109TH CONGRESS 
1ST SESSION 
H. R. 3283
AN ACT 
To enhance resources to enforce United States 
trade rights.
109TH CONGRESS 
1ST SESSION H. R. 3283
AN ACT 
To enhance resources to enforce United States trade rights.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘United States Trade 
Rights Enforcement Act’’. 
SEC. 2. SENSE OF CONGRESS. 
It is the sense of Congress that—
(1) United States producers that believe they 
are injured by subsidized imports from nonmarket 
economy countries have not been able to obtain relief 
through countervailing duty actions because the De-
partment of Commerce has declined to make coun-
tervailing duty determinations for nonmarket econ-
omy countries in part because it lacks explicit legal 
authority to do so; 
(2) explicitly making the countervailing duty 
law under subtitle A of title VII of the Tariff Act 
of 1930 (19 U.S.C. 1671 et seq.) applicable to ac-
tions by nonmarket economy countries would give 
United States producers access to import relief 
measures that directly target government subsidies; 
(3) the Bureau of Customs and Border Protec-
tion of the Department of Homeland Security has 
encountered particular problems in collecting coun-
tervailing and antidumping duties from new shippers 
who default on their bonding obligations; 
(4) this behavior may detract from the ability 
of United States companies to recover from competi-
tion found to be unfair under international trade 
laws; 
(5) accordingly, it is appropriate, for a test pe-
riod, to suspend the availability of bonds for new 
shippers and instead require cash deposits; 
(6) more analysis and assessment is needed to 
determine the appropriate policy to respond to this 
and other problems experienced in the collection of 
duties and the impact that policy changes could have 
on legitimate United States trade and United States 
trade obligations; 
(7) given the developments in the ongoing 
World Trade Organization (WTO) negotiations re-
lating to trade remedies, Congress reiterates its re-
solve as expressed in House Concurrent Resolution 
262 (107th Congress), which was overwhelmingly 
approved by the House of Representatives on No-
vember 7, 2001, by a vote of 410 to 4; 
(8) the United States Trade Representative 
should monitor compliance by United States trading 
partners with their trade obligations and systemati-
cally identify areas of noncompliance; 
(9) the United States Trade Representative 
should then aggressively resolve noncompliance
through consultations with United States trading 
partners; 
(10) however, should efforts to resolve disputes 
through consultation fail, the United States Trade 
Representative should vigorously pursue United 
States rights through dispute settlement in every 
available forum; 
(11) given the huge growth in trade with the 
People’s Republic of China, its impact on the United 
States economy, and the complaints voiced by many 
United States interests that China is not complying 
with its international trade obligations, the United 
States Trade Representative should place particular 
emphasis on identifying and resolving disputes with 
China that limit United States exports, particularly 
concerning compliance with obligations relating to 
intellectual property rights and enforcement, tariff 
and nontariff barriers, subsidies, technical barriers 
to trade, sanitary and phytosanitary issues, non-
market-based industrial policies, distribution rights, 
and regulatory transparency; 
(12) in addition, the United States Trade Rep-
resentative should place particular emphasis on 
trade barriers imposed by Japan, specifically the 
Japanese trade ban on United States beef without
scientific justification, the Japanese sanitary and 
phytosanitary restrictions on United States agricul-
tural products, Japanese policies on pharmaceutical 
and medical device reference pricing, insurance 
cross-subsidization, and privatization in a variety of 
sectors that discriminate against United States com-
panies; 
(13) the fixed exchange rate that the People’s 
Republic of China has maintained until recently has 
been a substantial distortion to world markets, 
blocking the price mechanism, impeding adjustment 
of international imbalances, and serving as a source 
of large and increasing risk to the Chinese economy; 
(14) such behavior has effectively prevented 
market forces from operating efficiently in the Peo-
ple’s Republic of China, distorting world trade; 
(15) in a welcome move, the People’s Republic 
of China has now begun to move to a more flexible 
exchange rate, and it should continue to so move to 
a market-based exchange rate as soon as possible; 
(16) in light of this recent positive development, 
the Secretary of Treasury should provide to Con-
gress a periodic assessment of the mechanism adopt-
ed by the Chinese Government to relate its currency 
to a basket of foreign currencies and the degree to
which the application of this mechanism moves the 
currency closer to a market-based representation of 
its value; 
(17) in addition, Japan’s policy of intervening 
to influence the value of its currency and its prolific 
barriers to trade create distortions that disadvantage 
United States exporters; 
(18) this adverse impact is magnified by Ja-
pan’s role in the global marketplace, combined with 
its chronic surplus, weak economy, deflationary 
economy, low growth rate, and lack of consumer 
spending; and 
(19) accordingly, the United States Trade Rep-
resentative should have additional resources in the 
Office of the General Counsel, the Office of Moni-
toring and Enforcement, the Office of China Affairs, 
and the Office of Japan, Korea, and APEC Affairs 
to address a variety of needs that will best enable 
United States companies, farmers, and workers to 
benefits from the trade agreements to which the 
United States has around the world. 
