as eligible articles for all ben-
eficiary developing countries for purposes of
this title by Executive order or Presidential
proclamation after receiving the advice of the
International Trade Commission in accordance
with subsection (e).
‘‘(B) LEAST-DEVELOPED BENEFICIARY DE-
VELOPING COUNTRIES.—Except as provided in
subsection (b), the President is authorized to
designate additional articles as eligible articles
only for countries designated as least-developed
663
beneficiary developing countries under section
502(a)(2) if, after receiving the advice of the
International Trade Commission in accordance
with subsection (e) of this section, the Presi-
dent determines that such articles are not im-
port-sensitive in the context of imports from
least-developed beneficiary developing countries.
‘‘(C) THREE-YEAR RULE.—If, after receiv-
ing the advice of the International Trade Com-
mission under subsection (e), an article has
been formally considered for designation as an
eligible article under this title and denied such
designation, such article may not be reconsid-
ered for such designation for a period of three
years after such denial.
‘‘(2) RULE OF ORIGIN.—
‘‘(A) 
GENERAL
RULE.—The 
duty-free
treatment provided under this title shall apply
to any eligible article which is the growth, prod-
uct, or manufacture of a beneficiary developing
country if—
‘‘(i) that article is imported directly
from a beneficiary developing country into
the customs territory of the United States;
and
664
‘‘(ii) the sum of—
‘‘(I) the cost or value of the ma-
terials produced in the beneficiary de-
veloping country or any two or more
countries which are members of the
same association of countries which is
treated as one country under section
506(2), plus
‘‘(II) the direct costs of process-
ing operations performed in such ben-
eficiary developing country or such
member countries,
is not less than 35 percent of the ap-
praised value of such article at the time it
is entered.
‘‘(B) EXCLUSIONS.—An article shall not
be treated as the growth, product, or manufac-
ture of a beneficiary developing country by vir-
tue of having merely undergone—
‘‘(i) simple combining or packaging
operations, or
‘‘(ii) mere dilution with water or mere
dilution with another substance that does
not materially alter the characteristics of
the article.
665
‘‘(3) REGULATIONS.—The Secretary of the
Treasury, after consulting with the United States
Trade Representative, shall prescribe such regula-
tions as may be necessary to carry out paragraph
(2), including, but not limited to, regulations provid-
ing that, in order to be eligible for duty-free treat-
ment under this title, an article—
‘‘(A) must be wholly the growth, product,
or manufacture of a beneficiary developing
country, or
‘‘(B) must be a new or different article of
commerce which has been grown, produced, or
manufactured in the beneficiary developing
country.
‘‘(b) ARTICLES THAT MAY NOT BE DESIGNATED AS
ELIGIBLE ARTICLES.—
‘‘(1) IMPORT SENSITIVE ARTICLES.—The Presi-
dent may not designate any article as an eligible ar-
ticle under subsection (a) if such article is within
one of the following categories of import-sensitive ar-
ticles:
‘‘(A) Textile and apparel articles which
were not eligible articles for purposes of this
title on January 1, 1994, as this title was in ef-
fect on such date.
666
‘‘(B) Import-sensitive electronic articles.
‘‘(C) Import-sensitive steel articles.
‘‘(D) Footwear, handbags, luggage, flat
goods, work gloves, and leather wearing apparel
which were not eligible articles for purposes of
this title on January 1, 1995, as this title was
in effect on such date.
‘‘(E) Import-sensitive semimanufactured
and manufactured glass products.
‘‘(F) Any other articles which the Presi-
dent determines to be import-sensitive in the
context of the Generalized System of Pref-
erences.
‘‘(2) ARTICLES
AGAINST
WHICH
OTHER
AC-
TIONS TAKEN.—An article shall not be an eligible
article for purposes of this title for any period dur-
ing which such article is the subject of any action
proclaimed pursuant to section 203 of this Act (19
U.S.C. 2253) or section 232 or 351 of the Trade
Expansion Act of 1962 (19 U.S.C. 1862, 1981).
‘‘(3) AGRICULTURAL PRODUCTS.—No quantity
of an agricultural product subject to a tariff-rate
quota that exceeds the in-quota quantity shall be eli-
gible for duty-free treatment under this title.
667
‘‘(c) WITHDRAWAL, SUSPENSION, OR LIMITATION OF
DUTY-FREE TREATMENT; COMPETITIVE NEED LIMITA-
TION.—
‘‘(1) IN GENERAL.—The President may with-
draw, suspend, or limit the application of the duty-
free treatment accorded under this title with respect
to any article, except that no rate of duty may be
established with respect to any article pursuant to
this subsection other than the rate which would
apply but for this title. In taking any action under
this subsection, the President shall consider the fac-
tors set forth in sections 501 and 502(c).
‘‘(2) COMPETITIVE NEED LIMITATION.—
‘‘(A) BASIS FOR WITHDRAWAL OF DUTY-
FREE TREATMENT.—Except as provided in this
paragraph and subject to subsection (d), when-
ever the President determines that a beneficiary
developing country has exported (directly or in-
directly) to the United States during any cal-
endar year beginning after December 31,
1995—
‘‘(i) a quantity of an eligible article
having an appraised value in excess of
$75,000,000, except that, in applying this
clause, the amount of $75,000,000 shall be
668
increased by $5,000,000 on January 1 of
each calendar year after calendar year
1995, or
‘‘(ii) a quantity of an eligible article
equal to or exceeding 50 percent of the ap-
praised value of the total imports of that
article into the United States during the
calendar year,
then the President shall, not later than July 1
of the next calendar year, terminate the duty-
free treatment for that article from that bene-
ficiary developing country.
‘‘(B) COUNTRY
DEFINED.—For purposes
of this paragraph, the term ‘country’ does not
include an association of countries which is
treated as one country under section 506(2),
but does include a country which is a member
of any such association.
‘‘(C) REDESIGNATIONS.—A country which
is no longer treated as a beneficiary developing
country with respect to an eligible article by
reason of subparagraph (A) may be redesig-
nated a beneficiary developing country with re-
spect to such article, subject to the consider-
ations set forth in sections 501 and 502, if im-
669
ports of such article from such country did not
exceed the limitations in subparagraph (A) dur-
ing the preceding calendar year.
