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Schedule of the United States are an essential element
of United States sugar policy;
(2) circumvention of the tariff-rate quotas will,
if unchecked, make it impossible to achieve the objec-
tives of United States sugar policy;
(3) the tariff-rate quotas have been circumvented
frequently, defeating the purposes of United States
sugar policy and causing disruption to the United
States market for sweeteners, injury to domestic grow-
ers, refiners, and processors of sugar, and adversely
affecting legitimate exporters of sugar to the United
States;
(4) it is essential to United States sugar policy
that the tariff-rate quotas be enforced and that decep-
tive practices be prevented, including the importation
of products with no commercial use and failure to
disclose all relevant information to the United States
Customs Service; and
(5) unless action is taken to prevent circumven-
tion, circumvention of the tariff-rate quotas will con-
tinue and will ultimately destroy United States sugar
policy.
(b) POLICY.—It is the policy of the United States to
maintain the integrity of the tariff-rate quotas on sugars,
syrups, and sugar-containing products by stopping cir-
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cumvention as soon as it becomes apparent. It is also the
policy of the United States that products not used to cir-
cumvent the tariff-rate quotas, such as molasses used for
animal feed or for rum, not be affected by any action taken
pursuant to this Act.
(c) IDENTIFICATION OF IMPORTS.—
(1) IDENTIFICATION.—Not later than 30 days
after the date of enactment of this Act, and on a reg-
ular basis thereafter, the Secretary of Agriculture
shall—
(A) identify imports of articles that are cir-
cumventing tariff-rate quotas on sugars, syrups,
or sugar-containing products imposed under
chapter 17, 18, 19, or 21 of the Harmonized Tar-
iff Schedule of the United States; and
(B) report to the President the articles
found to be circumventing the tariff-rate quotas.
(2) ACTION BY PRESIDENT.—Upon receiving the
report from the Secretary of Agriculture, the Presi-
dent shall, by proclamation, include any article iden-
tified by the Secretary in the appropriate tariff-rate
quota provision of the Harmonized Tariff Schedule.
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TITLE XI—CUSTOMS
REAUTHORIZATION
SEC. 1101. SHORT TITLE.
This title may be cited as the ‘‘Customs Border Secu-
rity Act of 2002’’.
Subtitle A—United States Customs
Service
CHAPTER 1—DRUG ENFORCEMENT AND
OTHER NONCOMMERCIAL AND COM-
MERCIAL OPERATIONS
SEC. 1111. AUTHORIZATION OF APPROPRIATIONS FOR NON-
COMMERCIAL OPERATIONS, COMMERCIAL OP-
ERATIONS, AND AIR AND MARINE INTERDIC-
TION.
(a) NONCOMMERCIAL OPERATIONS.—Section 301(b)(1)
of the Customs Procedural Reform and Simplification Act
of 1978 (19 U.S.C. 2075(b)(1)) is amended—
(1) in subparagraph (A) to read as follows:
‘‘(A) $886,513,000 for fiscal year 2003.’’;
and
(2) in subparagraph (B) to read as follows:
‘‘(B) $909,471,000 for fiscal year 2004.’’.
(b) COMMERCIAL OPERATIONS.—
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(1) IN GENERAL.—Section 301(b)(2)(A) of the
Customs Procedural Reform and Simplification Act
of 1978 (19 U.S.C. 2075(b)(2)(A)) is amended—
(A) in clause (i) to read as follows:
‘‘(i) $1,603,482,000 for fiscal year 2003.’’;
and
(B) in clause (ii) to read as follows:
‘‘(ii) $1,645,009,000 for fiscal year 2004.’’.
(2) AUTOMATED
COMMERCIAL
ENVIRONMENT
COMPUTER SYSTEM.—Of the amount made available
for each of fiscal years 2003 and 2004 under section
301(b)(2)(A) of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075(b)(2)(A)),
as amended by paragraph (1), $308,000,000 shall be
available until expended for each such fiscal year for
the development, establishment, and implementation
of the Automated Commercial Environment computer
system.
(3) REPORTS.—Not later than 90 days after the
date of enactment of this Act, and not later than each
subsequent 90-day period, the Commissioner of Cus-
toms shall prepare and submit to the Committee on
Ways and Means of the House of Representatives and
the Committee on Finance of the Senate a report
demonstrating that the development and establish-
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ment of the Automated Commercial Environment
computer system is being carried out in a cost-effec-
tive manner and meets the modernization require-
ments of title VI of the North American Free Trade
Agreements Implementation Act.
(c) 
AIR
AND
MARINE
INTERDICTION.—Section
301(b)(3) of the Customs Procedural Reform and Sim-
plification Act of 1978 (19 U.S.C. 2075(b)(3)) is
amended—
(1) in subparagraph (A) to read as follows:
‘‘(A) $181,860,000 for fiscal year 2003.’’;
and
(2) in subparagraph (B) to read as follows:
‘‘(B) $186,570,000 for fiscal year 2004.’’.
(d) SUBMISSION
OF OUT-YEAR BUDGET PROJEC-
TIONS.—Section 301(a) of the Customs Procedural Reform
and Simplification Act of 1978 (19 U.S.C. 2075(a)) is
amended by adding at the end the following:
‘‘(3) By not later than the date on which the President
submits to Congress the budget of the United States Govern-
ment for a fiscal year, the Commissioner of Customs shall
submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate the projected amount of funds for the succeeding fis-
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cal year that will be necessary for the operations of the Cus-
toms Service as provided for in subsection (b).’’.
SEC. 1112. ANTITERRORIST AND ILLICIT NARCOTICS DE-
TECTION 
EQUIPMENT 
FOR 
THE 
UNITED
STATES-MEXICO BORDER, UNITED STATES-
CANADA BORDER, AND FLORIDA AND THE
GULF COAST SEAPORTS.
(a) FISCAL YEAR 2003.—Of the amounts made avail-
able for fiscal year 2003 under section 301(b)(1)(A) of the
Customs Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)(1)(A)), as amended by section 1111(a)
of this title, $90,244,000 shall be available until expended
for acquisition and other expenses associated with imple-
mentation and deployment of antiterrorist and illicit nar-
cotics detection equipment along the United States-Mexico
border, the United States-Canada border, and Florida and
the Gulf Coast seaports, as follows:
(1) UNITED STATES-MEXICO BORDER.—For the
United States-Mexico border, the following:
(A) $6,000,000 for 8 Vehicle and Container
Inspection Systems (VACIS).
(B) $11,200,000 for 5 mobile truck x-rays
with transmission and backscatter imaging.
(C) $13,000,000 for the upgrade of 8 fixed-
site truck x-rays from the present energy level of
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450,000 electron volts to 1,000,000 electron volts
(1–MeV).
(D) $7,200,000 for 8 1–MeV pallet x-rays.
(E) $1,000,000 for 200 portable contraband
detectors (busters) to be distributed among ports
where the current allocations are inadequate.
(F) $600,000 for 50 contraband detection
kits to be distributed among all southwest border
ports based on traffic volume.
(G) $500,000 for 25 ultrasonic container in-
spection units to be distributed among all ports
receiving liquid-filled cargo and to ports with a
hazardous material inspection facility.
(H) $2,450,000 for 7 automated targeting
systems.
(I) $360,000 for 30 rapid tire deflator sys-
tems to be distributed to those ports where port
runners are a threat.
(J) $480,000 for 20 portable Treasury En-
forcement Communications Systems (TECS) ter-
minals to be moved among ports as needed.
(K) $1,000,000 for 20 remote watch surveil-
lance camera systems at ports where there are
suspicious activities at loading docks, vehicle
queues, secondary inspection lanes, or areas
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where visual surveillance or observation is ob-
scured.
(L) $1,254,000 for 57 weigh-in-motion sen-
sors to be distributed among the ports with the
greatest volume of outbound traffic.
(M) $180,000 for 36 AM traffic information
radio stations, with 1 station to be located at
each border crossing.
(N) $1,040,000 for 260 inbound vehicle
counters to be installed at every inbound vehicle
lane.
(O) $950,000 for 38 spotter camera systems
to counter the surveillance of customs inspection
activities by persons outside the boundaries of
ports where such surveillance activities are oc-
curring.
(P) $390,000 for 60 inbound commercial
truck transponders to be distributed to all ports
of entry.
(Q) $1,600,000 for 40 narcotics vapor and
particle detectors to be distributed to each border
crossing.
(R) $400,000 for license plate reader auto-
matic targeting software to be installed at each
port to target inbound vehicles.
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(2) UNITED STATES-CANADA BORDER.—For the
United States-Canada border, the following:
(A) $3,000,000 for 4 Vehicle and Container
Inspection Systems (VACIS).
(B) $8,800,000 for 4 mobile truck x-rays
with transmission and backscatter imaging.
(C) $3,600,000 for 4 1–MeV pallet x-rays.
(D) $250,000 for 50 portable contraband de-
tectors (busters) to be distributed among ports
where the current allocations are inadequate.
(E) $300,000 for 25 contraband detection
kits to be distributed among ports based on traf-
fic volume.
(F) $240,000 for 10 portable Treasury En-
forcement Communications Systems (TECS) ter-
minals to be moved among ports as needed.
(G) $400,000 for 10 narcotics vapor and
particle detectors to be distributed to each border
crossing based on traffic volume.
(3) FLORIDA AND GULF COAST SEAPORTS.—For
Florida and the Gulf Coast seaports, the following:
(A) $4,500,000 for 6 Vehicle and Container
Inspection Systems (VACIS).
(B) $11,800,000 for 5 mobile truck x-rays
with transmission and backscatter imaging.
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(C) $7,200,000 for 8 1–MeV pallet x-rays.
(D) $250,000 for 50 portable contraband de-
tectors (busters) to be distributed among ports
where the current allocations are inadequate.
(E) $300,000 for 25 contraband detection
kits to be distributed among ports based on traf-
fic volume.
(b) FISCAL YEAR 2004.—Of the amounts made avail-
able for fiscal year 2004 under section 301(b)(1)(B) of the
Customs Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)(1)(B)), as amended by section 1111(a)
of this title, $9,000,000 shall be available until expended
for the maintenance and support of the equipment and
training of personnel to maintain and support the equip-
ment described in subsection (a).
(c) ACQUISITION
OF TECHNOLOGICALLY SUPERIOR
EQUIPMENT; TRANSFER OF FUNDS.—
(1) IN GENERAL.—The Commissioner of Customs
may use amounts made available for fiscal year 2003
under section 301(b)(1)(A) of the Customs Procedural
Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(1)(A)), as amended by section 1111(a) of this
title, for the acquisition of equipment other than the
equipment described in subsection (a) if such other
equipment—
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(A)(i) is technologically superior to the
equipment described in subsection (a); and
(ii) will achieve at least the same results at
a cost that is the same or less than the equip-
ment described in subsection (a); or
(B) can be obtained at a lower cost than the
equipment described in subsection (a).
(2) TRANSFER OF FUNDS.—Notwithstanding any
other provision of this section, the Commissioner of
Customs may reallocate an amount not to exceed 10
percent of—
(A) the amount specified in any of subpara-
graphs (A) through (R) of subsection (a)(1) for
equipment specified in any other of such sub-
paragraphs (A) through (R);
(B) the amount specified in any of subpara-
graphs (A) through (G) of subsection (a)(2) for
equipment specified in any other of such sub-
paragraphs (A) through (G); and
(C) the amount specified in any of subpara-
graphs (A) through (E) of subsection (a)(3) for
equipment specified in any other of such sub-
paragraphs (A) through (E).
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SEC. 1113. COMPLIANCE WITH PERFORMANCE PLAN RE-
QUIREMENTS.
As part of the annual performance plan for each of
the fiscal years 2003 and 2004 covering each program activ-
ity set forth in the budget of the United States Customs
Service, as required under section 1115 of title 31, United
States Code, the Commissioner of Customs shall establish
performance goals, performance indicators, and comply
with all other requirements contained in paragraphs (1)
through (6) of subsection (a) of such section with respect
to each of the activities to be carried out pursuant to sec-
tions 1121 of this title.
CHAPTER 2—CHILD CYBER-SMUGGLING
CENTER OF THE CUSTOMS SERVICE
SEC. 1121. AUTHORIZATION OF APPROPRIATIONS FOR PRO-
GRAM TO PREVENT CHILD PORNOGRAPHY/
CHILD SEXUAL EXPLOITATION.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Customs Service
$10,000,000 for fiscal year 2003 to carry out the program
to prevent child pornography/child sexual exploitation es-
tablished by the Child Cyber-Smuggling Center of the Cus-
toms Service.
(b) USE
OF AMOUNTS
FOR CHILD PORNOGRAPHY
CYBER TIPLINE.—Of the amount appropriated under sub-
section (a), the Customs Service shall provide 3.75 percent
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of such amount to the National Center for Missing and Ex-
ploited Children for the operation of the child pornography
cyber tipline of the Center and for increased public aware-
ness of the tipline.
CHAPTER 3—MISCELLANEOUS
PROVISIONS
SEC. 1131. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR
UNITED STATES-CANADA BORDER.
Of the amount made available for fiscal year 2003
under paragraphs (1) and (2)(A) of section 301(b) of the
Customs Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)), as amended by section 1111 of this
title, $25,000,000 shall be available until expended for the
Customs Service to hire approximately 285 additional Cus-
toms Service officers to address the needs of the offices and
ports along the United States-Canada border.
SEC. 1132. STUDY AND REPORT RELATING TO PERSONNEL
PRACTICES OF THE CUSTOMS SERVICE.
(a) STUDY.—The Commissioner of Customs shall con-
duct a study of current personnel practices of the Customs
Service, including an overview of performance standards
and the effect and impact of the collective bargaining proc-
ess on drug interdiction efforts of the Customs Service and
a comparison of duty rotation policies of the Customs Serv-
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ice and other Federal agencies that employ similarly-situ-
ated personnel.
(b) REPORT.—Not later than 120 days after the date
of enactment of this Act, the Commissioner of Customs shall
submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate a report containing the results of the study con-
ducted under subsection (a).
SEC. 1133. STUDY AND REPORT RELATING TO ACCOUNTING
AND AUDITING PROCEDURES OF THE CUS-
TOMS SERVICE.
(a) STUDY.—(1) The Commissioner of Customs shall
conduct a study of actions by the Customs Service to ensure
that appropriate training is being provided to Customs
Service personnel who are responsible for financial auditing
of importers.
(2) In conducting the study, the Commissioner—
(A) shall specifically identify those actions taken
to comply with provisions of law that protect the pri-
vacy and trade secrets of importers, such as section
552(b) of title 5, United States Code, and section
1905 of title 18, United States Code; and
(B) shall provide for public notice and comment
relating to verification of the actions described in sub-
paragraph (A).
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(b) REPORT.—Not later than 6 months after the date
of enactment of this Act, the Commissioner of Customs shall
submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate a report containing the results of the study con-
ducted under subsection (a).
SEC. 1134. ESTABLISHMENT AND IMPLEMENTATION OF
COST ACCOUNTING SYSTEM; REPORTS.
(a) ESTABLISHMENT AND IMPLEMENTATION.—
(1) IN GENERAL.—Not later than September 30,
2003, the Commissioner of Customs shall, in accord-
ance with the audit of the Customs Service’s fiscal
years 2000 and 1999 financial statements (as con-
tained in the report of the Office of the Inspector Gen-
eral of the Department of the Treasury issued on Feb-
ruary 23, 2001), establish and implement a cost ac-
counting system for expenses incurred in both com-
mercial and noncommercial operations of the Customs
Service.
(2) ADDITIONAL
REQUIREMENT.—The cost ac-
counting system described in paragraph (1) shall pro-
vide for an identification of expenses based on the
type of operation, the port at which the operation
took place, the amount of time spent on the operation
by personnel of the Customs Service, and an identi-
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fication of expenses based on any other appropriate
classification necessary to provide for an accurate
and complete accounting of the expenses.