SEC. 3. APPLICATION OF COUNTERVAILING DUTIES TO 
NONMARKET ECONOMY COUNTRIES. 
(a) AMENDMENTS.—
(1) COUNTERVAILING DUTIES IMPOSED.—Sec-
tion 701(a)(1) of the Tariff Act of 1930 (19 U.S.C. 
1671(a)(1)) is amended by inserting ‘‘(including a 
nonmarket economy country)’’ after ‘‘country’’ each 
place it appears. 
(2) DEFINITION
OF
COUNTERVAILABLE
SUB-
SIDY.—Section 771(5)(E) of such Act (19 U.S.C. 
1677(5)(E)) is amended by adding at the end the 
following new sentences: ‘‘With respect to the Peo-
ple’s Republic of China, if the administering author-
ity encounters special difficulties in calculating the 
amount of a benefit under clause (i), (ii), (iii), or 
(iv) of this subparagraph, the administering author-
ity may use methodologies for identifying and meas-
uring the subsidy benefit which take into account 
the possibility that prevailing terms and conditions 
in China may not always be available as appropriate 
benchmarks. When applying such methodologies, 
where practicable, the administering authority 
should adjust such prevailing terms and conditions 
before considering the use of terms and conditions 
prevailing outside China.’’. 
(b) PROHIBITION ON DOUBLE COUNTING.—In apply-
ing section 701(a)(1) of the Tariff Act of 1930, as amend-
ed by subsection (a), to a class or kind of merchandise
of a nonmarket economy country, the administering au-
thority shall ensure that—
(1) any countervailable subsidy is not double 
counted in an antidumping order under section 731 
of such Act (19 U.S.C. 1673) on the same class or 
kind of merchandise of the country; and 
(2) the application of section 701(a)(1) of such 
Act is consistent with the international obligations of 
the United States. 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply to any petition filed under section 702 
of the Tariff Act of 1930 (19 U.S.C. 1671a) on or after 
30 days after the date of the enactment of this Act, and 
the provisions contained in subsection (b) apply to any 
subsequent determination made under section 733, 735, 
or 751 of such Act (19 U.S.C. 1673b, 1673d, or 1675). 
SEC. 4. NEW SHIPPER REVIEW AMENDMENT. 
(a) SUSPENSION OF THE AVAILABILITY OF BONDS 
TO NEW SHIPPERS.—Clause (iii) of section 751(a)(2)(B) 
of the Tariff Act of 1930 (19 U.S.C. 1675(a)(2)(B)(iii)) 
shall not be effective during the 3-year period beginning 
on the date of the enactment of this Act. 
(b) REPORT ON THE IMPACT OF THE SUSPENSION.—
Not later than 2 years after the date of the enactment 
of this Act, the Secretary of the Treasury, in consultation
with the Secretary of Commerce, the United States Trade 
Representative, and the Secretary of Homeland Security, 
shall submit to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of 
Representatives a report containing—
(1) recommendations on whether the suspension 
of the effectiveness of section 751(a)(2)(B)(iii) of 
the Tariff Act of 1930 should be extended beyond 
the date provided in subsection (a) of this section; 
and 
(2) assessments of the effectiveness of any ad-
ministrative measures that have been implemented 
to address the difficulties giving rise to the suspen-
sion under subsection (a) of this section, including—
(A) problems in assuring the collection of 
antidumping duties on imports from new ship-
pers; and 
(B) burdens imposed on legitimate trade 
and commerce by the suspension of availability 
of bonds to new shippers by reason of the sus-
pension under subsection (a). 