‘‘(D) 
LEAST-DEVELOPED
BENEFICIARY
DEVELOPING
COUNTRIES.—Subparagraph (A)
shall not apply to any least-developed bene-
ficiary developing country.
‘‘(E) ARTICLES
NOT
PRODUCED
IN
THE
UNITED
STATES
EXCLUDED.—Subparagraph
(A)(ii) shall not apply with respect to any eligi-
ble article if a like or directly competitive article
was not produced in the United States on Jan-
uary 1, 1995.
‘‘(F) DE
MINIMIS
WAIVERS.—The Presi-
dent may disregard subparagraph (A)(ii) with
respect to any eligible article from any bene-
ficiary developing country if the appraised value
of the total imports of such article into the
United States during calendar year 1995 or any
calendar year thereafter does not exceed
$13,000,000, except that, in applying this sub-
paragraph, the amount of $13,000,000 shall be
increased by $500,000 on January 1 of each
calendar year after calendar year 1995.
‘‘(d) WAIVER OF COMPETITIVE NEED LIMITATION.—
670
‘‘(1) IN GENERAL.—The President may waive
the application of subsection (c)(2) with respect to
any eligible article of any beneficiary developing
country if, before July 1 of the calendar year begin-
ning after the calendar year for which a determina-
tion described in subsection (c)(2)(A) was made with
respect to such eligible article, the President—
‘‘(A) receives the advice of the Inter-
national Trade Commission under section 332
of the Tariff Act of 1930 on whether any indus-
try in the United States is likely to be adversely
affected by such waiver,
‘‘(B) determines, based on the consider-
ations described in sections 501 and 502(c) and
the advice described in subparagraph (A), that
such waiver is in the national economic interest
of the United States, and
‘‘(C) publishes the determination described
in subparagraph (B) in the Federal Register.
‘‘(2) CONSIDERATIONS BY THE PRESIDENT.—In
making any determination under paragraph (1), the
President shall give great weight to—
‘‘(A) the extent to which the beneficiary
developing country has assured the United
States that such country will provide equitable
671
and reasonable access to the markets and basic
commodity resources of such country, and
‘‘(B) the extent to which such country pro-
vides adequate and effective protection of intel-
lectual property rights.
‘‘(3) EFFECTIVE
PERIOD
OF
WAIVER.—Any
waiver granted under this subsection shall remain in
effect until the President determines that such waiv-
er is no longer warranted due to changed cir-
cumstances.
‘‘(e) INTERNATIONAL
TRADE
COMMISSION
AD-
VICE.—Before designating articles as eligible articles
under section 503(a)(1), the President shall publish and
furnish the International Trade Commission with lists of
articles which may be considered for designation as eligible
articles for purposes of this title. The provisions of sec-
tions 131, 132, 133, and 134 shall be complied with as
though action under section 501 and this section were ac-
tion under section 123 to carry out a trade agreement en-
tered into under section 123.
‘‘(f) SPECIAL RULE CONCERNING PUERTO RICO.—
No action under this title may affect any tariff duty im-
posed by the Legislature of Puerto Rico pursuant to sec-
tion 319 of the Tariff Act of 1930 on coffee imported into
Puerto Rico.
672
‘‘SEC. 504. REVIEW AND REPORTS TO CONGRESS.
‘‘(a) REPORT ON OPERATION OF TITLE.—On or be-
fore July 31, 1997, the President shall submit to the Con-
gress a full and complete report regarding the operation
of this title.
‘‘(b) ANNUAL REPORTS ON WORKER RIGHTS.—The
President shall submit an annual report to the Congress
on the status of internationally recognized worker rights
within each beneficiary developing country.
‘‘SEC. 505. DATE OF TERMINATION.
‘‘No duty-free treatment provided under this title
shall remain in effect after December 31, 1997.
‘‘SEC. 506. DEFINITIONS.
‘‘For purposes of this title:
‘‘(1) BENEFICIARY
DEVELOPING
COUNTRY.—
The term ‘beneficiary developing country’ means any
country with respect to which there is in effect an
Executive order or Presidential proclamation by the
President designating such country as a beneficiary
developing country for purposes of this title.
‘‘(2) COUNTRY.—The term ‘country’ means any
foreign country or territory, including any overseas
dependent territory or possession of a foreign coun-
try, or the Trust Territory of the Pacific Islands. In
the case of an association of countries which is a
free trade area or customs union, or which is con-
673
tributing to comprehensive regional economic inte-
gration among its members through appropriate
means, including, but not limited to, the reduction
of duties, the President may by Executive order or
Presidential proclamation provide that all members
of such association other than members which are
barred from designation under section 502(b) shall
be treated as one country for purposes of this title.
‘‘(3) ENTERED.—The term ‘entered’ means en-
tered, or withdrawn from warehouse for consump-
tion, in the customs territory of the United States.
‘‘(4) INTERNATIONALLY RECOGNIZED WORKER
RIGHTS.—The term ‘internationally recognized work-
er rights’ includes—
‘‘(A) the right of association;
‘‘(B) the right to organize and bargain col-
lectively;
‘‘(C) a prohibition on the use of any form
of forced or compulsory labor;
‘‘(D) a minimum age for the employment
of children; and
‘‘(E) acceptable conditions of work with re-
spect to minimum wages, hours of work, and
occupational safety and health.
674
‘‘(5) LEAST-DEVELOPED BENEFICIARY DEVEL-
OPING COUNTRY.—The term ‘least-developed bene-
ficiary developing country’ means a beneficiary de-
veloping country that is designated as a least-devel-
oped beneficiary developing country under section
502(a)(2).’’.
(b) TABLE OF CONTENTS.—The items relating to
title V in the table of contents of the Trade Act of 1974
are amended to read as follows:
‘‘TITLE V—GENERALIZED SYSTEM OF PREFERENCES
‘‘Sec. 501. Authority to extend preferences.