(b) REPORTS.—Beginning on the date of enactment of
this Act and ending on the date on which the cost account-
ing system described in subsection (a) is fully implemented,
the Commissioner of Customs shall prepare and submit to
Congress on a quarterly basis a report on the progress of
implementing the cost accounting system pursuant to sub-
section (a).
SEC. 1135. STUDY AND REPORT RELATING TO TIMELINESS
OF PROSPECTIVE RULINGS.
(a) STUDY.—The Comptroller General shall conduct a
study on the extent to which the Office of Regulations and
Rulings of the Customs Service has made improvements to
decrease the amount of time to issue prospective rulings
from the date on which a request for the ruling is received
by the Customs Service.
(b) REPORT.—Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall submit
to the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate
a report containing the results of the study conducted under
subsection (a).
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(c) DEFINITION.—In this section, the term ‘‘prospec-
tive ruling’’ means a ruling that is requested by an im-
porter on goods that are proposed to be imported into the
United States and that relates to the proper classification,
valuation, or marking of such goods.
SEC. 1136. STUDY AND REPORT RELATING TO CUSTOMS
USER FEES.
(a) STUDY.—The Comptroller General shall conduct a
study on the extent to which the amount of each customs
user fee imposed under section 13031(a) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(a)) is commensurate with the level of services provided
by the Customs Service relating to the fee so imposed.
(b) REPORT.—Not later than 120 days after the date
of enactment of this Act, the Comptroller General shall sub-
mit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate a report in classified form containing—
(1) the results of the study conducted under sub-
section (a); and
(2) recommendations for the appropriate amount
of the customs user fees if such results indicate that
the fees are not commensurate with the level of serv-
ices provided by the Customs Service.
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SEC. 1137. AUTHORIZATION OF APPROPRIATIONS FOR CUS-
TOMS STAFFING.
There are authorized to be appropriated to the Depart-
ment of Treasury such sums as may be necessary to provide
an increase in the annual rate of basic pay—
(1) for all journeyman Customs inspectors and
Canine Enforcement Officers who have completed at
least one year’s service and are receiving an annual
rate of basic pay for positions at GS–9 of the General
Schedule under section 5332 of title 5, United States
Code, from the annual rate of basic pay payable for
positions at GS–9 of the General Schedule under sec-
tion 5332, to an annual rate of basic pay payable for
positions at GS–11 of the General Schedule under
such section 5332; and
(2) for the support staff associated with the per-
sonnel described in subparagraph (A), at the appro-
priate GS level of the General Schedule under such
section 5332.
CHAPTER 4—ANTITERRORISM
PROVISIONS
SEC. 1141. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS
OF ENTRY, OR STAFFING OF THE CUSTOMS
SERVICE.
Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318)
is amended—
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(1) by striking ‘‘Whenever the President’’ and in-
serting ‘‘(a) Whenever the President’’; and
(2) by adding at the end the following:
‘‘(b)(1) Notwithstanding any other provision of law,
the Secretary of the Treasury, when necessary to respond
to a national emergency declared under the National Emer-
gencies Act (50 U.S.C. 1601 et seq.) or to a specific threat
to human life or national interests, is authorized to take
the following actions on a temporary basis:
‘‘(A) Eliminate, consolidate, or relocate any of-
fice or port of entry of the Customs Service.
‘‘(B) Modify hours of service, alter services ren-
dered at any location, or reduce the number of em-
ployees at any location.
‘‘(C) Take any other action that may be nec-
essary to directly respond to the national emergency
or specific threat.
‘‘(2) Notwithstanding any other provision of law, the
Commissioner of Customs, when necessary to respond to a
specific threat to human life or national interests, is author-
ized to close temporarily any Customs office or port of entry
or take any other lesser action that may be necessary to
respond to the specific threat.
‘‘(3) The Secretary of the Treasury or the Commis-
sioner of Customs, as the case may be, shall notify the Com-
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mittee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate not later than
72 hours after taking any action under paragraph (1) or
(2).’’.
SEC. 1142. MANDATORY ADVANCED ELECTRONIC INFORMA-
TION FOR CARGO AND PASSENGERS.
(a) CARGO INFORMATION.—
(1) IN GENERAL.—Section 431(b) of the Tariff
Act of 1930 (19 U.S.C. 1431(b)) is amended—
(A) in the first sentence, by striking ‘‘Any
manifest’’ and inserting ‘‘(1) Any manifest’’;
and
(B) by adding at the end the following:
‘‘(2) In addition to any other requirement under this
section, for each land, air, or vessel carrier required to make
entry or obtain clearance under the customs laws of the
United States, the pilot, the master, operator, or owner of
such carrier (or the authorized agent of such operator or
owner) shall provide by electronic transmission cargo mani-
fest information in advance of such entry or clearance in
such manner, time, and form as prescribed under regula-
tions by the Secretary. The Secretary may exclude any class
of land, air, or vessel carrier for which the Secretary con-
cludes the requirements of this subparagraph are not nec-
essary.’’.
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(2) CONFORMING AMENDMENTS.—Subparagraphs
(A) and (C) of section 431(d)(1) of such Act are each
amended by inserting before the semicolon ‘‘or sub-
section (b)(2)’’.
(b) PASSENGER INFORMATION.—Part II of title IV of
the Tariff Act of 1930 (19 U.S.C. 1431 et seq.) is amended
by inserting after section 431 the following:
‘‘SEC. 432. PASSENGER AND CREW MANIFEST INFORMATION
REQUIRED FOR LAND, AIR, OR VESSEL CAR-
RIERS.
‘‘(a) IN GENERAL.—For every person arriving or de-
parting on a land, air, or vessel carrier required to make
entry or obtain clearance under the customs laws of the
United States, the pilot, the master, operator, or owner of
such carrier (or the authorized agent of such operator or
owner) shall provide by electronic transmission manifest in-
formation described in subsection (b) in advance of such
entry or clearance in such manner, time, and form as pre-
scribed under regulations by the Secretary.
‘‘(b) INFORMATION DESCRIBED.—The information de-
scribed in this subsection shall include for each person de-
scribed in subsection (a), the person’s—
‘‘(1) full name;
‘‘(2) date of birth and citizenship;
‘‘(3) gender;
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‘‘(4) passport number and country of issuance;
‘‘(5) United States visa number or resident alien
card number, as applicable;
‘‘(6) passenger name record; and
‘‘(7) such additional information that the Sec-
retary, by regulation, determines is reasonably nec-
essary to ensure aviation and maritime safety pursu-
ant to the laws enforced or administered by the Cus-
toms Service.’’.
(c) DEFINITION.—Section 401 of the Tariff Act of 1930
(19 U.S.C. 1401) is amended by adding at the end the fol-
lowing:
‘‘(t) The term ‘land, air, or vessel carrier’ means a
land, air, or vessel carrier, as the case may be, that trans-
ports goods or passengers for payment or other consider-
ation, including money or services rendered.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall take effect beginning 45 days after the date
of enactment of this Act.
SEC. 1143. BORDER SEARCH AUTHORITY FOR CERTAIN CON-
TRABAND IN OUTBOUND MAIL.
(a) IN GENERAL.—The Tariff Act of 1930 is amended
by inserting after section 582 the following:
‘‘SEC. 583. EXAMINATION OF OUTBOUND MAIL.
‘‘(a) EXAMINATION.—
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‘‘(1) IN
GENERAL.—For purposes of ensuring
compliance with the Customs laws of the United
States and other laws enforced by the Customs Serv-
ice, including the provisions of law described in para-
graph (2), a Customs officer may, subject to the provi-
sions of this section, stop and search at the border,
without a search warrant, mail of domestic origin
transmitted for export by the United States Postal
Service and foreign mail transiting the United States
that is being imported or exported by the United
States Postal Service.
‘‘(2) PROVISIONS OF LAW DESCRIBED.—The pro-
visions of law described in this paragraph are the fol-
lowing:
‘‘(A) Section 5316 of title 31, United States
Code (relating to reports on exporting and im-
porting monetary instruments).
‘‘(B) Sections 1461, 1463, 1465, and 1466,
and chapter 110 of title 18, United States Code
(relating to obscenity and child pornography).
‘‘(C) Section 1003 of the Controlled Sub-
stances Import and Export Act (relating to ex-
portation of controlled substances) (21 U.S.C.
953).
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‘‘(D) The Export Administration Act of
1979 (50 U.S.C. App. 2401 et seq.).
‘‘(E) Section 38 of the Arms Export Control
Act (22 U.S.C. 2778).
‘‘(F) The International Emergency Eco-
nomic Powers Act (50 U.S.C. 1701 et seq.).
‘‘(b) SEARCH OF MAIL NOT SEALED AGAINST INSPEC-
TION AND OTHER MAIL.—Mail not sealed against inspec-
tion under the postal laws and regulations of the United
States, mail which bears a Customs declaration, and mail
with respect to which the sender or addressee has consented
in writing to search, may be searched by a Customs officer.
‘‘(c) SEARCH OF MAIL SEALED AGAINST INSPECTION
WEIGHING IN EXCESS OF 16 OUNCES.—
‘‘(1) IN GENERAL.—Mail weighing in excess of 16
ounces sealed against inspection under the postal laws and
regulations of the United States may be searched by a Cus-
toms officer, subject to paragraph (2), if there is reasonable
cause to suspect that such mail contains one or more of
the following:
‘‘(A) Monetary instruments, as defined in section
1956 of title 18, United States Code.
‘‘(B) A weapon of mass destruction, as defined
in section 2332a(b) of title 18, United States Code.
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‘‘(C) A drug or other substance listed in schedule
I, II, III, or IV in section 202 of the Controlled Sub-
stances Act (21 U.S.C. 812).
‘‘(D) National defense and related information
transmitted in violation of any of sections 793
through 798 of title 18, United States Code.
‘‘(E) Merchandise mailed in violation of section
1715 or 1716 of title 18, United States Code.
‘‘(F) Merchandise mailed in violation of any
provision of chapter 71 (relating to obscenity) or
chapter 110 (relating to sexual exploitation and other
abuse of children) of title 18, United States Code.
‘‘(G) Merchandise mailed in violation of the Ex-
port Administration Act of 1979 (50 U.S.C. App.
2401 et seq.).
‘‘(H) Merchandise mailed in violation of section
38 of the Arms Export Control Act (22 U.S.C. 2778).
‘‘(I) Merchandise mailed in violation of the
International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.).
‘‘(J) Merchandise mailed in violation of the
Trading with the Enemy Act (50 U.S.C. App. 1 et
seq.).
‘‘(K) Merchandise subject to any other law en-
forced by the Customs Service.
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‘‘(2) LIMITATION.—No person acting under the
authority of paragraph (1) shall read, or authorize
any other person to read, any correspondence con-
tained in mail sealed against inspection unless prior
to so reading—
‘‘(A) a search warrant has been issued pur-
suant to rule 41 of the Federal Rules of Criminal
Procedure; or
‘‘(B) the sender or addressee has given writ-
ten authorization for such reading.
‘‘(d) SEARCH OF MAIL SEALED AGAINST INSPECTION
WEIGHING 16 OUNCES OR LESS.—Notwithstanding any
other provision of this section, subsection (a)(1) shall not
apply to mail weighing 16 ounces or less sealed against in-
spection under the postal laws and regulations of the United
States.’’.
(b) CERTIFICATION BY SECRETARY.—Not later than 3
months after the date of enactment of this section, the Sec-
retary of State shall determine whether the application of
section 583 of the Tariff Act of 1930 to foreign mail
transiting the United States that is imported or exported
by the United States Postal Service is being handled in a
manner consistent with international law and any inter-
national obligation of the United States. Section 583 of such
Act shall not apply to such foreign mail unless the Sec-
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retary certifies to Congress that the application of such sec-
tion 583 is consistent with international law and any inter-
national obligation of the United States.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this section and the amendments made by
this section shall take effect on the date of enactment
of this Act.
(2) CERTIFICATION WITH RESPECT TO FOREIGN
MAIL.—The provisions of section 583 of the Tariff Act
of 1930 relating to foreign mail transiting the United
States that is imported or exported by the United
States Postal Service shall not take effect until the
Secretary of State certifies to Congress, pursuant to
subsection (b), that the application of such section
583 is consistent with international law and any
international obligation of the United States.
SEC. 1144. AUTHORIZATION OF APPROPRIATIONS FOR RE-
ESTABLISHMENT OF CUSTOMS OPERATIONS
IN NEW YORK CITY.
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be ap-
propriated for the reestablishment of operations of the
Customs Service in New York, New York, such sums
as may be necessary for fiscal year 2003.
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(2) OPERATIONS
DESCRIBED.—The operations
referred to in paragraph (1) include, but are not lim-
ited to, the following:
(A) Operations relating to the Port Director
of New York City, the New York Customs Man-
agement Center (including the Director of Field
Operations), and the Special Agent-In-Charge
for New York.
(B) Commercial operations, including tex-
tile enforcement operations and salaries and ex-
penses of—
(i) trade specialists who determine the
origin and value of merchandise;
(ii) analysts who monitor the entry
data into the United States of textiles and
textile products; and
(iii) Customs officials who work with
foreign governments to examine textile mak-
ers and verify entry information.
(b) AVAILABILITY.—Amounts appropriated pursuant
to the authorization of appropriations under subsection (a)
are authorized to remain available until expended.
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CHAPTER 5—TEXTILE TRANSSHIPMENT
PROVISIONS
SEC. 1151. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONI-
TORING BY CUSTOMS SERVICE.
(a) GAO AUDIT.—The Comptroller General of the
United States shall conduct an audit of the system estab-
lished and carried out by the Customs Service to monitor
textile transshipment.
(b) REPORT.—Not later than 9 months after the date
of enactment of this Act, the Comptroller General shall sub-
mit to the Committee on Ways and Means of the House
of Representatives and Committee on Finance of the Senate
a report that contains the results of the study conducted
under subsection (a), including recommendations for im-
provements to the transshipment monitoring system if ap-
plicable.
(c) 
TRANSSHIPMENT
DESCRIBED.—Transshipment
within the meaning of this section has occurred when pref-
erential treatment under any provision of law has been
claimed for a textile or apparel article on the basis of mate-
rial false information concerning the country of origin,
manufacture, processing, or assembly of the article or any
of its components. For purposes of the preceding sentence,
false information is material if disclosure of the true infor-
mation would mean or would have meant that the article
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is or was ineligible for preferential treatment under the pro-
vision of law in question.
SEC. 1152. AUTHORIZATION OF APPROPRIATIONS FOR TEX-
TILE TRANSSHIPMENT ENFORCEMENT OPER-
ATIONS.
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be ap-
propriated for textile transshipment enforcement oper-
ations of the Customs Service $9,500,000 for fiscal
year 2003.
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under
paragraph (1) are authorized to remain available
until expended.
(b) USE OF FUNDS.—Of the amount appropriated
pursuant to the authorization of appropriations under sub-
section (a), the following amounts are authorized to be made
available for the following purposes:
(1) IMPORT
SPECIALISTS.—$1,463,000 for 21
Customs import specialists to be assigned to selected
ports for documentation review to support detentions
and exclusions and 1 additional Customs import spe-
cialist assigned to the Customs headquarters textile
program to administer the program and provide over-
sight.
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(2) INSPECTORS.—$652,080 for 10 Customs in-
spectors to be assigned to selected ports to examine
targeted high-risk shipments.
(3) INVESTIGATORS.—(A) $1,165,380 for 10 in-
vestigators to be assigned to selected ports to inves-
tigate instances of smuggling, quota and trade agree-
ment circumvention, and use of counterfeit visas to
enter inadmissible goods.
(B) $149,603 for 1 investigator to be assigned to
Customs headquarters textile program to coordinate
and ensure implementation of textile production
verification team results from an investigation per-
spective.
(4) 
INTERNATIONAL
TRADE
SPECIALISTS.—
$226,500 for 3 international trade specialists to be
assigned to Customs headquarters to be dedicated to
illegal textile transshipment policy issues and other
free trade agreement enforcement issues.
(5) PERMANENT IMPORT SPECIALISTS FOR HONG
KONG.—$500,000 for 2 permanent import specialist
positions and $500,000 for 2 investigators to be as-
signed to Hong Kong to work with Hong Kong and
other government authorities in Southeast Asia to as-
sist such authorities pursue proactive enforcement of
bilateral trade agreements.
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(6) VARIOUS PERMANENT TRADE POSITIONS.—
$3,500,000 for the following:
(A) 2 permanent positions to be assigned to
the Customs attache´ office in Central America to
address trade enforcement issues for that region.
(B) 2 permanent positions to be assigned to
the Customs attache´ office in South Africa to ad-
dress trade enforcement issues pursuant to the
African Growth and Opportunity Act (title I of
Public Law 106–200).
(C) 4 permanent positions to be assigned to
the Customs attache´ office in Mexico to address
the threat of illegal textile transshipment through
Mexico and other related issues under the North
American Free Trade Agreement Act.
(D) 2 permanent positions to be assigned to
the Customs attache´ office in Seoul, South Korea,
to address the trade issues in the geographic re-
gion.
(E) 2 permanent positions to be assigned to
the proposed Customs attache´ office in New
Delhi, India, to address the threat of illegal tex-
tile transshipment and other trade enforcement
issues.
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(F) 2 permanent positions to be assigned to
the Customs attache´ office in Rome, Italy, to ad-
dress trade enforcement issues in the geographic
region, including issues under free trade agree-
ments with Jordan and Israel.
(7) ATTORNEYS.—$179,886 for 2 attorneys for
the Office of the Chief Counsel of the Customs Service
to pursue cases regarding illegal textile trans-
shipment.
(8) AUDITORS.—$510,000 for 6 Customs audi-
tors to perform internal control reviews and document
and record reviews of suspect importers.
(9) ADDITIONAL TRAVEL FUNDS.—$250,000 for
deployment 
of 
additional 
textile 
production
verification teams to sub-Saharan Africa.
(10) TRAINING.—(A) $75,000 for training of
Customs personnel.
(B) $200,000 for training for foreign counter-
parts in risk management analytical techniques and
for teaching factory inspection techniques, model law
Development, and enforcement techniques.
(11) OUTREACH.—$60,000 for outreach efforts to
United States importers.
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SEC. 1153. IMPLEMENTATION OF THE AFRICAN GROWTH
AND OPPORTUNITY ACT.
Of the amount made available for fiscal year 2003
under section 301(b)(2)(A) of the Customs Procedural Re-
form and Simplification Act of 1978 (19 U.S.C.
2075(b)(2)(A)), as amended by section 1111(b)(1) of this
title, $1,317,000 shall be available until expended for the
Customs Service to provide technical assistance to help sub-
Saharan Africa countries develop and implement effective
visa and anti-transshipment systems as required by the Af-
rican Growth and Opportunity Act (title I of Public Law
106–200), as follows:
(1) TRAVEL FUNDS.—$600,000 for import spe-
cialists, special agents, and other qualified Customs
personnel to travel to sub-Saharan Africa countries to
provide technical assistance in developing and imple-
menting effective visa and anti-transshipment sys-
tems.
(2) IMPORT SPECIALISTS.—$266,000 for 4 im-
port specialists to be assigned to Customs head-
quarters to be dedicated to providing technical assist-
ance to sub-Saharan African countries for developing
and implementing effective visa and anti-trans-
shipment systems.
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(3) DATA RECONCILIATION ANALYSTS.—$151,000
for 2 data reconciliation analysts to review apparel
shipments.
(4) SPECIAL
AGENTS.—$300,000 for 2 special
agents to be assigned to Customs headquarters to be
available to provide technical assistance to sub-Saha-
ran African countries in the performance of investiga-
tions and other enforcement initiatives.
Subtitle B—Office of the United
States Trade Representative
SEC. 1161. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 141(g)(1) of the Trade Act
of 1974 (19 U.S.C. 2171(g)(1)) is amended—
(1) in subparagraph (A)—
(A) in the matter preceding clause (i), by
striking ‘‘not to exceed’’;
(B) in clause (i) to read as follows:
‘‘(i) $30,000,000 for fiscal year 2003.’’; and
(C) in clause (ii) to read as follows:
‘‘(ii) $31,000,000 for fiscal year 2004.’’; and
(2) in subparagraph (B)—
(A) in clause (i), by adding ‘‘and’’ at the
end;
(B) by striking clause (ii); and
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(C) by redesignating clause (iii) as clause
(ii).
(b) SUBMISSION
OF OUT-YEAR BUDGET PROJEC-
TIONS.—Section 141(g) of the Trade Act of 1974 (19 U.S.C.
2171(g)) is amended by adding at the end the following:
‘‘(3) By not later than the date on which the President
submits to Congress the budget of the United States Govern-
ment for a fiscal year, the United States Trade Representa-
tive shall submit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance
of the Senate the projected amount of funds for the suc-
ceeding fiscal year that will be necessary for the Office to
carry out its functions.’’.
(c) ADDITIONAL STAFF FOR OFFICE OF ASSISTANT
U.S. TRADE REPRESENTATIVE FOR CONGRESSIONAL AF-
FAIRS.—
(1) IN GENERAL.—There is authorized to be ap-
propriated such sums as may be necessary for fiscal
year 2003 for the salaries and expenses of two addi-
tional legislative specialist employee positions within
the Office of the Assistant United States Trade Rep-
resentative for Congressional Affairs.
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under
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paragraph (1) are authorized to remain available
until expended.
Subtitle C—United States
International Trade Commission
SEC. 1171. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 330(e)(2)(A) of the Tariff
Act of 1930 (19 U.S.C. 1330(e)(2)) is amended—
(1) in clause (i) to read as follows:
‘‘(i) $51,400,000 for fiscal year 2003.’’; and
(2) in clause (ii) to read as follows:
‘‘(ii) $53,400,000 for fiscal year 2004.’’.
(b) SUBMISSION
OF OUT-YEAR BUDGET PROJEC-
TIONS.—Section 330(e) of the Tariff Act of 1930 (19 U.S.C.
1330(e)(2)) is amended by adding at the end the following:
‘‘(4) By not later than the date on which the President
submits to Congress the budget of the United States Govern-
ment for a fiscal year, the Commission shall submit to the
Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate the pro-
jected amount of funds for the succeeding fiscal year that
will be necessary for the Commission to carry out its func-
tions.’’.
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Subtitle D—Other Trade Provisions
SEC. 1181. INCREASE IN AGGREGATE VALUE OF ARTICLES
EXEMPT FROM DUTY ACQUIRED ABROAD BY
UNITED STATES RESIDENTS.
(a) IN GENERAL.—Subheading 9804.00.65 of the Har-
monized Tariff Schedule of the United States is amended
in the article description column by striking ‘‘$400’’ and
inserting ‘‘$800’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect 90 days after the date of enact-
ment of this Act.
SEC. 1182. REGULATORY AUDIT PROCEDURES.
Section 509(b) of the Tariff Act of 1930 (19 U.S.C.
1509(b)) is amended by adding at the end the following:
‘‘(6)(A) If during the course of any audit con-
cluded under this subsection, the Customs Service
identifies overpayments of duties or fees or over-dec-
larations of quantities or values that are within the
time period and scope of the audit that the Customs
Service has defined, then in calculating the loss of
revenue or monetary penalties under section 592, the
Customs Service shall treat the overpayments or over-
declarations on finally liquidated entries as an offset
to any underpayments or underdeclarations also
identified on finally liquidated entries if such over-
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payments or over-declarations were not made by the
person being audited for the purpose of violating any
provision of law.
‘‘(B) Nothing in this paragraph shall be con-
strued to authorize a refund not otherwise authorized
under section 520.’’.
Subtitle E—Sense of Senate
SEC. 1191. SENSE OF SENATE.
It is the sense of the Senate that fees collected for cer-
tain customs services (commonly referred to as ‘‘customs
user fees’’) provided for in section 13031 of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c) may be used only for the operations and programs of
the United States Customs Service.
DIVISION B—BIPARTISAN TRADE
PROMOTION AUTHORITY
TITLE XXI—TRADE PROMOTION
AUTHORITY
SEC. 2101. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This title may be cited as the ‘‘Bi-
partisan Trade Promotion Authority Act of 2002’’.
(b) FINDINGS.—Congress makes the following findings:
(1) The expansion of international trade is vital
to the national security of the United States. Trade
is critical to the economic growth and strength of the
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United States and to its leadership in the world. Sta-
ble trading relationships promote security and pros-
perity. Trade agreements today serve the same pur-
poses that security pacts played during the Cold War,
binding nations together through a series of mutual
rights and obligations. Leadership by the United
States in international trade fosters open markets, de-
mocracy, and peace throughout the world.
(2) The national security of the United States
depends on its economic security, which in turn is
founded upon a vibrant and growing industrial base.
Trade expansion has been the engine of economic
growth. Trade agreements maximize opportunities for
the critical sectors and building blocks of the economy
of the United States, such as information technology,
telecommunications and other leading technologies,
basic industries, capital equipment, medical equip-
ment, services, agriculture, environmental technology,
and intellectual property. Trade will create new op-
portunities for the United States and preserve the un-
paralleled strength of the United States in economic,
political, and military affairs. The United States, se-
cured by expanding trade and economic opportuni-
ties, will meet the challenges of the twenty-first cen-
tury.
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(3) Support for continued trade expansion re-
quires that dispute settlement procedures under inter-
national trade agreements not add to or diminish the
rights and obligations provided in such agreements.
Nevertheless, in several cases, dispute settlement pan-
els and the WTO Appellate Body have added to obli-
gations and diminished rights of the United States
under WTO Agreements. In particular, dispute settle-
ment panels and the Appellate Body have—
(A) given insufficient deference to the exper-
tise and fact-finding of the Department of Com-
merce and the United States International Trade
Commission;
(B) imposed an obligation concerning the
causal relationship between increased imports
into the United States and serious injury to do-
mestic industry necessary to support a safeguard
measure that is different from the obligation set
forth in the applicable WTO Agreements;
(C) imposed an obligation concerning the
exclusion from safeguards measures of products
imported from countries party to a free trade
agreement that is different from the obligation
set forth in the applicable WTO Agreements;
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(D) imposed obligations on the Department
of Commerce with respect to the use of facts
available in antidumping investigations that are
different from the obligations set forth in the ap-
plicable WTO Agreements; and
(E) accorded insufficient deference to the
Department of Commerce’s methodology for ad-
justing countervailing duties following the pri-
vatization of a subsidized foreign producer.
SEC. 2102. TRADE NEGOTIATING OBJECTIVES.
(a) OVERALL TRADE NEGOTIATING OBJECTIVES.—The
overall trade negotiating objectives of the United States for
agreements subject to the provisions of section 2103 are—
(1) to obtain more open, equitable, and recip-
rocal market access;
(2) to obtain the reduction or elimination of bar-
riers and distortions that are directly related to trade
and that decrease market opportunities for United
States exports or otherwise distort United States
trade;
(3) to further strengthen the system of inter-
national trading disciplines and procedures, includ-
ing dispute settlement;
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(4) to foster economic growth, raise living stand-
ards, and promote full employment in the United
States and to enhance the global economy;
(5) to ensure that trade and environmental poli-
cies are mutually supportive and to seek to protect
and preserve the environment and enhance the inter-
national means of doing so, while optimizing the use
of the world’s resources;
(6) to promote respect for worker rights and the
rights of children consistent with core labor standards
of the International Labor Organization (as defined
in section 2113(2)) and an understanding of the rela-
tionship between trade and worker rights;
(7) to seek provisions in trade agreements under
which parties to those agreements strive to ensure that
they do not weaken or reduce the protections afforded
in domestic environmental and labor laws as an en-
couragement fortrade; and
(8) to ensure that trade agreements afford small
businesses equal access to international markets, equi-
table trade benefits, expanded export market opportu-
nities, and provide for the reduction or elimination of
trade barriers that disproportionately impact small
business.
(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.—
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(1) TRADE BARRIERS AND DISTORTIONS.—The
principal negotiating objectives of the United States
regarding trade barriers and other trade distortions
are—
(A) to expand competitive market opportu-
nities for United States exports including motor
vehicles and vehicle parts and to obtain fairer
and more open conditions of trade by reducing
or eliminating tariff and nontariff barriers and
policies and practices of foreign governments di-
rectly related to trade that decrease market op-
portunities for United States exports or other-
wise distort United States trade; and
(B) to obtain reciprocal tariff and nontariff
barrier elimination agreements, with particular
attention to those tariff categories covered in sec-
tion 111(b) of the Uruguay Round Agreements
Act (19 U.S.C. 3521(b)).
(2) TRADE IN SERVICES.—The principal negoti-
ating objective of the United States regarding trade in
services is to reduce or eliminate barriers to inter-
national trade in services, including regulatory and
other barriers that deny national treatment and mar-
ket access or unreasonably restrict the establishment
or operations of service suppliers.
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(3) FOREIGN
INVESTMENT.—Recognizing that
United States law on the whole provides a high level
of protection for investment, consistent with or great-
er than the level required by international law, the
principal negotiating objectives of the United States
regarding foreign investment are to reduce or elimi-
nate artificial or trade-distorting barriers to trade-re-
lated foreign investment, while ensuring that foreign
investors in the United States are not accorded great-
er rights than United States investors in the United
States, and to secure for investors important rights
comparable to those that would be available under
United States legal principles and practice, by—
(A) reducing or eliminating exceptions to
the principle of national treatment;
(B) freeing the transfer of funds relating to
investments;
(C) reducing or eliminating performance re-
quirements, forced technology transfers, and
other unreasonable barriers to the establishment
and operation of investments;
(D) seeking to establish standards for expro-
priation and compensation for expropriation,
consistent with United States legal principles
and practice;
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(E) seeking to establish standards for fair
and equitable treatment consistent with United
States legal principles and practice, including
the principle of due process;
(F) providing meaningful procedures for re-
solving investment disputes;
(G) seeking to improve mechanisms used to
resolve disputes between an investor and a gov-
ernment through—
(i) mechanisms to eliminate frivolous
claims and to deter the filing of frivolous
claims;
(ii) procedures to ensure the efficient
selection of arbitrators and the expeditious
disposition of claims;
(iii) procedures to enhance opportuni-
ties for public input into the formulation of
government positions; and
(iv) establishment of a single appellate
body to review decisions in investor-to-gov-
ernment disputes and thereby provide coher-
ence to the interpretations of investment
provisions in trade agreements; and
(H) ensuring the fullest measure of trans-
parency in the dispute settlement mechanism, to
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the extent consistent with the need to protect in-
formation that is classified or business confiden-
tial, by—
(i) ensuring that all requests for dis-
pute settlement are promptly made public;
(ii) ensuring that—
(I) all proceedings, submissions,
findings, and decisions are promptly
made public;
(II) all hearings are open to the
public; and
(iii) establishing a mechanism for ac-
ceptance of amicus curiae submissions from
businesses, unions, and nongovernmental or-
ganizations.
(4) INTELLECTUAL
PROPERTY.—The principal
negotiating objectives of the United States regarding
trade-related intellectual property are—
(A) to further promote adequate and effec-
tive protection of intellectual property rights, in-
cluding through—
(i)(I) ensuring accelerated and full im-
plementation of the Agreement on Trade-Re-
lated Aspects of Intellectual Property Rights
referred to in section 101(d)(1 5) of the Uru-
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guay Round Agreements Act (19 U.S.C.
3511(d)(15)), particularly with respect to
meeting enforcement obligations under that
agreement; and
(II) ensuring that the provisions of
any multilateral or bilateral trade agree-
ment governing intellectual property rights
that is entered into by the United States re-
flect a standard of protection similar to
that found in United States law;
(ii) providing strong protection for
new and emerging technologies and new
methods of transmitting and distributing
products embodying intellectual property;
(iii) preventing or eliminating dis-
crimination with respect to matters affect-
ing the availability, acquisition, scope,
maintenance, use, and enforcement of intel-
lectual property rights;
(iv) ensuring that standards of protec-
tion and enforcement keep pace with techno-
logical developments, and in particular en-
suring that rightholders have the legal and
technological means to control the use of
their works through the Internet and other
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global communication media, and to pre-
vent the unauthorized use of their works;
and
(v) providing strong enforcement of in-
tellectual property rights, including through
accessible, expeditious, and effective civil,
administrative, and criminal enforcement
mechanisms;
(B) to secure fair, equitable, and non-
discriminatory market access opportunities for
United States persons that rely upon intellectual
property protection; and
(C) to respect the Declaration on the TRIPS
Agreement and Public Health, adopted by the
World Trade Organization at the Fourth Min-
isterial Conference at Doha, Qatar on November
14, 2001.
(5) TRANSPARENCY.—The principal negotiating
objective of the United States with respect to trans-
parency is to obtain wider and broader application
of the principle of transparency through—
(A) increased and more timely public access
to information regarding trade issues and the ac-
tivities of international trade institutions;
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(B) increased openness at the WTO and
other international trade fora by increasing pub-
lic access to appropriate meetings, proceedings,
and submissions, including with regard to dis-
pute settlement and investment; and
(C) increased and more timely public access
to all notifications and supporting documenta-
tion submitted by parties to the WTO.
(6) ANTI-CORRUPTION.—The principal negoti-
ating objectives of the United States with respect to
the use of money or other things of value to influence
acts, decisions, or omissions of foreign governments or
officials or to secure any improper advantage in a
manner affecting trade are—
(A) to obtain high standards and appro-
priate domestic enforcement mechanisms appli-
cable to persons from all countries participating
in the applicable trade agreement that prohibit
such attempts to influence acts, decisions, or
omissions of foreign governments; and
(B) to ensure that such standards do not
place United States persons at a competitive dis-
advantage in international trade.
(7) IMPROVEMENT OF THE WTO AND MULTILAT-
ERAL
TRADE
AGREEMENTS.—The principal negoti-
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ating objectives of the United States regarding the im-
provement of the World Trade Organization, the Uru-
guay Round Agreements, and other multilateral and
bilateral trade agreements are—
(A) to achieve full implementation and ex-
tend the coverage of the World Trade Organiza-
tion and such agreements to products, sectors,
and conditions of trade not adequately covered;
and
(B) to expand country participation in and
enhancement of the Information Technology
Agreement and other trade agreements.
(8) REGULATORY PRACTICES.—The principal ne-
gotiating objectives of the United States regarding the
use of government regulation or other practices by for-
eign governments to provide a competitive advantage
to their domestic producers, service providers, or in-
vestors and thereby reduce market access for United
States goods, services, and investments are—
(A) to achieve increased transparency and
opportunity for the participation of affected par-
ties in the development of regulations;
(B) to require that proposed regulations be
based on sound science, cost-benefit analysis, risk
assessment, or other objective evidence;
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(C) to establish consultative mechanisms
among parties to trade agreements to promote
increased transparency in developing guidelines,
rules, regulations, and laws for government pro-
curement and other regulatory regimes; and
(D) to achieve the elimination of govern-
ment measures such as price controls and ref-
erence pricing which deny full market access for
United States products.
(9) ELECTRONIC COMMERCE.—The principal ne-
gotiating objectives of the United States with respect
to electronic commerce are—
(A) to ensure that current obligations, rules,
disciplines, and commitments under the World
Trade Organization apply to electronic com-
merce;
(B) to ensure that—
(i) electronically delivered goods and
services receive no less favorable treatment
under trade rules and commitments than
like products delivered in physical form;
and
(ii) the classification of such goods and
services ensures the most liberal trade treat-
ment possible;
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(C) to ensure that governments refrain from
implementing trade-related measures that im-
pede electronic commerce;
(D) where legitimate policy objectives re-
quire domestic regulations that affect electronic
commerce, to obtain commitments that any such
regulations are the least restrictive on trade,
nondiscriminatory, and transparent, and pro-
mote an open market environment; and
(E) to extend the moratorium of the World
Trade Organization on duties on electronic
transmissions.
(10) RECIPROCAL TRADE IN AGRICULTURE.—
(A) IN
GENERAL.—The principal negoti-
ating objective of the United States with respect
to agriculture is to obtain competitive opportuni-
ties for United States exports of agricultural
commodities in foreign markets substantially
equivalent to the competitive opportunities af-
forded foreign exports in United States markets
and to achieve fairer and more open conditions
of trade in bulk, specialty crop, and value-added
commodities by—
(i) reducing or eliminating, by a date
certain, tariffs or other charges that de-
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crease market opportunities for United
States exports—
(I) giving priority to those prod-
ucts that are subject to significantly
higher tariffs or subsidy regimes of
major producing countries; and
(II) providing reasonable adjust-
ment periods for United States import-
sensitive products, in close consultation
with the Congress on such products be-
fore initiating tariff reduction negotia-
tions;
(ii) reducing tariffs to levels that are
the same as or lower than those in the
United States;
(iii) seeking to eliminate all export
subsidies on agricultural commodities while
maintaining bona fide food aid and pre-
serving United States agricultural market
development and export credit programs
that allow the United States to compete
with other foreign export promotion efforts;
(iv) allowing the preservation of pro-
grams that support family farms and rural
communities but do not distort trade;
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(v) developing disciplines for domestic
support programs, so that production that
is in excess of domestic food security needs
is sold at world prices;
(vi) eliminating Government policies
that create price-depressing surpluses;
(vii) eliminating state trading enter-
prises whenever possible;
(viii) developing, strengthening, and
clarifying rules and effective dispute settle-
ment mechanisms to eliminate practices
that unfairly decrease United States market
access opportunities or distort agricultural
markets to the detriment of the United
States, particularly with respect to import-
sensitive products, including—
(I) unfair or trade-distorting ac-
tivities of state trading enterprises and
other administrative mechanisms, with
emphasis on requiring price trans-
parency in the operation of state trad-
ing enterprises and such other mecha-
nisms in order to end cross subsidiza-
tion, price discrimination, and price
undercutting;
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(II) unjustified trade restrictions
or commercial requirements, such as
labeling, that affect new technologies,
including biotechnology;
(III) 
unjustified 
sanitary 
or
phytosanitary restrictions, including
those not based on scientific principles
in 
contravention 
of 
the 
Uruguay
Round Agreements;
(IV) other unjustified technical
barriers to trade; and
(V) restrictive rules in the admin-
istration of tariff rate quotas;
(ix) eliminating practices that ad-
versely affect trade in perishable or cyclical
products, while improving import relief
mechanisms to recognize the unique charac-
teristics of perishable and cyclical agri-
culture;
(x) ensuring that the use of import re-
lief mechanisms for perishable and cyclical
agriculture are as accessible and timely to
growers in the United States as those mech-
anisms that are used by other countries;
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(xi) taking into account whether a
party to the negotiations has failed to ad-
here to the provisions of already existing
trade agreements with the United States or
has circumvented obligations under those
agreements;
(xii) taking into account whether a
product is subject to market distortions by
reason of a failure of a major producing
country to adhere to the provisions of al-
ready existing trade agreements with the
United States or by the circumvention by
that country of its obligations under those
agreements;
(xiii) otherwise ensuring that countries
that accede to the World Trade Organiza-
tion have made meaningful market liberal-
ization commitments in agriculture;
(xiv) taking into account the impact
that agreements covering agriculture to
which the United States is a party, includ-
ing the North American Free Trade Agree-
ment, have on the United States agricul-
tural industry;
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(xv) maintaining bona fide food assist-
ance programs and preserving United
States market development and export cred-
it programs; and
(xvi) strive to complete a general mul-
tilateral round in the World Trade Organi-
zation by January 1, 2005, and seek the
broadest market access possible in multilat-
eral, regional, and bilateral negotiations,
recognizing the effect that simultaneous sets
of negotiations may have on United States
import-sensitive 
commodities 
(including
those subject to tariff-rate quotas).
(B) CONSULTATION.—
(i) BEFORE
COMMENCING
NEGOTIA-
TIONS.—Before 
commencing 
negotiations
with respect to agriculture, the United
States Trade Representative, in consulta-
tion with the Congress, shall seek to develop
a position on the treatment of seasonal and
perishable agricultural products to be em-
ployed in the negotiations in order to de-
velop an international consensus on the
treatment of seasonal or perishable agricul-
tural products in investigations relating to
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dumping and safeguards and in any other
relevant area.
(ii) DURING
NEGOTIATIONS.—During
any negotiations on agricultural subsidies,
the United States Trade Representative
shall seek to establish the common base year
for calculating the Aggregated Measurement
of Support (as defined in the Agreement on
Agriculture) as the end of each country’s
Uruguay Round implementation period, as
reported in each country’s Uruguay Round
market access schedule.
(iii) SCOPE OF OBJECTIVE.—The nego-
tiating objective provided in subparagraph
(A) applies with respect to agricultural
matters to be addressed in any trade agree-
ment entered into under section 2103 (a) or
(b), including any trade agreement entered
into under section 2103 (a) or (b) that pro-
vides for accession to a trade agreement to
which the United States is already a party,
such as the North American Free Trade
Agreement and the United States-Canada
Free Trade Agreement.
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(11) LABOR AND THE ENVIRONMENT.—The prin-
cipal negotiating objectives of the United States with
respect to labor and the environment are—
(A) to ensure that a party to a trade agree-
ment with the United States does not fail to ef-
fectively enforce its environmental or labor laws,
through a sustained or recurring course of action
or inaction, in a manner affecting trade between
the United States and that party after entry into
force of a trade agreement between those coun-
tries;
(B) to recognize that parties to a trade
agreement retain the right to exercise discretion
with respect to investigatory, prosecutorial, regu-
latory, and compliance matters and to make de-
cisions regarding the allocation of resources to
enforcement with respect to other labor or envi-
ronmental matters determined to have higher
priorities, and to recognize that a country is ef-
fectively enforcing its laws if a course of action
or inaction reflects a reasonable exercise of such
discretion, or results from a bona fide decision
regarding the allocation of resources and no re-
taliation may be authorized based on the exercise
of these rights or the right to establish domestic
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labor standards and levels of environmental pro-
tection;
(C) to strengthen the capacity of United
States trading partners to promote respect for
core labor standards (as defined in section
2113(2));
(D) to strengthen the capacity of United
States trading partners to protect the environ-
ment through the promotion of sustainable devel-
opment;
(E) to reduce or eliminate government prac-
tices or policies that unduly threaten sustainable
development;
(F) to seek market access, through the elimi-
nation of tariffs and nontariff barriers, for
United States environmental technologies, goods,
and services; and
(G) to ensure that labor, environmental,
health, or safety policies and practices of the
parties to trade agreements with the United
States do not arbitrarily or unjustifiably dis-
criminate against United States exports or serve
as disguised barriers to trade.
(12) HUMAN
RIGHTS
AND
DEMOCRACY.—The
principal negotiating objective regarding human
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rights and democracy is to obtain provisions in trade
agreements that require parties to those agreements to
strive to protect internationally recognized civil, po-
litical, and human rights.
(13) DISPUTE
SETTLEMENT
AND
ENFORCE-
MENT.—The principal negotiating objectives of the
United States with respect to dispute settlement and
enforcement of trade agreements are—
(A) to seek provisions in trade agreements
providing for resolution of disputes between gov-
ernments under those trade agreements in an ef-
fective, timely, transparent, equitable, and rea-
soned manner, requiring determinations based
on facts and the principles of the agreements,
with the goal of increasing compliance with the
agreements;
(B) to seek to strengthen the capacity of the
Trade Policy Review Mechanism of the World
Trade Organization to review compliance with
commitments;
(C) to seek improved adherence by panels
convened under the WTO Understanding on
Rules and Procedures Governing the Settlement
of Disputes and by the WTO Appellate Body to
the standard of review applicable under the
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WTO Agreement involved in the dispute, includ-
ing greater deference, where appropriate, to the
fact finding and technical expertise of national
investigating authorities;
(D) to seek provisions encouraging the early
identification and settlement of disputes through
consultation;
(E) to seek provisions to encourage the pro-
vision of trade-expanding compensation if a
party to a dispute under the agreement does not
come into compliance with its obligations under
the agreement;
(F) to seek provisions to impose a penalty
upon a party to a dispute under the agreement
that—
(i) encourages compliance with the ob-
ligations of the agreement;
(ii) is appropriate to the parties, na-
ture, subject matter, and scope of the viola-
tion; and
(iii) has the aim of not adversely af-
fecting parties or interests not party to the
dispute while maintaining the effectiveness
of the enforcement mechanism; and
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(G) to seek provisions that treat United
States principal negotiating objectives equally
with respect to—
(i) the ability to resort to dispute set-
tlement under the applicable agreement;
(ii) the availability of equivalent dis-
pute settlement procedures; and
(iii) the availability of equivalent rem-
edies.
(14) BORDER TAXES.—The principal negotiating
objective of the United States regarding border taxes
is to obtain a revision of the WTO rules with respect
to the treatment of border adjustments for internal
taxes to redress the disadvantage to countries relying
primarily on direct taxes for revenue rather than in-
direct taxes.
(15) 
WTO 
EXTENDED
NEGOTIATIONS.—The
principal negotiating objectives of the United States
regarding trade in civil aircraft are those set forth in
section 135(c) of the Uruguay Round Agreements Act
(19 U.S.C. 3355(c)) and regarding rules of origin are
the conclusion of an agreement described in section
132 of that Act (19 U.S.C. 3552).
(16) TEXTILE NEGOTIATIONS.—
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(A) IN
GENERAL.—The principal negoti-
ating objectives of the United States with respect
to trade in textiles and apparel articles is to ob-
tain competitive opportunities for United States
exports of textiles and apparel in foreign markets
substantially equivalent to the competitive op-
portunities afforded foreign exports in United
States markets and to achieve fairer and more
open conditions of trade in textiles and apparel
by—
(i) reducing to levels that are the same
as, or lower than, those in the United
States, or eliminating, by a date certain,
tariffs or other charges that decrease market
opportunities for United States exports of
textiles and apparel;
(ii) eliminating by a date certain non-
tariff barriers that decrease market opportu-
nities for United States textile and apparel
articles;
(iii) reducing or eliminating subsidies
that decrease market opportunities for
United States exports or unfairly distort
textile and apparel markets to the detriment
of the United States;
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(iv) developing, strengthening, and
clarifying rules to eliminate practices that
unfairly decrease United States market ac-
cess opportunities or distort textile and ap-
parel markets to the detriment of the United
States;
(v) taking into account whether a
party to the negotiations has failed to ad-
here to the provisions of already existing
trade agreements with the United States or
has circumvented obligations under those
agreements;
(vi) taking into account whether a
product is subject to market distortions by
reason of a failure of a major producing
country to adhere to the provisions of al-
ready existing trade agreements with the
United States or by the circumvention by
that country of its obligations under those
agreements;
(vii) otherwise ensuring that countries
that accede to the World Trade Organiza-
tion have made meaningful market liberal-
ization commitments in textiles and ap-
parel; and
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(viii) taking into account the impact
that agreements covering textiles and ap-
parel trade to which the United States is al-
ready a party are having on the United
States textile and apparel industry.
(B) SCOPE OF OBJECTIVE.—The negotiating
objectives set forth in subparagraph (A) apply
with respect to trade in textile and apparel arti-
cles to be addressed in any trade agreement en-
tered into under section 2103 (a) or (b), includ-
ing any trade agreement entered under section
2103 (a) or (b) that provides for accession to a
trade agreement to which the United States is al-
ready a party.
(17) WORST
FORMS
OF
CHILD
LABOR.—The
principal negotiating objectives of the United States
regarding the trade-related aspects of the worst forms
of child labor are—
(A) to prevent distortions in the conduct of
international trade caused by the use of the
worst forms of child labor, in whole or in part,
in the production of goods for export in inter-
national commerce; and
(B) to redress unfair and illegitimate com-
petition based upon the use of the worst forms of
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child labor, in whole or in part, in the produc-
tion of goods for export in international com-
merce, including through—
(i) promoting universal ratification
and full compliance by all trading nations
with ILO Convention No. 182 Concerning
the Prohibition and Immediate Action for
the Elimination of the Worst Forms of
Child Labor, particularly with respect to
meeting enforcement obligations under that
Convention and related international agree-
ments;
(ii) pursuing action under Article XX
of GATT 1994 to allow WTO members to
restrict imports of goods found to be pro-
duced with the worst forms of child labor;
(iii) seeking commitments by parties to
any multilateral or bilateral trade agree-
ment that is entered into by the United
States to ensure that national laws reflect
international standards regarding preven-
tion of the use of the worst forms of child
labor, especially in the conduct of inter-
national trade; and
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(iv) seeking commitments by trade
agreement parties to vigorously enforce laws
prohibiting the use of the worst forms of
child labor, especially in the conduct of
international trade, through accessible, ex-
peditious, and effective civil, administra-
tive, and criminal enforcement mechanisms.
(c) PROMOTION OF CERTAIN PRIORITIES.—In order to
address and maintain United States competitiveness in the
global economy, the President shall—
(1) seek greater cooperation between the WTO
and the ILO;
(2) seek to establish consultative mechanisms
among parties to trade agreements to strengthen the
capacity of United States trading partners to promote
respect for core labor standards (as defined in section
2113(2)), and report to the Committee on Ways and
Means of the House of Representatives and the Com-
mittee on Finance of the Senate on the content and
operation of such mechanisms;
(3) seek to establish consultative mechanisms
among parties to trade agreements to strengthen the
capacity of United States trading partners to develop
and implement standards for the protection of the en-
vironment and human health based on sound science,
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and report to the Committee on Ways and Means of
the House of Representatives and the Committee on
Finance of the Senate on the content and operation
of such mechanisms;
(4) conduct environmental reviews of future
trade and investment agreements, consistent with Ex-
ecutive Order 13141 of November 16, 1999 and the
relevant guidelines, and report to the Committee on
Ways and Means of the House of Representatives and
the Committee on Finance of the Senate on such re-
views;
(5) review the impact of future trade agreements
on United States employment, modeled after Execu-
tive Order 13141, taking into account the impact on
job security, the level of compensation of new jobs and
existing jobs, the displacement of employment, and the
regional distribution of employment, utilizing experi-
ence from previous trade agreements and alternative
models of employment analysis, report to the Com-
mittee on Ways and Means of the House of Represent-
atives and the Committee on Finance of the Senate on
such review, and make that report available to the
public;
(6) take into account other legitimate United
States domestic objectives including, but not limited
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to, the protection of legitimate health or safety, essen-
tial security, and consumer interests and the law and
regulations related thereto;
(7) have the Secretary of Labor consult with any
country seeking a trade agreement with the United
States concerning that country’s labor laws and pro-
vide technical assistance to that country if needed;
(8) in connection with any trade negotiations
entered into under this Act, the President shall submit
to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of
the Senate a meaningful labor rights report of the
country, or countries, with respect to which the Presi-
dent is negotiating, on a time frame determined in
accordance with section 2107(b)(2)(E);
(9)(A) preserve the ability of the United States
to enforce rigorously its trade laws, including the
antidumping, countervailing duty, and safeguard
laws, and avoid agreements that lessen the effective-
ness of domestic and international disciplines on un-
fair trade, especially dumping and subsidies, or that
lessen the effectiveness of domestic and international
safeguard provisions, in order to ensure that United
States workers, agricultural producers, and firms can
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compete fully on fair terms and enjoy the benefits of
reciprocal trade concessions; and
(B) address and remedy market distortions that
lead to dumping and subsidization, including over-
capacity, cartelization, and market-access barriers.
(10) continue to promote consideration of multi-
lateral environmental agreements and consult with
parties to such agreements regarding the consistency
of any such agreement that includes trade measures
with existing environmental exceptions under Article
XX of the GATT 1994;
(11) report to the Committee on Ways and
Means of the House of Representatives and the Com-
mittee on Finance of the Senate, not later than 12
months after the imposition of a penalty or remedy
by the United States permitted by a trade agreement
to which this title applies, on the effectiveness of the
penalty or remedy applied under United States law
in enforcing United States rights under the trade
agreement; and
(12) seek to establish consultative mechanisms
among parties to trade agreements to examine the
trade consequences of significant and unanticipated
currency movements and to scrutinize whether a for-
eign government engaged in a pattern of manipu-
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HR 3009 EAS
lating its currency to promote a competitive advan-
tage in international trade.
The report required under paragraph (11) shall address
whether the penalty or remedy was effective in changing
the behavior of the targeted party and whether the penalty
or remedy had any adverse impact on parties or interests
not party to the dispute.
(d) CONSULTATIONS.—
(1) CONSULTATIONS WITH CONGRESSIONAL AD-
VISERS.—In the course of negotiations conducted
under this title, the United States Trade Representa-
tive shall consult closely and on a timely basis with,
and keep fully apprised of the negotiations, the Con-
gressional Oversight Group convened under section
2107 and all committees of the House of Representa-
tives and the Senate with jurisdiction over laws that
would be affected by a trade agreement resulting from
the negotiations.
(2) CONSULTATION
BEFORE
AGREEMENT
INI-
TIALED.—In the course of negotiations conducted
under this title, the United States Trade Representa-
tive shall—
(A) consult closely and on a timely basis
(including immediately before initialing an
agreement) with, and keep fully apprised of the
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negotiations, the congressional advisers for trade
policy and negotiations appointed under section
161 of the Trade Act of 1974 (19 U.S.C. 2211),
the Committee on Ways and Means of the House
of Representatives, the Committee on Finance of
the Senate, and the Congressional Oversight
Group convened under section 2107; and
(B) with regard to any negotiations and
agreement relating to agricultural trade, also
consult closely and on a timely basis (including
immediately before initialing an agreement)
with, and keep fully apprised of the negotiations,
the Committee on Agriculture of the House of
Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
(e) ADHERENCE TO OBLIGATIONS UNDER URUGUAY
ROUND AGREEMENTS.—In determining whether to enter
into negotiations with a particular country, the President
shall take into account the extent to which that country has
implemented, or has accelerated the implementation of, its
obligations under the Uruguay Round Agreements.
SEC. 2103. TRADE AGREEMENTS AUTHORITY.
(a) AGREEMENTS REGARDING TARIFF BARRIERS.—
(1) IN GENERAL.—Whenever the President deter-
mines that one or more existing duties or other im-
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port restrictions of any foreign country or the United
States are unduly burdening and restricting the for-
eign trade of the United States and that the purposes,
policies, priorities, and objectives of this title will be
promoted thereby, the President—
(A) may enter into trade agreements with
foreign countries before—
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities
procedures are extended under subsection
(c); and
(B) may, subject to paragraphs (2) and (3),
proclaim—
(i) such modification or continuance of
any existing duty,
(ii) such continuance of existing duty-
free or excise treatment, or
(iii) such additional duties,
as the President determines to be required or ap-
propriate to carry out any such trade agreement.
The President shall notify the Congress of the Presi-
dent’s intention to enter into an agreement under this
subsection.
(2) LIMITATIONS.—No proclamation may be
made under paragraph (1) that—
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(A) reduces any rate of duty (other than a
rate of duty that does not exceed 5 percent ad va-
lorem on the date of the enactment of this Act)
to a rate of duty which is less than 50 percent
of the rate of such duty that applies on such date
of enactment;
(B) reduces the rate of duty below that ap-
plicable under the Uruguay Round Agreements,
on any import sensitive agricultural product; or
(C) increases any rate of duty above the
rate that applied on the date of the enactment of
this Act.
(3) AGGREGATE REDUCTION; EXEMPTION FROM
STAGING.—
(A) AGGREGATE
REDUCTION.—Except as
provided in subparagraph (B), the aggregate re-
duction in the rate of duty on any article which
is in effect on any day pursuant to a trade
agreement entered into under paragraph (1)
shall not exceed the aggregate reduction which
would have been in effect on such day if—
(i) a reduction of 3 percent ad valorem
or a reduction of one-tenth of the total re-
duction, whichever is greater, had taken ef-
fect on the effective date of the first reduc-
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tion proclaimed under paragraph (1) to
carry out such agreement with respect to
such article; and
(ii) a reduction equal to the amount
applicable under clause (i) had taken effect
at 1-year intervals after the effective date of
such first reduction.
(B) EXEMPTION FROM STAGING.—No stag-
ing is required under subparagraph (A) with re-
spect to a duty reduction that is proclaimed
under paragraph (1) for an article of a kind
that is not produced in the United States. The
United States International Trade Commission
shall advise the President of the identity of arti-
cles that may be exempted from staging under
this subparagraph.
(4) ROUNDING.—If the President determines that
such action will simplify the computation of reduc-
tions under paragraph (3), the President may round
an annual reduction by an amount equal to the lesser
of—
(A) the difference between the reduction
without regard to this paragraph and the next
lower whole number; or
(B) one-half of 1 percent ad valorem.
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(5) OTHER LIMITATIONS.—A rate of duty reduc-
tion that may not be proclaimed by reason of para-
graph (2) may take effect only if a provision author-
izing such reduction is included within an imple-
menting bill provided for under section 2105 and that
bill is enacted into law.
(6) OTHER
TARIFF
MODIFICATIONS.—Notwith-
standing paragraphs (1)(B), (2)(A), (2)(C), and (3)
through (5), and subject to the consultation and lay-
over requirements of section 115 of the Uruguay
Round Agreements Act, the President may proclaim
the modification of any duty or staged rate reduction
of any duty set forth in Schedule XX, as defined in
section 2102(5) of that Act, if the United States
agrees to such modification or staged rate reduction
in a negotiation for the reciprocal elimination or har-
monization of duties under the auspices of the World
Trade Organization.
(7) AUTHORITY UNDER URUGUAY ROUND AGREE-
MENTS ACT NOT AFFECTED.—Nothing in this sub-
section shall limit the authority provided to the Presi-
dent under section 111(b) of the Uruguay Round
Agreements Act (19 U.S.C. 3521(b)).
(b) AGREEMENTS REGARDING TARIFF AND NONTARIFF
BARRIERS.—
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(1) IN GENERAL.—
(A) 
DETERMINATION
BY
PRESIDENT.—
Whenever the President determines that—
(i) one or more existing duties or any
other import restriction of any foreign
country or the United States or any other
barrier to, or other distortion of, inter-
national trade unduly burdens or restricts
the foreign trade of the United States or ad-
versely affects the United States economy; or
(ii) the imposition of any such barrier
or distortion is likely to result in such a
burden, restriction, or effect;
and that the purposes, policies, priorities, and
objectives of this title will be promoted thereby,
the President may enter into a trade agreement
described in subparagraph (B) during the period
described in subparagraph (C).
(B) AGREEMENT TO REDUCE OR ELIMINATE
CERTAIN DISTORTION.—The President may enter
into a trade agreement under subparagraph (A)
with foreign countries providing for—
(i) the reduction or elimination of a
duty, restriction, barrier, or other distortion
described in subparagraph (A), or
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(ii) the prohibition of, or limitation on
the imposition of, such barrier or other dis-
tortion.
(C) TIME
PERIOD.—The President may
enter into a trade agreement under this para-
graph before—
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities
procedures are extended under subsection
(c).
(2) CONDITIONS.—A trade agreement may be en-
tered into under this subsection only if such agree-
ment makes progress in meeting the applicable objec-
tives described in section 2102 (a) and (b) and the
President satisfies the conditions set forth in section
2104.
(3) BILLS QUALIFYING FOR TRADE AUTHORITIES
PROCEDURES.—
(A) APPLICATION
OF
EXPEDITED
PROCE-
DURES.—The provisions of section 151 of the
Trade Act of 1974 (in this title referred to as
‘‘trade authorities procedures’’) apply to a bill of
either House of Congress which contains provi-
sions described in subparagraph (B) to the same
extent as such section 151 applies to imple-
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menting bills under that section. A bill to which
this paragraph applies shall hereafter in this
title be referred to as an ‘‘implementing bill’’.
(B) PROVISIONS
DESCRIBED.—The provi-
sions referred to in subparagraph (A) are—
(i) a provision approving a trade
agreement entered into under this subsection
and approving the statement of administra-
tive action, if any, proposed to implement
such trade agreement; and
(ii) if changes in existing laws or new
statutory authority are required to imple-
ment such trade agreement or agreements,
provisions, necessary or appropriate to im-
plement such trade agreement or agree-
ments, either repealing or amending exist-
ing laws or providing new statutory author-
ity.
(4) LIMITATIONS ON TRADE AUTHORITIES PRO-
CEDURES.—
(A) IN
GENERAL.—Notwithstanding any
other provision of law, the provisions of section
151 of the Trade Act of 1974 (trade authorities
procedures) shall not apply to any provision in
an implementing bill being considered by the
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against any part of the implementing bill
that contains material in violation of sub-
paragraph (A), and the point of order is
sustained by the Presiding Officer, the part
of the implementing bill against which the
point of order is sustained shall be stricken
from the bill.
(ii) WAIVERS AND APPEALS.—
(I) WAIVERS.—Before the Pre-
siding Officer rules on a point of order
described in clause (i), any Senator
may move to waive the point of order
and the motion to waive shall not be
subject to amendment. A point of order
described in clause (i) is waived only
by the affirmative vote of a majority of
the Members of the Senate, duly chosen
and sworn.
(II) APPEALS.—After the Pre-
siding Officer rules on a point of order
under this subparagraph, any Senator
may appeal the ruling of the Presiding
Officer on the point of order as it ap-
plies to some or all of the provisions on
which the Presiding Officer ruled. A
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ruling of the Presiding Officer on a
point of order described in clause (i) is
sustained unless a majority of the
Members of the Senate, duly chosen
and sworn, vote not to sustain the rul-
ing.
(III) DEBATE.—Debate on a mo-
tion to waive under subclause (I) or on
an appeal of the ruling of the Pre-
siding Officer under subclause (II)
shall be limited to 1 hour. The time
shall be equally divided between, and
controlled by, the majority leader and
the minority leader, or their designees.
(c) EXTENSION DISAPPROVAL PROCESS FOR CONGRES-
SIONAL TRADE AUTHORITIES PROCEDURES.—
(1) IN GENERAL.—Except as provided in section
2105(b)—
(A) the trade authorities procedures apply
to implementing bills submitted with respect to
trade agreements entered into under subsection
(b) before July 1, 2005; and
(B) the trade authorities procedures shall be
extended to implementing bills submitted with
respect to trade agreements entered into under
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subsection (b) after June 30, 2005, and before
July 1, 2007, if (and only if)—
(i) the President requests such exten-
sion under paragraph (2); and
(ii) neither House of the Congress
adopts an extension disapproval resolution
under paragraph (5) before June 1, 2005.
(2) REPORT
TO
CONGRESS
BY
THE
PRESI-
DENT.—If the President is of the opinion that the
trade authorities procedures should be extended to im-
plementing bills described in paragraph (1)(B), the
President shall submit to the Congress, not later than
March 1, 2005, a written report that contains a re-
quest for such extension, together with—
(A) a description of all trade agreements
that have been negotiated under subsection (b)
and the anticipated schedule for submitting such
agreements to the Congress for approval;
(B) a description of the progress that has
been made in negotiations to achieve the pur-
poses, policies, priorities, and objectives of this
title, and a statement that such progress justifies
the continuation of negotiations; and
(C) a statement of the reasons why the ex-
tension is needed to complete the negotiations.
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(3) OTHER REPORTS TO CONGRESS.—
(A) REPORT
BY
THE
ADVISORY
COM-
MITTEE.—The President shall promptly inform
the Advisory Committee for Trade Policy and
Negotiations established under section 135 of the
Trade Act of 1974 (19 U.S.C. 2155) of the Presi-
dent’s decision to submit a report to the Congress
under paragraph (2). The Advisory Committee
shall submit to the Congress as soon as prac-
ticable, but not later than May 1, 2005, a writ-
ten report that contains—
(i) its views regarding the progress
that has been made in negotiations to
achieve the purposes, policies, priorities,
and objectives of this title; and
(ii) a statement of its views, and the
reasons therefor, regarding whether the ex-
tension requested under paragraph (2)
should be approved or disapproved.
(B) REPORT BY ITC.—The President shall
promptly inform the International Trade Com-
mission of the President’s decision to submit a
report to the Congress under paragraph (2). The
International Trade Commission shall submit to
the Congress as soon as practicable, but not later
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than May 1, 2005, a written report that contains
a review and analysis of the economic impact on
the United States of all trade agreements imple-
mented between the date of enactment of this Act
and the date on which the President decides to
seek an extension requested under paragraph (2).
(4) STATUS
OF
REPORTS.—The reports sub-
mitted to the Congress under paragraphs (2) and (3),
or any portion of such reports, may be classified to
the extent the President determines appropriate.
(5) EXTENSION DISAPPROVAL RESOLUTIONS.—
(A) DEFINITION.—For purposes of para-
graph (1), the term ‘‘extension disapproval reso-
lution’’ means a resolution of either House of the
Congress, the sole matter after the resolving
clause of which is as follows: ‘‘That the
lllll disapproves the request of the Presi-
dent 
for 
the 
extension, 
under 
section
2103(c)(1)(B)(i) of the Bipartisan Trade Pro-
motion Authority Act of 2002, of the trade au-
thorities procedures under that Act to any imple-
menting bill submitted with respect to any trade
agreement entered into under section 2103(b) of
that Act after June 30, 2005.’’, with the blank
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space being filled with the name of the resolving
House of the Congress.
(B) 
INTRODUCTION.—Extension 
dis-
approval resolutions—
(i) may be introduced in either House
of the Congress by any member of such
House; and
(ii) shall be referred, in the House of
Representatives, to the Committee on Ways
and Means and, in addition, to the Com-
mittee on Rules.
(C) APPLICATION OF SECTION 152 OF THE
TRADE ACT OF 1974.—The provisions of section
152 (d) and (e) of the Trade Act of 1974 (19
U.S.C. 2192 (d) and (e)) (relating to the floor
consideration of certain resolutions in the House
and Senate) apply to extension disapproval reso-
lutions.
(D) LIMITATIONS.—It is not in order for—
(i) the Senate to consider any exten-
sion disapproval resolution not reported by
the Committee on Finance;
(ii) the House of Representatives to
consider any extension disapproval resolu-
tion not reported by the Committee on Ways
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and Means and, in addition, by the Com-
mittee on Rules; or
(iii) either House of the Congress to
consider an extension disapproval resolution
after June 30, 2005.
(d) COMMENCEMENT OF NEGOTIATIONS.—In order to
contribute to the continued economic expansion of the
United States, the President shall commence negotiations
covering tariff and nontariff barriers affecting any indus-
try, product, or service sector, and expand existing sectoral
agreements to countries that are not parties to those agree-
ments, in cases where the President determines that such
negotiations are feasible and timely and would benefit the
United States. Such sectors include agriculture, commercial
services, intellectual property rights, industrial and capital
goods, government procurement, information technology
products, environmental technology and services, medical
equipment and services, civil aircraft, and infrastructure
products. In so doing, the President shall take into account
all of the principal negotiating objectives set forth in section
2102(b).
SEC. 2104. CONSULTATIONS AND ASSESSMENT.
(a) NOTICE AND CONSULTATION BEFORE NEGOTIA-
TION.—The President, with respect to any agreement that
is subject to the provisions of section 2103(b), shall—
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(1) provide, at least 90 calendar days before ini-
tiating negotiations, written notice to the Congress of
the President’s intention to enter into the negotiations
and set forth therein the date the President intends to
initiate such negotiations, the specific United States
objectives for the negotiations, and whether the Presi-
dent intends to seek an agreement, or changes to an
existing agreement;
(2) before and after submission of the notice, con-
sult regarding the negotiations with the Committee on
Finance of the Senate and the Committee on Ways
and Means of the House of Representatives, such other
committees of the House and Senate as the President
deems appropriate, and the Congressional Oversight
group convened under section 2107; and
(3) upon the request of a majority of the mem-
bers of the Congressional Oversight Group under sec-
tion 2107(c), meet with the Congressional Oversight
Group before initiating the negotiations or at any
other time concerning the negotiations.
(b) NEGOTIATIONS REGARDING AGRICULTURE
AND
FISHING INDUSTRY.—
(1) IN
GENERAL.—Before initiating or con-
tinuing negotiations the subject matter of which is di-
rectly related to the subject matter under section
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2102(b)(10)(A)(i) with any country, the President
shall assess whether United States tariffs on agricul-
tural products that were bound under the Uruguay
Round Agreements are lower than the tariffs bound
by that country. In addition, the President shall con-
sider whether the tariff levels bound and applied
throughout the world with respect to imports from the
United States are higher than United States tariffs
and whether the negotiation provides an opportunity
to address any such disparity. The President shall
consult with the Committee on Ways and Means and
the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Finance and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate concerning the results of the assessment,
whether it is appropriate for the United States to
agree to further tariff reductions based on the conclu-
sions reached in the assessment, and how all applica-
ble negotiating objectives will be met.
(2) SPECIAL CONSULTATIONS ON IMPORT SEN-
SITIVE PRODUCTS.—
(A) IN GENERAL.—Before initiating nego-
tiations with regard to agriculture, and, with re-
spect to the Free Trade Area for the Americas
and negotiations with regard to agriculture
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under the auspices of the World Trade Organiza-
tion, as soon as practicable after the enactment
of this Act, the United States Trade Representa-
tive shall—
(i) identify those agricultural products
subject to tariff-rate quotas on the date of
enactment of this Act, and agricultural
products subject to tariff reductions by the
United States as a result of the Uruguay
Round Agreements, for which the rate of
duty was reduced on January 1, 1995, to a
rate which was not less than 97.5 percent of
the rate of duty that applied to such article
on December 31, 1994;
(ii) consult with the Committee on
Ways and Means and the Committee on Ag-
riculture of the House of Representatives
and the Committee on Finance and the
Committee on Agriculture, Nutrition, and
Forestry of the Senate concerning—
(I) whether any further tariff re-
ductions on the products identified
under clause (i) should be appropriate,
taking into account the impact of any
such tariff reduction on the United
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States industry producing the product
concerned;
(II) whether the products so iden-
tified face unjustified sanitary or
phytosanitary restrictions, including
those not based on scientific principles
in 
contravention 
of 
the 
Uruguay
Round Agreements; and
(III) whether the countries par-
ticipating in the negotiations maintain
export subsidies or other programs,
policies, or practices that distort world
trade in such products and the impact
of such programs, policies, and prac-
tices on United States producers of the
products;
(iii) request that the International
Trade Commission prepare an assessment of
the probable economic effects of any such
tariff reduction on the United States indus-
try producing the product concerned and on
the United States economy as a whole; and
(iv) upon complying with clauses (i),
(ii), and (iii), notify the Committee on
Ways and Means and the Committee on Ag-
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riculture of the House of Representatives
and the Committee on Finance and the
Committee on Agriculture, Nutrition, and
Forestry of the Senate of those products
identified under clause (i) for which the
Trade Representative intends to seek tariff
liberalization in the negotiations and the
reasons for seeking such tariff liberalization.
(B) IDENTIFICATION OF ADDITIONAL AGRI-
CULTURAL PRODUCTS.—If, after negotiations de-
scribed in subparagraph (A) are commenced—
(i) the United States Trade Represent-
ative identifies any additional agricultural
product described in subparagraph (A)(i)
for tariff reductions which were not the sub-
ject of a notification under subparagraph
(A)(iv), or
(ii) any additional agricultural prod-
uct described in subparagraph (A)(i) is the
subject of a request for tariff reductions by
a party to the negotiations,
the Trade Representative shall, as soon as prac-
ticable, notify the committees referred to in sub-
paragraph (A)(iv) of those products and the rea-
sons for seeking such tariff reductions.
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(3) NEGOTIATIONS REGARDING THE FISHING IN-
DUSTRY.—Before initiating, or continuing, negotia-
tions which directly relate to fish or shellfish trade
with any country, the President shall consult with the
Committee on Ways and Means and the Committee
on Resources of the House of Representatives, and the
Committee on Finance and the Committee on Com-
merce, Science, and Transportation of the Senate,
and shall keep the Committees apprised of negotia-
tions on an ongoing and timely basis.
(c) NEGOTIATIONS
REGARDING
TEXTILES.—Before
initiating or continuing negotiations the subject matter of
which is directly related to textiles and apparel products
with any country, the President shall assess whether United
States tariffs on textile and apparel products that were
bound under the Uruguay Round Agreements are lower
than the tariffs bound by that country and whether the ne-
gotiation provides an opportunity to address any such dis-
parity. The President shall consult with the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate concerning the results
of the assessment, whether it is appropriate for the United
States to agree to further tariff reductions based on the con-
clusions reached in the assessment, and how all applicable
negotiating objectives will be met.
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(d) CONSULTATION WITH CONGRESS BEFORE AGREE-
MENTS ENTERED INTO.—
(1) CONSULTATION.—Before entering into any
trade agreement under section 2103(b), the President
shall consult with—
(A) the Committee on Ways and Means of
the House of Representatives and the Committee
on Finance of the Senate;
(B) each other committee of the House and
the Senate, and each joint committee of the Con-
gress, which has jurisdiction over legislation in-
volving subject matters which would be affected
by the trade agreement; and
(C) the Congressional Oversight Group con-
vened under section 2107.
(2) SCOPE.—The consultation described in para-
graph (1) shall include consultation with respect to—
(A) the nature of the agreement;
(B) how and to what extent the agreement
will achieve the applicable purposes, policies,
priorities, and objectives of this title; and
(C) the implementation of the agreement
under section 2105, including the general effect
of the agreement on existing laws.
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(3) REPORT REGARDING UNITED STATES TRADE
REMEDY LAWS.—
(A) CHANGES IN CERTAIN TRADE LAWS.—
The President, at least 90 calendar days before
the day on which the President enters into a
trade agreement, shall notify the Committee on
Ways and Means of the House of Representatives
and the Committee on Finance of the Senate in
writing of any amendments to title VII of the
Tariff Act of 1930 or chapter 1 of title II of the
Trade Act of 1974 that the President proposes to
include in a bill implementing such trade agree-
ment.
(B) EXPLANATION.—On the date that the
President transmits the notification, the Presi-
dent also shall transmit to the Committees a re-
port explaining—
(i) the President’s reasons for believing
that amendments to title VII of the Tariff
Act of 1930 or to chapter 1 of title II of the
Trade Act of 1974 are necessary to imple-
ment the trade agreement; and
(ii) the President’s reasons for believ-
ing that such amendments are consistent
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with the purposes, policies, and objectives
described in section 2102(c)(9).
(C) REPORT TO HOUSE.—Not later than 60
calendar days after the date on which the Presi-
dent transmits the notification described in sub-
paragraph (A), the Chairman and ranking mem-
ber of the Ways and Means Committee of the
House of Representatives, based on consultations
with the members of that Committee, shall issue
to the House of Representatives a report stating
whether the proposed amendments described in
the President’s notification are consistent with
the purposes, policies, and objectives described in
section 2102(c)(9). In the event that the Chair-
man and ranking member disagree with respect
to one or more conclusions, the report shall con-
tain the separate views of the Chairman and
ranking member.
(D) REPORT TO SENATE.—Not later than
60 calendar days after the date on which the
President transmits the notification described in
subparagraph (A), the Chairman and ranking
member of the Finance Committee of the Senate,
based on consultations with the members of that
Committee, shall issue to the Senate a report
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stating whether the proposed amendments de-
scribed in the President’s report are consistent
with the purposes, policies, and objectives de-
scribed in section 2102(c)(9). In the event that
the Chairman and ranking member disagree
with respect to one or more conclusions, the re-
port shall contain the separate views of the
Chairman and ranking member.
(e) ADVISORY COMMITTEE REPORTS.—The report re-
quired under section 135(e)(1) of the Trade Act of 1974 re-
garding any trade agreement entered into under section
2103 (a) or (b) of this title shall be provided to the Presi-
dent, the Congress, and the United States Trade Represent-
ative not later than 30 days after the date on which the
President notifies the Congress under section 2103(a)(1) or
2105(a)(1)(A) of the President’s intention to enter into the
agreement.
(f) ITC ASSESSMENT.—
(1) IN GENERAL.—The President, at least 90 cal-
endar days before the day on which the President en-
ters into a trade agreement under section 2103(b),
shall provide the International Trade Commission
(referred to in this subsection as ‘‘the Commission’’)
with the details of the agreement as it exists at that
time and request the Commission to prepare and sub-
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mit an assessment of the agreement as described in
paragraph (2). Between the time the President makes
the request under this paragraph and the time the
Commission submits the assessment, the President
shall keep the Commission current with respect to the
details of the agreement.
(2) ITC ASSESSMENT.—Not later than 90 cal-
endar days after the President enters into the agree-
ment, the Commission shall submit to the President
and the Congress a report assessing the likely impact
of the agreement on the United States economy as a
whole and on specific industry sectors, including the
impact the agreement will have on the gross domestic
product, exports and imports, aggregate employment
and employment opportunities, the production, em-
ployment, and competitive position of industries like-
ly to be significantly affected by the agreement, and
the interests of United States consumers.
(3) REVIEW
OF
EMPIRICAL
LITERATURE.—In
preparing the assessment, the Commission shall re-
view available economic assessments regarding the
agreement, including literature regarding any sub-
stantially equivalent proposed agreement, and shall
provide in its assessment a description of the analyses
used and conclusions drawn in such literature, and a
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discussion of areas of consensus and divergence be-
tween the various analyses and conclusions, including
those of the Commission regarding the agreement.
SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.
(a) IN GENERAL.—
(1) NOTIFICATION AND SUBMISSION.—Any agree-
ment entered into under section 2103(b) shall enter
into force with respect to the United States if (and
only if)—
(A) the President, at least 90 calendar days
before the day on which the President enters into
an agreement—
(i) notifies the House of Representa-
tives and the Senate of the President’s in-
tention to enter into the agreement, and
promptly thereafter publishes notice of such
intention in the Federal Register; and
(ii) transmits to the Committee on
Ways and Means of the House of Represent-
atives and the Committee on Finance of the
Senate the notification and report described
in section 2104(d)(3) (A) and (B);
(B) within 60 days after entering into the
agreement, the President submits to the Congress
a description of those changes to existing laws
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that the President considers would be required in
order to bring the United States into compliance
with the agreement;
(C) after entering into the agreement, the
President submits to the Congress, on a day on
which both Houses of Congress are in session, a
copy of the final legal text of the agreement, to-
gether with—
(i) a draft of an implementing bill de-
scribed in section 2103(b)(3);
(ii) a statement of any administrative
action proposed to implement the trade
agreement; and
(iii) the supporting information de-
scribed in paragraph (2); and
(D) the implementing bill is enacted into
law.
(2) SUPPORTING INFORMATION.—The supporting
information required under paragraph (1)(C)(iii)
consists of—
(A) an explanation as to how the imple-
menting bill and proposed administrative action
will change or affect existing law; and
(B) a statement—
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(i) asserting that the agreement makes
progress in achieving the applicable pur-
poses, policies, priorities, and objectives of
this title; and
(ii) setting forth the reasons of the
President regarding—
(I) how and to what extent the
agreement makes progress in achieving
the applicable purposes, policies, and
objectives referred to in clause (i);
(II) whether and how the agree-
ment changes provisions of an agree-
ment previously negotiated;
(III) how the agreement serves the
interests of United States commerce;
(IV) how the implementing bill
meets the standards set forth in section
2103(b)(3);
(V) how and to what extent the
agreement makes progress in achieving
the applicable purposes, policies, and
objectives referred to in section 2102(c)
regarding the promotion of certain pri-
orities; and
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(VI) in the event that the reports
described in section 2104(b)(3) (C) and
(D) contain any findings that the pro-
posed amendments are inconsistent
with the purposes, policies, and objec-
tives described in section 2102(c)(9),
an explanation as to why the President
believes such findings to be incorrect.
(3) RECIPROCAL BENEFITS.—In order to ensure
that a foreign country that is not a party to a trade
agreement entered into under section 2103(b) does not
receive benefits under the agreement unless the coun-
try is also subject to the obligations under the agree-
ment, the implementing bill submitted with respect to
the agreement shall provide that the benefits and obli-
gations under the agreement apply only to the parties
to the agreement, if such application is consistent
with the terms of the agreement. The implementing
bill may also provide that the benefits and obligations
under the agreement do not apply uniformly to all
parties to the agreement, if such application is con-
sistent with the terms of the agreement.
(4) DISCLOSURE OF COMMITMENTS.—Any agree-
ment or other understanding with a foreign govern-
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ment or governments (whether oral or in writing)
that—
(A) relates to a trade agreement with re-
spect to which Congress enacts implementing leg-
islation under trade authorities procedures, and
(B) is not disclosed to Congress before legis-
lation implementing that agreement is intro-
duced in either House of Congress,
shall not be considered to be part of the agreement ap-
proved by Congress and shall have no force and effect
under United States law or in any dispute settlement
body.
(b) LIMITATIONS
ON TRADE AUTHORITIES PROCE-
DURES.—
(1) FOR LACK OF NOTICE OR CONSULTATIONS.—
(A) IN
GENERAL.—The trade authorities
procedures shall not apply to any implementing
bill submitted with respect to a trade agreement
or trade agreements entered into under section
2103(b) if during the 60-day period beginning
on the date that one House of Congress agrees to
a procedural disapproval resolution for lack of
notice or consultations with respect to such trade
agreement or agreements, the other House sepa-
rately agrees to a procedural disapproval resolu-
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tion with respect to such trade agreement or
agreements.
(B) PROCEDURAL
DISAPPROVAL
RESOLU-
TION.—(i) For purposes of this paragraph, the
term ‘‘procedural disapproval resolution’’ means
a resolution of either House of Congress, the sole
matter after the resolving clause of which is as
follows: ‘‘That the President has failed or refused
to notify or consult in accordance with the Bi-
partisan Trade Promotion Authority Act of 2002
on negotiations with respect to llllll
and, therefore, the trade authorities procedures
under that Act shall not apply to any imple-
menting bill submitted with respect to such trade
agreement or agreements.’’, with the blank space
being filled with a description of the trade agree-
ment or agreements with respect to which the
President is considered to have failed or refused
to notify or consult.
(ii) For purposes of clause (i), the President
has ‘‘failed or refused to notify or consult in ac-
cordance with the Bipartisan Trade Promotion
Authority Act of 2002’’ on negotiations with re-
spect to a trade agreement or trade agreements
if—
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(I) the President has failed or refused
to consult (as the case may be) in accord-
ance with section 2104 or 2105 with respect
to the negotiations, agreement, or agree-
ments;
(II) guidelines under section 2107(b)
have not been developed or met with respect
to the negotiations, agreement, or agree-
ments;
(III) the President has not met with
the Congressional Oversight Group pursu-
ant to a request made under section 2107(c)
with respect to the negotiations, agreement,
or agreements; or
(IV) the agreement or agreements fail
to make progress in achieving the purposes,
policies, priorities, and objectives of this
title.
(C) PROCEDURES FOR CONSIDERING RESO-
LUTIONS.—(i) 
Procedural 
disapproval
resolutions—
(I) in the House of Representatives—
(aa) may be introduced by any
Member of the House;
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(bb) shall be referred to the Com-
mittee on Ways and Means and, in ad-
dition, to the Committee on Rules; and
(cc) may not be amended by ei-
ther Committee; and
(II) in the Senate—
(aa) may be introduced by any
Member of the Senate.
(bb) shall be referred to the Com-
mittee on Finance; and
(cc) may not be amended.
(ii) The provisions of section 152 (d) and
(e) of the Trade Act of 1974 (19 U.S.C. 2192 (d)
and (e)) (relating to the floor consideration of
certain resolutions in the House and Senate)
apply to a procedural disapproval resolution in-
troduced with respect to a trade agreement if no
other procedural disapproval resolution with re-
spect to that trade agreement has previously been
considered under such provisions of section 152
of the Trade Act of 1974 in that House of Con-
gress during that Congress.
(iii) It is not in order for the House of Rep-
resentatives to consider any procedural dis-
approval resolution not reported by the Com-
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mittee on Ways and Means and, in addition, by
the Committee on Rules.
(iv) It is not in order for the Senate to con-
sider any procedural disapproval resolution not
reported by the Committee on Finance.
(2) FOR FAILURE TO MEET OTHER REQUIRE-
MENTS.—Prior to December 31, 2002, the Secretary of
Commerce shall transmit to Congress a report setting
forth the strategy of the United States for correcting
instances in which dispute settlement panels and the
Appellate Body of the WTO have added to obligations
or diminished rights of the United States, as de-
scribed in section 2101(b)(3). Trade authorities proce-
dures shall not apply to any implementing bill with
respect to an agreement negotiated under the auspices
of the WTO, unless the Secretary of Commerce has
issued such report in a timely manner.
(c) RULES OF HOUSE OF REPRESENTATIVES AND SEN-
ATE.—Subsection (b) of this section and section 2103(c) are
enacted by the Congress—
(1) as an exercise of the rulemaking power of the
House of Representatives and the Senate, respectively,
and as such are deemed a part of the rules of each
House, respectively, and such procedures supersede
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other rules only to the extent that they are incon-
sistent with such other rules; and
(2) with the full recognition of the constitutional
right of either House to change the rules (so far as re-
lating to the procedures of that House) at any time,
in the same manner, and to the same extent as any
other rule of that House.
SEC. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS
FOR WHICH NEGOTIATIONS HAVE ALREADY
BEGUN.
(a) CERTAIN
AGREEMENTS.—Notwithstanding the
prenegotiation notification and consultation requirement
described in section 2104(a), if an agreement to which sec-
tion 2103(b) applies—
(1) is entered into under the auspices of the
World Trade Organization,
(2) is entered into with Chile,
(3) is entered into with Singapore, or
(4) establishes a Free Trade Area for the Amer-
icas,
and results from negotiations that were commenced before
the date of the enactment of this Act, subsection (b) shall
apply.
(b) TREATMENT OF AGREEMENTS.—In the case of any
agreement to which subsection (a) applies—
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(1) the applicability of the trade authorities pro-
cedures to implementing bills shall be determined
without regard to the requirements of section 2104(a)
(relating only to 90 days notice prior to initiating
negotiations), and any procedural disapproval resolu-
tion under section 2105(b)(1)(B) shall not be in order
on the basis of a failure or refusal to comply with the
provisions of section 2104(a); and
(2) the President shall, as soon as feasible after
the enactment of this Act—
(A) notify the Congress of the negotiations
described in subsection (a), the specific United
States objectives in the negotiations, and whether
the President is seeking a new agreement or
changes to an existing agreement; and
(B) before and after submission of the no-
tice, consult regarding the negotiations with the
committees referred to in section 2104(a)(2) and
the Congressional Oversight Group.
SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP.
(a) MEMBERS AND FUNCTIONS.—
(1) IN GENERAL.—By not later than 60 days
after the date of the enactment of this Act, and not
later than 30 days after the convening of each Con-
gress, the chairman of the Committee on Ways and
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Means of the House of Representatives and the chair-
man of the Committee on Finance of the Senate shall
convene the Congressional Oversight Group.
(2) MEMBERSHIP FROM THE HOUSE.—In each
Congress, the Congressional Oversight Group shall be
comprised of the following Members of the House of
Representatives:
(A) The chairman and ranking member of
the Committee on Ways and Means, and 3 addi-
tional members of such Committee (not more
than 2 of whom are members of the same polit-
ical party).
(B) The chairman and ranking member, or
their designees, of the committees of the House of
Representatives which would have, under the
Rules of the House of Representatives, jurisdic-
tion over provisions of law affected by a trade
agreement negotiations for which are conducted
at any time during that Congress and to which
this title would apply.
(3) MEMBERSHIP FROM THE SENATE.—In each
Congress, the Congressional Oversight Group shall
also be comprised of the following members of the Sen-
ate:
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(A) The chairman and ranking Member of
the Committee on Finance and 3 additional
members of such Committee (not more than 2 of
whom are members of the same political party).
(B) The chairman and ranking member, or
their designees, of the committees of the Senate
which would have, under the Rules of the Senate,
jurisdiction over provisions of law affected by a
trade agreement negotiations for which are con-
ducted at any time during that Congress and to
which this title would apply.
(4) ACCREDITATION.—Each member of the Con-
gressional Oversight Group described in paragraph
(2)(A) and (3)(A) shall be accredited by the United
States Trade Representative on behalf of the President
as official advisers to the United States delegation in
negotiations for any trade agreement to which this
title applies. Each member of the Congressional Over-
sight Group described in paragraph (2)(B) and
(3)(B) shall be accredited by the United States Trade
Representative on behalf of the President as official
advisers to the United States delegation in the nego-
tiations by reason of which the member is in the Con-
gressional Oversight Group. The Congressional Over-
sight Group shall consult with and provide advice to
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the Trade Representative regarding the formulation of
specific objectives, negotiating strategies and posi-
tions, the development of the applicable trade agree-
ment, and compliance and enforcement of the nego-
tiated commitments under the trade agreement.
(5) CHAIR.—The Congressional Oversight Group
shall be chaired by the Chairman of the Committee on
Ways and Means of the House of Representatives and
the Chairman of the Committee on Finance of the
Senate.
(b) GUIDELINES.—
(1) PURPOSE AND REVISION.—The United States
Trade Representative, in consultation with the chair-
men and ranking minority members of the Committee
on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate—
(A) shall, within 120 days after the date of
the enactment of this Act, develop written guide-
lines to facilitate the useful and timely exchange
of information between the Trade Representative
and the Congressional Oversight Group estab-
lished under this section; and
(B) may make such revisions to the guide-
lines as may be necessary from time to time.
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(2) CONTENT.—The guidelines developed under
paragraph (1) shall provide for, among other
things—
(A) regular, detailed briefings of the Con-
gressional Oversight Group regarding negoti-
ating objectives, including the promotion of cer-
tain priorities referred to in section 2102(c), and
positions and the status of the applicable nego-
tiations, beginning as soon as practicable after
the Congressional Oversight Group is convened,
with more frequent briefings as trade negotia-
tions enter the final stage;
(B) access by members of the Congressional
Oversight Group, and staff with proper security
clearances, to pertinent documents relating to the
negotiations, including classified materials;
(C) the closest practicable coordination be-
tween the Trade Representative and the Congres-
sional Oversight Group at all critical periods
during the negotiations, including at negotiation
sites;
(D) after the applicable trade agreement is
concluded, consultation regarding ongoing com-
pliance and enforcement of negotiated commit-
ments under the trade agreement; and
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(E) the time frame for submitting the report
required under section 2102(c)(8).
(c) REQUEST FOR MEETING.—Upon the request of a
majority of the Congressional Oversight Group, the Presi-
dent shall meet with the Congressional Oversight Group be-
fore initiating negotiations with respect to a trade agree-
ment, or at any other time concerning the negotiations.
SEC. 2108. ADDITIONAL IMPLEMENTATION AND ENFORCE-
MENT REQUIREMENTS.
(a) IN GENERAL.—At the time the President submits
to the Congress the final text of an agreement pursuant to
section 2105(a)(1)(C), the President shall also submit a
plan for implementing and enforcing the agreement. The
implementation and enforcement plan shall include the fol-
lowing:
(1) BORDER PERSONNEL REQUIREMENTS.—A de-
scription of additional personnel required at border
entry points, including a list of additional customs
and agricultural inspectors.
(2) AGENCY STAFFING REQUIREMENTS.—A de-
scription of additional personnel required by Federal
agencies responsible for monitoring and implementing
the trade agreement, including personnel required by
the Office of the United States Trade Representative,
the Department of Commerce, the Department of Ag-
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riculture (including additional personnel required to
implement sanitary and phytosanitary measures in
order to obtain market access for United States ex-
ports), the Department of the Treasury, and such
other agencies as may be necessary.
(3) 
CUSTOMS
INFRASTRUCTURE
REQUIRE-
MENTS.—A description of the additional equipment
and facilities needed by the United States Customs
Service.
(4) IMPACT
ON
STATE
AND
LOCAL
GOVERN-
MENTS.—A description of the impact the trade agree-
ment will have on State and local governments as a
result of increases in trade.
(5) COST ANALYSIS.—An analysis of the costs as-
sociated with each of the items listed in paragraphs
(1) through (4).
(b) BUDGET SUBMISSION.—The President shall in-
clude a request for the resources necessary to support the
plan described in subsection (a) in the first budget that the
President submits to the Congress after the submission of
the plan.
SEC. 2109. COMMITTEE STAFF.
The grant of trade promotion authority under this title
is likely to increase the activities of the primary committees
of jurisdiction in the area of international trade. In addi-
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tion, the creation of the Congressional Oversight Group
under section 2107 will increase the participation of a
broader number of Members of Congress in the formulation
of United States trade policy and oversight of the inter-
national trade agenda for the United States. The primary
committees of jurisdiction should have adequate staff to ac-
commodate these increases in activities.
SEC. 2110. CONFORMING AMENDMENTS.
(a) IN GENERAL.—Title I of the Trade Act of 1974
(19 U.S.C. 2111 et seq.) is amended as follows:
(1) IMPLEMENTING BILL.—
(A) 
Section 
151(b)(1) 
(19 
U.S.C.
2191(b)(1)) is amended by striking ‘‘section
1103(a)(1) of the Omnibus Trade and Competi-
tiveness Act of 1988, or section 282 of the Uru-
guay Round Agreements Act’’ and inserting ‘‘sec-
tion 282 of the Uruguay Round Agreements Act,
or section 2105(a)(1) of the Bipartisan Trade
Promotion Authority Act of 2002’’.
(B) 
Section 
151(c)(1) 
(19 
U.S.C.
2191(c)(1)) is amended by striking ‘‘or section
282 of the Uruguay Round Agreements Act’’ and
inserting ‘‘, section 282 of the Uruguay Round
Agreements Act, or section 2105(a)(1) of the Bi-
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partisan Trade Promotion Authority Act of
2002’’.
(2) ADVICE FROM INTERNATIONAL TRADE COM-
MISSION.—Section 
131 
(19 
U.S.C. 
2151) 
is
amended—
(A) in subsection (a)—
(i) in paragraph (1), by striking ‘‘sec-
tion 123 of this Act or section 1102 (a) or
(c) of the Omnibus Trade and Competitive-
ness Act of 1988,’’ and inserting ‘‘section
123 of this Act or section 2103 (a) or (b) of
the Bipartisan Trade Promotion Authority
Act of 2002,’’; and
(ii) in paragraph (2), by striking ‘‘sec-
tion 1102 (b) or (c) of the Omnibus Trade
and Competitiveness Act of 1988’’ and in-
serting ‘‘section 2103(b) of the Bipartisan
Trade Promotion Authority Act of 2002’’;
(B) in subsection (b), by striking ‘‘section
1102(a)(3)(A)’’ 
and 
inserting 
‘‘section
2103(a)(3)(A) of the Bipartisan Trade Pro-
motion Authority Act of 2002’’; and
(C) in subsection (c), by striking ‘‘section
1102 of the Omnibus Trade and Competitiveness
Act of 1988,’’ and inserting ‘‘section 2103 of the
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Bipartisan Trade Promotion Authority Act of
2002,’’.
(3) HEARINGS
AND
ADVICE.—Sections 132,
133(a), and 134(a) (19 U.S.C. 2152, 2153(a), and
2154(a)) are each amended by striking ‘‘section 1102
of the Omnibus Trade and Competitiveness Act of
1988,’’ each place it appears and inserting ‘‘section
2103 of the Bipartisan Trade Promotion Authority
Act of 2002,’’.
(4) 
PREREQUISITES
FOR
OFFERS.—Section
134(b) (19 U.S.C. 2154(b)) is amended by striking
‘‘section 1102 of the Omnibus Trade and Competitive-
ness Act of 1988’’ and inserting ‘‘section 2103 of the
Bipartisan Trade Promotion Authority Act of 2002’’.
(5) ADVICE
FROM
PRIVATE
AND
PUBLIC
SEC-
TORS.—Section 135 (19 U.S.C. 2155) is amended—
(A) in subsection (a)(1)(A), by striking
‘‘section 1102 of the Omnibus Trade and Com-
petitiveness Act of 1988’’ and inserting ‘‘section
2103 of the Bipartisan Trade Promotion Author-
ity Act of 2002’’;
(B) in subsection (e)(1)—
(i) by striking ‘‘section 1102 of the
Omnibus Trade and Competitiveness Act of
1988’’ each place it appears and inserting
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‘‘section 2103 of the Bipartisan Trade Pro-
motion Authority Act of 2002’’; and
(ii) by striking ‘‘not later than the
date on which the President notifies the
Congress under section 1103(a)(1)(A) of
such Act of 1988 of his intention to enter
into that agreement’’ and inserting ‘‘not
later than the date that is 30 days after the
date on which the President notifies the
Congress under section 5(a)(1)(A) of the Bi-
partisan Trade Promotion Authority Act of
2002 of the President’s intention to enter
into that agreement’’; and
(C) in subsection (e)(2), by striking ‘‘section
1101 of the Omnibus Trade and Competitiveness
Act of 1988’’ and inserting ‘‘section 2102 of the
Bipartisan Trade Promotion Authority Act of
2002’’.
(6) TRANSMISSION
OF
AGREEMENTS
TO
CON-
GRESS.—Section 162(a) (19 U.S.C. 2212(a)) is
amended by striking ‘‘or under section 1102 of the
Omnibus Trade and Competitiveness Act of 1988’’
and inserting ‘‘or under section 2103 of the Bipar-
tisan Trade Promotion Authority Act of 2002’’.
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(b) APPLICATION OF CERTAIN PROVISIONS.—For pur-
poses of applying sections 125, 126, and 127 of the Trade
Act of 1974 (19 U.S.C. 2135, 2136(a), and 2137)—
(1) any trade agreement entered into under sec-
tion 2103 shall be treated as an agreement entered
into under section 101 or 102, as appropriate, of the
Trade Act of 1974 (19 U.S.C. 2111 or 2112); and
(2) any proclamation or Executive order issued
pursuant to a trade agreement entered into under sec-
tion 2103 shall be treated as a proclamation or Exec-
utive order issued pursuant to a trade agreement en-
tered into under section 102 of the Trade Act of 1974.
SEC. 2111. REPORT ON IMPACT OF TRADE PROMOTION AU-
THORITY.
(a) IN GENERAL.—Not later than 1 year after the date
of enactment of this Act, the International Trade Commis-
sion shall report to the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of
Representatives regarding the economic impact on the
United States of the trade agreements described in sub-
section (b).
(b) AGREEMENTS.—The trade agreements described in
this subsection are:
(1) The United States-Israel Free Trade Agree-
ment.
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(2) The United States-Canada Free Trade Agree-
ment.
(3) The North American Free Trade Agreement.
(4) The Uruguay Round Agreements.
(5) The Tokyo Round of Multilateral Trade Ne-
gotiations.
SEC. 2112. IDENTIFICATION OF SMALL BUSINESS ADVO-
CATE AT WTO.
(a) IN GENERAL.—The United States Trade Rep-
resentative shall pursue the identification of a small busi-
ness advocate at the World Trade Organization Secretariat
to examine the impact of WTO agreements on the interests
of small- and medium-sized enterprises, address the con-
cerns of small- and medium-sized enterprises, and rec-
ommend ways to address those interests in trade negotia-
tions involving the World Trade Organization.
(b) ASSISTANT TRADE REPRESENTATIVE.—The Assist-
ant United States Trade Representative for Industry and
Telecommunications shall be responsible for ensuring that
the interests of small business are considered in all trade
negotiations in accordance with the objective described in
section 2102(a)(8). It is the sense of Congress that the small
business functions should be reflected in the title of the As-
sistant United States Trade Representative assigned the re-
sponsibility for small business.
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(c) REPORT.—Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the United
States Trade Representative shall prepare and submit a re-
port to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representa-
tives on the steps taken by the United States Trade Rep-
resentative to pursue the identification of a small business
advocate at the World Trade Organization.
SEC. 2113. DEFINITIONS.
In this title:
(1) AGREEMENT
ON
AGRICULTURE.—The term
‘‘Agreement on Agriculture’’ means the agreement re-
ferred to in section 101(d)(2) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(2)).
(2) CORE LABOR STANDARDS.—The term ‘‘core
labor standards’’ means—
(A) the right of association;
(B) the right to organize and bargain collec-
tively;
(C) a prohibition on the use of any form of
forced or compulsory labor;
(D) a minimum age for the employment of
children; and
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(E) acceptable conditions of work with re-
spect to minimum wages, hours of work, and oc-
cupational safety and health.
(3) GATT 1994.—The term ‘‘GATT 1994’’ has
the meaning given that term in section 2 of the Uru-
guay Round Agreements Act (19 U.S.C. 3501).
(4) ILO.—The term ‘‘ILO’’ means the Inter-
national Labor Organization.
(5) IMPORT
SENSITIVE
AGRICULTURAL
PROD-
UCT.—The term ‘‘import sensitive agricultural prod-
uct’’ means an agricultural product with respect to
which, 
as 
a 
result 
of 
the 
Uruguay 
Round
Agreements—
(A) the rate of duty was the subject of tariff
reductions by the United States, and pursuant to
such Agreements, was reduced on January 1,
1995, to a rate which was not less than 97.5 per-
cent of the rate of duty that applied to such arti-
cle on December 31, 1994; or
(B) became subject to a tariff-rate quota on
or after January 1, 1995.
(6) UNITED STATES PERSON.—The term ‘‘United
States person’’ means—
(A) a United States citizen;
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(B) a partnership, corporation, or other
legal entity organized under the laws of the
United States; and
(C) a partnership, corporation, or other
legal entity that is organized under the laws of
a foreign country and is controlled by entities
described in subparagraph (B) or United States
citizens, or both.
(7) URUGUAY ROUND AGREEMENTS.—The term
‘‘Uruguay Round Agreements’’ has the meaning given
that term in section 2(7) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(7)).
(8) WORLD
TRADE
ORGANIZATION; WTO.—The
terms ‘‘World Trade Organization’’ and ‘‘WTO’’
mean the organization established pursuant to the
WTO Agreement.
(9) WTO AGREEMENT.—The term ‘‘WTO Agree-
ment’’ means the Agreement Establishing the World
Trade Organization entered into on April 15, 1994.
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DIVISION C—ANDEAN TRADE
PREFERENCE ACT
TITLE XXXI—ANDEAN TRADE
PREFERENCE
SEC. 3101. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This title may be cited as the ‘‘An-
dean Trade Preference Expansion Act’’.
(b) FINDINGS.—Congress makes the following findings:
(1) Since the Andean Trade Preference Act was
enacted in 1991, it has had a positive impact on
United States trade with Bolivia, Colombia, Ecuador,
and Peru. Two-way trade has doubled, with the
United States serving as the leading source of imports
and leading export market for each of the Andean
beneficiary countries. This has resulted in increased
jobs and expanded export opportunities in both the
United States and the Andean region.
(2) The Andean Trade Preference Act has been a
key element in the United States counternarcotics
strategy in the Andean region, promoting export di-
versification and broad-based economic development
that provides sustainable economic alternatives to
drug-crop production, strengthening the legitimate
economies of Andean countries and creating viable al-
ternatives to illicit trade in coca.
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(3) Notwithstanding the success of the Andean
Trade Preference Act, the Andean region remains
threatened by political and economic instability and
fragility, vulnerable to the consequences of the drug
war and fierce global competition for its legitimate
trade.
(4) The continuing instability in the Andean re-
gion poses a threat to the security interests of the
United States and the world. This problem has been
partially addressed through foreign aid, such as Plan
Colombia, enacted by Congress in 2000. However, for-
eign aid alone is not sufficient. Enhancement of le-
gitimate trade with the United States provides an al-
ternative means for reviving and stabilizing the
economies in the Andean region.
(5) The Andean Trade Preference Act constitutes
a tangible commitment by the United States to the
promotion of prosperity, stability, and democracy in
the beneficiary countries.
(6) Renewal and enhancement of the Andean
Trade Preference Act will bolster the confidence of do-
mestic private enterprise and foreign investors in the
economic prospects of the region, ensuring that legiti-
mate private enterprise can be the engine of economic
development and political stability in the region.
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(7) Each of the Andean beneficiary countries is
committed to conclude negotiation of a Free Trade
Area of the Americas by the year 2005, as a means
of enhancing the economic security of the region.
(8) Temporarily enhancing trade benefits for An-
dean beneficiaries countries will promote the growth
of free enterprise and economic opportunity in these
countries and serve the security interests of the
United States, the region, and the world.
SEC. 3102. TEMPORARY PROVISIONS.
(a) IN GENERAL.—Section 204(b) of the Andean Trade
Preference Act (19 U.S.C. 3203(b)) is amended to read as
follows:
‘‘(b) IMPORT-SENSITIVE ARTICLES.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
through (5), the duty-free treatment provided under
this title does not apply to—
‘‘(A) textile and apparel articles which were
not eligible articles for purposes of this title on
January 1, 1994, as this title was in effect on
that date;
‘‘(B) footwear not designated at the time of
the effective date of this title as eligible articles
for the purpose of the generalized system of pref-
erences under title V of the Trade Act of 1974;
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‘‘(C) tuna, prepared or preserved in any
manner, in airtight containers;
‘‘(D) petroleum, or any product derived
from petroleum, provided for in headings 2709
and 2710 of the HTS;
‘‘(E) watches and watch parts (including
cases, bracelets, and straps), of whatever type in-
cluding, but not limited to, mechanical, quartz
digital, or quartz analog, if such watches or
watch parts contain any material which is the
product of any country with respect to which
HTS column 2 rates of duty apply;
‘‘(F) articles to which reduced rates of duty
apply under subsection (c);
‘‘(G) sugars, syrups, and sugar containing
products subject to tariff-rate quotas; or
‘‘(H) rum and tafia classified in sub-
heading 2208.40 of the HTS.
‘‘(2) TRANSITION PERIOD TREATMENT OF CER-
TAIN TEXTILE AND APPAREL ARTICLES.—
‘‘(A) 
ARTICLES
COVERED.—During 
the
transition period, the preferential treatment de-
scribed in subparagraph (B) shall apply to the
following articles imported directly into the cus-
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toms territory of the United States from an
ATPEA beneficiary country:
‘‘(i) APPAREL
ARTICLES
ASSEMBLED
FROM PRODUCTS OF THE UNITED STATES
AND
ATPEA
BENEFICIARY
COUNTRIES
OR
PRODUCTS NOT AVAILABLE IN COMMERCIAL
QUANTITIES.—Apparel articles sewn or oth-
erwise assembled in 1 or more ATPEA ben-
eficiary countries, or the United States, or
both, exclusively from any one or any com-
bination of the following:
‘‘(I) Fabrics or fabric components
formed, or components knit-to-shape,
in the United States, from yarns whol-
ly formed in the United States (includ-
ing fabrics not formed from yarns, if
such fabrics are classifiable under
heading 5602 or 5603 of the HTS and
are formed in the United States), pro-
vided that apparel articles sewn or oth-
erwise assembled from materials de-
scribed in this subclause are assembled
with thread formed in the United
States.
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‘‘(II) Fabric components knit-to-
shape in the United States from yarns
wholly formed in the United States
and fabric components knit-to-shape in
1 or more ATPEA beneficiary coun-
tries from yarns wholly formed in the
United States.
‘‘(III) Fabrics or fabric compo-
nents formed or components knit-to-
shape, in 1 or more ATPEA bene-
ficiary countries, from yarns wholly
formed in 1 or more ATPEA bene-
ficiary countries, if such fabrics (in-
cluding fabrics not formed from yarns,
if such fabrics are classifiable under
heading 5602 or 5603 of the HTS and
are formed in 1 or more ATPEA bene-
ficiary countries) or components are in
chief weight of llama, or alpaca.
‘‘(IV) Fabrics or yarns that are
not formed in the United States or in
1 or more ATPEA beneficiary coun-
tries, to the extent such fabrics or
yarns are considered not to be widely
available in commercial quantities for
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purposes of determining the eligibility
of such apparel articles for preferential
treatment under Annex 401 of the
NAFTA.
‘‘(ii) KNIT-TO-SHAPE
APPAREL
ARTI-
CLES.—Apparel articles knit-to-shape (other
than socks provided for in heading 6115 of
the HTS) in 1 or more ATPEA beneficiary
countries from yarns wholly formed in the
United States.
‘‘(iii) REGIONAL FABRIC.—
‘‘(I) GENERAL
RULE.—Knit ap-
parel articles wholly assembled in 1 or
more ATPEA beneficiary countries ex-
clusively from fabric formed, or fabric
components formed, or components
knit-to-shape, 
or 
any 
combination
thereof, in 1 or more ATPEA bene-
ficiary countries from yarns wholly
formed in the United States, in an
amount not exceeding the amount set
forth in subclause (II).
‘‘(II) LIMITATION.—The amount
referred 
to 
in 
subclause 
(I) 
is
70,000,000 square meter equivalents
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‘‘(f) OFFSETS.—Notwithstanding any other provision
of this section, any amount otherwise payable under sub-
section (d) to a manufacturer in calendar year 2001 and,
where applicable, in calendar years 2002 and 2003, shall
be reduced by the amount of any payment received by that
manufacturer under this section before the enactment of the
Wool Manufacturer Payment Clarification and Technical
Corrections Act.
‘‘(g) DEFINITION.—For purposes of this section, the
manufacturer is the party that owns—
‘‘(1) imported worsted wool fabric, of the kind
described in heading 9902.51.11 or 9902.51.12 of the
Harmonized Tariff Schedule of the United States, at
the time the fabric is cut and sewn in the United
States into men’s or boys’ suits, suit-type jackets, or
trousers;
‘‘(2) imported wool yarn, of the kind described
in heading 9902.51.13 of such Schedule, at the time
the yarn is processed in the United States into wor-
sted wool fabric; or
‘‘(3) imported wool fiber or wool top, of the kind
described in heading 9902.51.14 of such Schedule, at
the time the wool fiber or wool top is processed in the
United States into wool yarn.’’.