(c) REPORT ON COLLECTION PROBLEMS AND ANAL-
YSIS OF PROPOSED SOLUTIONS.—
(1) REPORT.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of
the Treasury, in consultation with the Commissioner 
of the Bureau of Customs and Border Protection 
and the Secretary of Commerce, shall submit to the 
Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of 
the Senate a report describing the major problems 
experienced in the collection of duties, including 
fraudulent activities intended to avoid payment of 
duties, with an estimate of the total amount of un-
collected duties for the previous fiscal year and a 
breakdown across product lines describing the rea-
sons duties were uncollected. 
(2) RECOMMENDATIONS.—The report shall 
make recommendations on additional actions to ad-
dress remaining problems related to duty collections 
and, for each recommendation, provide an analysis 
of how the recommendation would address the spe-
cific problem or problems cited and the impact that 
implementing the recommendation would have on 
international trade and commerce (including any ad-
ditional costs imposed on United States businesses 
and whether the implementation of the revision is 
likely to violate any international trade obligations).
SEC. 5. COMPREHENSIVE MONITORING OF COMPLIANCE BY 
THE PEOPLE’S REPUBLIC OF CHINA WITH ITS 
INTERNATIONAL TRADE OBLIGATIONS. 
(a) INTELLECTUAL
PROPERTY
RIGHTS
COMPLI-
ANCE.—
(1) IN
GENERAL.—In accordance with the 
terms of the Agreement of WTO Accession for the 
People’s Republic of China, subsequent agreements 
by Chinese authorities through the U.S.-China Joint 
Commission on Commerce and Trade (JCCT), and 
other obligations by Chinese officials related to its 
trade obligations, the United States Trade Rep-
resentative and the Secretary of Commerce shall un-
dertake to ensure that the Government of the Peo-
ple’s Republic China has taken the following steps: 
(A) The Chinese Government has increased 
the number of civil and criminal prosecutions of 
intellectual property rights violators by the end 
of 2005 to a level that significantly decreases 
the current amount of infringing products for 
sale within China. 
(B) China’s Supreme People’s Court, Su-
preme People’s Procuratorate, and Ministry of 
Public Security have issued draft guidelines for 
public comment to ensure the timely referral of
intellectual property rights violations from ad-
ministrative bodies to criminal prosecution. 
(C) The Chinese Ministry of Public Secu-
rity and the General Administration of Customs 
have issued regulations to ensure the timely 
transfer of intellectual property rights cases for 
criminal investigation. 
(D) The Chinese Ministry of Public Secu-
rity has established a leading group responsible 
for overall research, planning, and coordination 
of all intellectual property rights criminal en-
forcement to ensure a focused and coordinated 
nationwide enforcement effort. 
(E) The Chinese Government has estab-
lished a bilateral intellectual property rights law 
enforcement working group in cooperation with 
the United States whose members will cooper-
ate on enforcement activities to reduce cross-
border infringing activities. 
(F) The Chinese Government has aggres-
sively countered movie piracy by dedicating en-
forcement teams to pursue enforcement actions 
against pirates and has regularly instructed en-
forcement authorities nationwide that copies of 
films and audio-visual products still in censor-
ship or import review or otherwise not yet au-
thorized for distribution are deemed pirated and 
subject to enhanced enforcement. 
(G) By the end of 2005, the Chinese Gov-
ernment has completed its legalization program 
to ensure that all central, provincial, and local 
government offices are using only licensed soft-
ware and by the end of 2006 has extended the 
program to enterprises (including state-owned 
enterprises). 
(H) The Chinese Government, having de-
clared that software end-user piracy is consid-
ered to constitute ‘‘harm to the public interest’’ 
and as such will be subject to administrative 
penalties nationwide, has initiated civil and 
criminal prosecutions of software end-user vio-
lators. 
(I) The Chinese Government has appointed 
an Intellectual Property Rights Ombudsman at 
the Chinese Embassy in Washington, D.C., to 
serve as the point of contact for United States 
companies, particularly small- and medium-
sized businesses, seeking to secure and enforce 
their intellectual property rights in China or ex-
periencing intellectual property rights problems 
in China. 