‘‘Sec. 502. Designation of beneficiary developing countries.
‘‘Sec. 503. Designation of eligible articles.
‘‘Sec. 504. Review and reports to Congress.
‘‘Sec. 505. Date of termination.
‘‘Sec. 506. Definitions.’’.
SEC. 12103. RETROACTIVE APPLICATION FOR CERTAIN LIQ-
UIDATIONS AND RELIQUIDATIONS.
(a) IN GENERAL.—Notwithstanding section 514 of
the Tariff Act of 1930 or any other provision of law and
subject to subsection (b), the entry—
(1) of any article to which duty-free treatment
under title V of the Trade Act of 1974 would have
applied if the entry had been made on July 31,
1995, and
(2) that was made after July 31, 1995, and be-
fore the date of the enactment of this Act,
shall be liquidated or reliquidated as free of duty, and the
Secretary of the Treasury shall refund any duty paid with
675
respect to such entry. As used in this subsection, the term
‘‘entry’’ includes a withdrawal from warehouse for con-
sumption.
(b) REQUESTS.—Liquidation or reliquidation may be
made under subsection (a) with respect to an entry only
if a request therefor is filed with the Customs Service,
within 180 days after the date of the enactment of this
Act, that contains sufficient information to enable the
Customs Service—
(1) to locate the entry; or
(2) to reconstruct the entry if it cannot be lo-
cated.
(c) TREATMENT
OF
CERTAIN
ENTRIES
OF
BUFFALO LEATHER.—Notwithstanding section 514
of the Tariff Act of 1930 or any other provision of
law, buffalo leather, provided for under subheading
4104.39.20 of the Harmonized Tariff Schedule of
the United States, that is a product of Thailand and
entered into the United States under entry numbers
M42–1113868–8 and M42–1113939–7, shall be liq-
uidated or reliquidated, as appropriate, as if entered
on June 30, 1995.
SEC. 12104. CONFORMING AMENDMENTS.
(a) TRADE LAWS.—
676
(1) Section 1211(b) of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 3011(b)) is
amended—
(A) in paragraph (1), by striking ‘‘(19
U.S.C. 2463(a), 2464(c)(3))’’ and inserting
‘‘(as in effect on the day before the date of the
enactment of the GSP Renewal Act of 1995)’’;
and
(B) in paragraph (2), by striking ‘‘(19
U.S.C. 2464(c)(1))’’ and inserting the follow-
ing: ‘‘(as in effect on the day before the date
of the enactment of the GSP Renewal Act of
1995)’’.
(2) Section 203(c)(7) of the Andean Trade
Preference Act (19 U.S.C. 3202(c)(7)) is amended
by striking ‘‘502(a)(4)’’ and inserting ‘‘506(4)’’.
(3) Section 212(b)(7) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(b)(7)) is
amended by striking ‘‘502(a)(4)’’ and inserting
‘‘506(4)’’.
(4) General note 3(a)(iv)(C) of the Harmonized
Tariff Schedule of the United States is amended by
striking ‘‘sections 503(b) and 504(c)’’ and inserting
‘‘subsections (a), (c), and (d) of section 503’’.
(b) OTHER LAWS.—
677
(1) Section 871(f)(2)(B) of the Internal Reve-
nue Code of 1986 is amended by striking ‘‘within
the meaning of section 502’’ and inserting ‘‘under
title V’’.
(2) Section 2202(8) of the Export Enhance-
ment Act of 1988 (15 U.S.C. 4711(8)) is amended
by striking ‘‘502(a)(4)’’ and inserting ‘‘506(4)’’.
(3) Section 231A(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2191a(a)) is amended—
(A) 
in 
paragraph 
(1) 
by 
striking
‘‘502(a)(4) of the Trade Act of 1974 (19
U.S.C. 2462(a)(4))’’ and inserting ‘‘506(4) of
the Trade Act of 1974’’;
(B) in paragraph (2) by striking ‘‘505(c)
of the Trade Act of 1974 (19 U.S.C. 2465(c))’’
and inserting ‘‘504(b) of the Trade Act of
1974’’; and
(C) 
in 
paragraph 
(4) 
by 
striking
‘‘502(a)(4)’’ and inserting ‘‘506(4)’’.
678
Subtitle C—Trade Adjustment
Assistance
SEC. 12201. MODIFICATION OF TRADE ADJUSTMENT AS-
SISTANCE.
(a) REQUIREMENT
OF
TRAINING.—(1) Section
231(c) of the Trade Act of 1974 (19 U.S.C. 2291) is
amended—
(A) in paragraph (1)(A) and (B) by striking ‘‘it
is not feasible or appropriate to approve a training
program’’ and inserting ‘‘a training program is not
available’’; and
(B) in paragraph (2)(A) and (B) by striking ‘‘it
is feasible or appropriate to approve a training pro-
gram’’ and inserting ‘‘a training program is avail-
able’’.
(2) Section 233(b) of such Act (19 U.S.C. 2293(b))
is repealed.
(3) Paragraph (3) of section 250(d) of the Trade Act
of 1974 (19 U.S.C. 2331(d)) is amended—
(A) by striking ‘‘it is not feasible or appropriate
to approve a training program’’ in subparagraph (A)
and inserting ‘‘a training program is not available’’,
and
(B) by striking ‘‘notwithstanding the provisions
of section 233(b),’’ in subparagraph (B).
679
(b) TERMINATION OF RELOCATION ALLOWANCES.—
(1) Section 238 of the Trade Act of 1974 (19 U.S.C.
2298), and the item relating to that section in the table
of contents for that Act, are repealed.
(2) Section 250(d) of the Trade Act of 1974 (19
U.S.C. 2331(d)) is amended by striking paragraph (5).
(c) TERMINATION OF PROGRAM.—Section 285(c) of
the Trade Act of 1974 (19 U.S.C. 2271 preceding note)
is amended—
(1) in paragraph (1), by striking ‘‘1998’’ and
inserting ‘‘2000’’; and
(2) by amending paragraph (2) to read as fol-
lows:
‘‘(2) No assistance, vouchers, allowances, or other
payments may be provided under subchapter D of chapter
2 after September 30, 1998.’’.
(d) EXTENSION
OF AUTHORIZATION.—(1) Section
245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is
amended by striking ‘‘and 1998’’ and inserting ‘‘1998,
1999, and 2000’’.
(2) Section 256(b) of the Trade Act of 1974 (19
U.S.C. 2346(a)) is amended by striking ‘‘and 1998’’ and
inserting ‘‘1998, 1999, and 2000’’.
(e) EFFECTIVE DATE.—
680
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall take effect on the date of the enactment of this
Act.
(2) SUBSECTIONS
(a)
AND
(b).—The amend-
ments made by subsections (a) and (b) shall take ef-
fect on October 1, 1996.
TITLE 
XIII—COMMITTEE 
ON
WAYS AND MEANS—REVENUE
RECONCILIATION
SEC. 13001. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This title may be cited as the
‘‘Revenue Reconciliation Act of 1995’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this title an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
(c) TABLE OF CONTENTS.—The table of contents for
this title is as follows:
TITLE XIII—COMMITTEE ON WAYS AND MEANS—REVENUE
RECONCILIATION
Sec. 13001. Short title; amendment of 1986 Code.
Subtitle A—Extension of Expiring Provisions, Etc.
PART I—EXTENSIONS THROUGH DECEMBER 31, 1997
Sec. 13101. Work opportunity tax credit.
681
Sec. 13102. Employer-provided educational assistance programs.
Sec. 13103. Research credit.
Sec. 13104. Contributions of stock to private foundations.
Sec. 13105. Credit for clinical testing expenses.
PART II—PERMANENT EXTENSION OF FUTA EXEMPTION FOR ALIEN
AGRICULTURAL WORKERS
Sec. 13106. FUTA exemption for alien agricultural workers.
PART III—COMMERCIAL AVIATION FUEL
Sec. 13111. Delay of scheduled increase in tax on fuel used in commercial avia-
tion.
PART IV—EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXCISE
TAXES
Sec. 13116. Extension of Airport and Airway Trust Fund excise taxes.
Subtitle B—Medical Savings Accounts
Sec. 13201. Medical savings accounts.
Subtitle C—Pickle-Johnson Taxpayer Bill of Rights 2
PART I—TAXPAYER ADVOCATE
Sec. 13301. Establishment of position of taxpayer advocate within Internal
Revenue Service.
Sec. 13302. Expansion of authority to issue taxpayer assistance orders.
PART II—MODIFICATIONS TO INSTALLMENT AGREEMENT PROVISIONS
Sec. 13306. Notification of reasons for termination of installment agreements.
Sec. 13307. Administrative review of termination of installment agreement.
PART III—ABATEMENT OF INTEREST AND PENALTIES
Sec. 13311. Expansion of authority to abate interest.
Sec. 13312. Review of IRS failure to abate interest.
Sec. 13313. Extension of interest-free period for payment of tax after notice
and demand.
PART IV—JOINT RETURNS
Sec. 13316. Studies of joint return-related issues.
Sec. 13317. Joint return may be made after separate returns without full pay-
ment of tax.
Sec. 13318. Disclosure of collection activities.
PART V—COLLECTION ACTIVITIES
Sec. 13321. Modifications to lien and levy provisions.
Sec. 13322. Offers-in-compromise.
PART VI—INFORMATION RETURNS
Sec. 13326. Civil damages for fraudulent filing of information returns.
682
Sec. 13327. Requirement to conduct reasonable investigations of information
returns.
PART VII—AWARDING OF COSTS AND CERTAIN FEES
Sec. 13331. United States must establish that its position in proceeding was
substantially justified.
Sec. 13332. Increased limit on attorney fees.
Sec. 13333. Failure to agree to extension not taken into account.
Sec. 13334. Award of litigation costs permitted in declaratory judgment pro-
ceedings.
Sec. 13335. Effective date.
PART VIII—MODIFICATION TO RECOVERY OF CIVIL DAMAGES FOR
UNAUTHORIZED COLLECTION ACTIONS
Sec. 13336. Increase in limit on recovery of civil damages for unauthorized col-
lection actions.
Sec. 13337. Court discretion to reduce award for litigation costs for failure to
exhaust administrative remedies.
PART IX—MODIFICATIONS TO PENALTY FOR FAILURE TO COLLECT AND
PAY OVER TAX
Sec. 13341. Preliminary notice requirement.
Sec. 13342. Disclosure of certain information where more than 1 person liable
for penalty for failure to collect and pay over tax.
Sec. 13343. Right of contribution where more than 1 person liable for penalty
for failure to collect and pay over tax.
Sec. 13344. Volunteer board members of tax-exempt organizations exempt from
penalty for failure to collect and pay over tax.
PART X—MODIFICATIONS OF RULES RELATING TO SUMMONSES
Sec. 13346. Enrolled agents included as third-party recordkeepers.
Sec. 13347. Safeguards relating to designated summonses.
Sec. 13348. Annual report to Congress concerning designated summonses.
PART XI—RELIEF FROM RETROACTIVE APPLICATION OF TREASURY
DEPARTMENT REGULATIONS
Sec. 13351. Relief from retroactive application of Treasury Department regula-
tions.
PART XII—MISCELLANEOUS PROVISIONS
Sec. 13356. Report on pilot program for appeal of enforcement actions.
Sec. 13357. Phone number of person providing payee Statements required to
be shown on such Statement.
Sec. 13358. Required notice of certain payments.
Sec. 13359. Unauthorized enticement of information disclosure.
Sec. 13360. Annual reminders to taxpayers with outstanding delinquent ac-
counts.
Sec. 13361. 5-year extension of authority for undercover operations.
Sec. 13362. Disclosure of form 8300 information on cash transactions.
Sec. 13363. Disclosure of returns and return information to designee of tax-
payer.
Sec. 13364. Study of netting of interest on overpayments and liabilities.
683
Sec. 13365. Credit for expenses of certain TCMP audits.
Sec. 13366. Expenses of detection of underpayments and fraud, etc.
Subtitle D—Additional Technical Corrections
Sec. 13401. Reporting of real estate transactions.
Sec. 13402. Clarification of denial of deduction for stock redemption expenses.
Sec. 13403. Clarification of depreciation class for certain energy property.
Sec. 13404. Clerical amendment to section 404.
Sec. 13405. Treatment of certain veterans’ reemployment rights.
Subtitle E—Tax Information Sharing
Sec. 13501. Disclosure of return information for administration of certain vet-
erans programs.
Subtitle F—Revenue Increases
PART I—PROVISIONS RELATING TO BUSINESSES
Sec. 13601. Tax treatment of certain extraordinary dividends.
Sec. 13602. Registration of confidential corporate tax shelters.
Sec. 13603. Denial of deduction for interest on loans with respect to company-
owned insurance.
Sec. 13604. Termination of suspense accounts for family corporations required
to use accrual method of accounting.
Sec. 13605. Termination of Puerto Rico and possession tax credit.
Sec. 13606. Depreciation under income forecast method.
Sec. 13607. Transfers of excess pension assets.
PART II—LEGAL REFORMS
Sec. 13611. Repeal of exclusion for punitive damages and for damages not at-
tributable to physical injuries or sickness.
Sec. 13612. Reporting of certain payments made to attorneys.
PART III—TREATMENT OF INDIVIDUALS WHO LOSE UNITED STATES
CITIZENSHIP
Sec. 13616. Revision of income, estate, and gift taxes on individuals who lose
United States citizenship.
Sec. 13617. Information on individuals losing United States citizenship.
Sec. 13618. Report on tax compliance by United States citizens and residents
living abroad.
PART IV—REFORMS RELATING TO ENERGY PROVISIONS
Sec. 13621. Termination of credit for electricity produced from certain renew-
able resources.
Sec. 13622. Reduction of incentives for alcohol fuels.
Sec. 13623. Exclusion for energy conservation subsidies limited to subsidies
with respect to dwelling units.
PART V—REFORMS RELATING TO NONRECOGNITION PROVISIONS
Sec. 13626. Basis adjustment to property held by corporation where stock in
corporation is replacement property under involuntary conver-
sion rules.
684
Sec. 13627. Expansion of requirement that involuntarily converted property be
replaced with property acquired from an unrelated person.
Sec. 13628. No rollover or exclusion of gain on sale of principal residence which
is attributable to depreciation deductions.
Sec. 13629. Nonrecognition of gain on sale of principal residence by noncitizens
limited to new residences located in the United States.
PART VI—REFORMS RELATING TO GAMING ACTIVITIES
Sec. 13631. Treatment of Indian gaming activities under unrelated business in-
come tax.
Sec. 13632. Repeal of targeted exemption from tax on unrelated trade or busi-
ness income from gambling in certain States.
Sec. 13633. Extension of withholding to certain gambling winnings.
PART VII—OTHER REFORMS
Sec. 13636. Sunset of low-income housing credit.
Sec. 13637. Repeal of credit for contributions to community development
corporations.
Sec. 13638. Repeal of diesel fuel tax rebate to purchasers of diesel-powered
automobiles and light trucks.
Sec. 13639. Application of failure-to-pay penalty to substitute returns.
Sec. 13640. Repeal of special rule for rental use of vacation homes, etc., for
less than 15 days.
Sec. 13641. Election to cease status as qualified scholarship funding
corporation.
Sec. 13642. Certain amounts derived from foreign corporations treated as
unrelated business taxable income.
PART VIII—EXCISE TAX ON AMOUNTS OF PRIVATE EXCESS BENEFITS
Sec. 13646. Excise taxes for failure by certain charitable organizations to meet
certain qualification requirements.
Sec. 13647. Reporting of certain excise taxes and other information.
Sec. 13648. Exempt organizations required to provide copy of return.
Sec. 13649. Certain organizations required to disclose nonexempt status.
Sec. 13650. Increase in penalties on exempt organizations for failure to file
complete and timely annual returns.
Sec. 13651. Studies.
Subtitle G—Reform of the Earned Income Tax Credit
Sec. 13701. Repeal of earned income credit for individuals without qualifying
children; modifications to credit phaseout.
Sec. 13702. Modification of adjusted gross income used for phaseout.
Sec. 13703. Earned income tax credit denied to individuals not authorized to
be employed in the United States.
Subtitle H—Increase in Public Debt Limit
Sec. 13801. Increase in public debt limit.
Subtitle I—Coal Industry Retiree Health Equity
Sec. 13901. Repeal of reachback provisions of coal industry health benefit
system.
685
Subtitle A—Extension of Expiring
Provisions, Etc.
PART I—EXTENSIONS THROUGH DECEMBER 31,
1997
SEC. 13101. WORK OPPORTUNITY TAX CREDIT.
(a) AMOUNT OF CREDIT.—Subsection (a) of section
51 is amended by striking ‘‘40 percent’’ and inserting ‘‘35
percent’’.
(b) MEMBERS OF TARGETED GROUPS.—Subsection
(d) of section 51 is amended to read as follows:
‘‘(d) MEMBERS OF TARGETED GROUPS.—For pur-
poses of this subpart—
‘‘(1) IN GENERAL.—An individual is a member
of a targeted group if such individual is—
‘‘(A) a qualified AFDC recipient,
‘‘(B) a qualified ex-felon,
‘‘(C) a high-risk youth,
‘‘(D) a vocational rehabilitation referral, or
‘‘(E) a qualified summer youth employee.
‘‘(2) QUALIFIED AFDC RECIPIENT.—
‘‘(A) IN
GENERAL.—The term ‘qualified
AFDC recipient’ means any individual who is
certified by the designated local agency as being
a member of a family receiving assistance under
an AFDC program for at least a 9-month pe-
686
riod ending during the 9-month period ending
on the hiring date.
‘‘(B) AFDC PROGRAM.—For purposes of
this paragraph, the term ‘AFDC program’
means any program providing aid under a State
plan approved under part A of title IV of the
Social Security Act (relating to aid to families
with dependent children) and any successor of
such program.
‘‘(C) SPECIAL RULES FOR VETERANS.—In
the case of a veteran, subparagraph (A) shall be
applied by substituting ‘12-month’ for ‘9-
month’ the second place it appears.
‘‘(D) VETERAN.—For purposes of sub-
paragraph (C), the term ‘veteran’ means any
individual who is certified by the designated
local agency as—
‘‘(i)(I) having served on active duty
(other than active duty for training) in the
Armed Forces of the United States for a
period of more than 180 days, or
‘‘(II) having been discharged or re-
leased from active duty in the Armed
Forces of the United States for a service-
connected disability, and
687
‘‘(ii) not having any day during the
60-day period ending on the hiring date
which was a day of extended active duty in
the Armed Forces of the United States.
For purposes of clause (ii), the term ‘extended
active duty’ means a period of more than 90
days during which the individual was on active
duty (other than active duty for training).
‘‘(3) QUALIFIED EX-FELON.—The term ‘quali-
fied ex-felon’ means any individual who is certified
by the designated local agency—
‘‘(A) as having been convicted of a felony
under any statute of the United States or any
State,
‘‘(B) as having a hiring date which is not
more than 1 year after the last date on which
such individual was so convicted or was released
from prison, and
‘‘(C) as being a member of a family which
had an income during the 6 months imme-
diately preceding the earlier of the month in
which such income determination occurs or the
month in which the hiring date occurs, which,
on an annual basis, would be 70 percent or less
688
of the Bureau of Labor Statistics lower living
standard.
Any determination under subparagraph (C) shall be
valid for the 45-day period beginning on the date
such determination is made.
‘‘(4) HIGH-RISK YOUTH.—
‘‘(A) IN
GENERAL.—The term ‘high-risk
youth’ means any individual who is certified by
the designated local agency—
‘‘(i) as having attained age 18 but not
age 25 on the hiring date, and
‘‘(ii) as having his principal place of
abode within an empowerment zone or en-
terprise community.
‘‘(B) YOUTH MUST CONTINUE TO RESIDE
IN ZONE.—In the case of a high-risk youth, the
term ‘qualified wages’ shall not include wages
paid or incurred for services performed while
such youth’s principal place of abode is outside
an empowerment zone or enterprise community.
‘‘(5) VOCATIONAL
REHABILITATION
REFER-
RAL.—The term ‘vocational rehabilitation referral’
means any individual who is certified by the des-
ignated local agency as—
689
‘‘(A) having a physical or mental disability
which, for such individual, constitutes or results
in a substantial handicap to employment, and
‘‘(B) having been referred to the employer
upon completion of (or while receiving) rehabili-
tative services pursuant to—
‘‘(i) an individualized written rehabili-
tation plan under a State plan for voca-
tional 
rehabilitation 
services 
approved
under the Rehabilitation Act of 1973, or
‘‘(ii) a program of vocational rehabili-
tation carried out under chapter 31 of title
38, United States Code.
‘‘(6) QUALIFIED SUMMER YOUTH EMPLOYEE.—
‘‘(A) IN
GENERAL.—The term ‘qualified
summer youth employee’ means any individ-
ual—
‘‘(i) who performs services for the em-
ployer between May 1 and September 15,
‘‘(ii) who is certified by the designated
local agency as having attained age 16 but
not 18 on the hiring date (or if later, on
May 1 of the calendar year involved),
‘‘(iii) who has not been an employee
of the employer during any period prior to
690
the 90-day period described in subpara-
graph (B)(i), and
‘‘(iv) who is certified by the des-
ignated local agency as having his principal
place of abode within an empowerment
zone or enterprise community.
‘‘(B) SPECIAL RULES FOR DETERMINING
AMOUNT OF CREDIT.—For purposes of applying
this subpart to wages paid or incurred to any
qualified summer youth employee—
‘‘(i) subsection (b)(2) shall be applied
by substituting ‘any 90-day period between
May 1 and September 15’ for ‘the 1-year
period beginning with the day the individ-
ual begins work for the employer’, and
‘‘(ii) subsection (b)(3) shall be applied
by substituting ‘$3,000’ for ‘$6,000’.
The preceding sentence shall not apply to an in-
dividual who, with respect to the same em-
ployer, is certified as a member of another tar-
geted group after such individual has been a
qualified summer youth employee.
‘‘(C) YOUTH MUST CONTINUE TO RESIDE
IN
ZONE.—Paragraph (4)(B) shall apply for
purposes of this paragraph.
691
‘‘(7) HIRING
DATE.—The term ‘hiring date’
means the day the individual is hired by the em-
ployer.
‘‘(8) DESIGNATED LOCAL AGENCY.—The term
‘designated local agency’ means a State employment
security agency established in accordance with the
Act of June 6, 1933, as amended (29 U.S.C. 49–
49n).
‘‘(9) SPECIAL RULES FOR CERTIFICATIONS.—
‘‘(A) IN
GENERAL.—An individual shall
not be treated as a member of a targeted group
unless—
‘‘(i) on or before the day on which
such individual begins work for the em-
ployer, the employer has received a certifi-
cation from a designated local agency that
such individual is a member of a targeted
group, or
‘‘(ii)(I) on or before the day the indi-
vidual is offered employment with the em-
ployer, a pre-screening notice is completed
with respect to such individual, and
‘‘(II) not later than the 14th day after
the individual begins work for the em-
ployer, the employer submits such notice to
692
the designated local agency as part of a
written request for such a certification
from such agency.
For purposes of this paragraph, the term ‘pre-
screening notice’ means a document (in such
form as the Secretary shall prescribe) which is
signed by the employer and the individual under
penalties of perjury and which contains infor-
mation provided by the individual on the basis
of which the employer believes that the individ-
ual is a member of a targeted group.
‘‘(B) INCORRECT CERTIFICATIONS.—If—
‘‘(i) an individual has been certified
by a designated local agency as a member
of a targeted group, and
‘‘(ii) such certification is incorrect be-
cause it was based on false information
provided by such individual,
the certification shall be revoked and wages
paid by the employer after the date on which
notice of revocation is received by the employer
shall not be treated as qualified wages.
‘‘(C) EXPLANATION
OF
DENIAL
OF
RE-
QUEST.—If a designated local agency denies a
request for certification of membership in a tar-
693
geted group, such agency shall provide to the
person making such request a written expla-
nation of the reasons for such denial.’’
(c) MINIMUM EMPLOYMENT PERIOD.—Paragraph
(3) of section 51(i) is amended to read as follows:
‘‘(3) INDIVIDUALS NOT MEETING MINIMUM EM-
PLOYMENT PERIOD.—No wages shall be taken into
account under subsection (a) with respect to any in-
dividual unless such individual either—
‘‘(A) is employed by the employer at least
180 days (20 days in the case of a qualified
summer youth employee), or
‘‘(B) has completed at least 500 hours
(120 hours in the case of a qualified summer
youth employee) of services performed for the
employer.’’
(d) DEFINITION OF WAGES.—Subsection (c) of sec-
tion 51 is amended by striking paragraph (3).
(e) TERMINATION.—Paragraph (4) of section 51(c)
is amended to read as follows:
‘‘(3) TERMINATION.—The term ‘wages’ shall
not include any amount paid or incurred to an indi-
vidual who begins work for the employer—
‘‘(A) after December 31, 1994, and before
January 1, 1996, or
694
‘‘(B) after December 31, 1997.’’
(f) REDESIGNATION OF CREDIT.—
(1) Sections 38(b)(2) and 51(a) are each
amended by striking ‘‘targeted jobs credit’’ and in-
serting ‘‘work opportunity credit’’.
(2) The subpart heading for subpart F of part
IV of subchapter A of chapter 1 is amended by
striking ‘‘Targeted Jobs Credit’’ and inserting
‘‘Work Opportunity Credit’’.
(3) The table of subparts for such part IV is
amended by striking ‘‘targeted jobs credit’’ and in-
serting ‘‘work opportunity credit’’.
(g) BUSINESS AWARENESS PROGRAM.—The Sec-
retary of Labor shall implement a program to encourage
small businesses to use the services of local agencies to
identify individuals who qualify to be certified as members
of targeted groups (as defined in section 51 of the Internal
Revenue Code of 1986, as amended by this section). Such
Secretary, and the heads of other Federal agencies, shall
make every effort to encourage small businesses to benefit
from the credit allowable under such section by simplifying
procedures to the extent possible.
(h) TECHNICAL AMENDMENTS.—
(1) Paragraph (1) of section 51(c) is amended
by striking ‘‘, subsection (d)(8)(D),’’.
695
(2) Paragraph (3) of section 51(i) is amended
by striking ‘‘(d)(12)’’ each place it appears and in-
serting ‘‘(d)(6)’’.
(i) EFFECTIVE DATE.—The amendments made by
this section shall apply to individuals who begin work for
the employer after December 31, 1995.
SEC. 13102. EMPLOYER-PROVIDED EDUCATIONAL ASSIST-
ANCE PROGRAMS.
(a) EXTENSION.—Subsection (d) of section 127 (re-
lating to educational assistance programs) is amended by
striking ‘‘December 31, 1994’’ and inserting ‘‘December
31, 1997’’.
(b) LIMITATION TO EDUCATION BELOW GRADUATE
LEVEL.—The last sentence of section 127(c)(1) is amend-
ed by inserting before the period ‘‘or at the graduate
level’’.
(c) EFFECTIVE DATES.—
(1) EXTENSION.—The amendment made by
subsection (a) shall apply to taxable years beginning
after December 31, 1994.
(2) LIMITATION.—The amendment made by
subsection (b) shall apply to taxable years beginning
after December 31, 1995.
696
SEC. 13103. RESEARCH CREDIT.
(a) IN GENERAL.—Subsection (h) of section 41 (re-
lating to credit for research activities) is amended—
(1) by striking ‘‘June 30, 1995’’ each place it
appears and inserting ‘‘December 31, 1997’’, and
(2) by striking ‘‘July 1, 1995’’ each place it ap-
pears and inserting ‘‘January 1, 1998’’.
(b) BASE AMOUNT FOR START-UP COMPANIES.—
Clause (i) of section 41(c)(3)(B) (relating to start-up com-
panies) is amended to read as follows:
‘‘(i) TAXPAYERS TO WHICH SUBPARA-
GRAPH APPLIES.—The fixed-base percent-
age shall be determined under this sub-
paragraph if—
‘‘(I) the first taxable year in
which a taxpayer had both gross re-
ceipts and qualified research expenses
begins after December 31, 1983, or
‘‘(II) there are fewer than 3 tax-
able years beginning after December
31, 1983, and before January 1,
1989, in which the taxpayer had both
gross receipts and qualified research
expenses.’’
(c) ELECTION
OF
ALTERNATIVE
INCREMENTAL
CREDIT.—Subsection (c) of section 41 is amended by re-
697
designating paragraphs (4) and (5) as paragraphs (5) and
(6), respectively, and by inserting after paragraph (3) the
following new paragraph:
‘‘(4) ELECTION
OF
ALTERNATIVE
INCREMEN-
TAL CREDIT.—
‘‘(A) IN GENERAL.—At the election of the
taxpayer, the credit determined under sub-
section (a)(1) shall be equal to the sum of—
‘‘(i) 1.65 percent of so much of the
qualified research expenses for the taxable
year as exceeds 1 percent of the average
described in subsection (c)(1)(B) but does
not exceed 1.5 percent of such average,
‘‘(ii) 2.2 percent of so much of such
expenses as exceeds 1.5 percent of such av-
erage but does not exceed 2 percent of
such average, and
‘‘(iii) 2.75 percent of so much of such
expenses as exceeds 2 percent of such aver-
age.
‘‘(B) ELECTION.—An election under this
paragraph may be made only for the first tax-
able year of the taxpayer beginning after June
30, 1995. Such an election shall apply to the
taxable year for which made and all succeeding
698
taxable years unless revoked with the consent of
the Secretary.’’
(d) INCREASED CREDIT FOR CONTRACT RESEARCH
EXPENSES WITH RESPECT TO CERTAIN RESEARCH CON-
SORTIA.—Paragraph (3) of section 41(b) is amended by
adding at the end the following new subparagraph:
‘‘(C) AMOUNTS
PAID
TO
CERTAIN
RE-
SEARCH CONSORTIA.—
‘‘(i) IN GENERAL.—Subparagraph (A)
shall be applied by substituting ‘75 per-
cent’ for ‘65 percent’ with respect to
amounts paid or incurred by the taxpayer
to a qualified research consortium for
qualified research.
‘‘(ii) QUALIFIED RESEARCH CONSOR-
TIUM.—The term ‘qualified research con-
sortium’ means any organization described
in subsection (e)(6)(B) if—
‘‘(I) at least 15 unrelated tax-
payers paid (during the calendar year
in which the taxable year of the tax-
payer begins) amounts to such organi-
zation for qualified research,
‘‘(II) no 3 persons paid during
such calendar year more than 50 per-
699
cent of the total amounts paid during
such calendar year for qualified re-
search, and
‘‘(III) 
no 
person 
contributed
more than 20 percent of such total
amounts.
For purposes of subclause (I), all persons
treated as a single employer under sub-
section (a) or (b) of section 52 shall be
treated as related taxpayers.’’
(e) CONFORMING AMENDMENT.—Subparagraph (D)
of section 28(b)(1) is amended by striking ‘‘June 30,
1995’’ and inserting ‘‘December 31, 1997’’.
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to taxable years ending after June 30,
1995.
(2) SUBSECTIONS (c) AND (d).—The amend-
ments made by subsections (c) and (d) shall apply
to taxable years beginning after June 30, 1995.
700
SEC. 13104. CONTRIBUTIONS OF STOCK TO PRIVATE FOUN-
DATIONS.
(a) IN GENERAL.—Subparagraph (D) of section
170(e)(5) is amended by striking ‘‘December 31, 1994’’
and inserting ‘‘December 31, 1997’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to contributions made after De-
cember 31, 1994.
SEC. 13105. CREDIT FOR CLINICAL TESTING EXPENSES.
(a) IN GENERAL.—Subsection (e) of section 28 is
amended by striking ‘‘December 31, 1994’’ and inserting
‘‘December 31, 1997’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years ending after De-
cember 31, 1994.
PART II—PERMANENT EXTENSION OF FUTA EX-
EMPTION FOR ALIEN AGRICULTURAL WORK-
ERS
SEC. 13106. FUTA EXEMPTION FOR ALIEN AGRICULTURAL
WORKERS.
(a) IN GENERAL.—Subparagraph (B) of section
3306(c)(1) (defining employment) is amended by striking
‘‘before January 1, 1995,’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to services performed after De-
cember 31, 1994.
701
PART III—COMMERCIAL AVIATION FUEL
SEC. 13111. DELAY OF SCHEDULED INCREASE IN TAX ON
FUEL USED IN COMMERCIAL AVIATION.
(a) 
2-YEAR
DELAY.—Sections 
4092(b)(2),
6421(f)(2)(B), and 6427(l)(4)(B) are each amended by
striking ‘‘September 30, 1995’’ and inserting ‘‘September
30, 1997’’.
(b) CONFORMING AMENDMENT.—Section 13245 of
the Omnibus Budget Reconciliation Act of 1993 is hereby
repealed.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on September 30, 1995.
(2) CROSS REFERENCE.—
For refund of tax paid on commercial aviation
fuel before the date of the enactment of this Act, see
section 6427(l) of the Internal Revenue Code of 1986.
(d) FLOOR STOCKS TAX.—
(1) IMPOSITION OF TAX.—In the case of com-
mercial aviation fuel which is held by any person on
October 1, 1997, there is hereby imposed a floor
stocks tax equal to 4.3 cents per gallon.
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY FOR TAX.—A person hold-
ing aviation fuel on October 1, 1997, to which
926
‘‘(4) If the taxpayer, during the period de-
scribed in subsection (a), purchases more than 1 res-
idence which is used by him as his principal resi-
dence at some time within 2 years after the date of
the sale of the old residence, only the first of such
residences so used by him after the date of such sale
shall constitute the new residence.’’
(3) Subsections (h)(1) and (k) of section 1034
are each amended by striking ‘‘(other than the 2
years referred to in subsection (c)(4))’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to sales of old residences (within
the meaning of section 1034 of the Internal Revenue Code
of 1986) after the date of the enactment of this Act.
SEC. 14102. SPECIAL RULES IN CASE OF DIVORCE.
(a) IN GENERAL.—Subsection (c) of section 1034 is
amended by adding at the end the following new para-
graph:
‘‘(5) If—
‘‘(A) a residence is sold by an individual
pursuant to a divorce or marital separation,
and
‘‘(B) the taxpayer used such residence as
his principal residence at any time during the
2-year period ending on the date of such sale,
991
‘‘(A) IN GENERAL.—For purposes of this
chapter, any partner’s distributive share of any
income or loss described in subsection (a)(2)
shall be treated as an item of income or expense
(as the case may be) with respect to property
held for investment.
‘‘(B) DEDUCTIONS
FOR
LOSS
NOT
SUB-
JECT
TO
SECTION
67.—The deduction under
section 212 for any loss described in subpara-
graph (A) shall not be treated as a miscellane-
ous itemized deduction for purposes of section
67.
‘‘(4) TREATMENT
OF
NET
CAPITAL
GAIN
OR
LOSS.—For purposes of this chapter, any partner’s
distributive share of any gain or loss described in
subsection (a)(3) shall be treated as a long-term
capital gain or loss, as the case may be.
‘‘(5) MINIMUM TAX TREATMENT.—In determin-
ing the alternative minimum taxable income of any
partner, such partner’s distributive share of any ap-
plicable net AMT adjustment shall be taken into ac-
count in lieu of making the separate adjustments
provided in sections 56, 57, and 58 with respect to
the items of the partnership. Except as provided in
regulations, the applicable net AMT adjustment