(J) The relevant Chinese agencies, includ-
ing the Ministry of Commerce, the China 
Trademark Office, the State Intellectual Prop-
erty Office, and the National Copyright Admin-
istration of China have significantly improved 
intellectual property rights enforcement at trade 
shows and issued new regulations to achieve 
this goal. 
(K) Not later than June 30, 2006, the 
Chinese State Council has submitted to the Na-
tional People’s Congress the legislative package 
needed for China to accede to the World Intel-
lectual Property Organization (WIPO) Internet 
treaties. 
(L) The Chinese Government has taken 
steps to enforce intellectual property right laws 
against Internet piracy, including through en-
forcement at Internet cafes. 
(M) The Chinese Government, having con-
firmed that the criminal penalty thresholds in 
the 2004 Judicial Interpretation are applicable 
to sound recordings, has instituted civil and 
criminal prosecutions against such violators.
(N) The Chinese Government has initiated 
civil and criminal prosecutions against exporters 
of infringing recordings. 
(2) DISPUTE
SETTLEMENT
PROCEEDINGS
IN 
WTO.—If the President determines that the People’s 
Republic of China has not met each of the obliga-
tions described in subparagraphs (A) through (N) of 
paragraph (1) or taken steps that result in signifi-
cant improvements in protection of intellectual prop-
erty rights in accordance with its trade obligations, 
then the President shall assign such resources as are 
necessary to collect evidence of such trade agreement 
violations for use in dispute settlement proceedings 
against China in the World Trade Organization. 
(b) ACCESS
FOR EXPORTS
OF UNITED STATES 
GOODS.—In accordance with the terms of the Agreement 
of WTO Accession for the People’s Republic of China, sub-
sequent agreements by Chinese authorities through the 
U.S.-China Joint Commission on Commerce and Trade 
(JCCT), and other obligations by Chinese officials related 
to its trade obligations, the United States Trade Rep-
resentative and the Secretary of Commerce shall under-
take to ensure that the Government of the People’s Re-
public of China has taken the following steps:
(1) China has taken steps to ensure that United 
States products can be freely distributed in China, 
including by approving a significant backlog of dis-
tribution license applications and by preparing a reg-
ulatory guide for businesses seeking to acquire dis-
tribution rights that expands on the guidelines an-
nounced in April 2005. 
(2) Chinese officials have permitted all enter-
prises in China, including those located in bonded 
zones, to acquire licenses to distribute goods 
throughout China. 
(3) The Chinese Government has submitted 
regulations on management of direct selling to the 
Chinese State Council for review and taken any ad-
ditional steps necessary to provide a legal basis for 
United States direct sales firms to sell United States 
goods directly to households in China. 
(4) The Chinese Government has issued final 
regulations on direct selling, including with respect 
to distribution of imported goods and fixed location 
requirements. 
(c) ACCESS FOR EXPORTS OF UNITED STATES SERV-
ICES.—In accordance with the terms of the Agreement of 
WTO Accession for the People’s Republic of China, subse-
quent agreements by Chinese authorities through the
U.S.-China Joint Commission on Commerce and Trade 
(JCCT), and other obligations by Chinese officials related 
to its trade obligations, the United States Trade Rep-
resentative and the Secretary of Commerce shall under-
take to ensure that the Government of the People’s Re-
public of China has taken the following steps: 
(1) The Chinese Government has convened a 
meeting of the U.S.-China Insurance Dialogue be-
fore the end of 2005 to discuss regulatory concerns 
and barriers to further liberalization of the sector. 
(2) The Chinese Government has made senior 
level officials available to meet under the JCCT In-
formation Technology Working Group to discuss 
capitalization requirements, resale services, and 
other issues as agreed to by the two sides. 
(d) ACCESS FOR UNITED STATES AGRICULTURE.—
In accordance with the terms of the Agreement of WTO 
Accession for the People’s Republic of China, subsequent 
agreements by Chinese authorities through the U.S.-China 
Joint Commission on Commerce and Trade (JCCT), and 
other obligations by Chinese officials related to its trade 
obligations, the United States Trade Representative and 
the Secretary of Agriculture shall undertake to ensure that 
the Government of the People’s Republic of China has 
taken the following steps: