North American Free Trade Agreement Implementation Act
PL 103-182 (H.R.3450), enacted 12/08/1993

PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2057 
Public Law 103-182 
103d Congress 
An Act 
To implement the North American Free Trade Agreement. 
Dec. 8, 1993 
[H.R. 3450] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled. 
North American 
' 
^ 
Free Trade 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
Agreement 
(a) SHORT TITLE.—This Act may be cited as the •'North Amer- implementation 
ican Free TVade Agreement Implementation Act". 
Canada. 
(b) TABLE OF CONTENTS.— 
Mexico. 
Exports and 
Sec. 1. Short title and table of contents. 
imports 
Sec. 2. Definitions. 
19 USC 3301 
TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE 
" ° ^ 
NORTH AMERICAN FREE TRADE AGREEMENT 
Sec. 101. Approval and entry into force of the North American Free Trade Agree-
ment. 
Sec. 102. Relationship of the Agreement to United States and State law. 
Sec. 103. Consultation and layover requirements for, and efTective date of, pro-
claimed actions. 
Sec. 104. Implementing actions in anticipation of entry into force and initial regula-
tions. 
Sec. 105. United States Section of the NAFTA Secretariat. 
Sec. 106. Appointments to chapter 20 panel proceedings. 
Sec. 107. Termination or suspension of Umted States-Canada Free-Trade Agree-
ment. 
Sec. 108. Congressional intent regarding future accessions. 
Sec. 109. Effective dates; effect of termination of NAFTA status. 
TITLE II—CUSTOMS PROVISIONS 
Sec. 201. Tariff modifications. 
Sec. 202. Rules of origin. 
Sec. 203. Drawback. 
Sec. 204. Customs user fees. 
. 
Sec. 205. Enforcement. 
Sec. 206. Reliquidationof entries for NAFTA-origin goods. 
Sec. 207. Country of origin marking of NAFTA goods. 
, 
Sec. 208. Protests against adve)[-se origin determinations. 
/ 
Sec. 209. Exchange of information. 
"-
Sec. 210. Prohibition on drawback for television picture tubes. 
Sec. 211. Monitoring of television and picture tube imports. 
Sec. 212. Title VI amendments. 
Sec. 213. Effective dates. 
TITLE III—APPUCATION OF AGREEMENT TO SECTORS AND SERVICES 
Subtitle A—Safeguards 
PART 1—REUEF FROM IMPORTS BENEFITING FROM THE AGREEMENT 
Sec. 301. Definitions. 
Sec. 302. Commencing of action for relief. 
Sec. 303. International Trade Commission action on petition. 
Sec. 304. Provision of relief. 
Sec. 305. Termination of relief authority. 
107 STAT. 2058 
PUBLIC LAW 103-182—DEC. 8, 1993 
Sec. 306. Compensation authority. 
Sec. 307. Submission of petitions. 
Sec. 308. Special tariff provisions for Canadian 
fresh 
fruits 
and vegetables. 
Sec. 309. Price-based snapback for 
frozen 
concentrated orange juice. 
PART 2—REUEF FROM IMPORTS FROM ALL COUNTRIES 
Sec. 311. NAFTA article impact in import relief cases under the Trade Act of 1974. 
Sec. 312. Presidential action regarding NAFTA imports. 
PART 3—GENERAL PROVISIONS 
o 
Sec. 315. Provisional relief. 
Sec. 316. Monitoring. 
Sec. 317. Procedures concerning the conduct of International Trade Commission in-
vestigations. 
Sec. 318. Effective date. 
Subtitle B—^Agriculture 
/ 
Sec. 321. Agriculture. 
Subtitle C—^Intellectual Property 
Sec. 331. Treatment of inventive activity. 
' geographic indications, 
pictures'in the public domam. 
Sec. 335. Effective dates. 
Subtitle D—^Temporary Entry of Business Persons 
Sec. 341. Temporary entry. 
Sec. 342. Effective date. 
Subtitle E—Standards 
PART 1—STANDARDS A
N
D MEASURES 
Sec. 351. Standards and sanitary and phytosanitary measures. 
^ 
Sec. 352. Transportation. 
PART 2—AGRICULTURAL STANDARDS 
Sec. 361. Agricultural technical and conforming amendments. 
Subtitle F—Corporate Average Fuel Economy 
Sec. 371. Corporate average fuel economy. 
Subtitle G—Government Procurement 
Sec. 381. Government procurement. 
TITLE IV—DISPUTE SETTLEMENT IN ANTIDUMPING AND 
COUNTERVAILING DUTY CASES 
Subtitle A—Organizational, Administrative, and Procedural Provisions Regarding 
the Implementation of Chapter 19 of the Agreement 
Sec. 401. References in subtitle. 
Sec. 402. Organizational and administrative provisions. 
Sec. 403. Testimony and production of papers in extraordinary challenges. 
Sec. 404. Requests for review of determinations by competent investigating authori-
ties of NAFTA countries. 
Sec. 406. Rules of procedure for panels and committees. 
Sec. 406. Subsidy negotiations. 
Sec. 407. Identification of industries facing subsidized imports. 
Sec. 408. Treatment of amendments to antidumping ana countervailing duty law. 
Subtitle B—Conforming Amendments and Provisions 
Sec. 411. Judicial review in antidumping duty and countervailing duty cases. 
Sec. 412. Conforming amendments to other provisions of the Tariff Act of 1930. 
Sec. 413. Consequential amendment to Free-Trade Agreement Act of 1988. 
Sec. 414. Conforming amendments to title 28, United States Code. 
Sec. 415. Effect of termination of NAFTA country status. 
Sec. 416. Effective date. 
TITLE V—NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE AND OTHER 
PROVISIONS 
Subtitle A
—
^
N
A
F
T
A Transitional A4justment Assistance Program 
Sec. 501. Short title. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2059 
Sec. 502. Establishment of NAFTA transitional a4justment assistance program. 
Sec. 503. Conforming amendments. 
Sec. 504. Authorization of appropriations. 
Sec. 505. Termination of transition program. 
Sec. 506. Effective date. 
Sec. 507. Treatment of self-employment assistance programs. 
Subtitle B—^Provisions Relating to Performance Under the Agreement 
Sec. 511. Discriminatory taxes. 
Sec. 512. Review of the operation and effects of the agreement. 
Sec. 513. Actions affecting United States cultural industries. 
Sec. 514. Report on impact of NAFTA on motor vehicle exports to Mexico. 
Sec. 515. Center for the study of Western Hemispheric Trade. 
Sec. 516. Effective date. 
Subtitle C—^Funding 
PART 1—CUSTOMS USER FEES 
Sec. 521. Fees for certain customs services. 
PART 2—INTERI-^AL REVENUE CODE AMENDMENTS 
Sec. 522. Authority to disclose cctrtain tax information to the United States customs 
service. 
Sec. 523. Use of electronic fund transfer system for collection of certain taxes. 
Subtitle D—Implementation of NAFTA Supplemental Agreements 
PART 1—AGREEMENTS RELATING TO LABOR AND ENVIRONMENT 
Sec. 531. Agreement on labor cooperation. 
Sec. 532. Agreement on environmental cooperation. 
Sec. 533. Agreement on Border Environment Cooperation Commission. 
PART 2—NORTH AMERICAN DEVELOPMENT BANK AND RELATED PROVISIONS. 
Sec. 541. North American Development Bank. 
Sec. 542. Status, immunities, ana privileges. 
Sec. 543. Community adjustment and investment program. 
Sec. 544. Definition. 
TITLE VI—(JUSTOMS MODERNIZATION 
Sec. 601. Reference. 
Subtitle A—Improvements in Customs Enforcement 
Sec. 611. Penalties for violations of arrival, reporting, entry, and clearance require-
ments. 
Sec. 612. Failure to declare. 
Sec. 613. Customs testing laboratories; detention of merchandise. 
Sec. 614. Recordkeeping. 
Sec. 615. Examination of books and witnesses. 
Sec. 616. Judicial enforcement. 
Sec. 617. Review of protests. 
Sec. 618. Repeal of provision relating to reliquidation on accoimt of fraud. 
Sec. 619. Penalties relating to muniiests. 
Sec. 620. Unlawful unlading or transshipment. 
Sec. 621. Penalties for fraud, gross negligence, and negligence; prior disclosure. 
Sec. 622. Penalties for false drawback claims. 
Sec. 623. Interpretive rulings and decisions; public information. 
Sec. 624. Seizure authority. 
Subtitle B—^National Customs Automation Program 
- ^ 
Sec. 631. National Customs Automation Program. 
Sec. 632. Drawback and refunds. 
Sec. 633. Effective date of rates of duty. 
Sec. 634. Definitions. 
Sec. 635. Manifests. 
Sec. 636. Invoice contents. 
- - . . . - . 
Sec. 637. Entry of merchandise. 
Sec. 638. Appraisement and other procedures. 
Sec. 639. Voluntary reliquidations. 
Sec. 640. Appraisement regulations. 
Sec. 641. Limitation on liquidation. 
107 STAT. 2060 
PUBLIC LAW 103-182—DEC. 8, 1993 
Sec. 642. Payment of duties and fees. 
. 
. < 
Sec. 643. Abandonment and dama^. 
Sec. 644. Customs officer's immimity. 
Sec. 645. Protests. 
Sec. 646. Refunds and errors. 
Sec. 647. Bonds and other security. 
Sec. 648. Customhouse brokers. 
Sec. 649. Conforming amendments. 
Subtitle C—^Miscellaneous Amendments to the TarifiT Act of 1930 
Sec. 651. Administrative exemptions. 
Sec. 652. Report of arrival. 
Sec. 653. Entry of vessels. 
Sec. 654. Unlawful retiim of foreign vessel papers. 
Sec. 655. Vessels not required to enter. 
Sec. 656. Unlading. 
Sec. 657. Declarations. 
Sec. 658. General orders. 
Sec. 659. Unclaimed merchandise. 
Sec. 660. Destruction of merchandise. 
Sec. 661. Proceeds of sale. 
Sec. 662. Entry imder regulations. 
Sec. 663. American trademarks. 
Sec. 664. Simplified recordkeeping for merchandise transported by pipeline. 
Sec. 665. Entry for warehouse. 
Sec. 666. Cartage. 
Sec. 667. Seizure. 
Sec. 668. Limitation on actions. 
" 
•'•-•• 
Sec. 669. Collection of fees on behalf of other agencies. 
Sec. 670. Authority to settle claims. 
/ 
'" 
' . 
Sec. 671. Use of private collection agencies. 
Subtitle D—^Miscellaneous Provisions and Consequential and Conforming 
Amendments to Other Laws 
Sec. 681. Amendments to the Harmonized Tariff Schedule. 
Sec. 682. Customs personnel airport work shift regulation. 
Sec. 683. Use of harbor maintenance trust funa amounts for administrative ex* 
penses. 
Sec. 684. Amendments to title 28, United States Code. 
Sec. 685. Treasury forfeiture fund. 
Sec. 686. Amendments to the Revised Statutes of the United States. 
Sec. 687. Amendments to title 18, United States Code. 
Sec. 688. Amendment to the Act to Prevent Pollution from Ships. 
Sec. 689. Miscellaneous technical amendments. 
Sec. 690. Repeal of obsolete provisions of law. 
Sec. 691. Reports to Congress. 
Sec. 692. Effective date. 
19 use 3301. 
SEC. 2. DEFINITIONS. 
For purposes of this Act: 
(1) AGREEMENT.—^The term "Agreement" means the North 
American Free Trade Agreement approved by the Congress 
under section 101(a). 
(2) HTS.—The term "HTS" means the Harmonized Tariff 
Schedule of the United States. 
(3) MEXICO.—Any reference to Mexico shall be considered 
to be a reference to the United Mexican States. 
(4) NAFTA COUNTRY.—Except as provided in section 202, 
the term "NAFTA country" means— 
(A) Canada for such time as the Agreement is in force 
with respect to, and the United States applies the Agree-
ment to, Canada; and 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2061 
(B) Mexico for such time as the Agreement is in force 
with respect to, and the United States applies tiie Agree-
; 
ment to, Mexico. 
(5) INTERNATIONAL TRADE COMMISSION.—The term Inter-
national Trade Commission" means the United States Inter-
national Trade Commission. 
(6) TRADE REPRESENTATIVE.—The term Trade Representa-
tive" means the United States Trade Representative. 
TITLE I—APPROVAL OF, AND GENERAL 
PROVISIONS 
RELATING 
TO, 
THE 
NORTH 
AMERICAN 
FREE 
TRADE 
AGREEMENT 
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE NORTH AMER- 19 USC 3311. 
ICAN FREE TRADE AGREEMENT. 
(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRA-
TIVE ACTION.—Pursuant to section 1103 of the Omnibus Trade 
and Competitiveness Act of 1988 (19 U.S.C. 2903) and section 
151 of the Trade Act of 1974 (19 U.S.C. 2191), the Congress 
approves— 
(1) the North American Free Trade Agreement entered 
into on December 17, 1992, with the Governments of Canada 
and Mexico and submitted to the Congress on November 4, 
1993; and 
(2) the statement of administrative action proposed to 
implement the Agreement that was submitted to the Congress 
on November 4,1993. 
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT.— 
The President is authorized to exchange notes with the Grovemment 
of Canada or Mexico providing for the entry into force, on or 
after January 1, 1994, of the Agreement for the United Stetes 
with respect to such country at such time as— 
(1) the President— 
(A) determines that such coimtry has implemented 
the stetutory changes necessary to bring that country into 
compliance with its obligations under the Agreement and 
has made provision to implement the Uniform Regulations 
provided for imder article 511 of the Agreement regarding 
the interpretetion, application, and administration of the 
rules of origin, and 
(B) transmits a report to the House of Representetives Reports. 
and the Senate setting forth the determination under 
subparagraph (A) and including, in the case of Mexico, 
a description of the specific measures taken by that country 
to— 
(i) bring its laws into conformity with the reqtiire-
ments of the Schedule of Mexico in Annex 1904.15 
of the Agreement, and 
(ii) otherwise ensure the effective implementetion 
of the binational panel review process under chapter 
19 of the Agreement regarding final antidumping and 
countervailing duty determinations; and 
107 STAT. 2062 
PUBLIC LAW 103-182—DEC. 8, 1993 
(2) the Government of such country exchanges notes with 
the United States providing for the entry into force of the 
North American Agreement on Environmental Cooperation and 
the North American Agreement on Labor Cooperation for that 
country and the United States. 
19 use 3312. 
SEC. 102. RELATIONSHIP OF THE A
G
B
E
E
M
E
N
T T
O UNITED STATES 
AND STATE L
A
W
. 
(a) RELATIONSHIP OP AGREEMENT TO UNITED STATES LAW.— 
(1) UNITED S
T
A
T
E
S L
A
W T
O P
R
E
V
A
I
L IN CONFUCT.—No provi-
sion of the Agreement, nor the application of any such provision 
to any person or circumstance, which is inconsistent with any 
law of the United States shall have effect. 
(2) 
CONSTRUCTION.—Nothing in this Act shall be 
construed— 
(A) to amend or modify any law of the United States, 
including any law regarding— 
(i) the protection of human, animal, or plant life 
or health, 
(ii) the protection of the environment, or 
, 
(iii) motor carrier or worker safety; or 
(B) to limit any authority conferred under any law 
of the United States, including section 301 of the Trade 
Act of 1974; 
unless specifically provided for in this Act. 
(b) RELATIONSHIP O
F AGREEMENT T
O STATE LAW.— 
(1) FEDERAL-STATE CONSULTATION.— 
President. 
(A) IN G
E
N
E
R
A
L
.
—
^
U
p
o
n the enactment of this Act, the 
President shall, through the intergovernmental policy 
advisory committees on trade established under section 
306(cX2XA) of the Trade and Tariff Act of 1984, consult 
with the States for the purpose of achieving conformity 
of State laws and practices with the Agreement. 
(B) 
FEDERAL-STATE CONSULTATION PROCESS.—The 
Trade Representative shall establish within the Office of 
the United States Trade Representative a Federal-State 
consultation process for addressing issues relating to the 
Agreement that directly relate to, or will potentially have 
a direct impact on, the States. The Federal-State consulta-
tion process shall include procedures under which— 
(i) the Trade Representative will assist the States 
in identifying those State laws that may not conform 
with the Agreement but may be maintained under 
the Agreement by reason of being in effect before the 
Agreement entered into force; 
(ii) the States will be informed on a continuing 
basis of matters under the Agreement that directly 
relate to, or will potentially have a direct impact on, 
the States; 
. \ 
(iii) the States will be provided opportunity to sub-
mit, on a continuing basis, to the Trade Representative 
information and advice with respect to matters referred 
to in clause (ii); 
(iv) the Trade Representative will take into 
account the information and advice received 
firom 
the 
States under clause (iii) when formulating United 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2063 
States positions regarding matters referred to in clause 
x 
(ii);ana 
(v) the States will be involved (including involve-
ment through the inclusion of appropriate representa-
tives of the States) to the greatest extent practicable 
at each stage of the development of United States 
positions regarding matters referred to in clause (ii) 
that will be addressed by committees, subcommittees, 
or working igroups established imder the Agreement 
or through dispute settlement processes provided for 
under the Agreement. 
The Federal Advisory Committee Act (5 U.S.C. App.) shall 
not apply to the Federal-State consultation process established 
by this paragraph. 
(2) LEGAL CHALI-ENGE.—NO State law, or the application 
thereof, may be declared invalid as to any person or cir-
cumstance on the ground that the provision or appUcation 
is inconsistent with the Agreement, except in an action brought 
by the United States for the purpose of declaring such law 
or application invalid. 
(3) DEFINITION OF STATE LAW.—For purposes of this sub-
section, the term "State law" includes— 
(A) any law of a political subdivision of a State; and 
(B) any State law regulating or taxing the business 
^ 
of insurance. 
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REM-
EDIES.—^No person other than the United States— 
(1) shall have any cause of action or defense under— 
(A) the A^i^ement or by virtue of Congressional 
approval thereof, or 
(B) the North American Agreement on Environmental 
Cooperation or the North American Agreement on Labor 
Cooperation; or 
(2) may challenge, in any action brought imder any provi-
sion of law, any action or inaction by any department, agency, 
or other instrumentality of the United States, any State, or 
any political subdivision of a State on the groimd that such 
action or inaction is inconsistent with the Agreement, the North 
/^erican Agreement on Environmental Cooperation, or the 
North American Agreement on Labor Cooperation. 
SEC. 103. CONSULTATION AND LAYOVER REQUIREMENTS FOR, AND 19 USC 3313. 
EFFECTIVE DATE OF, PROCLAIMED ACTIONS. 
(a) CONSULTATION A
N
i
D LAYOVER REQUIREMENTS.—If a provision 
of this Act provides that the implementation of an action by the 
President by proclamation is subject to the consultation and layover 
requirements of this section, such action may be proclaimed only 
if— 
(1) the President has obtained advice regarding the pro-
posed action from— 
(A) the appropriate advisory committees established 
under section 135 of the Trade Act of 1974, and 
(B) the International Trade Commission; 
(2) the President has submitted a report to the Committee Reports. 
on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate that sets fortli— 
107 STAT. 2064 
PUBLIC LAW 103-182—DEC. 8, 1993 
-,.- 
(A) the action proposed to be proclaimed and the rea-
sons therefor, and 
(B) the advice obtained under paragraph (1); 
(3) a period of 60 calendar days, beginning with the first 
day on wmch the President has met the requirements of para-
graphs (1) and (2) with respect to such action, has expired; 
and 
(4) the President has consulted with such Committees 
regarding the proposed action during the period referred to 
in paragraph (3). 
Federal 
(b) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS.—Any 
^^sister, 
action proclaimed by the President under the authority of this 
pubiica ion. 
^^ ^y^^ .^ ^^^ subject to the consultation and layover requirements 
under subsection (a) may not take effect before the 15th dav after 
the date on which the text of the proclamation is published in 
the Federal Register. 
19 use 3314. 
SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO 
FORCE AND INITIAL REGULATIONS. 
(a) IMPLEMENTING ACTIONS.—After the date of the enactment 
of this Act— 
(1) the President may proclaim such actions; and 
(2) other appropriate officers of the United States Govern-
ment may issue such regulations; 
as may be necessary to ensure that any provision of this Act, 
or amendment made by this Act, that takes effect on the date 
the Agreement enters into force is appropriately implemented on 
such date, but no such proclamation or regulation may have an 
effective date earlier than the date of entry into force. The 15-
day restriction in section 103(b) on the taking effect of proclaimed 
actions is waived to the extent that the application of such restric-
tion would prevent the taking effect on the date the Agreement 
enters into force of any action proclaimed under this section. 
(b) INITIAL REGULATIONS.—Initial regulations necessary or 
appropriate to carry out the actions proposed in the statement 
01 administrative action submitted under section 101(aX2) to imple-
ment the Agreement shall, to the maximum extent feasible, be 
issued Mdthin 1 year after the date of entry into force of the 
Agreement; except that interim or initial regulations to implement 
those Uniform Regulations regarding rules of origin provided for 
under article 511 of the Agreement shall be issued no later than 
the date of entry into force of the Agreement. In the case of any 
implementing action that takes effect on a date after the date 
of entry into force of the Agreement, initial regulations to carry 
out that action shall, to the maximum extent feasible, be issued 
within 1 year after such effective date. 
19_USC 3315. 
SEC. 106. UNITED STATES SECTION OF THE NAFTA SECRETARIAT. 
(a) ESTABUSHMENT OF THE UNITED STATES SECTION.—The 
President is authorized to esteblish within any department or 
agency of the United Stetes Government a United States Section 
of the Secretariat esteblished imder chapter 20 of the Agreement. 
The United Stetes Section, subject to the oversight of the inter-
agency group esteblished under section 402, shall carry out ite 
fmictions within the Secretariat to facilitete the operation of the 
Agreement, including the operation of chapters 19 and 20 of the 
Agreement and tlie work of the panels, extraordinary challenge 
committees, special committees, and scientific review ooards con-
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2065 
vened under those chapters. The United States Section may not 
be considered to be an agency for purposes of section 552 of title 
5, United States Code. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for each fiscal vear after fiscal year 1993 to 
the department or agency within which the United States Section 
is established the lesser of— 
(1) such sums as may be necess€uy; or 
(2) $2,000,000; 
for the establishment and operations of the United States Section 
and for the payment of 1:he United States share of the expenses 
of binational panels and extraordinary challenge committees con-
vened under chapter 19, and of the expenses incurred in dispute 
settlement proceedings imder chapter 20, of the Agreement. 
(c) REIMBURSEMENT OF CERTAIN EXPENSES.—If, in accordance 
with Annex 2002.2 of the Agreement, the Canactian Section or 
the Mexican Section of the Secretariat provides funds to the United 
States Section during any fiscal year, as reimbursement for 
expenses by the Canadian Section or uie Mexican Section in connec-
tion with settlement proceedings under chapter 19 or 20 of the 
Agreement, the United States Section may retain and use such 
fimds to carry out the 
fimctions 
described in subsection (a). 
SEC. 106. APPOINTMENTS TO CHAPTER M PANEL PROCEEDINGS. 
19 USC 3316. 
(a) CONSULTATION.—The Trade Representative shall consult 
with the Committee on Ways and Means of the House of Represent- 
/ 
atives and the Committee on Finance of the Senate regarding 
the selection and appointment of candidates for the rosters 
described in article 2009 of the Agreement. 
(b) SELECTION OF INDIVIDUALS WITH ENVIRONMENTAL EXPER- 
^ 
TISE.—^The United States shall, to the maximum extent practicable, 
encourage the selection of individuals who have expertise and 
experience in environmential issues for service in panel proceedings 
under chapter 20 of the Agreement to hear any challenge to a 
United States or State environmental law. 
SEC. 107. TERMINATION OR SUSPENSION OF UNITED STATES-CANADA 
FREE-TRADE AGREEMENT. 
Section 501(c) of the United States-Canada Free-Trade 
Implementation Act of 1988 (19 U.S.C. 2112 note) is amended 
to read as follows: 
"(c) TERMINATION O
R SUSPENSION O
F AGREEMENT.— 
"(1) TERMINATION OF AGREEMENT.—On the date the Agree-
ment ceases to be in force, the provisions of this Act (other 
than this paragraph and section 410(b)), and the amendments 
made by this Act, shall cease to have effect. 
"(2) EFFECT OF AGREEMENT SUSPENSION.—An agreement 
by the United States and Canada to suspend the operation 
of the Agreement shall not be deemed to cause the Agreement 
to ce€ise to be in force within tiie meaning of paragraph (1). 
"(3) SUSPENSION RESULTING FROM NAFTA.—On the date the 
United States and Canada agree to suspend the operation 
of the Agreement by reason of the entry into force between 
them of me North American Free Trade Agreement, the follow-
ing provisions of this Act are suspended and shall remain 
suspended until such time as the suspension of the Agreement 
may be terminated: 
"(A) Sections 204 (a) and (b) and 205(a). 
107 STAT. 2066 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(B) Sections 302 and 304(f). 
"(C) Sections 404, 409, and 4100)).". 
19 use 3317. 
SEC. 106. CONGBESSIONAL INTENT REGARDING FUTURE ACCESSIONa 
(a) IN GENERAL.—Section 101(a) may not be construed as 
conferring Congressional approval of the entry into force of the 
Agreement for the United States with respect to countries other 
than Canada and Mexico. 
(b) FUTURE FREE TRADE AREA NEGOTIATIONS.— 
(1) FINDINGS.—^The Congress makes the following findings: 
(A) Efforts by the United States to obtain greater mar-
ket opening through multilateral negotiations have not pro-
duced agreements that fully satisfy the trade negotiating 
objectives of the United States. 
(B) United States trade policy should provide for addi-
tional mechanisms with which to pursue greater market 
access for United States exports of goods and services and 
opportunities for export-related investment by United 
~ States persons. 
(C) Among the additional mechanisms should be a 
system of bilateral and multilateral trade agreements that 
provide greater market access for United Stetes exporte 
and opportunities for export-related investment by United 
Stetes persons. 
(D) The system of trade agreemente can and should 
be structured to be consistent with, and complementery 
to, existing international obligations of the United Stetes 
and ongoing multilateral efforte to open markete. 
(2) REPORT ON SIGNIFICANT MARKET OPENING.—NO later 
than May 1, 1994, and May 1, 1997, the Trade Representetive 
shall submit to the President, and to the Committee on Finance 
of the Senate and the Committee on Ways and Means of the 
Hovise of Representetives (hereafter in this section referred 
to as the "appropriate Congressional committees"), a report 
which liste those foreign coimtries— 
(A) thal^ 
(i) currently provide fair and equiteble market 
access for United Stetes exporte of goods and services 
and opportunities for export-related investment by 
United Stetes persons, beyond what is required by 
existing multilateral trade agreemente or obligations; 
or 
(ii) have made significant progress in opening their 
markete to United Stetes exporte of goods and services 
and export-related investment by United Stetes per-
sons; and 
(B) the further opening of whose markete has the great-
est potential to increase United Stetes exporte of goods 
and services and export-related investment by United 
Stetes persons, either directly or through the esteblishment 
of a beneficial precedent. 
(3) PRESIDENTIAL DETERMINATION.—The President, on the 
basis of the report submitted by the Trade Representetive 
under paragraph (2), shall determine with which foreign coun-
try or countries, if any, the United Stetes should seek to nego-
tiate a free trade area agreement or agreemente. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2067 
(4) RECOMMENDATIONS ON FUTURE FREE TRADE AREA NEOO- President. 
TIATIONS.—No later than July 1, 1994, and July 1, 1997, the Reports. 
President shall submit to the appropriate Congressional 
committees a written report that contains— 
(A) recommendations for free trade area negotiations 
with each foreign country selected under paragraph (3); 
(B) with respect to each country selected, the specific 
negotiating objectives that are necessary to meet the objec-
tives of the United States under this section; and 
(C) legislative proposals to ensure adequate consulta-
tion with the Congress and the private sector during tiie 
negotiations, advance Congressional approval of the nego-
tiations recommended by the President, and Congressional 
approval of any trade agreement entered into by the Presi-
dent as a result of the negotiations. 
(5) GENERAL NEGOTIATING OBJECTIVES.—The general nego-
tiating objectives of the United States under this section are 
to obtain— 
(A) preferential treatment for United States goods; 
(B) national treatment and, where appropriate, eqmva-
lent competitive opportunity for United States services and 
foreign direct investment l^ United States persons; 
(C) the elimination of barriers to trade in goods and 
services by United States persons through standards, test-
ing, labeling, and certification requirements; 
(D) nondiscriminatory government procurement poli-
cies and practices with respect to United States goods 
and services; 
(E) the elimination of other barriers to market access 
for United States goods and services, and the elimination 
of barriers to foreign direct investment by United States 
persons; 
(F) the elimination of acts, poUcies, and practices which 
deny fair and equitable market opportunities, including 
foreign government toleration of anticompetitive business 
P
ractices bv private firms or amon^ private firms that 
ave the effect of restricting, on a basis that is inconsistent 
with commercial considerations, purchasing by such firms 
of United States goods and services; 
(G) adequate and effective protection of intellectual 
property rights of United States persons, and fair and 
equitable market access for United States persons that 
rely upon intellectual property protection; 
(H) the elimination of foreign export and domestic sub-
sidies that distort international trade in United States 
goods and services or cause material ii\jury to United States 
industries; 
(I) the elimination of all export taxes; 
(J) the elimination of acts, policies, and practices which 
constitute export targeting; and 
(K) monitoring and effective dispute settlement mecha-
nisms to facilitate compliance with the matters described 
in subparagraphs (A) through (J). 
SEC. 109. EFFECTIVE DATES; EFFECT OF TERMINATION OF NAFTA 19 USC 3311 
STATUS. 
note. 
(a) EFFECTIVE DATES.— 
69-194 O - 94 - 5 : QL. 3 Part 3 
107 STAT. 2068 
PUBLIC LAW 103-182—DEC. 8, 1993 
(1) IN GENERAL.—^This title (other than the amendment 
made bv section 107) takes effect on the date of the enactment 
of this Act. 
(2) SECTION IO7 AMENDMENT.—The amendment made by 
section 107 takes effect on the date the Agreement enters 
into force between the United States and Cana(Ui. 
(b) TERMINATION OF NAFTA STATUS.—During any period in 
which a country ceases to be a NAFTA country, sections 101 through 
106 shall cease to have effect with respect to such country. 
TITLE II—CUSTOMS PROVISIONS 
19 use 3331. 
SEC. 201. TARIFF MODIFICATIONS. 
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.— 
(1) 
PROCLAMATION 
AUTHORITY.—The President 
may 
proclaim— 
(A) such modifications or continuation of any duty, 
(B) such continuation of duty-free or excise treatment, 
or 
(C) such additional duties, 
as the President determines to be necessary or appropriate 
to carry out or apply articles 302, 305, 307, 308, and 703 
and Annexes 302.2, 307.1, 308.1, 308.2, 300-B, 703.2, and 
703.3 of the Agreement. 
President. 
(2) EFFECT O
N M
E
X
I
C
A
N GSP STATUS.—Notwithstanding sec-
tion 502(aX2) of the Trade Act of 1974 (19 U.S.C. 2462(aX2)), 
the President shall terminate the designation of Mexico as 
a beneficiary developing country for purposes of title V of 
the Trade Act of 19*74 on the date of entry into force of the 
Agreement between the United States and Mexico. 
(b) OTHER TARIFF MODIFICATIONS.— 
(1) IN GENERAL.—^Subject to paragraph (2) and the consulta-
tion and layover requirements of section 103(a), the President 
may proclaim— 
(A) such modifications or continuation of any duty, 
(B) such modifications as the United States may agree 
to with Mexico or Canada regcurding the staging of any 
duty treatment set forth in Annex 302.2 of the Agreement, 
(C) such continuation of duty-free or excise treatment, 
or 
(D) such additional duties, 
as the President determines to be necessary or appropriate 
to maintain the general level of reciprocal and mutually advan-
tageous concessions with respect to Canada or Mexico provided 
for by the Agreement. 
(2) SPECIAL RULE FOR ARTICLES WITH TARIFF PHASEOUT 
PERIODS OF MORE THAN 10 YEARS.—The President may not 
consider a request to accelerate the staging of duty reductions 
for an article for which the United States tariff phaseout period 
is more than 10 years if a request for acceleration with respect 
to such article has been denied in the preceding 3 calendar 
years. 
(c) CONVERSION TO AD VALOREM RATES FOR CERTAIN TEX-
TILES.—^For purposes of subsections (a) and (b), with respect to 
an article covered bv Annex 300-B of the Agreement imported 
from Mexico for which the base rate in the Schedule of the United 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2069 
States in Annex 300-B is a specific or compound rate of duty, 
the President may substitute for the base rate an ad valorem 
rate that the President determines to be equivalent to the base 
rate. 
SEC. 202. RULES OF OBIGIN. 
19 USC 3332. 
(a) ORIGINATING GOODS.— 
(1) IN GENERAL.—^For purposes of implementing the tariff 
treatment and quantitative restrictions provided for under the 
Agreement, except as otherwise proviaed in this section, a 
good originates in the territory of a NAFTA countnr if— 
(A) ttte good is wholly obtained or produced entirely 
in the territory of one or more of the NAFTA countries; 
(BXi) each nonoriginating material used in the produc-
tion of 
tiie 
good— 
(I) undergoes an applicable change in tariff classi-
fication set out in Annex 401 of the Agreement as 
a result of production occurring entirely in the territory 
of one or more of the NAFTA countries; or 
(II) where no change in tariff classification is 
required, the good otherwise satisfies the applicable 
requirements of such Annex; and 
(ii) the good satisfies all other applicable requirements 
of this section; 
(C) the good is produced entirely in the territory of 
one or more of the NAFTA countries exclusively 
firom 
origi-
nating materials; or 
(D) except for a good provided for in chapters 61 
through 63 of the HTS, the good is produced entirely in 
the territory of one or more of the NAFTA countries, but 
one or more of the nonoriginating materials, that are pro-
vided for as parts under the IirS and are used in the 
production of the good, does not undergo a change in tariff 
classification because— 
(i) the good was imported into the territorv of 
a NAFTA coimtry in an tmassembled or a disassembled 
form but was classified as an assembled good piuisuant 
to General Riile of Interpretation 2(a) of the HTS; 
or 
(iiXD the heading for the good provides for and 
specifically describes both the good itself and its parts 
and is not further subdivided into subheadings; or 
(II) the subheading for the good provides for and 
specifically describes both the good itself and its parts. 
(2) SPECIAL RULES.— 
(A) FOREIGN-TRADE ZONES.—Subparagraph (B) of para-
graph (1) shall not apply to a ^ood produced in a foreign-
trade zone or subzone (estabhshed pursuant to the Act 
of Jime 18, 1934, commonly known as the Foreign Trade 
Zones Act) that is entered for consimiption in the customs 
territory of the United States. 
(B) REGIONAL VALUE-CONTENT REQUIREMENT.—For pur-
poses of subparagraph (D) of paragraph (1), a good shall 
be treated as originating in a NAFTA country if the 
regional value-content of the good, determined in accord-
ance Mdth subsection (b), is not less than 60 percent where 
the transaction value method is used, or not less than 
107 STAT. 2070 
PUBLIC LAW 103-182—DEC. 8, 1993 
50 percent where the net cost method is used, and the 
good satisfies all other applicable requirements of this sec-
tion, 
(b) REGIONAL VALUE-CONTENT.— 
(1) IN GENERAL.—^Except as provided in paragraph (5), the 
regional value-content of a good shall be calculated, at the 
choice of the exporter or producer of the good, on the basis 
of— 
(A) the transaction value method described in para-
graph (2); or 
(B) the net cost method described in paragraph (3). 
(2) TRANSACTION VALUE METHOD.— 
(A) IN GENERAL.—^An exporter or producer may cal-
culate the regional value-content of a good on the basis 
of the following transaction value method: 
T
V
-
V
N
M 
R
V
C - 
X 100 
T
V 
(B) DEFiNrnoNS.—For purposes of subparagraph (A): 
(i) The term "RVC means the regional value-con-
tent, expressed as a percentage. 
(ii) The term "TV means the transaction value 
of the ^ood adjusted to a F.O.B. basis. 
(iii) The term *'VNM" means the value of 
nonoriginating materials used by the producer in the 
production of the good. 
(3) NET COST METHOD.— 
(A) IN GENERAL.—An exporter or producer may cal-
culate the regional value-content of a good on the basis 
of the following net cost method: 
N
C
-
V
N
M 
R
V
C = 
X 100 
N
C 
(B) DEFlNmONS.—^For purposes of subparagraph (A): 
(i) The term *
*
R
V
C
*
* means the regional value-con-
tent, expressed as a percentage. 
(ii) The term "NC means the net cost of the good, 
(iii) The term "VNM" means the value of 
nonoriginating materials used by the producer in the 
production of the good. 
(4) V
A
L
U
E O
F N
O
N
O
R
I
G
I
N
A
T
I
N
G »
f
A
T
E
R
I
A
L
S USED IN O
R
I
G
I
-
N
A
T
I
N
G M
A
T
E
R
I
A
L
S
.
—
^
E
x
c
e
^
t as provided in subsection (cXl), 
and for a motor vehicle identined in subsection (cX2) or a 
component identified in Annex 403.2 of the Agreement, the 
value of nonoriginating materials used by the producer in the 
production of a good shall not, for purposes of cfdculating the 
regional value-content of the good under paragraph (2) or (3), 
include the value of nonoriginating materials iised to produce 
originating materials that are subsequently used in the produc-
tion of the good. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2071 
(5) NET COST METHOD MUST BE USED IN CERTAIN CASES.— 
An exporter or producer shall calculate the regional value-
content of a good solely on the basis of the net cost method 
described in paragraph (3), if— 
(A) there is no transaction value for the good; 
(B) the transaction value of the good is unacceptable 
under Article 1 of the Customs Valuation Code; 
(C) the gooil is sold by the producer to a related person 
and the volume, by imits of quantity, of sales of identical 
or similar goods to related persons during the six-month 
period immediately preceding the month in which the good 
IS sold exceeds 85 percent of the producer's total sales 
of such goods during that period; 
(D) the goo<i is— 
(i) a motor vehicle provided for in heading 8701 
or 8702, subheadings 8703.21 through 8703.90, or 
heading 8704, 8705, or 8706; 
(ii) identified in Annex 403.1 or 403.2 of the Agree-
ment and is for use in a motor vehicle provided for 
in heading 8701 or 8702, subheadings 8703.21 through 
8703.90, or heading 8704, 8705, or 8706; 
(iii) provided for in subheadings 6401.10 through 
6406.10; or 
(iv) a word processing machine provided for in 
subheading 8469.10.00; 
(E) the exporter or producer chooses to accumulate 
the regional value-content of the good in accordance with 
subsection (d); or 
(F) the good is designated as an intermediate material 
under paragraph (10) and is subject to a regional value-
content requirement. 
(6) NET COST METHOD ALLOWED FOR ADJUSTMENTS.—If an 
exporter or producer of a good calculates the regional value-
content of the good on the basis of the transaction value method 
and a NAFTA country subsequently notifies the exporter or 
producer, during the course of a verification conducted in 
accordance with chapter 5 of the Agreement, that the trans-
action value of the good or the value of any material used 
in the production of the good must be adjusted or is imaccept-
able under Article 1 of the Customs Valuation Code, the 
exporter or producer may calculate the regional value-content 
of the good on the basis of the net cost method. 
(7) REVIEW OF ADJUSTMENT.—Nothing in paragraph (6) 
shall be construed to prevent any review or appeal available 
in accordance with article 510 of the Agreement with respect 
to an adjustment to or a rejection of— 
(A) the transaction value of a good; or 
(B) the value of any material used in the production 
of a eood. 
(8) CALCULATING NET COST.—^The producer may, consistent 
with regulations implementing this section, calculate the net 
cost of a good under paragraph (3), by— 
(A) calculating the total cost incurred with respect 
to all goods produced by that producer, subtracting any 
sales promotion, marketing and after-sales service costs, 
royalties, shipping and packing costs, and nonallowable 
interest costs that are includcMd in the total cost of all 
107 STAT. 2072 
PUBLIC LAW 103-182—DEC. 8, 1993 
such goods, and reasonably allocating the resulting net 
cost of those goods to the good; 
(B) calculating the total cost incurred with respect 
to all goods produced by that producer, reasonably allocat-
ing the total cost to the good, and subtracting any sales 
promotion, marketing and after-sales service costs, royal-
ties, shipping and packing costs, and nonallowable interest 
costs that are included in the portion of the total cost 
allocated to the good; or 
(C) reasonably allocating each cost that is part of the 
total cost incurred with respect to the good so that the 
aggregate of these costs does not include any sales pro-
motion, marketing and after-sales service costs, royalties, 
shipping and packing costs, or nonallowable interest costs. 
(9) VALUE OF MATERIAL USED IN PRODUCTION.—Except as 
provided in paragraph (11), the value of a material used in 
the production of a good— 
(A) shall— 
(i) be the transaction value of the material deter-
mined in accordance with Article 1 of the Customs 
Valuation Code; or 
(ii) in the event that there is no transaction value 
or the transaction value of the material is unacceptable 
under Article 1 of the Customs Valuation Code, be 
determined in accordance with Articles 2 through 7 
of the Customs Valuation Code; and 
(B) if not included imder clause (i) or (ii) of subpara-
graph (A), shall include— 
(i) freight, insurance, packing, and all other costs 
incurred in transporting the material to the location 
of the producer; 
(ii) duties, taxes, and customs brokerage fees paid 
on the material in the territory of one or more of 
the NAFTA countries; and 
(iii) the cost of waste and spoilage resulting from 
the use of the material in the production of the good, 
less the value of renewable scrap or by-product. 
(10) INTERMEDIATE MATERIAL.—^Except for goods described 
in subsection (cXD, any self-produced material, other than a 
component identified in Annex 403.2 of the Agreement, that 
is used in the production of a good may be designated by 
the producer of the good as an intermediate material for the 
purpose of calculating the regional value-content of the good 
under paragraph (2) or (3); provided that if the intermemate 
material is subject to a re^onal value-content requirement, 
no other self-produced material that is subject to a regional 
value-content requirement and is used in the production of 
the intermediate material may be designated by the producer 
as an intermediate material. 
(11) VALUE OF INTERMEDIATE MATERIAL.—The value of an 
intermediate material shall be— 
(A) the total cost incurred with respect to all goods 
produced by the producer of the good that can be reasonably 
allocated to the intermediate material; or 
(B) the aggregate of each cost that is part of the total 
cost incurred wiui respect to the intermediate material 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2073 
that can be reasonably allocated to that intermediate mate-
rial. 
(12) INDIRECT MATERIAL.—^The value of an indirect material 
shall be based on the Generally Accepted Accoimting Principles 
applicable in the territory of the NAFTA coimtry in which 
the good is produced. 
(c) AUTOMOTIVE GOODS.— 
(1) PASSENGER VEHICLES AND UGHT TRUCKS, AND THEIR 
AUTOMOTIVE PARTS.—^For purposes of calculating the regional 
value-content under the net cost method for— 
(A) a goocl that is a motor vehicle for the transport 
of 15 or fewer persons provided for in subheading 
8702.10.00 or 8702.90.00, or a motor vehicle provided for 
in subheadings 8703.21 through 8703.90, or subheading 
8704.21 or 8704.31, or 
(B) a good provided for in the tariff provisions listed 
in Annex 403.1 of the Agreement, that is subject to a 
regional value-content requirement and is for use as origi-
nal equipment in the production of a motor vehicle for 
the transport of 15 or fewer persons provided for in sub-
heading 8702.10.00 or 8702.90.00, or a motor vehicle pro-
vided for in subheadings 8703.21 through 8703.90, or sub-
heading 8704.21 or 8704.31, 
the value of nononginating materials used by the producer 
in the production of the good shall be the sum of the values 
of all nonoriginating materials, determined in accordance with 
subsection (bX9) at the time the nonoriginating materials are 
received by the first person in the territory of a NAFTA country 
who takes title to them, that are imported from outside the 
territories of the NAFTA coimtries imder the tariff provisions 
listed in Annex 403.1 of the Agreement and are used in the 
production of the good or that are used in the production 
of any material used in the production of the good. 
(2) OTHER VEHICLES AND THEIR AUTOMOTIVE PARTS.—For 
purposes of calculating the regional value-content under the 
net cost method for a good that is a motor vehicle provided 
for in heading 8701, subheading 8704.10, 8704.22, 8704.23, 
8704.32, or 8704.90, or heading 8705 or 8706, a motor vehicle 
for the transport of 16 or more persons provided for in sub-
heading 8702.10.00 or 8702.90.00, or a comi>onent identified 
in Annex 403.2 of the Agreement for use as original equipment 
in the production of the motor vehicle, the value of 
nonoriginating materials used by the producer in the production 
of the good shall be the sum of— 
(A) for each material used by the producer listed in 
Annex 403.2 of the Agreement, whether or not produced 
by the producer, at the choice of the producer and deter-
mined in accordance with subsection (b), either— 
(i) 
the 
value 
of 
such 
material 
that 
is 
nonoriginating, or 
(ii) the value of nonoriginating materials used in 
the production of such material; and 
(B) the value of any other nonoriginating material 
used by the producer that is not listedf in Annex 403.2 
of the Agreemeint determined in accordance with subsection 
(b). 
(3) AVERAGING PERMITTED.— 
107 STAT. 2074 
PUBLIC LAW 103-182—DEC. 8, 1993 
(A) IN GENERAL.—^For purposes of calculating the 
regional value-content of a motor vehicle described in para-
graph (1) or (2), the producer may average its calculation 
over its fiscal year, using any of the categories described 
in subparagraph (B), on the basis of either all motor 
vehicles in the category or on the basis of only the motor 
vehicles in the category that are exported to me territory 
of one or more of the other NAFTA countries. 
(B) CATEGORY DESCRIBED.—^A category is described in 
this subparagraph if it is— 
(i) the same model line of motor vehicles in the 
same class of vehiclesproduced in the same plant 
in the territory of a NAFTA country; 
(ii) the same class of motor vehicles produced in 
the same plant in the territory of a NAFTA country; 
(iii) the same model line of motor vehicles produced 
in the territory of a NAFTA country; or 
(iv) if applicable, the basis set out in Annex 403.3 
of the Agreement. 
(4) ANNEX 403.1 AND ANNEX 403.2.—For purposes of calculat-
ing the regional value-content for any or all goods provided 
for in a tariff provision listed in Annex 403.1 of the Agreement, 
or a component or material identified in Annex 403.2 of the 
Agreement, produced in the same plant, the producer of the 
good may— 
(A) average its calculation— 
(i) over the fiscal year of the motor vehicle producer 
to whom the good is sold; 
(ii) over an^ quarter or month; or 
(iii) over its fiscal year, if the good is sold as 
an aftermarket part; 
(B) calculate the average referred to in subparagraph 
(A) separately for any or all goods sold to one or more 
motor vehicle producers; or 
(C) with respect to any calculation under this para-
graph, make a separate calculation for goods that are 
exported to the territory of one or more NAFTA countries. 
(5) PHASE-IN OF REGIONAL VALUE-CONTENT REQUIREMENT.— 
Notwithstanding Annex 401 of the Agreement, and except as 
provided in paragraph (6), the regional value-content require-
ment shall be^ 
(A) for a producer's fiscal year beginning on the day 
closest to January 1, 1998, and thereafter, 56 percent cal-
culated under the net cost method, and for a producer's 
fiscal year beginning on the day closest to January 1, 
2002, and thereafter, 62.5 percent calculated under the 
net cost method, for— 
(i) a good that is a motor vehicle for the transport 
of 15 or fewer persons provided for in subheading 
8702.10.00 or 8702.90.00, or a motor vehicle provided 
for in subheadings 8703.21 through 8703.90, or sub-
heading 8704.21 or 8704.31; and 
(ii) a good provided for in heading 8407 or 8408, 
or subheading 8708.40, that is for use in a motor 
vehicle identified in clause (i); and 
(B) for a producer's fiscal year beginning on the dav 
closest to January 1, 1998, and thereafter, 55 percent cal-
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2075 
ciliated under the net cost method, and for a producer's 
fiscal year beginning on the day closest to January 1, 
2002, and thereafter, 60 percent calculated under the net 
cost method, for— 
(i) a good that is a motor vehicle provided for 
in heading 8701, subheading 8704.10, 8704.22, 8704.23, 
8704.32, or 8704.90, or heading 8705 or 8706, or a 
motor vehicle for the transport of 16 or more persons 
provided for in subheading 8702.10.00 or 8702.90.00; 
(ii) a good provided for in heading 8407 or 8408, 
or subheamng 8708.40 that is for use in a motor vehicle 
identified in clause (i); and 
(iii) except for a good identified in subparagraph 
(AXii) or a good provided for in subheadings 8482.10 
through 8482.80, or subheading 8483.20 or 8483.30, 
a gocd identified in Annex 403.1 of the Agreement 
that is subject to a regional value-content requirement 
and is for use in a motor vehicle identified in subpara-
graph (AXi) or (BXi). 
(6) NEW AND REFITTED PLANTS.—^The regional value-content 
requirement for a motor vehicle identified in paragraph (1) 
or (2) shall be— 
(A) 50 percent for 5 years after the date on which 
the first motor vehicle prototvpe is produced in a plant 
by a motor vehicle assembler, if— 
(i) it is a motor vehicle of a class, or marque, 
or, except for a motor vehicle identified in paragraph 
(2), size category and underbody, not previously pro-
duced by the motor vehicle assembler in the territory 
of any of the NAFTA countries; 
(ii) the plant consists of a new building in which 
the motor venicle is assembled; and 
(iii) the plant contains substantially all new 
machinery that is used in the assembly oi the motor 
vehicle; or 
(B) 50 percent for 2 years aft«r the date on which 
the firot motor vehicle prototype is produced at a plant 
following a refit, if it is a motor vehicle of a class, or 
marque, or, except for a motor vehicle identified in para-
graph (2), size category and underbody, different 
firom 
that 
assembled by the motor vehicle assembler in the plant 
before the rent. 
(7) ELECTION FOR CERTAIN VEHICLES FROM CANADA.—In 
the case of goods provided for in subheadings 8703.21 through 
8703.90, or subheading 8704.21 or 8704.31, exported 
firom 
Can-
ada directly to the United States, and entered on or afl«r 
January 1, 1989, and before the date of entry into force of 
the Agreement between the United States and Canada, an 
importer may elect to use the rules of origin set out in this 
section in lieu of the rules of origin contained in section 202 
of 
the 
United 
States-Canada 
Free-Trade 
Agreement 
Implementation Act of 1988 (19 U.S.C. 2112 note) and may 
elect to use the method for calculating the value of 
nonoriginating materials established in article 403(2) of the 
Agreement in lieu of the method established in article 403(1) 
of the A^^reement for purposes of determining eligibility for 
preferential duty treatment under the United States-Canada 
107 STAT. 2076 
PUBLIC LAW 103-182—DEC. 8, 1993 
Free-Trade Agreement. Any election under this paragraph shall 
be made in writing to the Customs Service not later than 
the date that is 180 days after the date of entry into force 
of the Agreement between the United States and Canada. Any 
such election may be made only if the liquidation of such 
entry has not become final. For purposes of averaging the 
calculation of regional value-content for the goods covered by 
such entry, where the producer's 1989-1990 fiscal year b^an 
after January 1, 1989, the producer may include the period 
between January 1, 1989, and the beginning of its first fiscal 
year after January 1, 1989, as part of fiscal year 1989-1990. 
(d) ACCUMULATION.— 
(1) DETERMINATION OF ORIGINATING GOOD.—For purposes 
of determining whether a good is an originating good, the 
production of the good in the territory of one or more of the 
NAFTA countries by one or more producers shall, at the choice 
of the exporter or producer of the good, be considered to have 
been performed in the territonr of any of the NAFTA countries 
by that exporter or producer, it— 
(A) all nonoriginating materials used in the production 
of the good undergo an applicable tariff classification 
change set out in Annex 401 of the Agreement; 
(B) the good satisfies any applicable regional value-
content requirement; and 
(C) the good satisfies all other applicable reqiiirements 
of this section. 
The requirements of subparagraphs (A) and (B) must be satis-
fied entirely in the territory ot one or more of the NAFTA 
countries. 
(2) TREATMENT AS SINGLE PRODUCER.—For purposes of sub-
section G>X10), the production of a producer that chooses to 
accumulate its production with that of other producers under 
paragraph (1) snail be treated as the production of a single 
producer. 
(e) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.— 
(1) IN GENERAL.—^Except as provided in paragraphs (3), 
(4), (5), and (6), a good shall be considered to be an originating 
good if— 
(A) the value of all nonoriginating materials used in 
the production of the good that do not undergo an 
applicable change in tarin classification (set out in Annex 
401 of the Agreement) is not more than 7 percent of the 
transaction value of the good, acyusted to a F.O.B. basis, 
or 
(B) where the transaction value of the good is imaccept-
able under Article 1 of the Customs Valuation Code, the 
value of all such nonoriginating materials is not more 
than 7 percent of the total cost of the good, 
provided that the good satisfies all other applicable require-
ments of this section and, if the good is subject to a regional 
value-content requirement, the value of such nonoriginating 
materials is taken into account in calculating the regional 
value-content of the good. 
(2) GOODS NOT SUBJECT TO REGIONAL VALUE-CONTENT 
REQUIREMENT.—^A good that is otherwise subject to a regional 
value-content requirement shall not be required to satisfy such 
requirement if— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2077 
(AXi) the value of all nonoriginating materials used 
in the production of the good is not more than 7 percent 
of the transaction value of the good, adjusted to a F.O.B. 
basis; or 
(ii) where the transaction value of the good is unaccept-
able under Article 1 of the Customs Valuation Code, the 
value of all nonoriginating materials is not more than 
7 percent of the total cost of the good; and 
(B) the good satisfies all other applicable requirements 
of 
this section. 
(3) DAIRY PRODUCTS, ETC.—Paragraph (1) does not apply 
to— 
(A) a nonoriginating material provided for in chapter 
4 of the HTS or a dai^ preparation containing over 10 
percent by weight of milk solids provided for in subheading 
1901.90.30, 1901.90.40, or 1901.90.80 that is used in the 
production of a good provided for in chapter 4 of the HTS; 
(B) a nonoriginating material provided for in chapter 
4 of the HTS or a dairy preparation containing over 10 
percent by weight of milk solids provided for in subheading 
1901.90.30, 1901.90.40, or 1901.90.80 that is used in the 
production o
f
— 
(i) preparations for infants containing over 10 per-
cent by weight of milk solids provided for in subheading 
1901.10.00; 
(ii) mixes and doughs, containing over 25 percent 
by weight of butterfat, not put up for retail sale, pro-
vided for in subheading 1901.20.00; 
(iii) a dairy preparation containing over 10 percent 
by weight of milk solids provided for in subheading 
1901.90.30,1901.90.40, or 1901.90.80; 
(iv) a good provided for in heading 2105 or sub-
heading 2106.90.05, or preparations containing over 
10 percent by weight of milk solids provided for in 
subheading 2106.90.15, 2106.90.40, 2106.90.50, or 
2106.90.65; 
(v) a good provided for in subheading 2202.90.10 
or 2202.90.20; or 
(vi) animal feeds containing over 10 percent by 
weight of milk solids provided for in subheading 
2309.90.30; 
(C) a nonoriginating material provided for in heading 
0805 or subheadings 2009.11 through 2009.30 that is used 
in the production o
f
— 
(i) a good provided for in subheadings 2009.11 
through 2009.30, or subheading 2106.90.16, or con-
centrated fruit or vegetable juice of any single fruit 
or vegetable, fortified with minerals or vitamins, pro-
vided for in subheading 2106.90.19; or 
(ii) a good provided for in subheading 2202.90.30 
or 2202.90.35, or fruit or vegetable juice of any single 
fruit or vegetable, fortified with minerals or vitamins, 
provided for in subheading 2202.90.36; 
(D) a nonoriginating material provided for in chapter 
9 of the HTS that is used in the production of instant 
coffee, not flavored, provided for in subheading 2101.10.20; 
107 STAT. 2078 
PUBLIC LAW 103-182—DEC. 8, 1993 
(E) a nonoriginating material provided for in chapter 
15 of the HTS tnat is used in the production of a good 
provided for in headings 1501 through 1508, or heading 
1512,1514, or 1515; 
(F) a nonoriginating material provided for in heading 
1701 that is used in the production of a good provided 
for in headings 1701 through 1703: 
(G) a nonoriginating material provided for in chapter 
17 of the HTS or heading 1805 tiiat is iised in the produc-
tion of a good provided for in subheading 1806.10; 
(H) a nonoriginating material i)rovided for in headings 
2203 through 2208 that is used in the production of a 
good provided for in headings 2207 through 2208; 
(1) a nonoriginating material used in the production 
of— 
(i) a good provided for in subheading 7321.11.30; 
(ii) a good provided for in subheading 8415.10, 
subheadings 8415.81 through 8415.83, subheadings 
8418.10 through 8418.21, subheadings 8418.29 through 
8418.40, subheading 8421.12 or 8422.11, subheadings 
8450.11 through 8450.20, or subheadings 8451.21 
throii^h 8451.29; 
(iii) trash compactors provided for in subheading 
8479.89.60; or 
(iv) a good provided for in subheading 8516.60.40; 
and 
(J) a printed circuit assembly that is a nonoriginating 
material used in the production of a good where the 
applicable change in tariff classification for the good, as 
set out in Annex 401 of the Agreement, places restrictions 
on the use of such nonoriginating material. 
(4) CERTAIN FRUIT JUICES.—^Paragraph (1) does not apply 
to a nonoriginating single juice ingredient provided for in head-
ing 2009 that is u»ed in the production of— 
(A) a good provided for in subheading 2009.90, or con-
centrated mixtures of fruit or vegetable juice, fortified with 
minerals or vitamins, provided for in subheading 
2106.90.19; or 
(B) mixtures of fndt or vegetable juices, fortified with 
minerals or vitamins, provided for in subheading 
2202.90.39. 
(5) GOODS PROVIDED FOR IN CHAPTERS i THROUGH 27 OF 
T
H
E HTS.—^Parajgraph (1) does not apply to a nonoriginating 
material used in the production of a good provideof for in 
chapters 1 through 27 of the HTS unless the nonoriginating 
material is provided for in a different subheading than the 
good for which origin is being determined under mis section. 
(6) GOODS PROVIDED FOR IN CHAPTERS 50 THROUGH es OF 
T
H
E H
T
S
.
—
^
A good provided for in chapters 50 through 63 of 
the HTS, that does not originate because certein fibers or 
yams used in the production of the component of the good 
that determines the tariff classification of the good do not 
undergo an applicable change in tariff classification set out 
in Aimex 401 of the Agreement, shall be considered to be 
a good that originates if the total weight of all such fibers 
or yams in that component is not more than 7 percent of 
the total weight of that component. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2079 
(f) FUNGIBLE GOODS AND MATERIALS.—For purposes of deter-
mining whether a good is an originating good— 
(1) if originating and nonoriginating fungible materials are 
used in the production of the good, the determination of whether 
the materials are originating need not be made through the 
identification of any specific fimgible material, but may be 
determined on the basis of any of the inventor]^ management 
methods set out in regulations implementing tms section; and 
(2) if originating and nonoriginating mngible goods are 
commingled and exported in the same form, the determination 
may be made on the basis of any of the inventory management 
methods set out in regulations implementing this section. 
(g) ACCESSORIES, SPARE PARTS, OR TOOLS.— 
(1) IN GENERAL.—^Except as provided in paragraph (2), 
accessories, spare parts, or tools delivered with the good that 
form part of the good's standard accessories, spare parts, or 
tools shall— 
(A) be considered as originating goods if the good is 
an originating good, and 
(B) be disregarded in determining whether all the 
nonoriginating materials used in the production of the good 
undergo an applicable change in tariff classification set 
out in Annex 401 of the Agreement. 
(2) CONDITIONS.—Paragraph (1) shall apply only if— 
(A) the accessories, spare parts, or tools are not 
invoiced sepcurately 
fit>m 
the good; 
(B) the quantities and value of the accessories, spare 
parts, or tools are cvistomary for the good; and 
(C) in any case in which the good is subject to a 
regional value-content requirement, the value of the acces-
sories, spare parts, or tools are taken into account as origi-
nating or nonoriginating materials, as the case may be, 
in calculating the regional value-content of the good. 
(h) INDIRECT MATERIALS.—^An indirect material shall be consid-
ered to be an originating material without regard to where it 
is produced. 
(i) PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE.— 
Packaging materials and containers in which a good is packaged 
for retail sale, if classified with the good, shall be disregarded 
in determining whether all the nonoriginating materials vised in 
tJie production of the good imdergo an applicable change in tariff 
classification set out in Annex 401 of the Agreement. If the good 
is subject to a regional value-content requirement, the value of 
such packaging materials and containers shall be taken into account 
as originating or nonoriginating materials, as the case may be, 
in calculating the regional value-content of the good. 
(j) PACKING MATERI/^LS AND CONTAINERS FOR SHIPMENT.—Pack-
ing materials and containers in which a good is packed for shipment 
shall be disregarded— 
(1) in determining whether the nonoriginating materials 
used in the production of the good undergo an applicable change 
in tariff classification set out in Annex 401 of the Agreement; 
and 
(2) in determining whether the good satisfies a regional 
value-content requirement. 
(k) TRANSSHIPMENT..—^A good shall not be considered to be 
an originating good by reason of having undergone production that 
107 STAT. 2080 
PUBLIC LAW 103-182—DEC. 8, 1993 
satisfies the requirements of subsection (a) if, subsequent to that 
production, the good undergoes further production or any other 
operation outside the territories of the NAFTA countries, other 
than unloading, reloading, or any other operation necessary to 
preserve it in g
^
o
o
d condition or 
to 
transport the good to the territory 
of a NAFTA country. 
(1) NONQUALIFYING OPERATIONS.—A good shall not be consid-
' 
ered 
to 
be an originating good merely by reason o
f
— 
(1) mere dilution with water or another subst£uice that 
does not materially alter the characteristics of the good; or 
(2) any production or pricing practice with respect to which 
it may be demonstrated, by a preponderance of evidence, that 
the object was 
to 
circumvent this section. 
(m) INTERPRETATION AND APPLICATION,—For piirposes of this 
section: 
(1) The basis for any 
terifif 
classification is the HTS. 
(2) Except as otherwise expressly provided, whenever in 
this section there is a reference to a heading or subheading 
such reference shall be a reference to a heading or subheading 
of the HTS. 
(3) In applying subsection (aX4), the determination of 
whether a heading or subheading under the HTS provides 
for and specifically describes both a good and ite parts shall 
be made on the basis of the nomenclature of the heading 
or subheading, the rules of interpretetion, or notes of the HTS. 
(4) In appljring the Customs Valuation Code— 
(A) the principles of the Customs Valuation Code shall 
apply to domestic transactions, with such modifications 
as may be required by the circimistances, as would apply 
to international transactions; 
(B) the provisions of this section shall take precedence 
over the Customs Valuation Code to the extent of any 
difierence; and 
(C) the definitions in subsection (o) shall take prece-
dence over the definitions in the Customs Valuation Code 
to the extent of any difference. 
(5) All coste referred to in this section shall be recorded 
and mainteined in accordance with the Generally Accepted 
Accounting Principles applicable in the 
territory 
of the NAFTA 
country in which the good is produced. 
(n) ORIGIN OP AUTOMATIC DATA PROCESSING GOODS.—Notwith-
standing any other provision of this section, when the NAFTA 
coimtries apply the most-favored-nation rate of duty described in 
paragraph 1 of section A of Annex 308.1 of the Agreement to 
a good provided for under the tariff provisions set out in Table 
308.1.1 of such Annex, the good shall, upon importetion from a 
NAFTA country, be deemed to originate in the 
territory 
of a NAFTA 
country for purposes of this section. 
(o) SPECIAL RULE FOR CERTAIN AGRICULTURAL PRODUCTS.— 
Notwithstanding any other provision of this section, for purposes 
of applying a rate of duty 
to 
a good provided for in— 
(1) heading 1202 that is exported from the territoiy of 
Mexico, if the good is not wholly obteined in the territory 
of Mexico, 
(2) subheading 2008.11 that is exported from the territory 
of Mexico, if any material provided for in heading 1202 used 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2081 
in the production of that good is not wholly obtained in the 
territory of Mexico, or 
(3) subheading 1806.10.42 or 2106.90.12 that is exported 
from the territory of Mexico, if any material provided for in 
subheading 1701.99 used in the production of that good is 
not a qualifying good, 
such good shall be treated as a nonoriginating good and, for pur-
poses of this subsection, the terms "qualifying good" and "wholly 
obtained in the territory or have the meaning given such terms 
in paragraph 26 of section A of Annex 703.2 of the Agreement. 
(p) DEFINITIONS.—For purposes of this section— 
(1) CLASS OF MOTOR VEHiCLES.^The term "class of motor 
vehicles" mesins any one of the following categories of motor 
vehicles: 
(A) Motor vehicles provided for in subheading 8701.20, 
subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, 
or heading 8705 or 8706, or motor vehicles designed for 
the transport of 16 or more persons provided for in sub-
heading 8702.10.00 or 8702.90.00. 
(B) Motor vehicles provided for in subheading 8701.10, 
or subheadings 8701.30 through 8701.90. 
(C) Motor vehicles for the transport of 15 or fewer 
persons 
provided 
for 
in 
subheading 
8702.10.00 
or 
8702.90.00, or motor vehicles provided for in subheading 
8704.21 or 8704.31. 
(D) Motor vehicles provided for in subheadings 8703.21 
through 8703.90. 
(2) CUSTOMS VALUATION CODE.—The term "Customs Valu-
ation Code" means the Agreement on Implementation of Article 
VII of the General Agreement on Tariffs and Trade, including 
its interpretative notes. 
(3) F.O.B.—The term "F.O.B." means free on board, regard-
less of the mode of transportation, at the point of direct ship-
ment by the seller to the buyer. 
(4) FUNGIBLE (XX)DS AND FUNGIBLE MATERIALS.—The terms 
"fungible goods" and "fungible materials" mean goods or mate-
rials that are interchangeable for commercial purposes and 
whose properties are essentially identical. 
(5) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.—The 
term "Grenerally Accepted Accoxmting Principles" means the 
recognized consensus or substantial authoritative support in 
the territory of a NAFTA country with respect to the recording 
of revenues, expenses, costs, assets and liabilities, disclosure 
of information, and preparation of financial statements. These 
standards may be broad guidelines of general application as 
well as detailed standards, practices, or procedures. 
(6) GOODS WKLOLLY OBTAINED OR PRODUCED ENTIRELY IN 
THE TERRITORY OF ONE OR MORE OF THE NAFTA COUNTRIES.— 
The term "goods wholly obtained or mt)duced entirely in the 
territory of one or more of the NAFTA countries" means— 
(A) mineral goods extracted in the territory of one 
or more of the NAFTA coimtries; 
(B) vegetable goods harvested in the territory of one 
or more of the NAFTA countries; 
(C) live animals bom and raised in the territory of 
one or more of the NAFTA coimtries; 
107 STAT. 2082 
PUBLIC LAW 103-182—DEC. 8, 1993 
(D) goods obtained from hunting, trapping, or fishing 
in the territory of one or more of tiie NAFTA countries; 
(E) goods (such as fish, shellfish, and other marine 
life) teJcen from the sea by vessels registered or recorded 
with a NAFTA country and 
flving 
its flag; 
(F) goods produced on board factory ships from the 
goods referred to in subparagraph (E), if such factory ships 
are registered or recorded with that NAFTA country and 
fly its flag; 
(G) goods taken by a NAFTA country or a person 
of a NAFTA country from the seabed or beneath the seabed 
outside territorial waters, provided that a NAFTA country 
has rights to exploit such seabed; 
(H) goods taken from outer space, if the goods are 
obtained by a NAFTA country or a person of a NAFTA 
country and not processed in a country other than a NAFTA 
country; 
(I) waste and scrap derived from— 
(i) production in the territory of one or more of 
the NAFTA countries; or 
(ii) used goods collected in the territory of one 
or more of the NAFTA countries, if such goods are 
fit only for the recovery of raw materials; and 
(J) goods produced in the territory of one or more 
of the NAFTA countries exclusively from goods referred 
to in subparagraphs (A) through (I), or firom their deriva-
tives, at any stage of production. 
(7) IDENTICAL OR SIMILAR GOODS.—The term 'Hdentical or 
similar goods" means "identical goods" and "similar goods", 
respectively, as defined in the Customs Valuation Code. 
(8) INDIRECT MATERIAL.— 
(A) The term "indirect material" means a good— 
(i) used in the production, testing, or inspection 
of a good but not physically incorporated into the good, 
or 
(ii) used in the maintenance of buildings or the 
operation of equipment associated with the production 
of a good, 
in the territory of one or more of the NAFTA coimtries. 
(B) When used for a purpose described in subparagraph 
(A), the following materials are among those considered 
to be indirect materials: 
(i) Fuel and energy. 
(ii) Tools, dies, and molds. 
(iii) Spare parts and materials used in the mainte-
nance of equipment and buildings. 
(iv) Lubricants, greases, compounding materials, 
and other materials used in production or used to 
operate equipment and buildings. 
(v) Gloves, glasses, footwear, clothing, safety equip-
ment, and supplies. 
(vi) Equipment, devices, and supplies used for test-
ing or inspecting the goods. 
(vii) Catalysts and solvents. 
(viii) Any other goods that are not incorporated 
into the good, if the use of such goods in the production 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2083 
of the good can reasonably be demonstrated to be a 
part of that production. 
(9) INTERMEDIATE MATERIAL.—The term "intermediate 
material" means a material that is self-produced, used in the 
production of a good, and designated pursuant to subsection 
(bXlO). 
(10) MARQUE.—^The term 'barque" means the trade name 
used by a separate marketing division of a motor vehicle assem-
bler. 
(11) MATERIAL.—^The term "material" means a good that 
is used in the production of another good and includes a part 
or an ingredient. 
(12) MODEL LINE.—^The term "model line" means a group 
of motor vehicles having the same platform or model name. 
(13) MOTOR VEHICLE ASSEMBLER.^The term "motor vehicle 
assembler" means a producer of motor vehicles and any related 
persons or joint ventures in which the producer participates. 
(14) NAFTA COUNTRY.—The term "NAFTA country" means 
the United States, Canada or Mexico for such time as the 
Agreement is in force with respect to Canada or Mexico, and 
the United States applies the Agreement to Canada or Mexico. 
(15) NEW BUILDING.—The term "new building" means a 
new construction, including at least the pouring or construction 
of new foundation and floor, the erection of a new structure 
and roof, and installation of new pliunbing, electrical, and other 
utilities to house a complete vehicle assembly process. 
(16) NET COST.—llie term "net cost" means total cost less 
sales promotion, marketing and after-sales service costs, royal-
ties, shipping and packing costs, and nonallowable interest 
costs that are included in the total cost. 
(17) NET COST OF A GOOD.—The term "net cost of a good" 
means the net cost that can be reasonably allocated to a good 
using one of the methods set out in subsection (bX8). 
(18) 
NONALLOWABLE 
INTEREST 
COSTS.—The 
term 
"nonallowable interest costs" means interest costs incurred by 
a producer as a result of an interest rate that exceeds the 
applicable federal government interest rate for comparable 
maturities by more than 700 basis points, determined pursuant 
to regulations implementing this section. 
(19) NONORIGINATING GOOD; NONORIGINATING MATERIAL.— 
The term "nonoriginating good" or "nonoriginating material" 
means a good or material that does not qualify as an originating 
good or material under the rules of origin set out in this 
section. 
(20) ORIGINATING.—^The term "originating" means qualify-
ing under the rules of origin set out in mis section. 
(21) PRODUCER.—^The term "producer" means a person who 
grows, mines, harvests, fishes, traps, hunts, manufactures, 
processes, or assembles a good. 
(22) PRODUCTION.—^Tlie term "production" means growing, 
mining, harvesting, fishing, trapping, hunting, manufacturing, 
processing, or assembling a good. 
(23) REASONABLY ALLOCATE.—The term "reasonably allo-
cate" means to apportion in a manner appropriate to the cir-
cumstances. 
107 STAT. 2084 
PUBLIC LAW 103-182—DEC. 8, 1993 
X 
(24) REFIT.—^The term "refit" means a plant closure, for 
purposes of plant conversion or retooling, that lasts at least 
3 months. 
(25) RELATED PERSONS.—^The term "related persons" means 
persons specified in any of the following subparagraphs: 
(A) Persons who are officers or directors of one 
another's businesses. 
(B) Persons who are legally recognized partners in 
business. 
(C) Persons who are employer and employee. 
(D) Persons one of whom owns, controls, or holds 25 
percent or more of the outstanding voting stock or shares 
,. 
of the other. 
(E) Persons if 25 percent or more of the outstanding 
voting stock or shares of each of them is directly or 
indirectly owned, controlled, or held by a third person. 
(F) Persons one of whom is directly or indirectly con-
trolled by the other. 
(G) Persons who are directly or indirectly controlled 
by a third person. 
(H) Persons who are members of the same family. 
For purposes of this paragraph, the term "members of the 
same familjr" means natural or adoptive children, brothers, 
sisters, parents, grandparents, or spouses. 
(26) ROYALTIES.—^The term "royalties'* means payments of 
any kind, including payments imder technical assistance or 
similar agreements, made as consideration for the use or right 
to use any copyright, literary, artistic, or scientific work, patent, 
trademark, design, model, plan, secret formula, or process. It 
does not include pajnnents under technical assistance or similar 
agreements that can be related to specific services such as— 
(A) personnel training, without regard to where per-
formed; and 
(B) if performed in the territory of one or more of 
the NAFTA countries, engineering, tooling, die-setting, soft-
ware design and similar computer services, or other serv-
ices. 
(27) SALES PROMOTION, MARKETING, AND AFTER-SALES SERV-
ICE COSTS.—^Tlie term "sales promotion, marketing, and after-
sales service costs" means the costs related to sales promotion, 
marketing, and afi^er-sales service for the following: 
(A) Sales and marketing promotion, media advertising, 
advertising and market research, promotional and dem-
onstration materials, exhibits, sales conferences, trade 
shows, conventions, banners, marketing displays, firee sam-
,, 
pies, sales, marketing and afi^r-sales service literature 
(product brochures, catalogs, technical literature, price 
lists, service manuals, sales aid information), establishment 
and protection of logos and trademarks, sponsorships, 
wholesale and retail restocking charges, and entertainment. 
(B) Sales and marketing incentives, consumer, retailer, 
or wholesaler rebates, and merchandise incentives. 
(C) Salaries and wages, sales commissions, bonuses, 
benefits (such as medical, insurance, and pension), travel-
ing and living expenses, and membership and professional 
fees for sales promotion, marketing, and afi^r-sales service 
personnel. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2085 
(D) Recruiting and training of sales promotion, market-
ing, and after-sales service personnel, and after-sales train-
ing of customers' employees, where such costs are identified 
separately for sales promotion, marketing, and aft^r-sales 
service or goods on the financial statements or cost accounts 
oftheprocTucer. 
(E) Product liability insurance. 
(F) Office supplies for sales promotion, marketing, and 
after-sales service of goods, where such costs are identified 
separated for sales promotion, marketing, and afl^r-scdes 
service of goods on the financial statement or cost accoimts 
of the producer. 
(G) Telephone, mail, and other communications, where 
such costs are identified separately for sales promotion, 
marketing, and afi^er-sales service of goods on the financial 
statements or cost accounts of the producer. 
(H) Rent and depreciation of sales promotion, market-
ing, and after-sales service offices and distribution centers. 
(I) Property insurance, taxes, utilities, and repair and 
maintenance of sales promotion, marketing, and after-sales 
service offices and distribution centers, where such costs 
are identified separately for sales promotion, marketing, 
and after-sales service of goods on the financial statement 
or cost accounts of the producer. 
(J) Pa3naients by the producer to other persons for 
warranty repairs. 
(28) SELF-PRODUCED MATERIAL.—The term "self-produced 
material" means a material that is produced by the producer 
of a good and used in the production of that jrood. 
(29) SHIPPING AND PACKING COSTS.—The term "shipping 
and packing costs" means the costs incurred in packmg a 
good for shipment and shipping the good fi:^m the point of 
direct shipment to the buyer, but does not include tne costs 
of preparing and packagingthe good for retail sale. 
(30) SIZE CATEGORY.—-The term "size category" means with 
respect to a motor vehicle identified in subsection (cXlXA)— 
(A) 85 cubic feet or less of passenger and luggage 
interior volume; 
(B) more than 85 cubic feet, but less than 100 cubic 
feet, of passenger and luggage interior volume; 
(C) at least 100 cubic feet, but not more than 110 
cubic feet, of passenger and luggage interior volume; 
(D) more than 110 cubic feet, but less than 120 cubic 
feet, of passenger and luggage interior volume; and 
(E) 120 cubic feet or more of passenger and luggage 
interior volume. 
(31) TERRITORY.—^The term "territory" means a territory 
described in Annex 201.1 of the Agreement. 
(32) TOTAL COST.—The term "total cost" means all product 
costs, period costs, and other costs incurred in the territory 
of one or more of the NAFTA countries. 
(33) TRANSACTION VALUE.—Except as provided in sub-
section (cXD or (cX2XA), the term "transaction value" mecuis 
the price actually paid or payable for a good or material with 
respect to a transaction of the producer of the good, adjusted 
in accordance with the principles of paragraphs 1, 3, and 4 
of Article 8 of the Customs Valuation C
c
M
d
e and determined 
107 STAT. 2086 
PUBLIC LAW 103-182—DEC. 8, 1993 
without regard to whether the good or material is sold for 
export. 
(34) UNDERBODY.—The term "underbody" means the floor 
pan of a motor vehicle. 
(35) USED.—^The term 'Sised" means used or consumed 
in the production of goods. 
(q) PRESroENTIAL PROCLAMATION AUTHORITY.— 
(1) IN GENERAL.—^The President is authorized to proclaim, 
as a part of the HTS— 
(A) the provisions set out in Appendix 6.A of Annex 
300-B, Annex 401, Annex 403.1, Annex 403.2, and Annex 
403.3, of the Agreement, and 
(B) any additional subordinate category necessary to 
cany out this title consistent with the Agreement. 
(2) MODIFICATIONS.—Subject to the consultation and lay-
over requirements of section 103, the President may proclaim— 
(A) modifications to the provisions proclaimed under 
the authority of paragraph (1)(A), other than the provisions 
of paragraph A of Appendix 6 of Annex 300-B and section 
XI of part B of 
Annex 401 of the Agreement; £ind 
(B) a modified version of the definition of any term 
set out in subsection (p) (and such modified version of 
the definition shall supersede the version in subsection 
(p)), but only if the modified version reflects solely those 
^•yf 
modifications to the same term in article 415 of the Agree-
ment that are agreed to by the NAFTA coimtries before 
the 1st anniversary of the date of the enactment of this 
Act. 
(3) SPECIAL RULES FOR TEXTILES.—Notwithstanding the 
provisions of paragraph (2XA), and subject to the consultation 
and layover requirements of section 103, the President may 
proclaim— 
(A) modifications to the provisions proclaimed under 
the authority of paragraph (IXA) as are necessaryto imple-
ment an agreement with one or more of the NAFTA coim-
tries pursuant to paragraph 2 of section 7 of Annex 300-
B of the Agreement, and 
I 
(B) before the 1st anniversary of the date of the enact-
ment of this Act, modifications to correct any typographical, 
clerical, or other nonsubstantive technical error regarding 
the provisions of Appendix 6.A of Annex 300-B and section 
XI of part B of Annex 401 of the Agreement. 
19 use 3333. 
SEC. 203. DRAWBACK. 
(a) DEFINITION OF A GOOD SUBJECT TO NAFTA DRAWBACK.— 
For purposes of this Act and the amendments made by subsection 
(b), the term "good subject to NAFTA drawback" means any 
imported good other than the following: 
(1) A good entered imder bond for transportation and expor-
tation to a NAFTA coimtry. 
(2) A good exported to a NAFTA coimtry in the same 
condition as when imported into the United States. For pur-
poses of this paragraph— 
(A) processes such as testing, cleaning, repacking, or 
inspecting a good, or preserving it in its same condition, 
shall not be considered to change the condition of the 
>
K 
good, and 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2087 
(B) except for a good referred to in paragraph 12 of 
section A of Annex 703.2 of the Agreement that is exported 
to Mexico, if a good described in the first sentence of 
this paragraph is commingled with fungible goods and 
exported in the same condition, the origin of the good 
may be determined on the basis of the inventory methods 
provided for in the regulations implementing this title. 
(3) A good— 
(A) that is— 
(i) deemed to be exported from the United States, 
(ii) used as a material in the production of another 
good that is deemed to be exported to a NAFTA coun-
try, or 
(iii) substituted for by a good of the same kind 
and quality that is used as a material in the production 
of another good that is deemed to be exported to a 
NAFTA country, and 
(B) that is delivered— 
(i) to a duty-free shop, 
(ii) for ship's stores or supplies for ships or aircraft, 
or 
(iii) for use in a project undertaken jointly by 
the United States and a NAFTA coimtry and destined 
to become the property of the United States. 
(4) A good exported to a NAFTA country for which a 
refund of customs duties is granted by reason o
f
— 
(A) the failure of the good to conform to sample or 
specification, or 
(B) the shipment of the good without the consent of 
the consignee. 
(5) A good that qualifies under the rules of origin set 
out in section 202 that is— 
(A) exported to a NAFTA country, 
(B) used as a material in the production of another 
good that is exported to a NAFTA country, or 
(C) substituted for by a good of tike same kind and 
quality that is used as a material in the production of 
another good that is exported to a NAFTA country. 
(6) A g(>od provided for in subheading 1701.11.02 of the 
HTS that is— 
(A) used as a material, or 
(B) substituted for by a good of the same kind and 
quality that is used as a material, 
in the production of a good provided for in existing Canadian 
tariff item 1701.99.00 or existmg Mexican tariff item 1701.99.01 
or 1701.99.99 (relating to refined sugar). 
(7) A citrus product that is exported to Canada. 
(8) A good used as a material, or substituted for by a 
good of the same kind and quality that is used as a material, 
in the production o
f
— 
(A) apparel, or 
(B) a good provided for in subheading 6307.90.99 
(insofar as it relates to furniture moving pads), 5811.00.20, 
or 5811.00.30 of the HTS, 
that is exported to Canada and that is subject to Canada's 
most-favored-nation rate of duty upon importation into Canada. 
107 STAT. 2088 
PUBLIC LAW 103-182—DEC. 8, 1993 
Where in paragraph (6) a good referred to by an item is described 
in parentheses following the item, the description is provided for 
purposes of reference only. 
(b) CONSEQUENTIAL AMENDMENTS WITH DELAYED EFFECJT.— 
(1) BONDED MANUFACTURING WAREHOUSES.—The last para-
graph of section 311 of the Tariff Act of 1930 (19 U.S.C. 1311) 
18 amended to read as follows: 
'^o article manufactured in a bonded warehouse 
from 
materials 
that are goods subject to NAFTA drawback, as defined in section 
203(a) of the North American Free Trade Agreement Implementa-
tion Act, may be withdrawn frt)m warehouse for exportation to 
a NAFTA countiy, as defined in section 2(4) of that Act, without 
assessment of a duty on the materials in their condition and quan-
tity, and at their weight, at the time of importation into the United 
States. The duty shcdl be paid before the 61st dav after the date 
of exportation, except that upon the presentation, before such 6l8t 
day, of satisfactory evidence of the amount of any customs duties 
K
aid to the NAFTA country on the article, the customs duty may 
e waived or reduced (subject to section 508(bX2XB)) in an amount 
that does not exceed the lesser o
f
— 
"(1) Uie total amount of customs duties paid or owed on 
the materials on importation into the United States, or 
"(2) the total amount of customs duties paid on the article 
to the NAFTA country. 
If Canada ceases to be a NAFTA country and the suspension 
of the operation of the United States-Canada Free-Trade Agreement 
thereafter terminates, no article manufactured in a bonded ware-
house, except to the extent that such article is made from an 
article that is a drawback eUgible good under section 204(a) of 
the United States-Canada Free-Trade Agreement Implementation 
Act of 1988, may be withdrawn 
from 
such warehouse for exportation 
to Canada during the period such Agreement is in operation without 
payment of a duty on such imported merchandise in its condition, 
and at the rate of duty in effect, at the time of importation.". 
(2) BONDED SMELTING AND REFINING WAREHOUSES.—Section 
312 of the Tariff Act of 1930 (19 U.S.C. 1312) is amended— 
(A) in paragraphs (1) and (4) of subsection (b), by 
striking out the parenthetical matter and the final **, o^ 
and by adding at the end the following: 
"; except that in the case of a withdrawal for exportation 
of such a product to a NAFTA country, as defined in section 
2(4) of the North American Free Trade Agreement Implementa-
tion Act, if any of the imported metal-bearing materials are 
goods subject to NAFTA drawback, as defined in section 203(a) 
of that Act, the duties on the materials shall be paid, and 
the charges against the bond canceled, before the 61st day 
after the date of exportation; but upon the presentation, before 
such 61st day, of satisfactory evidence of the amount of any 
customs duties paid to the NAFTA country on the product, 
the duties on the materials may be waived or reduced (subject 
to section 508(bX2XB)) in an amount that does not exceed 
the lesser o
f
— 
"(A) the total amount of customs duties owed on the 
materials on importation into the United States, or 
"(B) the total amount of customs duties paid to the 
NAFTA coimtiy on the product, or^; 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2089 
(B) by adding at the end of subsection (b) the following 
new flush sentence. 
I f Canada ceases to be a NAFTA country and the suspension 
of the operation of the United States-Canada Free-Trade Agreement 
thereafter terminates, no charges against such bond may be can-
celed in whole or part upon an exportation to Canada under para-
graph (1) or (4) during ue period such Agreement is in operation 
except to the extent that the metal-bearing materials were of 
Canadian origin as determined in accordance with section 202 of 
the United States-Canada Free-Trade Agreement Implementation 
Act of 1988."; and 
(C) in subsection (d) by striking out the parenthetical 
matter and by inserting before the period tne following: 
"; except that in the case of a withdrawal for exportation to a 
NAFTA country, as defined in section 2(4) of the North American 
Free Trade Agreement Implementation Act, if anv of the imported 
metal-bearing materials are goods subject to NAFTA drawback, 
as defined in section 203(a) of that Act, charges against the bond 
shall be paid before the 61st day afi«r the date of exportation; 
but upon the presentation, before such 61st day, of satisfactory 
evidence of the amount of any customs duties paid to the NAFTA 
country on the jmroduct, the bond shall be credited (subject to 
section 508(bX2)OB)) in an amount not to exceed the lesser of— 
"(1) the total amount of customs duties paid or owed on 
the materials on importation into the United States, or 
"(2) the total amount of customs duties paid to the NAFTA 
country on the product. 
If Canada ceases to be a NAFTA country and the suspension 
of the operation of the United States-Canada Free-Trade Agreement 
thereafter terminates, no bond shall be credited under this sub-
section with respect to an exportation of a product to Canada 
during the period such .Agreement is in operation except to the 
extent that the product is a drawback eligible good under section 
204(a) of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988". 
(3) DRAWBACK.—-Subsections (n) and (o) of section 313 of 
the Tariff Act of 1930 (19 U.S.C. 1313 (n) and (o)) are amended 
to 
read 
as follows: 
"(nXD For purposes of this subsection and subsection (o)— 
"(A) the term 'NAFTA Act' means the North American 
Free Trade Agreemenit Implementation Act; 
"(B) the terms 'N.AFTA countr/ and 'good subject to NAFTA 
drawback' have the isame respective mecmings mat are given 
such terms in sections 2(4) and 203(a) of the NAFTA Act; 
and 
"(C) a 
refund, 
waiver, or reduction of duty under paragraph 
(2) of this subsection or paragraph (1) of subsection (o) is 
subject to section 508(bX2XB). 
"(2) For pur[>oses of subsections (a), (b), (f), (h), (p), and (q), 
if an article mat is exported to a NAFTA country is a good subject 
to NAFTA drawback, no customs duties on the good may be 
refunded, waived, or reduced in an amount that exc^ds the lesser 
o
f
— 
"(A) the total amount of customs duties paid or owed on 
the good on importation into the United States, or 
"(B) the total amount of customs duties paid on the good 
to the NAFTA country. 
107 STAT. 2090 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(3) If Canada ceases to be a NAFTA country and the suspen-
sion of the operation of the United States-Canada Free-Trade Agree-
ment thereafter terminates, then for purposes of subsections (a), 
(b), (f), (h), 0'X2)> <^^ (Q)' ^
h
® shipment to Canada during the 
period such Agreement is in operation of an article made from 
or substituted for, as appropriate, a drawback eligible good imder 
section 204(a) of the Umted States-Canada Free-Trade Implementa-
tion Act of 1988 does not constitute an exportation. 
"(oXD For purposes of subsection (g), i
f
-
— 
"(A) a vessel is built for the account and ownership of 
a resident of a NAFTA coimtry or the government of a NAFTA 
country, and 
"(B) imported materials that are used in the construction 
and equipment of the vessel are goods subject to NAFTA draw-
back, 
the amount of customs duties refunded, waived, or reduced on 
such materials may not exceed the lesser of the total amount 
of customs duties paid or owed on the materials on importation 
into the United States or the total amoimt of customs duties paid 
on the vessel to the NAFTA country. 
"(2) If Canada ceases to be a NAFTA country and the suspen-
sion of the operation of the United States-Canada Free-Trade A^:'ee-
ment thereafter terminates, then for purposes of subsection (g), 
vessels built for Canadian account and ownership, or for the Govern-
ment of Canada, may not be considered to be built for any foreign 
account and ownership, or for the government of any foreign coun-
try, except to the extent that the materials in such vessels are 
drawback eUgible goods under section 204(a) of the United States-
Canada Free-Trade Implementation Act of 1988.". 
(4) MANIPULATION IN WAREHOUSE.—Section 562 of the Tar-
iff Act of 1930 (19 U.S.C. 1562) is amended— 
(A) in the second sentence by striking out 'Vithout 
payment of duties—^" and inserting a dash; 
(B) by striking out paragraphs (1), (2), and (3) and 
inserting the following: 
"(1) without payment of duties for exportation to a NAFTA 
country, as defined in section 2(4) of the North American Free 
Trade Agreement Implementation Act, if the merchandise is 
of a kind described in any of paragraphs (1) through (8) of 
section 203(a) of that Act; 
"(2) for exportation to a NAFTA country if the merchandise 
consists of goods subject to NAFTA drawback, as defined in 
section 203(a) of that Act, except that— 
^ 
"(A) the merchandise may not be Mdthdrawn from ware-
house without assessment of a duty on the merchandise 
in its condition and quantity, and at its weight, at tiie 
time of withdrawal from the warehouse with auca additions 
to or deductions from the final appraised value as may 
be necessary by reason of change in condition, and 
"(B) duty shall be paid on the merchandise before 
the 61st day after the date of exportation, but upon the 
presentation, before such 61st day, of satisfactory evidence 
of the amount of any customs duties paid to the NAFTA 
countnr on the merchandise, the customs duty may be 
waived or reduced (subject to section 508(bX2XB)) in an 
amount that does not exceed the lesser of— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2091 
"(i) the total amount of customs duties paid or 
owed on the merchandise on importation into the 
United States, or 
"(ii) the total amount of customs duties paid on 
the merchandise to the NAFTA country; 
"(3) without payment of duties for exportation to any for-
eign country other than to a NAFTA country or to Canada 
when exports to that country are subject to paragraph (4); 
"(4) without payment of duties for exportation to Canada 
(if that country ceases to be a NAFTA coimtry and the suspen-
sion of the operation of the United States-Canada Free-Trade 
Agreement thereafter terminates), but the exemption from the 
payment of duties under this paragraph applies only in the 
case of an exportation during the period such Agreement is 
in operation of^merchandise that— 
"(A) is only cleaned, sorted, or repacked in a bonded 
warehouse, or 
"(B) is a drawback eligible good under section 204(a) 
of the United 
States-Canada 
Free-Trade 
Agreement 
Implementation Act of 1988; and 
"(5) without payment of duties for shipment to the Virgin 
Islands, American Samoa, Wake Island, Midway Island, King-
man Reef, Johnston Island or the island of Guam."; and 
(B) in the third sentence by striking out "paragraph 
(1) of the preceding sentence" and inserting "paragraph 
(4) of the preceding sentence". 
(5) FOREIGN TRAIDE ZONES.—Section 3(a) of the Act of June 
18, 1934 (commonly knovm as the "Foreign Trade Zones Act"; 
19 U.S.C. 81c(a)) is amended— 
(A) in the last proviso— 
(i) by inserting after That" the following: ", if 
Canada ceases to be a NAFTA country and the suspen-
sion of the oi>eration of the United States-Canada Free-
Trade Agreement thereafter terminates,"; and 
(ii) by striking out "on or after January 1, 1994, 
or such later date as may be proclaimed by the Presi-
dent under section 204(bX2XB) of such Act of 1988," 
and inserting "during the period such Agreement is 
in operation"; and 
(B) by inserting before such lastproviso the following 
new proviso: "; Provided, further. That no merchandise 
that consists of goods subject to NAFTA drawback, as 
defined in section 203(a) of the North American Free Trade 
Agreement Implementation Act, that is manufactured or 
otirierwise changed in condition shall be exported to a 
NAFTA country, as defined in section 2(4) of that Act, 
without an asseissment of a duty on the merchandise in 
its condition and quantity, and at its weight, at the time 
of its exportation (or if the privilege in the first proviso 
to this subsection was requested, an assessment of a duty 
on the merchandise in its condition and quantity, and 
at its weight, at the time of its admission into the zone) 
and the payment of the assessed duty before the 61st 
day after the date of exportation of the article, except 
that upon the presentation, before such 6l8t day, of satis-
factory evidence of the amount of any customs duties paid 
or owed to the NAFTA country on the article, the customs 
107 STAT. 2092 
PUBLIC LAW 103-182—DEC. 8, 1993 
duty may be waived or reduced (subject to section 
508(bX2XB) of the TarifT Act of 1930) in an amount that 
does not exceed the lesser of (1) the total amoimt of customs 
duties paid or owed on the merchandise on importation 
into the United States, or (2) the total amount or customs 
duties paid on tlie article to the NAFTA country:". 
(c) CONSEQUENTIAL AMENDMENT WITH IMMEDIATE EFFECT.— 
Section 313(j) of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is 
amended— 
(1) by striking out If 
in paragraph (2) and inserting 
"Subject 
to 
pari^aph (4), if; and 
(2) \^ addmg at the end the following new paragraph: 
"(4) Efifective upon the entry into force of the North Amer-
ican Free Trade Agreement, the exportation to a NAFTA coun-
try, as defined in section 2(4) of the North American Free 
Trade Agreement Implementotion Act, of merchandise that is 
fungible with and substituted for imported merchandise, other 
than merchandise described in paragraphs (1) through (8) of 
section 203(a) of that Act, shall not constitute an exportation 
for purposes of paragraph (2).". 
(d) ELIMINATION OF DRAWBACK FOR SECTION 22 FEES.—Not-
withstanding any other provision of law, the Secretary of the Treas-
ury may not, on condition of export, remnd or reduce a fee applied 
pursuant to section 22 of the A^cultural Acijustment Act (7 U.S.C. 
624) with respect to goods included under subsection (a) that are 
exported to— 
(1) Canada after December 31, 1995, for so long as it 
is a NAFTA coimtry; or 
(2) Mexico after December 31, 2000, for so long as it is 
a NAFTA country. 
(e) INAPPUCABILITY TO COUNTERVAILING AND ANTIDUMPING 
DUTIES.—^Nothing in this section or the amendments made by it 
shall be considered to authorize the refund, waiver, or reduction 
of coimtervailing duties or antidiunping duties imposed on an 
^ 
imported good. 
SEC. 204. CUSTOBIS USER FEES. 
Paragraph (10) of section 13031(b) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(bX10)) is amended 
to read as follows: 
"(lOXA) The fee charged under subsection (a) (9) or (10) with 
respect to goods of Canaouan origin (as determined under section 
202 of the United Stetes-Canada Free-Trade Agreement) when the 
United Stetes-Canada Free-Trade Agreement is in force shall be 
in accordance with section 403 of that Agreement. 
"(B) For goods qualifying under the rules of origin set out 
in section 202 of the North American Free Trade Agreement 
Implementotion Act, the fee under subsection (a) (9) or (10)— 
"(i) may not be charged with respect to goods that qualify 
to be marked as ^oods of Canada pursuant to Annex 311 
of the North American Free Trade Agreement, for such time 
as Canada is a NAFTA country, as defined in section 2(4) 
of such Implementotion Act; and 
"(ii) may not be increased after December 31, 1993, and 
may not be charged after June 29, 1999, with respect to goods 
that qualify to he marked as goods of Mexico pursuant to 
such Annex 311, for such time as Mexico is a NAFTA country. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2093 
Any service for which an exemption from such fee is provided 
by reason of tiiis paragraph may not be funded with money con-
tained in the Customs User Fee Account.". 
SEC. 206. ENFORCEMENT. 
(a) RECORDKEEPING REQUIREMENTS.—Section 508 of the Tariff 
Act of 1930 (19 U.S.C. 1508) is amended as follows: 
(1) Subsection (b) is amended to read as follows: 
"(b) EXPORTATIONS T
C
) FREE TRADE COUNTRIES.— 
"(1) DEFiNrnoNS,.—As used in this subsection— 
"(A) The term 'associated records' means, in regard 
to an exported good imder paragraph (2), records associated 
with— 
"(i) the purchase of, cost of, value of, and pasrment 
for, the good; 
"(ii) the purchase of, cost of, value of, and payment 
for, all material, including indirect materials, used in 
the production of the good; and 
"(iii) the production of the good. 
For purposes of this subparagraph, the terms 'indirect 
material, 'material', 'preferential tariff treatment', 'used', 
and 'value' have the respective meanings given them in 
articles 415 and 514 of the North American Free Trade 
Agreement. 
"(B) The term *NAFTA Certificate of Origin' means 
the certification, established under article 501 of the North 
American Free Trade Agreement, that a good qualifies 
as an originating good under such Agreement. 
"(2) EXPORTS TO NAFTA COUNTRIES.— 
"(A) IN GENERAL.—Ai^ person who completes and signs 
a NAFTA Certificate of Origin for a good for which pref-
erential treatment under the North /^erican Free TVade 
Agreement is claimed shall make, keep, and render for 
examination and inspection all records relating to the origin 
of the good (including the Certificate or copies thereof) 
and the associated records. 
"(B) CLAIMS FOR CERTAIN WAIVERS, REDUCTIONS, OR 
REFUNDS OF DUTIES OR FOR CREDIT AGAINST BONDS.— 
"(i) IN GENERAL.—^Any person that claims with 
respect to an article— 
"(1) a waiver or reduction of duty under the 
last pareigraph of section 311, section 312(b) (1) 
or (4), section 562(2), or the last proviso to section 
3(a) of the Foreign TVade Zones Act; 
"(11) a credit against a bond under section 
312(d); or 
"(III) a refund, waiver, or reduction of duty 
under section 313 (nX2) or (oXD; 
must disclose to the Customs Service the information 
described in clause (ii). 
"(ii) INFORMATION REQUIRED.—Within 30 days 
after making a claim described in clause (i) with 
respect to. an article, the person making the claim 
must disclose to the Customs Service whether that 
person has prepared, or has knowledge that another 
person has prepared, a NAFTA Certificate of Origin 
107 STAT. 2094 
PUBLIC LAW 103-182—DEC. 8, 1993 
for the article. If after such 30-day period the person 
making the claim either— 
"(I) prepares a NAFTA Certificate of Origin 
for the article; or 
"(11) learns of the existence of such a Certifi-
cate 
for 
the article; 
that person, within 30 days after the occurrence 
descrioed in subclause (I) or (II), must disclose the 
occurrence to the Customs Service. 
"(iii) ACTION ON CLAIM.—If the Customs Service 
determines that a NAFTA Certificate of Origin has 
been prepared with respect to an article for which 
a claim described in clause (i) is made, the Customs 
Service may make such ac^'ustments regarding the pre-
vious customs treatment of the article as may be war-
ranted. 
"(3) EXPORTS UNDER THE CANADIAN AGREEMENT.—Any per-
son who exports, or who knowingly causes to be exported, 
any merchandise to Canada during such time as the United 
States-Canada Free-Trade Agreement is in force with respect 
to, and the United States applies that Agreement to, Canada 
shall make, keep, and render for examination and inspection 
such records (including certifications of origin or copies tnereof) 
which pertain to the exportations.". 
(2) Subsection (c) is amended to read as follows: 
"(c) PERIOD OF TIME.—^The records required by subsections (a) 
and (b) shall be kept for such periods of time as the Secretary 
shall prescribe; except that— 
"(1) no period of time for the retention of the records 
required under subsection (a) or (bX3) may exceed 5 years 
firom the date of entry or exportation, as appropriate; 
"(2) the period of time for the retention of the records 
required under subsection (bX2) shall be at least 5 years firom 
the date of signature of the NAFTA Certificate of (Origin; and 
"(3) records for any drawback claim shall be kept until 
the 3rd anniversary of the date of payment of the claim.". 
(3) Subsection (e) is amended to read as follows: 
"(e) SUBSECTION (b) PENALTIES.— 
"(1) RELATING TO NAFTA EXPORTS.—Any person who fails 
to retain records required by paragraph (2) of subsection (b) 
or the regulations issued to implement that paragraph shall 
be liable for— 
"(A) a civil penalty not to exceed $10,000; or 
"(B) the general recordkeeping penalty that applies 
under the customs laws; 
whichever penalty is higher. 
"(2) RELATING TO CANADIAN AGREEMENT EXPORTS.—Anv 
person who fails to retain the records required by paragraph 
(3) of subsection (b) or the regulations issued to implement 
that paragraph shall be liable ror a civil penalty not to exceed 
$10,000.". 
(b) CONFORMING AMENDMENT.—Section 509(aX2XAXii) of the 
Tariff Act of 1930 (19 U.S.C. 1509(aX2XAXii)) is amended to read 
as follows: 
"(ii) exported merchandise, or knowingly caused 
merchandise to be exported, to a NAFTA country (as 
defined in section 2(4) of the North American Free 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2095 
Trade Agreement Implementation Act) or to Canada 
during such time as the United States-Canada Free-
Trade Agreement is in force with respect to, and the 
United States applies that Agreement to, Canada,". 
(c) DISCLOSURE OF INCORRECT INFORMATION.—Section 592 of 
the Tariff Act of 1930 (19 U.S.C. 1592) is amended— 
(1) in subsection (c)— 
(A) by redesignating paragraph (5) as paragraph (6); 
and 
(B) by inserting after paragraph (4) the following new 
paragraph: 
'(5) PRIOR DISCLOSURE REGARDING NAFTA CLAIMS.—An 
importer shall not be subject to penalties under subsection 
(a) for making an incorrect claim lor preferential t€uiff treat-
ment under section 202 of the North American Free Trade 
Agreement Implementation Act if the importer— 
"(A) has reason to believe that the NAFTA Certificate 
of Origin (as defined in section 508(bXl)) on which the 
claim was based contains incorrect information; and 
"(B) in accordance with regulations issued by the Sec-
retary, voluntarily and promptly makes a corrected declara-
tion and pays any duties owing. ; and 
(2) by addmg at the end the following new subsection: 
"(f) FALSE CERTIFICATIONS REGARDING EXPORTS TO NAFTA 
COUNTRIES.— 
"(1) IN GENERAL.—Subject to paragraph (3), it is unlawful Fraud. 
for any person to certify falsely, by nraud, gross negligence, 
or negligence, in a NAFTA Certificate of Ongin (as defined 
in section 508(bXl)) that a good to be exported to a NAFTA 
country (as defined in section 2(4) of the North American Free 
Trade Agreement Implementation Act) qualifies under the rules 
of origin set out in section 202 of that Act. 
"(2) APPUCABLE PROVISIONS.—The procedures and pen-
alties of this section that applv to a violation of subsedion 
(a) also apply to a violation or paragraph (1), except tiiat— 
"(A) subsection (d) does not apply, and 
"(B) subsection (cX5) applies only if the person volun-
tarily and promptly provides, to all persons to whom the 
person provided the NAFTA Certificate of Origin, written 
notice of the falsity of the Certificate. 
"(3) EXCEPTION.—A person may not be considered to have 
violated paragraph (1) if— 
(A) the information was correct at the time it was 
provided in a NAFTA Certificate of Origin but was later 
rendered incorrect due to a change in circumstances; and 
"(B) the person voluntarily and promptly provides writ-
ten notice of the change to all persons to whom the person 
provided the Certificate of Origin.". 
SEC. 206. REUQUIDATION OF ENTRIES FOR NAFTA-ORIGIN GOODS. 
Section 520 of the Tariff Act of 1930 (19 U.S.C. 1520) 
is amended b^ adding at the end the following new subsection: 
"(d) Notwithstanding the fact that a valicT protest was not Regulations. 
filed, the Customs Service may, in accordance with regulations 
prescribed by the Secretary, reliquidate an entry to refund any 
excess duties pcdd on a good qualifying under the rules of origin 
set out in section 202 of the North American Free Trade Agreement 
107 STAT. 2096 
PUBLIC LAW 103-182—DEC. 8, 1993 
Implementation Act for which no claim for preferential tariff treat-
ment was made at the time of importation if the importer, within 
1 year after the date of importation, files, in accordance with 
those regulations, a claim that includes— 
"(1) a written declaration that the good qualified under 
those rules at the time of importation; 
"(2) copies of all applicable NAFTA Certificates of Origin 
(as defined in section 508(bXl)); and 
"(3) such other documentation relating to the importation 
of the goods as the Customs Service may require.". 
SEC. 207. COUNTRY OF ORIGIN BiARKING OF NAFTA GOODS. 
(a) AMENDMENTS TO TARIFF ACT OF 1930.—Section 304 of the 
Tariff" 
Act of 1930 (19 U.S.C. 1304) is amended— 
(1) in subsection (cXl)> by striking "or engraving" and 
inserting "engraving, or continuous paint stenciling"; 
(2) in subsection (cX2)— 
(A) by striking "four" and inserting "five"; and 
(B) by striking "such as paint stenciling^; 
(3) in subsection (e), by striking "or engraving" and insert-
ing "engraving, or an equally permanent method of marking"; 
(4) by redesignating subsection (h) as subsection (i); and 
(5) by inserting after subsection (g) the following new sub-
section: 
"(h) TREATMENT OF (JOODS OF A NAFTA COUNTRY.— 
"(1) APPLICATION OF SECTION.—^In appl3ring this section to 
an article that qualifies as a good of a NAFTA country (as 
defined in section 2(4) of the North American Free Trade Agree-
ment Implementation Act) under the regulations issued by 
the Secretary to implement Annex 311 of the North American 
Free Trade Agreement— 
"(A) the exemption imder subsection (aX3XH) shall 
be applied by substituting 'reasonably know* for 'necessarily 
know*; 
"(B) the Secretary shall exempt the good from the 
requirements for marking under subsection (a) if the good— 
"(i) is an original work of art, or 
"(ii) is provided for under subheading 6904.10, 
heading 8541, or heading 8542 of the Harmonized Tar-
iff Schedule of the United States; and 
"(C) subsection (b) does not apply to the usual container 
of any good described in subsection (aX3) (E) or (I) or 
subparagraph (B) (i) or (ii) of this paragraph. 
"(2) PETITION RIGHTS OF NAFTA EXPORTERS AND PRODUCERS 
REGARDING MARKING DETERMINATIONS.— 
"(A) DEFINITIONS.—^For purposes of this paragraph: 
"(i) The term 'adverse marking decision' means 
a determination by the Customs Service which an 
exporter or producer of merchandise believes to be 
contrary to Annex 311 of the North American Free 
Trade Agreement. 
"(ii) A person may not be treated as the exporter 
or producer of merchandise regarding which an adverse 
marking decision was made unless such person— 
"(I) if claiming to be the exporter, is located 
in a NAFTA country and is required to maintain 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2097 
records in that country regarding exportations to 
NAFTA countries; or 
"(11) if claiming to be the producer, grows, 
mines, harvests, fishes, traps, hunts, manufac-
tures, processes, or assembles such merchandise 
in a NAFTA country. 
"(B) INTERVENTION OR PETITION REGARDING ADVERSE 
M
A
R
K
I
N
G DECISIONS.—If the Customs Service m£dces an 
adverse marking decision regarding any merchandise, the 
Customs Service shall, upon written request by the exporter 
or producer of the merchandise, provide to the exporter 
or producer a statement of the basis for the decision. If 
the exporter or producer beUeves that the decision is not 
correct, it may intervene in any protest proceeding initiated 
by the importer of the merchandise. If the importer does 
not file a protest with regard to the decision, the exporter 
or producer may file a petition with the Customs Service 
setting forth— 
"(i) a description of the merchandise; and 
"(ii) the basis for its claim that the merchandise 
should be marked as a good of a NAFTA country. 
"(C) EFFECT OF DETERMINATION REGARDING DECISION.— 
If, after receipt and consideration of a petition filed by 
an exporter or producer imder subparagraph (B), the Cus-
toms Service determines that the adverse marking 
decision— 
"(i) is not correct, the Customs Service shall notify 
the petitioner of the determination and all merchandise 
entered, or withdrawn from warehouse for consump-
tion, more than 30 days after the date that notice 
of the determination imder this clause is published 
in the weekly Custom Bulletin shall be marked in 
conformity with the determination; or 
"(ii) is correct, the Customs Service shall notify 
the petitioner that the petition is denied. 
"(D) JUDICIAL REVIEW.—For purposes of 
judicial review, 
the denial of a petition imder subparagraph (CXii) shall 
be treated as if it were a denial of a petition of an interested 
party under section 516 regarding an issue arising under 
any of the preceding provisions of uiis section.", 
(b) COORDINATION WITH 1988 ACT REGARDING CERTAIN ARTI- 
19 use i304 
CLES.—^Articles that qualify as goods of a NAFTA country under "°^-
regulations issued by the Secretary in accordance with Aimex 311 
of the Agreement are exempt from the marking requirements 
promulgated by the Secretary of the Treasury under section 1907(c) 
of the Omnibus Trade and Competitiveness Act of 1988 (Public 
Law 100-418), but are subject to the requirements of section 304 
of the Tariflr 
Act of 1930 (19 U.S.C. 1304). 
SEC. 208. PROTESTS AGAINST ADVERSE ORIGIN DETERMINATIONS. 
Section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) is 
amended— 
(1) in subsection (cXD by inserting ", or with respect to 
a determination of origin imder section 202 of the North Amer-
ican Free Trade Agreement Implementation Act," after "with 
respect to any one category of merchandise" in the fourth 
sentence; 
107 STAT. 2098 
PUBLIC LAW 103-182—DEC. 8, 1993 
(2) in subsection (cX2)— 
(A) by striking out "or^ at the end of subparagraph 
(D); 
(B) by redesignating subparagraph (E) as subpara-
graph (F); 
(C) by inserting after subparagraph (D) the following 
new subparagraph: 
"(E) with respect to a determination of origin under 
section 202 of the North American Free Trade Agreement 
Implementation Act, any exporter or producer of the mer-
chandise subject to that determination, if the exporter or 
producer completed and signed a NAFTA Certificate of 
Origin covering the merchandise; or^; and 
(D) by striking "clauses (A) through (D)" in subpara-
graph (F) (as redesignated by subparagraph (B)), and 
inserting "clauses (A) through (E)"; and 
(3) by adding at the end the following new subsections: 
"(e) ADVANCE NOTICE OF CERTAIN DETERMINATIONS.—Except 
as provided in subsection (f), an exporter or producer referred 
to in subsection (cX2XE) shall be provided notice in advance of 
an adverse determination of origin under section 202 of the North 
American Free Trade Agreement Implementation Act. The Sec-
retary may, by regulations, prescribe the time period in which 
such advance notice shall be issued and authorize the Customs 
Service to provide in the notice the entry number and any other 
entry information considered necessary to allow the exporter or 
producer to exercise the rights provided by this section. 
"(f) DENIAL OF PREFERENTIAL TREATMENT.—If the Customs 
Service finds indications of a pattern of conduct by an exporter 
or producer of false or unsupported representations that goods 
qualify under the rules of origin set out in section 202 of the 
North American Free Trade Agreement Implementation Act— 
"(1) the Customs. Service, in accordance with regulations 
issued by the Sedretary, may deny preferential tariff treatment 
to entries of identical goods exported or produced by that per-
son; and 
"(2) the advance notice requirement in subsection (e) shall 
not apply to that person; 
until the person establishes to the satisfaction of the Customs 
Service that its representations are in conformity with section 202.". 
SEC. 209. EXCHANGE OF INFORMATION. 
Section 628 of the Tariff Act of 1930 (19 U.S.C. 1628) 
is amended by adding at the end the following new subsection: 
"(c) The Secretary may authorize the Customs Service to 
exchange information with any government agency of a NAFTA 
country, as defined in section 2(4) of the North American Free 
Trade Agreement Implementation Act, if the Secretary— 
"(1) reasonably believes the exchange of information is 
necessary to implement chapter 3, 4, or 5 of the North American 
Free Trade Agreement, and 
"(2) obtains assurances 
firom 
such country that the informa-
tion will be held in confidence and used only for governmental 
purposes.". 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2099 
SEC. 210. PROHramON ON DRAWBACS FOR TBLBVI8ION PICTURE 
19 USC 3334. 
TUBE& 
Notwithstanding anv other provision of law, no customs duties 
may be refunded, waived, or reduced on color cathode-ray television 
picture tubes, including video monitor cathode-ray tubes (provided 
for in subheading 8540.11.00 of the HTS), that are nonoriginating 
goods under section 202(pX19). and are^ 
(A) exported to a NAFTA country; 
(B) used as a material in the production of other goods 
that are exported to a NAFTA country; or 
(C) substituted for by goods of the same kind and quaUty 
used as a material in the production of other goods that are 
exported to a NAFTA country. 
SEC. 211. MONITORING OF TELEVISION AND PICTURE TUBE IMPORTS. 19 USC 3835. 
(a) MONITORING.—^Bciginning on the date the Agreement enters 
into force with respect to the United States, the United States 
Customs Service shall, for a period of 5 years, monitor imports 
into the United States of articles described in subheading 8528.10 
of the HTS from NAFTA countries and shall take action to exercise 
all rights of the United States under chapter 5 of the Agreement 
with respect to such imi)orts. The United States Customs Service 
shall take appropriate action under chapter 5 of the Agreement 
with respect to such imports, including verifications to ensure that 
the rules of origin under the Agreement are fully complied with 
and that the duty drawback obligations contained in article 303 
and Annex 303.8 of the Agreement are fully implemented and 
duties are correctly assessed. 
(b) REPORT TO TRADE REPRESENTATIVE.—The United States 
Customs Service shall make the results of the monitoring and 
verification required by subsection (a) available to the President 
and the Trade Representative. If, based on such information, the 
President has reason to believe that articles described in subheading 
8540.11 of the HTS, intended for ultimate consumption in the 
United States, are entering the territory of a NAFTA country 
inconsistent with the provisions of the Agreement, or have been 
undervalued in a manner that may raise concerns under United 
States trade laws, thie President shall promptly take such action 
as may be appropriate under all relevant provisions of the Agree-
ment, including article 317 and chapter 20, and under applicable 
United States trade statutes; 
SEC. 212. TITLE VIABIENDMENTS. 
19 USC 58c note. 
Any amendment in this title to a law that is also amended 
imder title VI shall be made after the title VI amendment is 
executed. 
SEC. 213. EFFECTIVE DATEa 
19 USC 3331 
(a) PROVISIONS EFFECTIVE ON DATE OF ENACTMENT.—Section 
212 and this section take effect on the date of the enactment 
of this Act. 
(b) PROVISIONS EFFECTIVE WHEN AGREEMENT ENTERS INTO 
FORCE.—Section 201, section 202, section 203 (a), (d), and (e), 
section 210 and section 211, the amendment made by section 203(c), 
and the amendments made by sections 204 through 209 take effect 
on the date the Agreement enters into force with respect to the 
United States. 
69-194 O - 94 - 6 : QL. 3 Part 3 
107 STAT. 2100 
PUBLIC LAW 103-182—DEC. 8, 1993 
(c) PROVISIONS WITH DELAYED EFFECTIVE DATES.—The amend-
ments made b^ section 203(b) apply— 
(1) with respect to exports from the United States to 
Canada— 
(A) on January 1, 1996, if Canada is a NAFTA country 
on that date, and 
(B) after such date for so long as Canada continues 
to be a NAFTA country; and 
(2) with respect to exports from the United States to 
Mexico— 
(A) on January 1, 2001, if Mexico is a NAFTA coimtry 
on that date; and 
(B) after such date for so long as Mexico continues 
to be a NAFTA country. 
TITLE in—APPLICATION OF AGREE-
MENT TO SECTORS AND SERVICES 
Subtitle A—Safeguards 
PART 1->R£LIEF FROM IMPORTS BENEFITING 
FROM THE AGREEMENT 
19 use 3351. 
SEC. 301. DEFINITIONS. 
As used in this part: 
(1) CANADIAN ARTICLE.—The term "Canadian article" 
means an article that— 
(A) is an originating good under chapter 4 of the Agree-
ment; and 
(B) qualifies under the Agreement to be marked as 
a good of Canada. 
(2) MEXICAN ARTICLE.—The term 'Mexican article" means 
an article that— 
(A) is an originating good under chapter 4 of the Agree-
ment; and 
(B) qualifies under the Agreement to be marked as 
a good of Mexico. 
1
9 use 3352. 
SEC. 302. COMMENCING OF ACnON F
O
R RELIEF. 
(a) FILING OF PETITION.-
(1) IN GENERAL.—A petition requesting action under this 
part for the purpose of ac^usting to the obligations of the 
United States under the Agreement may be tiled with the 
International Trade Commission by an entity, including a trade 
association, firm, certified or recognized union, or group of 
workers, that is representative of an industry. The Inter-
national Trade Commission shall transmit a copy of any petition 
filed imder this subsection to the Trade Representative. 
(2) I^OVISIONAL RELIEF.—An entity filing a petition under 
this subsection may request that provisional relief be provided 
as if the petition had been filed under section 202(a) of the 
Trade Act of 1974. 
(3) CRITICAL CIRCUMSTANCES.—An allegation that critical 
circumstances exist must be included in the petition or made 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2101 
on or before the 90th day after the date on which the investiga-
tion is initiated under subsection (b). 
(b) INVESTIGATION AND DETERMINATION.—Upon the filing 
of 
a petition under subsection (a), the International Trade Commis-
sion, unless subsection (d) applies, shedl promptly initiate an inves-
tigation to determine whether, as a result or the reduction or 
elimination of a duty pro^/ided for under the Agreement, a Canadian 
cuticle or a Mexican article, as the case may he, is being imported 
into the United States in such increased (quantities (in absolute 
terms) and under such conditions so that imports of the article, 
alone, constitute a substantial cause of— 
(1) serious iiyury; or 
(2) except in the case of a Canadian article, a threat of 
serious ii^jury; 
to the domestic industry producing an article that is like, or directly 
competitive with, the imported article. 
(c) APPLICABLE PROVISIONS.—The provisions of— 
(1) para^aphs (IXB), (3) (except subparagraph (A)), and 
(4) of subsection (b); 
(2) subsection (c); and 
(3) subsection (d), 
of section 202 of the Trade Act of 1974 (19 U.S.C. 2252) apply 
with respect to any investigation initiated under subsection (b). 
(d) ARTICLES EXEMFF FROM INVESTIGATION.—NO investigation 
may be initiated under this section with respect to— 
(1) any Canadian article or Mexican article if import relief 
has been provided under this part with respect to that article; 
or 
(2) any textile or apparel article set out in Appendix 1.1 
of Annex 300-B of the Agreement. 
SEC. 303. INTERNATIONAL TRADE COMMISSION ACTION ON PETTnON. 19 USC 3353. 
(a) DETERMiNATiON.~By no later than 120 days after the date 
on which an investigation is initiated imder section 302(b) with 
respect to a petition, the International Trade Commission shall— 
(1) make the determination required imder that section; 
and 
(2) if the determination referred to in paragraph (1) is 
affirmative and an allegation regarding critical circumstances 
was made under section 302(a), make a determination regard-
ing that allegation. 
(b) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINA-
TION AFFIRMATIVE.—^If the determination made by the International 
Trade Commission under subsection (a) with respect to imports 
of an article is affirmative, the International Trade Commission 
shall find, and recommend to the President in the report required 
under subsection (c), the amoimt of import relief that is necessary 
to remedy or, except in the case of imports of a Canadian article, 
prevent the irgury foimd by the International Trade Commission 
m the determination. The import relief recommended bv the Inter-
national Trade Commission under this subsection shall be limited 
to that described in section 304(c). 
(c) REPORT TO PRESIDENT.—NO later than the date that is 
30 days after the date on which a determination is made under 
subsection (a) with respcKst to an investigation, the International 
Trade Commission shall submit to the President a report that 
shall include— 
107 STAT. 2102 
PUBLIC LAW 103-182—DEC. 8, 1993 
Federal 
Register, 
publication. 
19 use 3354. 
President. 
(1) a statement of the basis for the determination; 
(2) dissenting and separate views; and 
(3) any finding made under subsection (b) regarding import 
relief. 
(d) PUBLIC NOTICE.—^Upon submitting a report to the President 
under subsection (c), the International Trade Commission shall 
promptly make public such report (with the exception of information 
which the International Trade Commission determines to be con-
fidential) and shall cause a summary thereof to be published in 
the Federal Register. 
(e) APPLICABLE PROVISIONS.—^For purposes of this part, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be applied with respect 
to determinations and findings made under this section as if such 
determinations and findings were made under section 202 of the 
Trade Act of 1974 (19 U.S.C. 2252). 
SEC. 304. PROVISION OF RELIEF. 
(a) IN GENERAL.—^No later than the date that is 30 days after 
the date on which the President receives the report of the Inter-
national Trade Commission containing an affirmative determination 
of the International Trade Commission imder section 303(a), the 
President, subject to subsection (b), shall provide relief from imports 
of the article that is the subject of such determination to the 
extent that the President determines necessary to remedy or, except 
in the case of imports of a Canadian article, prevent the ii^jury 
found by the International Trade Commission. 
(b) EXCEPTION.—^The President is not required to provide import 
relief under this section if the President determines that the provi-
sion of the import relief will not provide greater economic and 
social benefits than costs. 
(c) NATURE OF RELIEF.—^The import relief (including provisional 
relief) that the President is authorized to provide undfer this part 
is as follows: 
(1) In the case of imports of a Canadian article— 
(A) the suspension of any further reduction provided 
for under Annex 401.2 of the United States-Canada Free-
Trade Agreement in the duty imposed on such article; 
(B) an increase in the rate of duty imposed on such 
article to a level that does not exceed the lesser of— 
(i) the column 1 general rate of duty imposed under 
the HTS on like articles at the time the import relief 
is provided, or 
(ii) the column 1 general rate of duty imposed 
on like articles on December 31,1988; or 
(C) in the case of a duty applied on a seasonal basis 
to such article, an increase in the rate of dutv imposed 
on the article to a level that does not exceed tne column 
1 general rate of duty imposed on the article for the cor-
responding season occurring immediately before January 
1,1989. 
(2) In the case of imports of a Mexican article— 
(A) the suspension of any further reduction provided 
for under the United States Schedule to Annex 302.2 of 
the Agreement in the duty imposed on such article; 
(B) an increase in the rate of duty imposed on such 
article to a level that does not exceed the lesser of— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2103 
(i) the column 1 general rate of duty imposed under 
the HTS on like articles at the time me import relief 
is provided, or 
(ii) the column 1 general rate of duty imposed 
under the HTS on like articles on the day before the 
date on which the Agreement enters into force; or 
(C) in the case of a duty applied on a seasonal basis 
to such article, an increase in tne rate of dutv imposed 
on the article to a level that does not exceed the column 
1 general rate of duty imposed under the HTS on the 
article for the corresponding season immediately occurring 
before the date on which the Agreement enters into force. 
(d) PERIOD OF RELIEF.-—The import relief that the President 
is authorized to provide under this section may not exceed 3 years, 
except that, if a Canadian article or Mexican article which is the 
subject of the action— 
(1) is provided for in an item for which the transition 
period of tariff elimination set out in the United States Schedule 
to Annex 302.2 of the Agreement is greater than 10 years; 
and 
(2) the President determines that the affected industry 
has undertaken adjustment and requires an extension of the 
period of the import relief; 
the President, after obtaining the advice of the International Trade 
Commission, may extend the period of the import relief for not 
more than 1 year, if the duty applied during the initial period 
of the relief is substantially reduced at the beginning of the exten-
sion period. 
(e) RATE ON MEXICAI^ ARTICLES AFTER TERMINATION OF IMPORT 
RELIEF.—^When import :relief under this part is terminated with 
respect to a Mexican article— 
(1) the rate of duty on that article after such termination 
and on or before December 31 of the year in which termination 
occurs shall be the rate that, accoraing to the United States 
Schedule to Annex 302.2 of the Agreement for the staged elimi-
nation of the tariff,, would have been in effect 1 year after 
the initiation of the import relief action imder section 302; 
and 
(2) the tariff treatment for that article after December 
31 of the year in which termination occurs shall be, at the 
discretion of the President, either— 
(A) the rate of duty conforming to the applicable rate 
set out in the United States Schedule to /^nex 302.2; 
or 
(B) the rate of duty resulting from the elimination 
of the tariff in equal annual stages ending on the date 
set out in the United States Schedule to Annex 302.2 
for the elimination of the tariff. 
SEC. SOS. TERMINATION OF RELIEF AUTHORITY. 
19 USC 3355. 
(a) GENERAL RULE.—Except as provided in subsection (b), no 
import relief may be pro\ided under this part— 
(1) in the case of a Canadian article, after December 31, 
1998; or 
(2) in the case of a Mexican article, after the date that 
is 10 years after the date on which the Agreement enters 
into force; 
107 STAT. 2104 
PUBLIC LAW 103-182—DEC. 8, 1993 
unless the article against which the action is taken is an item 
for which the transition period for tariff elimination set out in 
the United States Schedule to Annex 302.2 of the Agreement is 
greater than 10 years, in which case the period during which 
relief may be granted shall be the period of staged tariff elimination 
for that article. 
(b) EXCEPTION.—^Import reUef may be provided under this part 
in the case of a Canadian article or Mexican article after the 
date on which such relief would, but for this subsection, terminate 
imder subsection (a), but only if the Government of Canada or 
Mexico, as the case may be, consents to such provision. 
19 use 3356. 
SEC. 306. COMPENSATION AUTHORITY. 
For purposes of section 123 of the Trade Act of 1974 (19 
U.S.C. 2133), any import relief provided by the President under 
section 304 shall be treated as action taken imder chapter 1 of 
title II of such Act. 
19 use 3357. 
SEC. 307. SUBMISSION OF PETITIONS. 
A petition for import relief may be submitted to the Inter-
national Trade Commission under— 
(1) this part; 
(2) chapter 1 of title II of the Trade Act of 1974; or 
(3) under both this part and such chapter 1 at the same 
time, in which case the International Trade Commission shall 
consider such petitions jointly. 
SEC. 308. SPECIAL TARIFF PROVISIONS FOR CANADIAN FRESH 
FRUITS AND VEGETABLEa 
(a) IN GENERAL.—Section 301(a) of the United States-Canada 
Free-Trade Agreement Implementation Act of 1988 (19 U.S.C. 2112 
note) is amended— 
(1) in paragraph (1), by striking ''promptlv^ in the flush 
sentence at the end thereof and inserting "immeoiatelV', 
(2) by redesignating paragraphs (z) through (9) as para-
graphs (3) through (10), respectivelv, 
(3) by insertmg after paragrapn (1) the following new para-
graph: 
Federal 
«(2) No later than 6 days after publication in the Federal 
publication 
Register of the notice described in paragraph (1), the Secretary 
shall decide whether to recommend the imposition of a tem-
porary duty to the President, and if the Secretary decides 
to make such a recommendation, the recommendation shall 
be forwarded immediately to the President.", 
(4) in paragraph (5), as redesignated by paragraph (2), 
^ 
by striking '^paragraph (3)" and inserting "paragraph (4)", and 
(5) by amenmng paragraph (9), as reaesignated by para-
graph (2), to read as foUows: 
"(9) For purposes of assisting the Secretary in carrying 
/ 
out this subsection— 
"(A) the Commissioner of Customs and the Director 
of the Bureau of Census shall cooperate in providing the 
Secretary with timely information and data relating to 
the importation of Canadian fresh fruits and vegetables, 
and 
"(B) importers shall report such information relating 
to Canadian fresh fruits and vegetables to the Commis-
publication. 
PUBLIC TAW 103-182—DEC. 8, 1993 
107 STAT. 2105 
sioner of Ciistoms at such time and in such manner as 
the Commissioner requires.", 
(b) EFFECTIVE DATE.—^The amendments made by subsection 19 use 2112 
(a) take effect on the date of the enactment of this Act. 
^°^^-
SEC. 300. PRICE-BASED SNAPBACK FOR FROZEN CONCENTRATED 19 USC 3358. 
ORANGE JUICE. 
(a) TRIGGER PRICE DETERMINATION.— 
(1) IN GENERAL.—^The Secretary shall determine— 
(A) each pciriod of 5 consecutive business days in which 
the daily price for frozen concentrated orange juice is less 
than the trigger price; and 
(B) for each period determined under subparagraph 
(A), the first period occurring thereafter of 5 consecutive 
business days in which the daily price for frozen con-
centrated orange juice is greater than the trigger price. 
(2) NOTICE 
OF DETERMINATIONS.—The Secretary shall Federal 
immediately notify the Commissioner of Customs and publish ^
®
^
|
f
^
J
^
?
^ 
notice in the Federal Register of any determination under para-
graph (1), and the date of such publication shall be the deter-
mination date for that determination. 
(b) IMPORTS OF MEXICAN ARTICLES.—Whenever after any deter-
mination date for a determination under subsection (aXlXA), the 
quantity of Mexican articles of frozen concentrated orange juice 
that is entered exceeds— 
(1) 264,978,000 liters (single strength equivalent) in any 
of calendar years 1994 through 2002; or 
(2) 340,560,000 liters (single strength equivalent) in any 
of calendar years 2003 through 2007; 
the rate of duty on Mexican articles of frozen concentrated orange 
juice that are entered after the date on which the applicable limite-
tion in paragraph (1) or (2) is reached and before the determination 
date for the related de1:ermination under subsection (aXlXB) shall 
be the rate of duty specified in subsection (c). 
(c) RATE OF DUTY.—^The rate of duty specified for purposes 
of subsection (b) for articles entered on any day is the rate in 
the HTS that is the lower of— 
(1) the column 1-General rate of duty in effect for such 
articles on July 1,1991; or 
(2) the colimuii l--iGeneral rate of duty in effect on that 
day. 
(d) DEFINITIONS.—For purposes of this section— 
(1) The term "daily price" means the daily closing price 
of the New York Cotton Exchange, or any successor as deter-
mined by the Secretary, for the closest month in which contracts 
for frozen concentrated orange juice are being traded on tiie 
Exchange. 
(2) The term 'business da3r" means a day in which contracts 
for fh)zen concentrated orange juice are l>eing traded on the 
New York Cotton Exchange, or any successor as determined 
by the Secretary. 
(3) The term "entered" means entered or withdrawn from 
warehouse for consvunption, in the customs territory of the 
United States. 
(4) The term "frozen concentrated orange juice" means 
aUproducts classifiable under subheading 2009.11.00 of the 
107 STAT. 2106 
PUBLIC LAW 103-182—DEC. 8, 1993 
(5) The term "Secretary" means the Secretary of Agri-
culture. 
(6) The term "trigger price" means the average daily closing 
price of the New York Cotton Exchange, or any successor as 
determined by the Secretary, for the corresponding month dur-
ing the previous 5-year period, excluding the year with the 
highest average price for the corresponding month and the 
year with the lowest average price for the corresponding month. 
PART 
2—RELIEF 
FROM 
IMPORTS 
FROM 
ALL 
COUNTRIES 
19 use 3371. 
SEC. 311. NAFTA ARTICLE DKPACT IN IMPORT RELIEF CASES UNDER 
THE TRADE ACT OF 1974. 
(a) IN GENERAL.—^If, in any investigation initiated under chap-
ter 1 of title II of the Trade Act of 1974, the International Trade 
Commission makes an affirmative determination (or a determina-
tion which the President may treat as an affirmative determination 
under such chapter by reason of section 330(d) of the Tariff Act 
of 1930), the International Trade Commission shall also find (and 
report to the President at the time such injury determination is 
submitted to the President) whether— 
(1) imports of the article 
fi*om 
a NAFTA country, considered 
individually, account for a substantial share of total imports; 
and 
(2) imports of the article from a NAFTA coimtry, considered 
individually or, in exceptional circiunstances, imports from 
NAFTA countries considered collectively, contribute impor-
tently to the serious ii^jiuy, or threat thereof, caused by imports. 
(b) FACTORS.— 
(1) SUBSTANTLU. I
M
P
O
R
T SHARE.—In determining whether 
imports from a NAFTA country, considered individually, 
account for a substantial share of total imports, such imports 
normally shall not be considered to account for a substantial 
share of total imports if that country is not among the top 
5 suppliers of the article subject to the investigation, measured 
in terms of import share during the most recent 3-year period. 
(2) APPUCATION OF "CONTRIBUTE IMPORTANTLY" STAND-
ARD.—^In determining whether imports from a NAFTA country 
or countries contribute importently to the serious ii\jury, or 
threat thereof, the International Trade Commission shall con-
sider such factors as the change in the import share of the 
N.^TA country or coimtries, and the level and change in 
the level of imports of such coimtry or countries. In applying 
the preceding sentence, imports from a NAFTA coimtry or 
countries normally shall not be considered to contribute impor-
tently to serious ii^ury, or the threat thereof, if the growth 
rate of importe from such coimtry or coimtries during the 
period in which an ii\jurious increase in importe occurred is 
appreciably lower than the growth rate of totel importe fix)m 
all sources over the same period. 
(c) DEFINITION.—^For purposes of this section and section 312(a), 
the term ''contribute importantly" refers to an importent cause, 
but not necessarily the most importent cause. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2107 
SEC. 312. PRESIDENTIAL ACTION REGABDING NAFTA IMPORTS. 
19 USC 3372. 
(a) IN GENERAL.—^In determining whether to take action under 
chapter 1 of title II of the Trade Act of 1974 with respect to 
imports from a NAFTA country, the President shall determine 
whether— 
(1) imports from such country, considered individually, 
accoimt for a substantial share of total imports; or 
(2) imports 
from 
a NAFTA coimtry, considered individually, 
or in exceptional circumstances imports 
frt)m 
NAFTA countries 
considered collectively, contribute import£uitly to the serious 
ii^jiiry, or threat thereof, found by the International Trade 
Commission. 
(b) EXCLUSION O
F NAFTA IMPORTS.—In determining the nature 
and extent of action to be taken under chapter 1 of title II of 
the Trade Act of 1974, the President shall exclude 
frt)m 
such action 
imports from a NAFTA country if the President makes a negative 
determination under subsection (a) (1) or (2) with respect to imports 
frt)m such country. 
(c) ACTION AFTER EXCLUSION OF NAFTA COUNTRY IMPORTS.— 
(1) IN GENERAL.—If the President, under subsection (b), 
excludes imports from a NAFTA country or countries from 
action under chapter 1 of title II of the Trade Act of 1974 
but thereafter determines that a surge in imports from that 
coimtry or countries is undermining the effectiveness of the 
action— 
(A) the President mav take appropriate action under 
such chapter 1 to include those imports in the action; 
and 
(B) any entity that is representative of an industry 
for which such action is being taken may request the 
International Trade Commission to conduct an investiga-
tion of the surge in such imports. 
(2) I
N
V
E
S
T
I
G
A
T
I
O
J
M
.
—
^
U
p
o
n receiving a request under para-
graph (IXB), the International Trade Commission shall conduct 
an investigation to determine whether a surge in such imports 
imdermines the effectiveness of the action. The International 
Trade Commission shall submit the findings of its investigation 
to the President no later than 30 days after the request is 
received by the International Trade Commission. 
(3) DEFINITION.—^For purposes of this subsection, the term 
"surge" means a significant increase in imports over the trend 
for a recent representative base period. 
(d) CONDITION APPUCABLE TO QUANTITATIVE RESTRICTIONS.— 
Any action taken under this section proclaiming a quantitative 
restriction shall permit the importation of a quantity or value 
of the £ui;icle which is not less than the quantity or value of 
such article imported into the United States during the most recent 
period that is representative of imports of such article, with allow-
ance for reasonable growth. 
PART 3—GENERAL PROVISIONS 
SEC 315. PROVISIONAL RELIEF. 
Section 202(d) of the Trade Act of 1974 (19 U.S.C. 2252(d)) 
is amended— 
(1) in paragraph (IXA) by inserting "or citrus product" 
after "agricultural product" each place it appears; 
107 STAT. 2108 
PUBLIC LAW 103-182—DEC. 8, 1993 
(2) in the text of paragraph (IXC) that appears before 
subclauses (I) and (II)— 
(A) by inserting "or citrus product" after "agricultural 
product" each place it appears, and 
(B) by inserting "or citrus product" after "perishable 
product"; 
(3) by redesignating subparagraphs (A) and (B) of para-
graph (5) as subparagraphs (B) andf 
(C); and 
(4) bv inserting a new subparagraph (A) in paragraph 
(5) to read as follows: 
"(A) The term 'citrus product' means any processed 
oranges or grapefruit, or any orange or grapefniit juice, 
including concentrate.". 
19 use 3381. 
SEC. 318. MONITORING. 
For purposes of expediting an investigation concerning provi-
sional relief under this subtiue or section 202 of the Trade Act 
of 1974 regarding— 
(1) fresh or chilled tomatoes provided for in subheading 
0702.00.00 of the HTS; and 
(2) fresh or chilled peppers, other than chili peppers pro-
vided for in subheading 0709.60.00 of the HTS; 
Termination 
the International Trade (Jommission, until January 1, 2009, shall 
monitor imports of such goods as if proper requests for such monitor-
ing had been made under subsection 202(d)(lXCXi) of such section 
202. At the request of the International Trade Commission, the 
Secretary of A^culture and the Commissioner of Customs shall 
provide to the International Trade Commission information relevant 
to the monitoring carried out under this section. 
19 use 3382. 
SEC. 317. PROCEDUBES CONCERNING THE CONDUCT OF INTERp 
NATIONAL TRADE COMMISSION INVESTIGATIONS. 
(a) PROCEDURES AND RULES.—The International Trade Commis-
sion shall adopt such procedures and rules and regulations as 
are necessary to bring its procedures into conformity with chapter 
8 of the Agreement. 
(b) CONFORMING AMENDMENT.—Section 202(a) of the Trade Act 
1
9 use 2252. 
of 1974 is amended by adding at the end thereof the following: 
"(8) The procedures concerning the release of confidential 
business information set forth in section 332(g) of the Tariff 
Act of 1930 shall apply with respect to information received 
by the Commission in the course of investigations conducted 
under this chapter and part 1 of title III of the North American 
Free Trade Agreement Implementetion Act.". 
19 use 3351 
SEC. 318. EFFECTIVE DATE. 
Except as provided in section 308(b), the provisions of this 
subtitle take effect on the date the Agreement enters into force 
with respect to the United Stetes. 
Subtitle B—Agriculture 
19 use 3391. 
SEC. 321. AGRICULTURE. 
(a) MEAT IMPORT ACT OF 1979.—The Meat Import Act of 1979 
(19 U.S.C. 2253 note) is amended— 
(1) in subsection (b)— 
(A) by striking the last sentence in paragraph (2), 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2109 
(B) by redesignating paragraph (3) as paragraph (4) 
and inserting after paragraph (2) the following new para-
graph: 
(3) The term 'meat articles' does not include any article 
described in para^aph (2) that— 
"(A) origmates in a NAFTA country (as determined 
in accordance witii section 202 of the NAFTA Act), or 
"(B) originates in Canada (as determined in accordance 
with section 202 of the United States-Canada Free-Trade 
Agreement Implementation Act of 1988) during such time 
as the United States-Canada Free-Trade Agreement is in 
force with respect to, and the United States applies such 
Agreement to, Canada."; and 
(C) by inserting after paragraph (4) (as redesignated 
by subparagraph (B) of this paragraph) the following new 
para^aphs: 
(5) The term *NAFTA Act' means the North American 
Free Trade Agreement Implementation Act. 
"(6) The term 'NAFTA country* has the meaning given 
such term in section 2(4) of the NAFTA Act."; 
(2) in subsection (fKD, by striking the end period and 
inserting ", except that the IVesident may exclude any such 
article originating in a NAFTA country (as determined in 
accordance with section 202 of the NAFTA Act) or, if paragraph 
(3XB) applies, any such article originating in Canada as deter-
mined in accordance with such paragraph (3XB)."; and 
(3) in subsection (i), by inserting and Mexico" after "Can-
ada" each place it appears. 
(b) SECTION 22 OF THE AGRICULTURAL ADJUSTMENT ACT.— 
(1) IN GENERAL.—^The President may, piu'suant to article 
309 and Annex 703.2 of the Agreement, exempt from any quan-
titative limitation or fee imposed pursuant to section 22 of 
the Agricultural Adjustment Act (7 U.S.C. 624), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 
1937, any article which originates in Mexico, if Mexico is a 
NAFTA coimtry. 
(2) Q
U
A
U
F
I
C
A
T
I
O
N O
F ARTICLES.—The determination of 
whether an article originates in Mexico shall be made in accord-
ance with section 202, except that operations performed in, 
or materials obtained from, any country other than the United 
States or Mexico sha 
1
1 be treated as if performed in or obtained 
from a country other than a NAFTA country. 
(c) TARIFF RATE QUOTAS.—In implementing the tariff rate 
a
uotas set out in the United States Schedule to Annex 302.2 of 
tie Agreement, the President shall take such action as may be 
necessary to ensure that imports of agricultural goods do not disrupt 
the orderly marketing of commodities in the United States. 
(d) PEANUTS.— 
(1) EFFECT OF THE AGREEMENT.— 
(A) IN GENERAL.—^Nothing in the Agreement or this 
Act reduces or eliminates— 
(i) any penalty required under section 358e(d) of 
the Agricultural A4justment Act of 1938 (7 U.S.C. 
1359a(d)); or 
(ii) any requirement imder Marketing Agreement 
No. 146, Regulating the Quality of Domestically Pro-
duced Pecuiuts, on peanuts in the domestic market, 
107 STAT. 2110 
PUBLIC LAW 103-182—DEC. 8, 1993 
Public 
information. 
pursuant to section 108B(f) of the Agricultural Act 
of 1949 (7 U.S.C. 1445c-^(f)). 
(B) REENTRY OF EXPORTED PEANUTS.—Paragraph (6) 
of section 358e(d) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359a(dX6)) is amended to read as follows: 
"(6) REENTRY OF EXPORTED PEANUTS.— 
"(A) PENALTY.—If any additional peanuts exported by 
a handler are reentered into the United States in commer-
cial quantities as determined by the Secretary, the importer 
of the peanuts shall be subiect to a penalty at a rate 
equal to 140 percent of the loan level for quota peanuts 
on the quantity of peanuts reentered. 
"(B) RECORDS.—Each person, firm, or handler who 
imports peanuts into the United States shall maintain 
such records and docimients as are required by the Sec-
retanr to ensure compliance with this subsection. . 
(2) CONSULTATIONS ON IMPORTS.—It is the sense of Con-
gress that the United States should request consultations in 
the Working Group on Emergency Action, established in the 
Understanding Between the Parties to the North American 
Free Trade Agreement Concerning Chapter Eight—^Emergency 
Action, if imports of peanuts exceed the in-quota quantity under 
a tarifT rate quota set out in the United States Schedule to 
Annex 302.2 of the Agreement concerning whether— 
(A) the increased imports of peanuts constitute a 
substantial cause of, or contribute importantly to, serious 
ii\jury, or threat of serious injury, to the domestic peanut 
industry; and 
(B) recourse under Chapter Eight of the Agreement 
or Article XIX of the General Agreement on Tariffs and 
Trade is appropriate. 
(e) FRESH FRUITS, VEGETABLES, AND CUT FLOWERS.— 
(1) IN GENERAL.—^The Secretary of Agriculture shall collect 
and compile the information specified imder paragraph (3), 
if reasonably available, ftoza appropriate Federal departments 
and agencies and the relevant counterpart ministries of the 
Grovemment of Mexico. 
(2) DESIGNATION OF AN OFFICE.—The Secretary of Agri-
culture shall designate an office within the United States 
Denartment of Agriculture to be responsible for maintaining 
ana disseminating, in a timely manner, the data accumulated 
for verifying citrus, finiit, vegetable, and cut flower trade 
between the United States and Mexico. The information shall 
be made available to the public and the NAFTA Agriculture 
Committee Working Groups. 
(3) INFORMATION COLLECTED.—The information to be col-
lected, if reasonably available, includes— 
(A) monthly firesh firuit, firesh vegetable, firesh citrus, 
and processed citrus product import and export data; 
(B) montlily citrus juice production and export data; 
(C) data on inspections of shipments of citrus, vegeta-
bles, and cut flowers entering the United States fi'om Mex-
ico; and 
(D) in the case of firuits, vegetables, and cut flowers 
entering the United States from Mexico, data regarding— 
(i) planted and harvested acreage; and 
(ii) wholesale prices, quality, and grades. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2111 
(f) END-USE CERTIFICATES.— 
(1) IN GENERAI^.—^The Secretary of Agriculture (referred 
to in this subsection as the "Secretary") shall implement, in 
coordination with the Commissioner of Customs, a program 
requiring that end-use certificates be included in the docu-
mentation covering the entry into, or the withdrawal from 
a warehouse for consumption in, the customs territory of the 
United States— 
(A) of any wheat that is a product of any foreign 
country or instrumentality that requires, as of the effective 
date of this subsection, end-use certificates for imports 
of wheat that is a product of the United States (referred 
to in this subsection as 'United States-produced wheat"); 
and 
(B) of any barley that is a product of any foreign 
coimtry or instnmientality that requires, as of the effective 
date of this subsection, end-use certificates for imports 
of barley that is a product of the United States (referred 
to in this subsection as 'United States-produced barlejr"). 
(2) REGULATIONS.—^The Secretary shall prescribe by regula-
tion such requirements regarding the information to be included 
in end-use certificates as may be necessary and appropriate 
to carry out this subsection. 
(3) PRODUCER PROTECTION DETERMINATION.—At any time 
after the effective date of the requirements established under 
paragraph (1), the Secretary may, subject to paragraph (5), 
suspend the requirements when making a determination, after 
consultation with domestic producers, that the program imple-
mented under this subsection has directly resulted in— 
(A) the reduction of income to the United States 
producers of agricultural commodities; or 
(B) the reduction of the competitiveness of United 
States agricultural commodities in the world export mar-
kets. 
(4) SUSPENSION OF REQUIREMENTS.— 
(A) WHEAT.—If a foreign country or instrumentality 
that requires end-use certificates for imports of United 
States-produced wheat as of the effective date of the 
requirement under paragraph (IXA) eliminates the require-
ment, the Secretary shall suspend the requirement imder 
paragraph (IXA) beginning 30 calendar days after suspen-
sion by the foreign country or instrumentality. 
(B) BARLE\\—If a foreign country or instrumentality 
that requires end-use certificates for imports of United 
States-producedi barley as of the effective date of the 
requirement imder paragraph (IXB) eliminates the require-
ment, the Secretary shall suspend the requirement under 
paragraph (IXB) beginning 30 calendar days after suspen-
sion by the foreign country or instnmientality. 
(5) REPORT TO CONGRESS.—The Secretary shall not suspend 
the requirements established under paragraph (1) under cir-
cumstances identified in paragraph (3) before the Secretary 
submits a report to Congress detailing the determination made 
under paragraph (3) and the reasons for making the determina-
tion. 
(6) COMPLIANCE.—It shall be a violation of section 1001 
of title 18, United States Code, for a person to engage in 
107 STAT. 2112 
PUBLIC LAW 103-182—DEC. 8, 1993 
fraud or knowingly violate this subsection or a regulation 
implementing this subsection. 
(7) EFFECTIVE DATE.—^This subsection shall become effec-
tive on the date that is 120 days after the date of enactment 
of this Act. 
(g) AGRICULTURAL FELLOWSHIP PROGRAM.—Section 1542(d) of 
the Food, Agriculture, Conservation, and Trade Act of 1990 (Public 
Law 101-624; 7 U.S.C. 5622 note) is amended by adding at the 
end the following new paragraph: 
"(3) AGRICULTURAL FELLOWSHIPS FOR NAFTA COUNTRIES.— 
"(A) IN GENERAL.—The Secretary shall grant fellow-
ships to individuals from countries that are parties to the 
North American Free Trade Agreement (referred to in this 
P
aragraph as 'NAFTA') to study agriculture in the United 
tates, and to individuals in the United States to study 
agriculture in other NAFTA countries. 
"(B) PURPOSE.—^The purpose of fellowships granted 
under this paragraph is— 
"(i) to allow the recipients to expand their knowl-
edge and underst€uiding of agricultural systems and 
practices in other NAFTA countries; 
"(ii) to facilitate the improvement of agricultural 
systems in NAFTA coimtries; and 
"(iii) to establish and expand agricultural trade 
linkages between the United States and other NAFTA 
countries. 
*
*
(
C
) EUGIBLE RECIPIENTS.—The Secretary may provide 
fellowships under this paragraph to agricultural producers 
and consultants, government officials, and other individuals 
from the private and public sectors. 
"(D) ACCEPTANCE OF GIFTS.—The Secretary may accept 
money, funds, property, and services of every kind by gift, 
devise, bequest, grant, or otherwise, and may in any man-
ner, dispose of all of the holdings and use the receipts 
generated from the disposition to carry out this paragraph. 
Receipts under this paragraph shall remain available until 
expended. 
"(E) AUTHORIZATION OF APPROPRIATION.—There are 
authorized to be appropriated such sums as are necessary 
to carry out this paragraph.", 
(h) ASSISTANCE FOR AFFECTED FARMWORKERS.— 
(1) IN GENERAL.—Subject to paragraph (3), if at any time 
the Secretary of Agriculture determines that the implementa-
tion of the Agreement has caused low-income migrant or sea-
sonal farmworkers to lose income, the Secretary may make 
available grants, not to exceed $20,000,000 for any fiscal year, 
to public agencies or private organizations with t£uc-exempt 
status under section 501(cX3) of the Internal Revenue Code 
of 1986, that have experience in providing emergencv services 
to low-income migrant or seasonal farmworkers. Emergency 
services to be provided with assistance received under tiiis 
subsection may include such types of assistance as the Sec-
retary determines to be necessary and appropriate. 
(2) DEFINITION.—^As used in this subsection, the term "low-
income migrant or seasonal farmworker" shall have the same 
meaning as provided in section 2281(b) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (42 U.S.C. 5177a(b)). 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2113 
(3) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated $20,000,000 for each fiscal year to 
carry out this subsection. 
(i) BIENNIAL REPORT ON EFFECTS OF THE AGREEMENT ON AMER-
ICAN AGRICULTURE.— 
(1) IN GENERAL.—^The Secretary of Agriculture shall pre-
pare a biennial report on the effects of the A^eement on 
United States producers of agricultural commodities and on 
rural conmiunities located in the United States. 
(2) CONTENTS OF REPORT.—^The report required under this 
subsection shall include— 
(A) an assessment of the effects of implementing the 
Agreement on the various agricultural commodities affected 
by the Agreement, on a commodity-by-commodity basis; 
(B) an assessment of the efiTects of implementing the 
Agreement on investments made in United States agri-
culture and on rural commimities located in the United 
States; 
(C) an assessment of the effects of implementing the 
Agreement on employment in United States agriculture, 
including any gains or losses of jobs in businesses directly 
or indirectly related to United States agriculture; and 
(D) such other information and data as the Secretary 
determines appropriate. 
(3) SUBMISSION OF REPORT.—The Secretary shall furnish 
the report required under this subsection to the Committee 
on Agriculture, Nutrition, and Forestry of the Senate and to 
the Committee on Agriculture of the House of Representatives. 
The report shall be due every 2 years and shall be submitted 
by March 1 of the year in which the report is due. The first 
report shall be due by March 1, 1997, and the final report 
shall be due by March 1, 2011. 
Subtitle C—Intellectual Property 
SEC. 331. TREATMENT OF INVENTIVE ACTIVITY. 
Section 104 of title 35, United States Code, is amended to 
read as follows: 
"§ 104. Invention made abroad 
''(a) IN GENERAL.—In proceedings in the Patent and Trademark 
Office, in the courts, and before any other competent authority, 
an applicant for a patent, or a patentee, may not establish a 
date of invention by reference to knowledge or use thereof, or 
other activity with respect thereto, in a foreign country other than 
a NAFTA country, except as provided in sections 119 and 365 
of this title. Where an invention was made by a person, civil 
or military, while domiciled in the United States or a NAFTA 
country and serving in any other country in connection with oper-
ations by or on behalf of the United States or a NAFTA country, 
the person shall be entitled to the same rights of priority in the 
United States with respect to such invention as if such invention 
had been made in the United States or a NAFTA coimtry. To 
the extent that any information in a NAFTA country concerning 
knowledge, use, or other activity relevant to proving or disproving 
a date of invention has not been made available for use in a 
107 STAT. 2114 
PUBLIC LAW 103-182—DEC. 8, 1993 
proceeding in the Office, a coiurt, or any other competent authority 
to the same extent as such information could be made available 
in the United States, the Commissioner, court, or such other author-
ity shall draw appropriate inferences, or take other action permitted 
by statute, rule, or regulation, in favor of the party that requested 
the information in the proceeding. 
"(b) DEFINITION.—As used in this section, the term *NAFTA 
country* has the meaning given that term in section 2(4) of the 
North American Free Trade Agreement Implementation Act.". 
SEC. 332. RENTAL RIGHTS IN SOUND RECORDINGS. 
Section 4 of the Record Rental Amendment of 1984 (17 U.S.C. 
109 note) is amended by striking out subsection (c). 
SEC. 333. NONREGISTRABILnY 
OF 
MISLEADING 
GEOGRAPHIC 
INDICATIONS. 
(a) MARKS NOT REGISTRABLE ON THE PRINCIPAL REGISTER.— 
Section 2 of the Act entitled "An Act to provide for the registration 
and protection of trademarks used in commerce, to carry out the 
provisions of certain international conventions, and for other pur-
poses", approved July 5, 1946, commonly referred to as the Trade-
mark Act of 1946 (15 U.S.C. 1052(e)), is amended— 
(1) by amending subsection (e) to read as follows: 
"(e) Consists of a mark which (1) when used on or in connection 
with the goods of the applicant is merely descriptive or deceptivelv 
misdescriptive of them, (2) when used on or in connection vatn 
the goods of the applicant is primarily geographically descriptive 
of them, except as indications of regional origin may l>e registrable 
under section 4, (3) when used on or in connection with the goods 
of 
the 
applicant 
is 
primarily 
geographically 
deceptively 
misdescriptive of them, or (4) is primarily merely a surname. ; 
and 
(2) in subsection (f)— 
(A) by striking out "and (d)" and inserting "(d), and 
(eXS)"; and 
(B) by adding at the end the following new sentence: 
"Nothing in this section shall prevent the registration of 
a mark which, when used on or in connection with the 
goods of the applicant, is primarily geographically decep-
tively misdescriptive of them, and which became distinctive 
of the applicant's goods in commerce before the date of 
the enactment of the North American Free Trade Agree-
ment Implementation Act.". 
(b) SUPPLEMENTAL REGISTER.—Section 23(a) of the Trademark 
Act of 1946 (15 U.S.C. 1091(a)) is amended— 
(1) by striking out "and (d)" and inserting "(d), and (eX3)"; 
and 
(2) by adding at the end the following new sentence: "Noth-
ing in this section shall prevent the registration on the supple-
mental register of a mark, capable of distinguishing the 
applicant's goods or services and not registrable on the principal 
register under this Act, that is declared to be unregistrable 
under section 2(eX3), if such mark has been in lawful use 
in commerce by the owner thereof, on or in connection with 
any goods or services, since before the date of the enactment 
of the North American Free Trade Agreement Implementation 
Act.". 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2115 
SEC. 334. MOTION PICTURES IN THE PUBUC DOMAIN. 
(a) IN GENERAL.—Chapter 1 of title 17, United States Code, 
is amended by inserting after section 104 the following new section: 
*
*
§ 104A. Copjrright in certain motion pictures 
"(a) RESTORATION OF COPYRIGHT.—Subject to subsections (b) 
and(c)— 
''(1) any motion picture that is first fixed or published 
in the territory of a NAFTA country as defined in section 
2(4) of the Nortii American Free Trade Agreement Implementa-
tion Act to which Annex 1705.7 of the North American Free 
Trade Agreement applies, and 
"(2) any work included in such motion picture that is first 
fixed in or pubUshed with such motion picture, 
that entered the public domain in the United States because it 
was first published on or after January 1, 1978, and before March 
1, 1989, Mrithout the notice required by section 401, 402, or 403 
of this title, the absence of which has not been excused by the 
operation of section 405 of this title, as such sections were in 
eCTect during that period, shall have copyright protection under 
this title for the remainder of the term of copyright protection 
to which it would have been entitled in the United States had 
it been published with such notice. 
"(b) EFFECTIVE DATE OF PROTECTION.—^The protection provided 
under subsection (a) shall become effective, with respect to any 
motion picture or work included in such motion picture meeting 
the criteria of that subsection, 1 year after the date on which 
the North American Free; Trade Agreement enters into force with 
respect to, and the United States applies the Agreement to, the 
country in whose territory the motion picture was first fixed or 
published if, before the end of that 1-year period, the copyright 
owner in the motion picture or work files with the Copyright Office 
a statement of intent to have copyright protection restored under 
subsection (a). The Copyright Office shall publish in the Federal Federal 
Register promptly after that effective date a list of motion pictures, ^nhliv^tir 
and works included in such motion pictures, for which protection 
is provided under subsection (a). 
"(c) USE OF PREVIOUSLY OWNED COPIES.—A national or domi-
ciliary of the United States who, before the date O
f the enactment 
of the North American Free Trade Agreement Implementation Act, 
made or acquired copies of a motion picture, or other work included 
in such motion picture, that is subject to protection under subsection 
(a), may sell or distribute such copies or continue to perform publicly 
such motion picture and other work without liability for such sale, 
distribution, or performance, for a period of 1 year after the date 
on which the Ust of motion pictures, and works included in such 
motion pictures, that are subject to protection under subsection 
(a) is published in the Federal Register under subsection (b).". 
(b) CONFORMING AMENDMENT.—The table of sections at the 
beginning of chapter 1 of title 17, United States Code, is amended 
by inserting after the item relating to section 104 the following 
new item: 
"lOiA. Copyright in certain motion pictiires.". 
publication. 
107 STAT. 2116 
PUBLIC LAW 103-182—DEC. 8, 1993 
15 u s e 1052 
note. 
SEC. 385. EFFECTIVE DATES. 
(a) IN GENERAL.—Subject to subsections (b) and (c), the amend-
ments made by this subtitle take effect on the date the Agreement 
enters into force with respect to the United States. 
(b) SECTION 331.—^Ilie amendments made by section 331 shall 
apply to all patent applications that are filed on or after the date 
or the enactment of this Act: Provided, That an applicant for a 
patent, or a patentee, may not establish a date or mvention by 
reference to knowledge or use thereof, or other activity with respect 
thereto, in a NAFTA country, except as provided in sections 119 
and 365 of title 35, United States Code, that is earlier than the 
date of the enactment of this Act. 
(c) SECTION 333.—^The amendments made by section 333 shall 
apply only to trademark applications filed on or after the date 
or the enactment of this Act. 
Subtitle D—^Temporary Entry of Business 
Persons 
Aliens. 
19 u s e 3401. 
Regulations. 
SEC. 341. TEMPORARY ENTRY. 
(a) NONIMMIGRANT TRADERS AND INVESTORS.—Upon a basis 
of reciprocity secured by the Agreement, an alien who is a citizen 
of Canada or Mexico, and the spouse and children of any such 
alien if accompanying or following to join such alien, may, if other-
wise eligible for a visa and if otherwise admissible into the United 
States under the Immigration and Nationality Act (8 U.S.C. 1101 
et seq.), be considered to be classifiable as a nonimmigrant under 
section 101(aX15XE) of such Act (8 U.S.C. 1101(aX15XE)) if entering 
solely for a purpose specified in Section B of Annex 1603 of the 
Agreement, but only if any such purpose shall have been specified 
in such Annex on the date of entry into force of the Agreement. 
For purposes of this section, the term "citizen of Mexico" means 
"citizen as defined in Annex 1608 of the Agreement. 
(b) NONIMMIGRANT PROFESSIONALS AND ANNUAL NUMERICAL 
LIMIT.—Section 214 of the Immigration and Nationality Act (8 
U.S.C. 1184) is amended by redesignating subsection (e) as para-
graph (1) of subsection (e) and adding after such paragraph (1), 
as redesignated, the following new paragraphs: 
"(2) An alien who is a citizen of Canada or Mexico, and the 
spouse and children of any such alien if accompanying or following 
to ioin such alien, who seeks to enter the United States under 
and pursuant to the provisions of Section D of Annex 1603 of 
the North American Free Trade Agreement (in this subsection 
referred to as 'NAFTA') to engage in business activities at a profes-
sional level as provided for in such Annex, may be admitted for 
such purpose under regulations of the Attorney General promul-
f
ated after consultation with the Secretaries of State and Labor, 
'or purposes of this Act, including the issuance of entry documents 
and the application of subsection (b), such alien shall be treated 
as if seeking classification, or classifiable, as a nonimmigrant under 
section 101(aX15). The admission of an alien who is a citizen 
of Mexico shall be subject to paragraphs (3), (4), and (5). For 
purposes of this paragraph and paragraphs (3), (4), and (5), the 
term 'citizen of Mexico' means 'citizen' as defined in Annex 1608 
of NAFTA 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2117 
"(3) The Attorney General shall establish an annual numerical 
limit on admissions under paragraph (2) of aliens who are citizens 
of Mexico, as set forth in Appendix 1603.D.4 of Annex 1603 of 
the NAFTA Subject to paragraph (4), the annual numerical limit— 
"(A) beginning with the second year that NAFTA is in 
force, may be increased in accordance with the provisions of 
paragraph 5(a) of Section D of such Annex, and 
^B) shall cease to apply as provided for in paragraph 
3 of such Appendix. 
"(4) The annual numerical limit referred to in paragraph (3) 
may be increased or shall cease to apply (other than by operation 
of paragraph 3 of such Appendix) only if— 
"(A) the President has obtained advice regarding the pro-
posed action from the appropriate advisory committees estab-
lished under section 135 of the Trade Act of 1974 (19 U.S.C. 
2155); 
"(B) the President has submitted a report to the Committee Reports. 
on the Judiciary of the Senate and the Committee on the 
Judiciary of the House of Representatives that sets forth— 
"(i) the action proposed to be taken and the reasons 
therefor, and 
"(ii) the advice obtained under subparagraph (A); 
"(C) a period of at least 60 calendar days that begins 
on the first day on which the President has met the require-
ments of subparagraphs (A) and (B) with respect to such action 
has expired; and 
"(D) the President has consulted with such committees 
regarding the proposed action during the period referred to 
in subparagraph (C). 
"(5) During the period that the provisions of Appendix 1603.D.4 Regulations. 
of Annex 1603 of tne NAFTA apply, the entry of an alien who 
is a citizen of Mexico under and pursuant to the provisions of 
Section D of Annex 1603 of NAFTA shall be subject to the attesta-
tion requirement of section 212(m), in the case of a registered 
nurse, or the application requirement of section 212(n), in the 
case of all other professions set out in Ai)pendix 1603.D.1 of Annex 
1603 of NAFTA, and the petition requirement of subsection (c), 
to the extent and in the manner prescribed in regulations promul-
gated by the Secretary of Labor, with respect to sections 212(m) 
and 212(n), and the Attorney General, with respect to subsection 
(c).". 
(c) LABOR DISPUTES.—Section 214 of the Immigration and 
Nationality Act (8 U.S.C. 1184) is amended by adding at the end 
the following new subsection: 
"(p Notwithstanding any other provision of this Act, an alien Regulations. 
who IS a citizen of Canada or Mexico who seeks to enter the 
United States under and pursuant to the provisions of Section 
B, Section C, or Section D of Annex 1603 of the North American 
Free Trade Agreement, shall not be classified as a nonimmigrant 
under such provisions if there is in progress a strike or lockout 
in the course of a labor dispute in the occupational classification 
at the place or intended place of employment, unless such alien 
establishes, pursuant to regulations promulgated by the Attorney 
General, that the alien's entry will not affect adversely the settle-
ment of the strike or lockout or the employment of any person 
who is involved in the strike or lockout. Notice of a determination 
under this subsection shall be given as may be required by para-
107 STAT. 2118 
PUBLIC LAW 103-182—DEC. 8, 1993 
19 u s e 3401 
note. 
19 u s e 2575. 
19 u s e 2575a. 
graph 3 of article 1603 of such Agreement. For purposes of this 
subsection, the term 'citizen of Mexico' means 'citizen' as defined 
in Annex 1608 of such Agreement.". 
SEC. 342. EFFECTIVE DATE. 
The provisions of this subtitle take effect on the date the 
Agreement enters into force with respect to the United States. 
Subtitle E—Standards 
PART 1—STANDARDS AND MEASURES 
SEC. 351. STANDARDS AND SANITARY AND PHYTOSANTTARY MEAS-
URES. 
(a) IN GENERAL.—Title IV of the Trade Agreements Act of 
1979 (19 U.S.C. 2531 et seq.) is amended by inserting at the 
end the following new subtitle: 
^Subtitle 
E—Standards 
and 
Measures 
Under the North American Free Trade 
Agreement 
**CHAPTER 1—SANITARY AND PHYTOSANTTARY 
MEASURES 
'^EC. 461. GENERAL. 
*T^othing in this chapter may be construed— 
"(1) to prohibit a Federal agency or State agency from 
engaging in activity related to sanitary or phytosanitary meas-
ures to protect human, animal, or plant life or health; or 
"(2) to limit the authority of a Federal agency or State 
agency to determine the level of protection of human, animal, 
or plant life or health the agency considers appropriate. 
•«EC. 462. INQUIRY POINT. 
"The standards information center maintained under section 
414 shall, in addition to the functions specified therein, make avail-
able to the public relevant documents, at such reasonable fees 
as the Secretary of Commerce may prescribe, and information 
regarding— 
(1) any sanitary or phytosanitary measure of general 
application, including any control or inspection procedure or 
approval procedure proposed, adopted, or maintained by a Fed-
eral or State agency; 
**(2) the proceaures of a Federal or State agency for risk 
assessment, and factors the agency considers in conducting 
the assessment and in establishing the levels of protection 
that the agency considers appropriate; 
"(3) the membership and participation of the Federal 
Government and State governments in international and 
regional sanitary and phytossuiitary organizations and systems, 
and in bilateral and multilateral arrangements regarding sani-
tary and phytosanitary measures, and the provisions of those 
systems and arrangements; and 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2119 
"(4) the location of notices of the type required under article 
719 of the NAFTA, or where the information contained in 
such notices can be obtained. 
"SEC. 463. CHAPTER DEFINITIONS. 
19 USC 2575b. 
'Notwithstanding section 451, for purposes of this chapter— 
''(I) ANIMAL.—^The term 'animal' includes fish, bees, and 
wild faiuia. 
**(2) APPROVAL PROCEDURE.—The term 'approval procedure' 
means any registration, notification, or other mandatory 
administrative procedure for— 
"(A) approving the use of an additive for a stated 
purpose or under stated conditions, or 
"(B) establishing a tolerance for a stated purpose or 
under stated conditions for a contaminant, 
in a food, beverage, or feedstuff prior to permitting the use 
of the additive or the marketing of a food, beverage, or feedstuff 
containing the additive or contaminant. 
"(3) CONTAMINANT.—^The term 'contamin£int' includes pes-
ticide and veterinary drug residues and extraneous matter. 
"(4) CONTROL OR INSPECTION PROCEDURE.—The term 'con-
trol or inspection procedure' means any procedure used, directly 
or indirectly, to determine that a sanitary or phytosanitary 
measure is fulfilled, including sampling, testing, inspection, 
evaluation, verification, monitoring, auditing, assurance of 
conformity, accreditation, registration, certification, or other 
^ 
procedure involving the physical examination of a good, of 
the packaging of a good, or of^the equipment or facilities directly 
related to production, marketing, or use of a good, but does 
not mean an approval procedure. 
"(5) PLANT.—^The term 'plant' includes wild flora. 
"(6) RISK ASSESSMENT.—^The term 'risk assessment' means 
an evaluation of— 
"(A) the potential for the introduction, establishment 
or spread of a pest or disease and associated biological 
and economic consequences; or 
"(B) the potential for adverse effects on himian or 
animal life or health arising from the presence of an addi-
tive, contaminant, toxin or disease-causing organism in 
a food, beverage, or feedstuff. 
"(7) SANITARY OR PHYTOSANITARY MEASURE.— 
"(A) IN GENERAL.—^The term 'sanitary or phytosanitary 
measure' means a measure to— 
"(i) protect animal or plant life or health in the 
United States from risks arising from the introduction, 
establishment, or spread of a pest or disease; 
"(ii) protect human or animal life or health in 
the United States from risks arising from the presence 
of an additive, contaminant, toxin, or disease-causing 
organism in a food, beverage, or feedstuff; 
"(iii) protect human life or health in the United 
States fh}m risks arising from a disease-causing orga-
nism or pest carried by an animal or plant, or a product 
thereof; or 
"(iv) prevent or limit other damage in the United 
States arising from the introduction, establishment, 
or spread of a pest. 
107 STAT. 2120 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(B) FORM.—^The form of a sanitary or phytosanitary 
measure includes— 
"(i) end product criteria; 
"(ii) a product-related processing or production 
method; 
"(iii) a testing, inspection, certification, or approval 
procedure; 
"(iv) a relevant statistical method; 
"(v) a sampling procedure; 
"(vi) a method of risk assessment; 
"(vii) a packaging and labeling requirement 
directly related to food safety; and 
"(viii) a quarantine treatment, such as a relevant 
requirement associated with the transportation of ani-
mals or plants or with material necessary for their 
survival during trcmsportation. 
<H:IIAPTER 2—STANDARDS-RELATED MEASURES 
19 use 2576. 
'^EC. 471. GENERAL. 
*
*
(
a
) No BAR TO ENGAGING IN STANDARDS ACTIVITY.—Nothing 
in this chapter shall be construed— 
"(1) to prohibit a Federal agency from engaging in activitv 
related to standards-related measures, incuiding any such 
measure relating to safety, the protection of human, animal, 
or plant life or health, the environment or consumers; or 
"(2) to limit the authority of a Federal agency to determine 
the level it considers appropriate of safety or of protection 
of human, animal, or plant life or health, the environment 
or consumers, 
"(b) EXCLUSION.—This chapter does not apply to— 
"(1) technical specifications prepared by a Federal agency 
for production or consumption requirements of the agency; or 
"(2) sanitary or phjrtosanitary measures under chapter 1. 
19 u s e 2576a. 
"SEC. 472. INQUIRY POINT. 
The standards information center maintained under section 
414 shall, in addition to the 
fimctions 
specified therein, make avail-
able to the public relevant documents, at such reasonable fees 
as the Secretary of Commerce may prescribe, and information 
regarding— 
(1) the membership and participation of the Federal 
Government, State covemments, and relevant nongovern-
mental bodies in the United States in international and regional 
standardizing bodies and conformity assessment systems, and 
in bilateral and multilateral arrangements regarding stand-
ards-related measures, and the provisions of those systems 
and arrangements; 
"(2) the location of notices of the type required under article 
909 of the NAFTA, or where the information contained in 
such notice can be obtained; and 
"(3) the Federal agency procedures for assessment of risk, 
and factors the agency considers in conducting the assessment 
£ind establishing the levels of protection that the agency consid-
ers appropriate. 
19 u s e 2576b. 
"SEC. 473. CHAPTER DEFINITIONS. 
'Notwithstanding section 451, for purposes of this chapter— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2121 
"(1) APPROVAL PROCEDURE.—^The term 'approval procedure' 
means any registration, notification, or other mandatory 
administrative procedure for granting permission for a good 
or service to be produced, marketed, or used for a stated purpose 
or under stated conditions. 
"(2) CONFORMITY ASSESSMENT PROCEDURE.—The term 
'conformity assessment procedure' means any procedure used, 
directly or indirectly, to determine that a technical regulation 
or standard is fiilfilled, including sampling, testing, inspection, 
evaluation, verification, monitoring, auditing, assurance of 
conformity, accreditation, registration, or approval used for such 
a purpose, but does not mean an approval procedure. 
"(3) OBJECTIVE.—^The term 'objective' includes— 
"(A) safety, 
"(B) protection of himian, animal, or plant life or 
health, the environment or consumers, including matters 
relating to quality and identifiability of goods or services, 
and 
"(C) sustainable development, 
but does not include the protection of domestic production. 
"(4) SERVICE.—^The term 'service' means a land transpor-
tation service or a telecommimications service. 
"(5) STANDARD.—The term'standard'means— 
"(A) characteristics for a good or a service, 
"(B) characteristics, rules, or guidelines for— 
"(i) processes or production methods relating to 
such good, or 
"(ii) operating methods relating to such service, 
and 
"(C) provisions specifying terminology, symbols, pack-
aging, marking, or labelling for— 
"(i) a good or its related process or production 
methods, or 
"(ii) a service or its related operating methods, 
for common and repeated use, including explanatory and other 
related provisions set out in a document approved by a 
standardizing body, with which compliance is not mandatory. 
"(6) STANDARDS-RELATED MEASURE.—The term 'standards-
related mesisure' means a standard, technical regulation, or 
conformity assessment procedure. 
"(7) TECHNICAL REGULATION.—The term technical regula-
tion' means— 
"(A) characteristics or their related processes and 
production methcKis for a good, 
"(B) characteristics for a service or its related operating 
methods, or 
"(C) provisions specifying terminology, symbols, pack-
aging, marking, or labelling for— 
"(i) a good or its related process or production 
method, or 
"(ii) a sei-vice or its related operating method, 
set out in a document, including applicable administrative, 
explanatory, and other related provisions, with which compli-
ance is mandatory. 
"(8) 
TELECOMMUNICATIONS SERVICE.—The term 'tele-
communications service' means a service provided by means 
107 STAT. 2122 
PUBLIC LAW 103-182—DEC. 8, 1993 
of the transmission and reception of signals by any electro-
magnetic means, but does not mean the cable, broadcast, or 
other electromagnetic distribution of radio or television 
programming to the public generally. 
<<CIIAPTER 3—SUBTITLE DEFINITIONS 
19 use 2577. 
<«EC. 481. DEFINinON& 
'Notwithstanding section 451, for purposes of this subtitle— 
"(1) NAFTA.—The term 'NAFTA' means the North Amer-
ican Free Trade Agreement. 
"(2) STATE.—The term 'State* means any of the several 
States, the District of Columbia, and the Commonwealth of 
Puerto Rico.", 
(b) TECHNICAL AMENDMENTS.— 
(1) DEFINITION OF TRADE REPRESENTATIVE.—Section 451(12) 
1
9 use 2571. 
of the Trade Agreements Act of 1979 is amended to read as 
follows: 
"(12) TRADE REPRESENTATIVE.—The term "Trade Represent-
ative' means the United States Trade Representative.". 
(2) CONFORMING AMENDMENTS.—Title IV of the Trade 
Agreement Act of 1979 is further amended— 
1
9 use 2541 et 
(A) by striking out "Special Representative" each place 
*^^' 
it appears and inserting "Trade Representative"; and 
1
9 use 2541. 
(B) in the section heading to section 411, by striking 
out "SPECIAL REPRESENTATIVE" and inserting "m^DE REP-
RESENTATIVE". 
Regulations. 
SEC. 362. TRANSPORTATION. 
1
9 use 3411. 
No regulation issued by the Secretary of Transportation 
implementing a recommendation of the Land Transportation Stand-
ards Subcommittee established under article 913(5XaXi) of the 
A^eement may take effect before the date 90 days after the date 
of issuance. 
PART 2—AGRICULTURAL STANDARDS 
19 use 3421. 
SEC. 361. AGRICULTURAL TECHNICAL AND CONFORMING AMEND-
MENTS. 
(a) FEDERAL SEED ACT.—Section 302(eXl) of the Federal Seed 
Act (7 U.S.C. 1582(eXl)) is amended by inserting "or Mexico" after 
"Canada". 
(b) IMPORTATION OF ANIMALS.—The first sentence of section 
6 of the Act of August 30, 1890 (26 Stat. 416, chapter 839; 21 
U.S.C. 104), is amended by striking ": Provided*' and all that follows 
through the period at the end of the sentence and inserting ", 
except that the Secretary of Agriculture, in accordance with such 
regulations as the Secretary may issue, may (1) permit the importa-
tion of cattle, sheep, or other ruminants, and swine, from Canada 
or Mexico, and (2) permit the importation from the British Virgin 
Islands into the Virgin Islands of the United States, for slaughter 
onlv, of cattle that have been infested with or exposed to ticks 
on being 
fireed 
firom 
the ticks.". 
(c) INSPECTION OF ANIMALS.—Section 10 of the Act of August 
30, 1890 (26 Stat. 417, chapter 839; 21 U.S.C. 105), is amended— 
(1) by inserting above "SEC. 10." the following new section 
heading: 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2123 
'^EC. 10. INSPECTION OF ANIMALS."; 
(2) by striking "SEC. 10. That the Secretary of Agriculture 
shair and inserting "(a) IN GENERAL.—^Except as provided in 
subsection (b), the Secretciry of Agriculture shall"; and 
(3) by adding at the end the following new subsection: 
"(b) EXCEPTION.—^The Secretary of Agriculture, in accordance 
with such regulations as the Secretary may issue, may waive any 
provision of subsection (a) in the case of shipments between the 
United States and Canada or Mexico.". 
(d) DISEASE-FREE COUNTRIES OR REGIONS.— 
(1) TARIFF ACT OF 1930.—Section 306 of the Tariff Act 
of 1930 (19 U.S.C. 1306) is amended— 
(A) in subsection (a), by striking "RINDERPEST AND 
FooT-AND-MouTH DISEASE.—If the Secretary of Agri-
culture" and inserting "IN GENERAL.—Except as provided 
in subsection (b), if the Secretary of Agriculture"; and 
(B) by striking subsection (b) and inserting the follow-
ing new subsection: 
"(b) EXCEPTION.—^The Secretary of Agriculture may permit, sub-
ject to such terms and conditions as the Secretary determines 
appropriate, the importation of cattle, sheep, other ruminants, or 
swine (including embryos of the animals), or the fresh, chilled, 
or frozen meat of the animals, from a region if the Secretary 
determines that the region from which the animal or meat origi-
nated is, and is likely to remain, free from rinderpest and foot-
and-mouth disease.". 
(2) HONEYBEE ACT.—The first section of the Act of Aimist 
31, 1922 (commonly known as the "Honeybee Act") (42 Stat. 
833, chapter 301; 7 U.S.C. 281), is amended— 
(A) in subsection (a)— 
(i) by striking ", or" at the end of paragraph (1) 
and inserting a semicolon; 
(ii) by striking the period at the end of paragraph 
(2) and inserting "; or"; and 
(iii) by adding at the end the following new para-
graph: 
"(3) from Canada or Mexico, subiect to such terms and 
conditions as the Secretary of Agriculture determines appro-
priate, if the Secretary determines that the region of Canada 
or Mexico from which the honeybees originated is, and is likely 
to remain, free of diseases or parasites harmful to honeybees, 
and undesirable species or subspecies of honeybees."; and 
(B) in subsection (b)— 
(i) by inserting "(1)" after "imported into the 
United States only 
from"; 
and 
(ii) by inserting before the period the following: 
", or (2) Canada or Mexico, if the Secretary of Agri-
cidture determines that the region of Canada or Mexico 
from which the imports originate is, and is likely to 
remain, free of undesirable species or subspecies of 
honeybees". 
(e) POULTRY FRODUCFS INSPECTION ACT.—Section 17(d) of the 
Poultry Products Inspection Act (21 U.S.C. 466(d)) is amended— 
(1) in paragraph (1), bv inserting after "Notwithstanding 
any other provision of law, the following: "except as provided 
in paragraph (2),"; 
107 STAT. 2124 
PUBLIC LAW 103-182—DEC. 8, 1993 
(2) by redesignating paragraphs (2) and (3) as paragraphs 
(3) and (4), respectively; and 
(3) by inserting after paragraph (1) the following new para-
graph: 
''(2)(A) Notwithstanding any other provision of law, all poultry, 
or parts or products of poultry, capable of use as human food 
offered for importation into the United States from Canada and 
Mexico shall— 
"(i) comply with paragraph (1); or 
"(iiXD be subject to inspection, sanitary, quality, species 
verification, and residue standards that are eqmvalent to 
United States standards; and 
"(ID have been processed in facilities and imder conditions 
that meet standards that are equivfilent to United States stand-
ards. 
"(B) The Secretary may treat as equivalent to a United States 
standard a standard of Canada or Mexico described in subparagraph 
(AXii) if the exporting country provides the Secretary with scientific 
evidence or other information, in accordance with risk assessment 
methodologies agreed to by the Secretary and the exporting country, 
to demonstrate that the standard of the exporting country achieves 
the level of protection that the Secretary considers appropriate. 
**(C) The Secretary may— 
"(i) determine, on a scientific basis, that the standard of 
the exporting country does not achieve the level of protection 
that the Secretary considers appropriate; and 
"(ii) provide the basis for the determination in writing 
to the exporting country on request.". 
(f) FEDERAL MEAT INSPECTION ACT.—Section 20(e) of the Fed-
eral Meat Inspection Act (21 U.S.C. 62(Ke)) is amended— 
(1) by striking "not be limited to—" and inserting "not 
be limited to the following:"; 
(2) by striking paragraph (1); 
(3) by redesignating paragraphs (2) through (6) as para-
graphs (3) throiigh (7), respectively; 
(4) by inserting after "not be limited to the following:" 
(as amended by paragraph (1)) the following new paragraphs: 
"(IXA) Subject to subparagraphs (B) and (C), a certification 
by the Secretary that foreign plants in Canada and Mexico 
that export carcasses or meat or meat products referred to 
in subsection (a) have complied with paragraph (2) or with 
requirements that are equivalent to United States requirements 
with regard to all inspection and building construction stand-
ards, and all other provisions of this Act and regulations issued 
under this Act. 
"(B) Subject to subparagraph (C), the Secretary may treat 
as equivalent to a United States requirement a requirement 
described in subparagraph (A) if the exporting country provides 
the Secretary with scientific evidence or other information, 
in accordance with risk assessment methodologies agreed to 
by the Secretary and the exporting country, to demonstrate 
that the requirement or standard of the exporting country 
achieves the level of protection that the Secretary considers 
appropriate. 
"(C) The Secretary may— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2125 
"(i) determine, on a scientific basis, that a requirement 
of an exporting country does not achieve the level of protec-
tion that the Secretary considers appropriate; and 
"(ii) provide the basis for tne determination to the 
exporting country in writing on request. 
"(2) A certification by the Secretary that, except as provided 
in paragraph (1), foreign plants that exi>ort carcasses or meat 
or meat products referrea to in subsection (a) have complied 
with requirements that are at least eoual to all inspection 
and building construction standards and all other provisions 
of this Act and regulations issued under this Act."; 
(5) in paragraphs (3) through (7) (as redesignated by para-
graph (3)), by striking "the" the first place it appears in each 
paragraph and inserting The"; 
(6) m paragraphs (3) through (5) (as so redesignated), by 
striking the semicolon at the end of each paragraph and insert-
ing a period; and 
(7) in paragraph (6) (as so redesignated), by striking 
''; and" at the end and inserting a period. 
(g) PEANUT BUTTER A
N
D PEANUT PASTE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), all 
peanut butter and peanut paste m the United States domestic 
market shall be processed 
firom 
peanuts that meet the quality 
standards established for peanuts under Marketing Agreement 
No. 146. 
(2) IMPORTS.—^Peanut butter and peanut paste imported 
into the United States shall comply mth paragraph (1) or 
with sanitary measures that achieve at least the same level 
of sanitary protection. 
(h) ANIMAL HEALTH BIOCONTAINMENT FACILITY.— 
(1) GRANT FOR CONSTRUCTION.—The Secretary of Agri-
culture shall make a grant to a land grant college or university 
described in paragraph (2) for the construction of a facility 
at the college or university for the conduct of research in 
animal health, disease-transmitting insects, and toxic chemicals 
that requires the use of biocontainment facilities and equip-
ment. Tne facility to be constructed with the grant shall be 
known 
as 
the 
"Southwest 
Regional 
Animal 
Health 
Biocontainment Facility". 
(2) GRANT RECIPIENT DESCRIBED.—TO be eligible for the 
grant under paragraph (1), a land grant college or university 
must be— 
(A) located in a State a4jacent to the international 
border with Mexico; and 
(B) determined by the Secretary of Agriculture to have 
an established program in animal health research and 
education and to have a collaborative relationship with 
one or more colleges of veterinary medicine or universities 
located in Mexico. 
(3) AcTivmES O
F T
H
E F
A
C
I
L
I
T
Y
.
—
^
T
h
e facility constructed 
using the grant made under paragraph (1) shall be used for 
conducting the following activities: 
(A) The bioconteinment facility shall offer the ability 
to organize multidisciplinary international teams working 
on basic and applied resecu^h on diagnostic method devel-
opment and disease control strategies, including develop-
ment of vaccines. 
107 STAT. 2126 
PUBLIC LAW 103-182—DEC. 8, 1993 
(B) The biocontainment facility shall support research 
that will improve Uie scientific basis for regidatory activi-
ties, decreasing the need for new regulatory programs and 
enhancing international trade. 
(C) Tlie biocontainment facility shall allow academic 
institutions, governmental agencies, and the private sector 
to conduct research in basic and applied research biology^, 
epidemiology, pathogenesis, host response, and diagnostic 
methods, on disease agents that threaten the livestock 
industries of the United States and Mexico. 
(D) The biocontainment facility mav be used to support 
research involving food safety, toxicology, environmental 
pollutants, radioisotopes, recombinant microorganisms, and 
selected naturally resistant or transgenic animals. 
(4) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated for each fiscal year such sums as 
are necessary to carry out this subsection, 
(i) REPORTS ON INSPECTION OF IMPORTED MEAT, POULTRY, 
OTHER FOODS, ANIMALS, AND PLANTS.— 
(1) DEFINITIONS.—As used in this subsection: 
(A) IMPORTS.—^The term "Hmports" means any meat, 
poultry, other food, animal, or plant that is imported into 
the United States in commercially significant quantities. 
(B) SECRETARY.—The term "Secretary" means the Sec-
retary of Agriculture. 
Reports. 
(2) IN GENERAL.—In consultation with representatives of 
other appropriate agencies, the Secretary shall prepare an 
annual report on the impact of the Agreement on the inspection 
of imports. 
(3) CONTENTS OF REPORTS.—^The report required under this 
subsection shall, to the maximum extent practicable, include 
a description of— 
(A) the quantity or, with respect to the Customs Serv-
ice, the number of shipments, of imports from a NAFTA 
country that are inspected at the borders of the United 
States with Canada and Mexico during the prior year; 
(B) any change in the level or types of mspections 
of imports in each NAFTA country during the prior year; 
(C) in any case in which the Secretary has determined 
that the inspection system of another NAFTA country is 
ty 
equivalent to the inspection system of the United States, 
the reasons supporting the determination of the Secretary; 
(D) the incidence of violations of inspection require-
ments by imports from NAFTA countries auring the prior 
year— 
(i) at the borders of the United States with Mexico 
or Canada; or 
(ii) at the last point of inspection in a NAFTA 
country prior to shipment to the United States if the 
br J* 
agency accepts inspection in that country; 
s 
(E) the incidence of violations of inspection require-
ments of imports to the United States from Mexico or 
Canada prior to the implementation of the Agreement; 
(F) any additional cost associated with maintaining 
an adequate inspection system of imports as a result of 
the implementation of the Agreement; 
(G) any incidence of transshipment of imports— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2127 
(i) that originate in a country other than a NAFTA 
country; 
(ii) that are shipped to the United States through 
a NAFTA country during the prior year; and 
(iii) that are incorrectly represented by the 
importer to qualify for preferential treatment under 
the Agreement; 
(H) the quantity and results of any monitoring by 
the United States of equivalent inspection systems of 
imports in other NAFTA countries during the prior year; 
(I) the use by other NAFTA countries of sanitary and 
E
hytosanitary measures (as defined in the Agreement) to 
mit exports of United States meat, poultry, other foods, 
animals, and plants to the countries during the prior year; 
and 
(J) any other information the Secretary determines 
to be appropriate. 
(4) FREQUENCY OF REPORTS.—The Secretary shall submit— 
(A) the initial report required imder this subsection 
not later than January 31,1995; and 
(B) an annual report required under this subsection 
not later than 1 year after the date of the submission 
of the initial report and the end of each 1-year period 
thereafter through calendar year 2004. 
(5) REPORT TO CONGRESS.—The Secretary shall prepare 
and submit the report required under this subsection to the 
Committee on Agriculture of the Hoiise of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate. 
Subtitle F—Corporate Average Fuel 
Economy 
SEC. 371. CORPORATE AVERAGE FUEL ECONOMY. 
Motor vehicles. 
(a) IN GENERAL.—Section 503(bX2) of the Motor Vehicle 
Information and Cost Savings Act (15 U.S.C. 2003(bX2)) is amended 
by adding at the end the following new subparagraph: 
''(GXi) In accordance with the schedule set out in clause 
(ii), an automobile shall be considered domestically manufac-
tured in a model year if at least 75 percent of the cost to 
the manufacturer of the automobile is attributable to value 
added in the United States, Canada, or Mexico, unless the 
assembly of the automobile is completed in Canada or Mexico 
and the automobile is not imported into the United States 
prior to the expiration of 30 days following the end of that 
model year. 
"(ii) Clause (i) shall applv to all automobiles manufactured 
by a manufactiurer and sold in the United States, wherever 
assembled, in accordance with the following schedule: 
"(I) With respect to a manufacturer that initiated the 
assembly of automobiles in Mexico before model year 1992, 
the manufacturer may elect, at any time between January 
1, 1997, and January 1, 2004, to have clause (i) apply 
to all automobiles it manufactures, beginning with the 
model year commencing after the date of such election. 
107 STAT. 2128 
PUBLIC LAW 103-182—DEC. 8, 1993 
''(II) With respect to a manufacturer initiating the 
assembly of automobiles in Mexico after model year 1991, 
clause (i) shall apply to all automobiles it manufactures, 
beginning with the model year commencing after January 
1, 1994, or the model year commencing after the date 
that the manufacturer initiates the assembly of auto-
mobiles in Mexico, whichever is later. 
"(Ill) With respect to a manufacturer not described 
by subclause (I) or (II) assembling automobiles in the 
United States or Canada but not in Mexico, the manufac-
turer may elect, at any time between January 1, 1997, 
and January 1, 2004, to have clause (i) apply to all auto-
mobiles it manufactures, beginning with the model year 
commencing after the date of such election, except that 
if such manufacturer initiates the assembly of automobiles 
in Mexico before making such election, this subclause shall 
not apply and the manufacturer shall be subject to clause 
(II). 
"(TV) With respect to a manufacturer not assembling 
automobiles in the United States, Canada, or Mexico, 
clause (i) shall apply to all automobiles it manufactures, 
beginning with the model year commencing after January 
1,1994. 
"(V) With respect to a manufacturer authorized to 
make an election under subclause (I) or (III) which has 
not made that election within the specified period, clause 
(i) shall apply to all automobiles it manufactures, beginning 
with the model year commencing after January 1, 2004. 
"(iii) The Secretary shall prescribe reasonable procedures 
for elections under this subparagraph, and the EPA Adminis-
trator may prescribe rules for purposes of carrying out this 
subparagrapn.". 
(b) CONFORMING AMENDMENTS.—The first sentence of section 
503(b)(2XE) of the Motor Vehicle Information and Cost Savings 
Act (15 U.S.C. 2003(bX2XE)) is amended— 
(1) by striking "An" and inserting "Except as provided 
in subparagraph (G), an", and 
(2) in the last sentence, bv striking "this subparagraph" 
and inserting "this subparagrapn and subparagraph (G)". 
Subtitle G—Government Procurement 
SEC. 381. GOVERNMENT PROCUREMENT. 
(a) IN GENERAL.—Section 301 of the Trade Agreements Act 
of 1979 (19 U.S.C. 2511) is amended— 
(1) in subsection (a) by striking "The President" and insert-
ing "Subject to subsection (f) of this section, the President"; 
(2) by inserting "or the North American Free Trade Agree-
ment" after "the Agreement" in paragraph (1) of subsection 
(b); and 
(3) by adding at the end the following new subsections: 
"(e) PROCUREMENT PROCEDURES BY CERTAIN FEDERAL AGEN-
CIES.—^Notwithstanding any other provision of law, the President 
may direct any agency of the United States listed in Annex 1001.1a-
2 of the Nortn .Ajnencan Free Trade Agreement to procure eligible 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2129 
products in compliance with the procedural provisions of chapter 
10 of such Agreement. 
"(f) 
SMALL BUSINESS AND MINORITY PREFERENCES.—The 
authority of the President under subsection (a) of this section to 
waive any law, regulation, procedure, or practice regarding Govern-
ment procurement does not authorize the waiver of any small 
business or minority preference.". 
(b) RECIPROCAL CoMPErmvE PROCUREMENT PRACTICES.—Sec-
tion 302(a) of such Act (19 U.S.C. 2512(a)) is amended by striking 
"would otherwise be eligible products" in paragraph (1) and insert-
ing "are products covered under the Agreement for procurement 
by the Umted States". 
(c) DEFINITION OF EUGIBLE PRODUCT.—Section 308(4XA) of 
such Act (19 U.S.C. 2518(4XA)) is amended to read as follows: 
"(A) IN GENERAL.—^The term 'eligible product' means, 
with respect to any foreign coimtry or instrumentality that 
"(i) a party to the Agreement, a product or service 
of that country or instrumentality which is covered 
under the Agreement for procurement by the United 
States; or 
"(ii) a party to the North American Free Trade 
Agreement, a product or service of that county or 
instrumentality which is covered under the ^forth 
American Free Trade Agreement for procurement by 
the United States.". 
(d) CONFORMING AMENDMENTS.—Section 401 of the Rural Elec-
trification Act of 1938 (7 U.S.C. 903 note) is amended bv inserting 
", Mexico, or Canada" after "the United States" each place it 
appears. 
(e) EFFECTIVE DATE.—The provisions of this subtitle take effect 1
9 use 2511 
on the date the Agreement enters into force with respect to the ^°^-
United States. 
TITLE IV—DISPUTE SETTLEMENT IN 
ANTIDUMPING AND COUNTERVAIL-
ING DUTY CASES 
Subtitle 
A—Organizational, 
Administra-
tive, and Procedural Provisions Regard-
ing the Implementation of Chapter 19 of 
the Agreement 
SEC. 401. REFEBENCES IN SUBTITLE. 
19 USC 3431. 
Any reference in this subtitle to an Annex, chapter, or article 
shall be considered to be a reference to the respective Annex, 
chapter, or article of the Agreement. 
SEC. 402. ORGANIZATIONAL AND ADMINISTRATIVE PROVISIONa 
19 USC 3432. 
(a) CRITERIA FOR SELECTION OF INDIVIDUALS TO SERVE ON 
PANELS AND COMMITTEES.— 
(1) IN GENERAL.—^The selection of individuals under this 
section for— 
107 STAT. 2130 
PUBLIC LAW 103-182—DEC. 8, 1993 
(A) placement on lists prepared b^ the interagency 
groupunder subsection (cX2XB) (i) and (ii); 
(B) placement on prelixoinary candidate lists under 
subsection (cX3XA); 
(C) placement on final candidate lists under subsection 
(cX4XA); 
(D) placement by the Trade Representative on the ros-
ters described in paragraph 1 of Annex 1901.2 and para-
graph 1 of Annex 1904.13; and 
(E) appointment by tJie Trade Representative for serv-
ice on the panels and committees convened under chapter 
19; 
shall be made on the basis of the criteria provided in paragraph 
1 of Annex 1901.2 and paragraph 1 of Annex 1904.13 and 
shall be made without regard to political affiliation. 
(2) ADDITIONAL CRITERIA FOR ROSTER PLACEMENTS AND 
APPOINTMENTS UNDER PARAGRAPH 1 OF ANNEX 1901.2.—RosterS 
described in paragraph 1 of Annex 1901.2 shall include, to 
the fullest extent practicable, judges and former judges who 
meet the criteria referred to in para^aph (1). The Trade Rep-
resentative shall, subject to subsection (b), appoint judges to 
binational panels convened under chapter 19, extraordinary 
challenge committees convened under chapter 19, and special 
committees established under £urticle 1905, where such judges 
offer and are available to serve and such service is authorized 
by the chief 
judge of the court on which they sit. 
(b) SELECTION OF CERTAIN JUDGES TO SERVE ON PANELS AND 
COMMITTEES.— 
(1) APPLICABILITY.—^This subsection applies only with 
respect to the selection of individuals for oinational panels 
convened under chapter 19, extraordinary challenge committees 
convened under chapter 19, and special committees established 
under article 1905, who are judges of courts created under 
article III of the Constitution of the United States. 
(2) CONSULTATION WITH CHIEF JUDGES.—The Trade Rep-
resentative shall consult, from time to time, with the chief 
judges of the Federal judicial circuits reganting the interest 
in, and availability for, participation in binational panels, 
extraordinary challenge committees, and special committees, 
of judges within their respective circuits. If the chief judge 
of a Federal judicial circuit determines that it is appropriate 
for one or more judges within that circuit to be included on 
a roster described in subsection (aXlXD), the chief judge shall 
identify all such judges for the Chief Justice of the United 
States who may, upon his or her approval, submit the names 
of such judges to the Trade Representative. The Trade Rep-
resentative shall include the names of such judges on the 
roster. 
(3) SUBMISSION OF USTS TO CONGRESS.—The Trade Rep-
resentative shall submit to the Committee on the Judiciary 
and the Committee on Ways and Means of the House of Rep-
resentatives and to the Committee on Finance and the Commit-
tee on tihe Judiciary of the Senate a list of all judges included 
on a roster under paragraph (2). Such Ust shiul be submitted 
at the same time as tne final candidate lists are submitted 
under subsection (cX4XA) and the final forms of amendments 
are submitted under subsection (cX4XCXiv). 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2131 
(4) APPOINTMENT OF JUDGES TO PANELS OR COMMITTEES.— 
At such time as the Trade Representative proposes to appoint 
a judge described in paragraph (1) to a bmational panel, an 
extraordinary challenge committee, or a special committee, the 
Trade Representative shall consult with that judge in order 
to ascertain whether the judge is available for such appoint-
ment, 
(c) SELECTION OF OTHER CANDIDATES.— 
(1) APPLICABILITY.—^This subsection applies only with 
respect to the selection of individuals for oinational panels 
convened under chapter 19, extraordinary challenge committees 
convened under chapter 19, and special committees established 
imder article 1905, other than those individuals to whom sub-
section (b) applies. 
(2) INTERAGENCY GROUP.— 
(A) ESTABUSHMENT.—There is established within the 
interagency organization established under section 242 of 
the Trade Expansion Act of 1962 (19 U.S.C. 1872) an 
interagency group which shall— 
(i) be chaired by the Trade Representative; and 
(ii) consist of such officers (or the designees 
thereof) of the United States Government as the Trade 
Representative considers appropriate. 
(B) FUNCTIONS.—^The interagency group established 
under subparagraph (A) shall, in a manner consistent with 
chapter 1£^ 
(i) propare by January 3 of each calendar year— 
(I) a list of individuals who are qualined to 
serve as members of binational panels convened 
under chapter 19; and 
(II) a list of individuals who are qualified to 
serve on extraordinaiy challenge committees con-
vened under chapter 19 and special committees 
established under article 1905; 
(ii) if the Trade Representative makes a request 
under paragraph (4XCXi) with respect to a final can-
didate list during any calendar year, prepare by July 
1 of such calendar year a list of those individuals 
who are qualified to be added to that final candidate 
list; 
(iii) exercise oversight of the administration of the 
United States Section that is authorized to be estab-
lished under section 105; and 
(iv) make recommendations to the Trade Rep-
resentative regarding the convening of extraordinary 
challenge committees and special conmiittees under 
chapter 19. 
(3) PRELIMINARY CANDIDATE USTS.— 
(A) IN GENERAL.—The Trade Representative shall 
select individuals from the respective lists prepared by 
the interagency group under paragraph (2XB)(i) for place-
ment on— 
(i) a preliminary candidate list of individuals 
eligible to serve as members of binational panels under 
Annex 1901.2; and 
(ii) a preliminary candidate list of individuals 
eligible for selection as members of extraordinary chal-
69-194 O - 94 - 7 : QL. 3 Part 3 
107 STAT. 2132 
PUBLIC LAW 103-182—DEC. 8, 1993 
lenge committees under Amiex 1904.13 and special 
committees under article 1905. 
(B) SUBMISSION OF USTS TO CONGRESSIONAL COMMIT-
••; 
T E E S . — 
(i) IN GENERAL.—No later than January 3 of each 
calendar year, the Trade Representative shall submit 
to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Rep-
resentatives (hereafter in this section referred to as 
the "appropriate Congressional Committees") the 
E
reliminary candidate lists of those individuals selected 
y the Trade Representative imder subparagraph (A) 
to be candidates eligible to serve on panels or commit-
tees convened pursuant to chapter 19 during the 1-
^ 
year period beginning on April 1 of such calendar 
year. 
(ii) ADDITIONAL INFORMATION.—At the time the 
candidate lists are submitted under clause (i), the 
Trade Representative shall submit for each individual 
on the list a statement of professional Qualifications. 
(C) CONSULTATION.—Upon submission oi the prelimi-
nary candidate lists under subparagraph (B) to the appro-
priate Congressional Committees, the Trade Representative 
shall consult with such Committees with regard to the 
individuals included on the preliminary candidate lists. 
(D) REVISION OF LISTS.—The Trade Representative may 
add and delete individuals from the preliminary candidate 
lists submitted under subpara^aph (B) after consultation 
with the appropriate Congressional Committees regarding 
the additions and deletions. The Trade Representative shall 
provide to the appropriate Congressional Committees writ-
ten notice of any addition or deletion of an individual 
from the preliminary candidate lists, along with the 
information described in subparagraph (BXii) with respect 
to any proposed addition. 
(4) FINAL CANDIDATE USTS.— 
(A) SUBMISSION OF USTS TO CONGRESSIONAL COMMIT-
TEES.—No later than March 31 of each calendar year, 
the Trade Representative shall submit to the appropriate 
Congressional Committees the final candidate lists of those 
individuals selected by the Trade Representative to be can-
didates eligible to serve on panels and committees convened 
under chapter 19 during the 1-year period beginning on 
April 1 of such calendar year. An individual may be 
included on a final candidate list onlv if such individual 
was included in the preliminary candidate list or if written 
notice of the addition of such individual to the preliminary 
candidate list was submitted to the appropriate Congres-
sional Committees at least 15 days before the date on 
which that final candidate list is submitted to such 
^ 
Committees under this subparagraph. 
(B) FINALITY OF LISTS.—^Except as provided in subpara-
graph (C), no additions may be made to the final canoidate 
lists after the final candidate lists are submitted to the 
appropriate Congressional Committees under subp£u:a-
graph (A). 
(C) AMENDMENT OF USTS.— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2133 
(i) IN GENERAL.—^If, after the Trade Representative 
has submitted the final candidate lists to the appro-
priate Congressional Committees under subparagraph 
(A) for a calendar year and before July 1 of such 
calendar ;^ear, the Trade Representative determines 
that additional individuals need to be added to a final 
candidate list, the Trade Representative shall— 
(I) request the interagency group established 
under paragraph (2XA) to prepare a list of individ-
uals who are qualified to be added to such can-
didate list; 
(II) select individuals from the list prepared 
I
w
^ the interagency ^roup under paragraph 
(2XBXii) to be included m a proposed amencunent 
to such final candidate list; and 
(III) by no later than July 1 of such calendar 
year, submit to the appropriate Congressional 
Committees the proposed amendments to such 
final candidate hst developed by the Trade Rep-
resentative under subclause (II), along with the 
information described in paragraph (SXBXii)-
(ii) CONSULTATION WITH CONGRESSIONAL COMMIT-
TEES.—^Upon submission of a proposed amendment 
under clause (iXIII) to the appropriate Congressional 
Committees, the TVade Representative shaU consult 
with the appropriate Congressional Committees with 
regard to the individuals included in the proposed 
amendment. 
(iii) ADJUSTMENT OF PROPOSED AMENDMENT.—The 
Trade Representative may add and delete individuals 
firom any proposed amendment submitted under clause 
(iXIII) alter consulting with the appropriate Congres-
sional Committees with regard to the additions and 
deletions. The Trade Representative shall provide to 
the appropriate Congressional Committees written 
notice of any addition or deletion of an individual firom 
the proposed amendment. 
(iv) FINAL AMENDMENT.— 
(I) IN GENERAL.—If the Trade Representative 
submits imder clause (iXIII) in any calendar year 
a proposed amendment to a final candidate list, 
the IVade Representative shall, no later than 
September 30 of such calendar year, submit to 
the appropriate Congressional Committees the 
final form of such amendment. On October 1 of 
such calendar year, such amendment shall take 
effect and, subject to subclause (II), the individuals 
included in the final form of such amendment shall 
be added to the final candidate list. 
(II) INCLUSION OF INDIVIDUALS.—An individual 
may be included in the final form of an amendment 
submitted under subclause (I) only if such individ-
ual was included in the proposed form of such 
amendment or if written notice of the addition 
of such individual to the proposed form of such 
amendment was submitted to the appropriate 
Congressional Committees at least 15 days before 
107 STAT. 2134 
PUBLIC LAW 103-182—DEC. 8, 1993 
the date on which the final form of such amend-
ment is submitted to such Committees under 
subclause (I). 
(III) EuGiBiLrry FOR SERVICE.—Individuals 
added to a final candidate list under subclause 
(I) shall be eUgible to serve on panels or commit-
tees convened under chapter 19 during the 6-
month period beginning on October 1 of the cal-
endar year in which such addition occurs. 
(IV) FINALITY OF AMENDMENT.—NO additions 
may be made to the final form of an amendment 
described in subclause (I) after the fined form of 
such amendment is submitted to the appropriate 
Congressional Committees under subclause (I). 
(5) TREATMENT OF RESPONSES.—^For purposes of applying 
section 1001 of title 18, United States Code, the written or 
oral responses of individuals to inquiries of the interagency 
group established under paragraph (2XA) or of the Trade Rep-
resentative regarding their personal and professional qualifica-
tions, and financial and other relevant interests, that bear 
on their suitability for the placements and appointments 
described in subsection (aXl)> shall be treated as matters within 
the jurisdiction of an agency of the United States, 
(d) SELECTION AND APPOINTMENT.— 
(1) AUTHORITY OF TRADE REPRESENTATIVE.—The Trade Rep-
resentative is the only officer of the United States Grovemment 
authorized to act on behalf of the United States Government 
in making any selection or appointment of an individual to— 
(A) the rosters described in paragraph 1 of Annex 
1901.2 and paragraph 1 of 
Annex 1904.13; or 
(B) the panels or committees convened under chapter 
19; 
., that is to be made solely or jointly by the United States Govern-
ment under the terms of the Agreement. 
(2) 
RESTRICTIONS ON SELECTION AND APPOINTMENT.— 
Except as provided in paragraph (3)— 
(A) the Trade Representative may— 
(i) select an individual for placement on the rosters 
described in paragraph 1 of Annex 1901.2 and para-
graph 1 of Annex 1904.13 during the 1-year period 
beginning on April 1 of any calendar year; 
(ii) appoint an individual to serve as one of those 
members of any panel or committee convened under 
chapter 19 during such 1-year period who, under the 
terms of the Agreement, are to be appointed solely 
by the United States (Government; or 
(iii) act to make a joint appointment with the 
Grovemment of a NAFTA country, under the terms 
of the Agreement, of any individual who is a citizen 
or national of the United States to serve as any other 
member of such a panel or committee; 
only if such individual is on the appropriate final candidate 
list that was submitted to the appropriate Congressional 
Committees under subsection (cX4XA) during such calendar 
year or on such list as it may be amended under subsection 
(c)(4XC)(ivXI), or on the list submitted under subsection 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2135 
0
1
>
X
3
) to the Congressional Committees referred to in such 
subsection; and 
(B) no individual may— 
(i) be (selected by the United States Government 
for placement on the rosters described in paragraph 
1 of Annex 1901.2 and paragraph 1 of Annex 1904.13; 
or 
(ii) be appointed solely or jointly by the United 
States Government to serve as a member of a panel 
or committ(ie convened under chapter 19; 
during the 1-year period beginning on April 1 of any cal-
endar year for wldch the Trade Representative has not 
met the requirements of subsection (a), and of subsection 
(b) or (c) (as the case may be). 
(3) EXCEPTIONS.—Notwithstanding subsection (cX3) (other 
than subparagraph (B)), (cX4), or paragraph (2XA) of this sub-
section, individuals included on the preliminary candidate lists 
submitted to the appropriate Congressional Conmiittees under 
subsection (cX3XB) may— 
(A) be selected by the Trade Representative for place-
ment on the rosters described in paragraph 1 of Annex 
1901.2 and paragraph 1 of Annex 1904.13 during the 3-
month period beginning on the date on which the Agree-
ment enters into force with respect to the United States; 
and 
(B) be appointed solely or jointly by the Trade Rep-
resentative under the terms of the A^:«ement to serve 
as members of panels or committees that are convened 
under chapter 19 during such 3-month period. 
(e) TRANSITION.—^If the A^eement enters into force between 
the United Stetes and a NAFTA country after January 3, 1994, 
the provisions of subsection (c) shall be apphed with respect to 
the OEdendar year in which such entering into 
rorce 
occurs— 
(1) by substituting 'ilie date that is 30 days after the 
date on which the Agreement enters into force with respect 
to the United Stetes" for "January 3 of each calendar year" 
in subsections (cX2XBXi) and (cX3XBXi); and 
(2) by substituting *Vie date that is 3 months after the 
date on which the .^n*eement enters into force with respect 
to the United Stetes for '^arch 31 of each calendar year" 
in subsection (cX4XA). 
(f) IMMUNITY.—^With the exception of acte described in section 
777(fK3) of the Tariff Act of 1930 (19 U.S.C. 1677f(0(3)), individuals 
serving on panels or committees convened pursuant to chapter 
19, and individuals designated to assist the individuals serving 
on such panels or committees, shall be immune from suit and 
legal process relating to acte performed by such individuals in 
their official capacity and withm the scope of their functions as 
such paneliste or committee members or assistante to such paneliste 
or committee members. 
(g) REGULATIONS.—^The administering authority under title VII 
of the Tariff Act of 1930, the International Trade Commission, 
and the Trade Representotive may promulgate such regulations 
as are necessary or appropriate to carry out actions in order to 
implement their respective responsibilities under chapter 19. Initial 
regulations to carry out such functions shall be issued before the 
107 STAT. 2136 
PUBLIC LAW 103-182—DEC. 8, 1993 
Courts. 
19 u s e 3433. 
date on which the Agreement enters into force with respect to 
the United States. 
(h) REPORT TO CONGRESS.—At such time as the final candidate 
lists are submitted under subsection (cX4XA) and the final forms 
of amendments are submitted under subsection (cX4XCXiv), the 
Trade Representative shall submit to the Committee on the 
Judiciary and the Committee on Ways and Means of the House 
of Representatives, and to the Committee on Finance and tlie 
Committee on the Judiciary of the Senate, a report regarding the 
efforts made to secure the participation of 
judges and former judges 
on binational panels, extraordinary challenge committees, and spe-
cial committees established under chapter 19. 
SEC. 403. TESTIMONY AND PRODUCTION OF PAPERS IN EXTRAOR' 
DINARY CHALLENGES. 
(a) AUTHORITY OF EXTRAORDINARY CHALLENGE COMMITTEE TO 
OBTAIN INFORMATION.—If an extraordinary challenge committee 
(hereafter in this section referred to as the "committee") is convened 
under paragraph 13 of article 1904, and the allegations before 
the committee include a matter referred to in paragraph 13(aXi) 
of article 1904, for the purposes of carrying out its functions and 
duties under Annex 1904.13, the committee— 
(1) shall have access to, and the right to copy, any docu-
ment, paper, or record pertinent to the subject matter under 
consideration, in the possession of any individual, partnership, 
corporation, association, organization, or other entity; 
(2) may simimon witnesses, take testimony, and administer 
oaths; 
(3) may require any individual, partnership, corporation, 
association, organization, or other entity to produce documents, 
books, or records relating to the matter in question; and 
(4) may require any individual, partnership, corporation, 
association, organization, or other entity to furnish in writing, 
in such detail and in such form as the committee may prescribe, 
information in its possession pertaining to the matter. 
Any member of the committee may sign subpoenas, and members 
of the committee, when authorized by the committee, may admin-
ister oaths and affirmations, examine witnesses, take testimony, 
and receive evidence. 
(b) WITNESSES AND EVIDENCE.—The attendance of witnesses 
who are authorized to be summoned, and the production of docu-
mentary evidence authorized to be ordered, under subsection (a) 
may be required from any place in the United States at any des-
ignated place of hearing. In the case of disobedience to a subpoena 
authorized under subsection (a), the committee may request the 
Attorney General of the United States to invoke the aid of any 
district or territorial court of the United States in requiring the 
attendance and testimony of witnesses and the production of docu-
mentary evidence. Such court, within the jurisdiction of which 
such inquiry is carried on, may, in case of contumacy or refusal 
to obey a subpoena issued to any individual, partnership, corpora-
tion, association, organization, or other entity, issue an order requir-
ing such individual or entity to appear before the committee, or 
to produce dociunentary evidence if so ordered or to give evidence 
concerning the matter in question. Any failure to obey such order 
of the comt may be punished by such court as a contempt thereof. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2137 
(c) MANDAMUS.—Any court referred to in subsection (b) shall 
have jurisdiction to issue writs of mandamus commanding compli-
ance with the provisions of this section or any order of the committee 
made in pursuance thereof. 
(d) DEPOSITIONS.—The committee may order testimony to be 
taken by deposition at any stage of the committee review. Such 
deposition may be taken before an^ person designated b^ the 
committee and having ^)Ower to admmister oaths. Such testimony 
shall be reduced to writing by the person taking the deposition, 
or under the direction of such person, and shall then be subscribed 
by the deponent. Any individual, partnership, corporation, associa-
tion, organization, or other entity may be compelled to appear 
and be deposed and to produce documentary evidence in the sarae 
manner as witnesses may be compelled to appear and testify and 
produce documentary e^adence before the committee, as provided 
m this section. 
SEC. 404. REQUESTS FOR REVIEW OF DETERMINATIONS BY COM- 19 USC 3434. 
PETENT INVESTIGATING AUTHORITIES OF NAFTA COUN-
TRIES. 
(a) DEFINITIONS.—As used in this section: 
(1) 
COMPETENir INVESTIGATING AUTHORITY.—The 
term 
"competent investigating authoritjr" means the competent inves-
tigatmg authority, as defined in article 1911, of a NAFTA 
country. 
(2) UNITED STATES SECRETARY.—The term "United States 
Secretary" means that officer of the United States referred 
to in article 1908. 
(b) REQUESTS FOR REVIEW BY THE UNITED STATES.—In the 
case of a final determination of a competent investigating authority, 
requests by the United States for binational panel review of such 
determination under article 1904 shall be made by the United 
States Secretary. 
(c) REQUESTS FOR REVIEW BY A PERSON.—In the case of a 
final determination of a competent investigating authority, a person, 
within the meaning of paragraph 5 of article 1904, may request 
a binational panel review of such determination bv filing such 
a request with the United States Secretary within the time limit 
provided for in paragraph 4 of article 1904. The receipt of such 
request by the United States Secretary shall be deemed to be 
a request for binational panel review within the meaning of article 
1904. The request for such panel review shall be without prejudice 
to any challenge before a binational panel of the basis for a particu-
lar request for review. 
(d) SERVICE OF REQUEST FOR REVIEW.—Whenever binational 
panel review of a final determination made by a competent inves-
tigating authority is requested under this section, the United States 
Secretary shall serve a copy of the request on all persons who 
would ouierwise be entitled imder the law of the importing coimtry 
to commence proceedings for judicial review of the determination. 
SEC. 40S. RULES OF PROCEDURE FOR PANELS AND COMMTTTEEa 
19 USC 3435. 
(a) 
RULES OF PROCEDURE FOR BINATIONAL PANELS.—The 
administering authority shall prescribe rules, negotiated in accord-
ance with paragraph 14 of article 1904, governing, with respect 
to binational panel reviews— 
(1) requests for such reviews, complaints, other pleadings, 
and other papers; 
107 STAT. 2138 
PUBLIC LAW 103-182—DEC. 8, 1993 
(2) the amendment, filing, and service of such pleadings 
and papers; 
(3) the joinder, suspension, and termination of such 
reviews; and 
(4) other appropriate procedural matters. 
(b) RULES OF PROCEDURE FOR EXTRAORDINARY CHALLENGE 
COMMITTEES.—^The administering authority shall prescribe rules, 
negotiated in accordance with paragraph 2 of Annex 1904.13, 
governing the procedures for reviews by extraordinary challenge 
committees. 
(c) RULES OF PROCEDURE FOR SAFEGUARDING THE PANEL 
REVIEW SYSTEM.—^The administering authority shall prescribe 
rules, negotiated in accordance with Annex 1905.6, governing the 
procedures for special committees described in such Annex. 
Federal 
(d) P
U
B
L
I
C
A
T
I
O
N O
F RULES.—The rules prescribed under sub-
wil^^tion 
sections (a), (b), and (c) shall be published in the Federal Register. 
(e) ADMINISTERING AUTHORITY.—As used in this section, the 
term "administering authority^ h£is the meaning given such term 
in section 771(1) of the Tariff Act of 1930 (19 U.S.C. 1677(1)). 
19 use 3436. 
SEC. 408. SUBSIDY NEGOTIATIONS. 
In the case of any trade a^ement which may be entered 
into by the President with a NAFTA country, the negotiating objec-
tives of the United States with respect to subsidies shall incluoe— 
(1) achievement of increased discipline on domestic sub-
sidies provided by a foreign government, including— 
(A) the provision of capital, loans, or loan guarantees 
on terms inconsistent with commercial considerations; 
(B) the provision of goods or services at preferential 
rates; 
(C) the granting of funds or forgiveness of debt to 
cover operating losses sustained by a specific industry; 
and 
(D) the assiunption of any costs or expenses of manu-
facture, production, or distribution; 
(2) achievement of increased discipline on export subsidies 
provided by a foreign government, particularly with respect 
to agricultiiral products; and 
(3) maintenance of effective remedies against subsidized 
imports, including, where appropriate, countervailing duties. 
19 use 3487. 
SEC. 407. IDENTIFICATION OF INDUSTRIES FACING SUBSIDIZED 
IMPORTS. 
(a) PETITIONS.—Any entity, including a trade association, firm, 
certified or recognized union, or group of workers, that is represent-
ative of a United States industry and has reason to believe— 
(1) that— 
(A) as a result of implementation of provisions of the 
Agreement, the industry is likely to face increased competi-
tion from subsidized imports, from a NAFTA country, with 
which it directly competes; or 
(B) the industry is likely to face increased competition 
from subsidized imports with which it directly competes 
firom any other coimtry designated by the President, follow-
ing consultations with the Congress, as benefiting from 
a reduction of tariffs or other trade barriers under a trade 
agreement that enters into force with respect to the United 
States after January 1,1994; and 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2139 
(2) that the industry is likely to experience a deterioration 
of its competitive position before more effective rules and dis-
ciplines relating to the use of government subsidies have been 
developed with respect to the country concerned; 
may file with the Trade Representative a petition that such industry 
be identified under this section. 
(b) IDENTIFICATION OF INDUSTRY.—Within 90 days afl^r receipt 
of a petition under subsection (a), the Trade Representative, in 
consultation with the Secretanr of Commerce, shall decide whether 
to identify the industry on the basis that there is a reasonable 
likelihood that the industiy may face both the subsidization 
described in subsection (aXl) and the deterioration described in 
subsection (aX2). 
(c) ACTION AFTER IDENTIFICATION.—At the request of an entity 
that is representative of an industry identified under subsection 
(b), the Trade Representotive shall— 
(1) compile and make available to the industry information 
imder section 308 of the Trade Act of 1974; 
(2) recommend to the President that an investigation by 
the International Trade Commission be requested imder section 
332 of the Tariff Act of 1930; or 
(3) take actions described in both paragraphs (1) and (2). 
The industry may request the Trade Representative to take appro-
priate action to update (as often as annually) any information 
obtained under paragraph (1) or (2), or both, as the case may 
be, imtil an agreement on more effective rules and disciplines 
relating to government subsidies is reached between the United 
States and the NAFTA coimtries. 
(d) INITIATION OF ACJTION UNDER OTHER LAW.— 
(1) IN GENERAin—The Trade Representative and the Sec-
retary of Commerce shall review information obtained under 
subsection (c) and consult with the industry identified under 
subsection (b) with a view to deciding whether any action 
is appropriate— 
(A) under section 301 of the Trade Act of 1974, includ-
ing the initiation of an investigation under section 302(c) 
of that Act (in the case of tiiie Trade Representative); or 
(B) under subtitle A of title VII of the Tariff Act of 
1930, including the initiation of an investigation under 
section 702(a) of that Act (in the case of tne Secretary 
of Commerce). 
(2) CRITERIA FOR INITIATION.—In determining whether to 
initiate any investigation under section 301 of the Trade Act 
of 1974 or any other trade law, other than title VII of the 
Tariff Act of 1930, the Trade Representative, after consultation 
with the Secretary of Commerce— 
(A) shall S€iek the advice of the advisory committees 
established under section 135 of the Trade Act of 1974; 
(B) shall consult with the Committee on Finance of 
the Senate and the Committee on Ways and Means of 
the House of Representatives; 
(C) shall coordinate with the interagency organization 
estabhshed under section 242 of the Trade Expansion Act 
of 1962; and 
(D) may ask the President to request advice from the 
International Trade Conunission. 
107 STAT. 2140 
PUBLIC LAW 103-182—DEC. 8, 1993 
(3) TITLE in ACTIONS.—^In the event an investigation is 
initiated under section 302(c) of the Trade Act of 1974 as 
a result of a review under this subsection and the Trade Rep-
resentative, 
following 
such 
investigation 
(including any 
applicable dispute settlement proceedings under the Agreement 
or any other trade agreement), determines to take action under 
section 301(a) of such Act, the Trade Representative shall give 
' 
preference to actions that most directly affect the products 
that benefit from governmental subsidies and were the subject 
of the investigation, unless there are no significant imports 
of such products or the Trade Representative otherwise deter-
mines that application of the action to other products would 
be more effective. 
(e) EFFECT OF DECISIONS.—Any decision, whether positive or 
negative, or any action by the Trade Representative or the Secretary 
of Commerce under this section shall not in any way— 
(1) prejudice the right of any industry to file a petition 
under any trade law; 
(2) prejudice, affect, or substitute for, any proceeding, inves-
tigation, determination, or action by the Secretary of Conunerce, 
the International Trade Commission, or the Trade Representa-
tive pursuant to such a petition, or 
(3) prejudice, affect, substitute for, or obviate any proceed-
ing, investigation, or determination under section 301 of the 
Trade Act of 1974, title VII of the Tariff Act of 1930, or 
any other trade law. 
(f) STANDING.—^Nothing in this section may be construed to 
alter in any manner the requirements in effect before the date 
of the enactment of this Act for standing under any law of the 
United States or to add any additional requirements for standing 
under any law of the United States. 
19 USE 3438. 
SEC. 406. TREATMENT OF AMENDMENTS TO ANTIDUMPING AND 
COUNTERVAILING DUTY LAW. 
Any amendment enacted after the Agreement enters into force 
with respect to the United States that is made to— 
(1) section 303 or title VII of the Tariff Act of 1930, or 
any successor statute, or 
(2) anv other statute which— 
(A) provides for judicial review of final determinations 
imder such section, title, or successor statute, or 
(B) indicates the standard of review to be applied, 
shall apply to goods from a NAFTA country only to the extent 
specified in the amendment. 
Subtitle B—Conforming Amendments and 
Provisions 
SEC. 411. JUDICIAL REVIEW IN ANTIDUMPING DUTY AND COUNTER* 
VAILING DUTY CASES. 
Section 516A of the Tariff Act of 1930 (19 U.S.C. 1516a) is 
amended as follows: 
(1) Subsection (aX5) (relating to time limits for commencing 
review) is amended to read as follows: 
"(5) TIME UMITS IN CASES INVOLVING MERCHANDISE FROM 
FREE TRADE AREA COUNTRIES.—^Notwithstanding any other 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2141 
provision of this subsection, in the case of a determination 
to which the provisions of subsection (g) apply, an action under 
this subsection may not be conmienced, and the time limits 
for commencing an action under this subsection shall not begin 
to run, until the day specified in whichever of the following 
subparagraphs appUes: 
"(A) For a determination described in paragraph (IXB) 
or clause (i), (ii) or (iii) of paragraph (2XB), me 31st day 
after the date on which notice of the determination is 
published in the Federal Re^ster. 
"(B) For a determination described in clause (vi) of 
paragraph (2>(B), the 31st day after the date on which 
the government of the relevant FTA country receives notice 
of the determination. 
"(C) For a determination with respect to which 
binational panel review has commenced in accordance with 
subsection (gX8), the day after the date as of which— 
"(i) the binational panel has dismissed binational 
panel review of the determination for lack of jurisdic-
tion, and 
"(ii) any interested party seeking review of the 
determination under paragraph (1), (2), or (3) of this 
subsection has provided timely notice under subsection 
(gX3XB). 
If such an interested party files a sxunmons and complaint 
imder this subsection after dismissal by the binational 
panel, and if a request for an extraordinary challenge 
committee is made with respect to the decision by the 
binational panel to dismiss— 
"(1) iudicial review under this subsection shall be 
stayed during consideration by the committee of the 
request, and 
"(II) the United States Court of International 
Trade shall dismiss the action if the committee vacates 
or remands the binational panel decision to dismiss. 
"(D) For a determination for which review by the 
United States Court of International Trade is provided 
for— 
"(i) under subsection (gX12XB), the day after the 
date of publication in the Federal Register of notice 
that article 1904 of the NAFTA has been suspended, 
or 
"(ii) under subsection (gX12XD), the day after the 
date that notice of settlement is published in the Fed-
eral Register.". 
(2) Subsection (bX3) (relating to the standards of review) 
is amended— 
(A) by inserting "
N
A
F
T
A O
R
" after "DECISIONS BY" in 
the heading; and 
(B) by inserting "of the NAFTA or" after "article 1904". 
(3) Subsection (f) (relating to definitions) is amended— 
(A) by amending paragraphs (6) and (7) to read as 
follows: 
"(6) UNITED STATES SECRETARY.—The term ^United States 
Secretary* means— 
"(A) the secretary for the United States Section referred 
to in article 1908 of the NAFTA, and 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
107 STAT. 2142 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(B) the secretary of the United States Section provided 
for in article 1909 of the Agreement. 
"(7) RELEVANT FTA SECRETARY.—The term 'relevant FTA 
Secretary* means the Secretary— 
"(A) referred to in article 1908 of the NAFTA, or 
"(B) provided for in paragraph 5 of article 1909 of 
the Agreement, 
of the relevant FTA country.*; and 
(B) by adding at the end the following new paragraphs: 
"(8) NAFTA—The term 'NAFTA' means the North Amer-
ican Free Trade Agreement. 
"(9) RELEVANT FTA COUNTRY.—The term 'relevant FTA 
countrsr* means the free trade area country to which an anti-
dimiping or countervailing duty proceeding pertains. 
"(10) FREE TRADE AREA COUNTRY.—The term 'free trade 
area country* means the following: 
"(A) Canada for such time as the NAFTA is in force 
with respect to, and the United States applies the NAFTA 
to, Canada. 
"(B) Mexico for such time as the NAFTA is in force 
with respect to, and the United States applies the NAFTA 
to, Mexico. 
"(C) Canada for such time as— 
"(i) it is not a free trade area coimtry under 
subparagraph (A); and 
"(ii) the Agreement is in force with respect to, 
and Uie United States applies the Agreement to, Can-
ada.". 
(4) Subsection (g) (relating to review of coimtervailing and 
antidumping duty determinations) is amended as follows: 
(A) The subsection heading is amended by striking 
out "CANADIAN MERCHANDISE" and inserting "FREE TRADE 
AREA COUNTRY MERCHANDISE". 
(B) Paragraph (1) is amended by striking out 
"Canadian merchandise" and inserting "free trade area 
country merchandise". 
(C) Paragraph (2) is amended by inserting "of the 
NAFTA or" after "article 1904". 
(D) Paragraph (3XA) is amended— 
(i) by striking out "nor Canada" and inserting "nor 
the relevant FTA country" in each of clauses (i) and 
(ii); 
(ii) by inserting "of the NAFTA or" before "of the 
Agreement" in each of clauses (i) and (iii); 
(iii) by striking out "or" at the end of clause (iii); 
(iv) by amending clause (iv)— 
(I) by striking out "under paragraph (2XA)"; 
••} . 
and 
I
T . 
(II) by striking out the period and inserting 
a comma; and 
(v) by adding at the end of subparagraph (A) the 
following: 
"(v) a determination as to which binational panel 
review has terminated pursuant to paragraph 12 of 
article 1905 of the NAFTA, or 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2143 
'^vi) a determination as to which extraordinary 
challenge committee review has terminated pursuant 
to paragraph 12 of article 1905 of the NAFTA . 
(E) The first and second sentences of paragraph (3XB) 
are amended to read as follows: "A determination described 
in subparagraph (AXi) or (iv) is reviewable under subsection 
(a) onl^ if the party seeking to commence review has i>ro-
vided timely notice of its intent to commence such review 
to— 
"(i) the United States Secretary and the relevant 
FTA Secretary; 
"(ii) all interested parties who were parties to the 
proceeding in connection with which the matter arises; 
and 
"(iii) the administering authority or the Commis-
sion, as appropriate. 
Such notice is timely provided if the notice is delivered 
no later than the date that is 20 days after the date 
described in subparagraph (A) or (B) of subsection (aX5) 
that is applicable to such determination, except that, if 
the time tor n^questing binational panel review is sus-
pended under paragraph (SXAXii) of this subsection, any 
imexpired time for providing notice of intent to commence 
judicial review shaul, during the pendency of any such 
suspension, also be suspended.". 
(F) Paragraph (4XA) is amended— 
(i) in the first sentence— 
(I) by inserting ''the North American Free 
Trade A^*eement Implementation Act implement-
ing the binational dis^te settlement system under 
chapter 19 of the NAFTA, or" after "or amendment 
made by,"; 
(II) by inserting a comma before "violates"; 
(III) by inserting "only" after "may be 
brought"; and 
(IV) bv inserting ", which shall have jiuisdic-
tion of such action" after "Circuit"; and 
(ii) by striking the last sentence. 
(G) Paragraph (5) is amended— 
(i) by inserting "of the NAFTA or" after "article 
1904" in each of subparagraphs (A), (B), and (CXi); 
(ii) by striking out ", the Canadian Secretaiy," 
in subparagraph (CXii) and inserting ", the relevant 
FTA Secretary,"; and 
(iii) by inserting "of the NAFTA or" after "chapter 
19" in subparagraph (CXiii). 
(H) Paragraph (6) is amended by inserting "of the 
NAFTA or" after ''article 1904". 
(I) Paragraph (7) is amended— 
(i) by inserting "OF THE NAFTA OR THE AGREEMENT" 
before the period in the paragraph heading; 
(ii) by striking out "IN G
E
N
E
R
A
L
.
—
" in the heading 
to subparagraph (A) and inserting "AcnoN U
P
O
N 
REMAND.—"; and 
(iii) by inserting "the NAFTA or" before "the Agree-
ment" in subparagraph (A). 
(J) Paragraph (8)(A) is amended— 
107 STAT. 2144 
PUBLIC LAW 103-182—DEC. 8, 1993 
(i) by inserting. '\i) GENERAL RULE.—" before "An 
(ii) by inserting "of the NAFTA or^ after "article 
1904(4r; 
(iii) by indenting the text so as to align it with 
new clause (ii) (as added by clause (iv) of this subpara-
graph); and 
(iv) W adding at the end the following new clause: 
"(ii) SUSPENSION OF TIME TO REQUEST BINATIONAL 
P
A
N
E
L REVIEW U
N
D
E
R T
H
E NAFTA.—Notwithstanding 
clause (i), the time for requesting binational panel 
review shall be suspended during the pendency of any 
stay of binational panel review that is issued pursuant 
to paragraph 11(a) of article 1905 of the NAFTA". 
(K) Paragraph (SXBXii) is amended by striking out 
"Canadian Secretaxy,** and inserting "relevant FTA Sec-
retary,". 
(L) Paragraph (8XC) is amended by striking out "under 
article 1904 of the Agreement of a determination" and 
inserting "of a determination under article 1904 of the 
NAFTA or the Agreement". 
(M) Paragraph (9) is amended by inserting "of the 
NAFTA or" after'chapter 19". 
(N) Paragraph (10) is amended by striking out "Govern-
ment of Canada and all that follows thereafter and insert-
ing "Government of the relevant FTA country received 
notice of the determination under paragraph 4 of article 
1904 of the NAFTA or the Agreement.". 
(O) The following new paragraphs are added at the 
end: 
"(11) 
SUSPENSION AND TERMINATION OF SUSPENSION OF 
ARTICLE 1904 OF THE NAFTA.— 
"(A) SUSPENSION O
F A
R
T
I
C
L
E 1904.—If a Special commit-
tee established under article 1905 of the NAFTA issues 
an afi&rmative finding, the Trade Representative may, in 
accordance with para^aph 8(a) or 9, as appropriate, of 
article 1905 of the NAFTA, suspend the operation of article 
1904 of the NAFTA 
"(B) TERMINATION OF SUSPENSION OF ARTICLE I904.— 
If a special committee is reconvened and makes an affirma-
tive determination described in paragraph 10(b) of article 
1905 of the NAFTA, any suspension of the operation of 
article 1904 of the NAFTA shall terminate. 
"(12) JUDICIAL REVIEW UPON TERMINATION OF BINATIONAL 
PANEL OR COMMITTEE REVIEW UNDER THE NAFTA.— 
Federal 
"(A) NOTICE OF SUSPENSION OR TERMINATION OF 
^SiStion 
SUSPENSION OF ARTICLE 1904.— 
P ^ ^ ^- 
««(i) Upon notification by the Trade Representative 
or the Government of a country described in subsection 
(fXlO) (A) or (B) that the operation of article 1904 
of the NAFTA has been suspended in accordance with 
para^aph 8(a) or 9 of article 1905 of the NAFTA, 
the United States Secretary shall publish in the Fed-
eral Register a notice of suspension of article 1904 
of the NAFTA 
"(ii) Upon notification by the Trade Representative 
or the (jk)vemment of a country described in subsection 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2145 
(fXlO) (A) or (B) that the suspension of the operation 
of article 1£K)4 of the NAFTA is terminated in accord-
ance with paragraph 10 of article 1906 of the NAFTA, 
the United States Secretary shall publish in the Fed-
eral Register a notice of termination of suspension 
of article 1904 of the NAFTA 
"(B) TRANSFER OF FINAL DETERMINATIONS FOR JUDICIAL 
R
E
V
I
E
W U
P
O
N SUSPENSION O
F A
R
T
I
C
L
E 1904.—If the oper-
ation of article 1904 of the NAFTA is suspended in accord-
ance with paragraph 8(a) or 9 of article 1905 of the 
NAFTA— 
"(i) upm the request of an authorized person 
described m subparagraph (C), any final determination 
that is the subject of a binational panel review or 
an extraordinary chedlenge committee review shall be 
transferred to the United States Court of International 
Trade (in accordance with rules issued by the Court) 
for review under subsection (a); or 
"(ii) in a case in which— 
"(I) a binational panel review was completed 
fewer than 30 days before the suspension, and 
"(11) extraordinary challenge committee review 
has not been requested, 
upon the request of an authorized person described 
in subparagraph (C) which is made within 60 days 
after the osmpletion of the binational panel review, 
the final determination that was the subject of the 
binational panel review shall be transferred to the 
United States Court of International Trade (in accord-
ance with rules issued by the Court) for review under 
subsection (a). 
"(C) PERSONS AUTHORIZED TO REQUEST TRANSFER OF 
FINAL DETERMINATIONS FOR JUDICIAL REVIEW.—A request 
that a final determination be transferred to the Court 
of International Trade under subparagraph (B) may be 
made by— 
"(i) if the United States made an allegation under 
paragraph 1 of article 1905 of the NAFTA and the 
operation of article 1904 of Uie NAFTA was suspended 
pursuant to paragraph 8(a) of article 1905 of the 
NAFTA— 
"(I) the government of the relevant country 
described in subsection (fKlO) (A) or (B), 
"(11) an interested party that was a party to 
the panel or committee review, or 
"(III) an interested party that was a party 
to the proceeding in connection with which panel 
review was requested, but only if the time period 
for filing notices of appearance in the panel review 
has not expired, or 
"(ii) if a country described in subsection (fXlO) 
(A) or (B) made an allegation under paragraph 1 of 
article 1905 of the NAFTA and the operation of article 
1904 of the NAFTA was suspended pursuant to para-
graph 9 of article 1905 of the NAFTA— 
"(I) the government of that country, 
107 STAT. 2146 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(11) an interested party that is a person of 
that country and that was a party to the panel 
or committee review, or 
"(III) an interested party that is a person of 
that country and that was a party to the proceed-
ing in connection with whic»i panel review was 
requested, but only if the time period for filing 
notices of appearance in the panel review has not 
expired. 
"(DXi) TRANSFER FOR JUDICIAL REVIEW UPON SETTLE-
MENT.—^If the Trade Representative achieves a settlement 
with the government of a country described in subsection 
(fKlO) (A) or (B) pursuant to paragraph 7 of article 1905 
of the NAFTA, and referral for judicial review is among 
the terms of such settlement, any final determination that 
is the subject of a binational panel review or an extraor-
dinary challenge committee review shall, upon a request 
described in clause (ii), be transferred to the United States 
Court of International Trade (in accordance with rules 
issued by the Court) for review under subsection (a). 
"(ii) A request referred to in clause (i) is a request 
made by— 
"(I) the country referred to in clause (i), 
"(II) an interested party that was a party to the 
panel or committee review, or 
"(III) an interested party that was a party to the 
proceeding in connection with which panel review was 
requested, but only if the time for filing notices of 
appearance in the panel review has not expired.". 
SEC. 412. CONFORMING ABfENDMENTS TO OTHER PROVISIONS OF 
THE TARIFF ACT OF IftSO. 
(a) REGULATIONS FOR APPRAISEMENT AND CLASSIFICATION; 
FINALITY AND DECISION.—Sections 502(b) and 514(b) of the Tariff 
Act of 1930 (19 U.S.C. 1502(b) and 1514(b)) are each amended 
by inserting "the North American Free Trade Agreement or" before 
"the United States-Canada Free-Trade Agreement". 
(b) DEFINITION.—Section 771 of the Tariff Act of 1930 
(19 
U.S.C. 1677) is amended— 
(1) by redesignating as paragraph (21) (and placing in 
numerical sequence) the second paragraph that is designated 
as paragraph (18) (relating to the demiition of the United 
States-Canada Agreement) in such section; and 
(2) by inserting after paragraph (21) (as redesignated by 
paragrapn (1) of this subsection) the following new paragraph: 
^(22) NAFTA.—The term 'NAFTA' means the North Amer-
ican Free Trade Agreement.". 
(c) DISCLOSURE OF PROPRIETARY INFORMATION IN TITLE VII 
PROCEEDINGS.—Section 777(0 of the Tariff Act of 1930 (19 U.S.C. 
1677f(f)) is amended— 
(1) by inserting "THE NORTH AMERICAN FREE TRADE AGREE-
MENT OR" before "THE UNITED STATES-CANADA AGREEMENT" 
in the heading; 
(2) by inserting "the NAFTA or" before "the United States-
Canada Agreement" each place it appears in paragraph (IXA); 
(3) in the second sentence of paragraph (1)(A)— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2147 
(A) by inserting "or extraordinary challenge committee" 
after 'Ibinational panel"; and 
(B) by insertmg ''or committee" afl«r 'i^he panel"; 
(4) in paragraph (IXB)— 
(A) by inserting "the NAFTA or" before "the Agree-
ment" in clauses (iii) and (iv); and 
(B) by striking out "Government of Canada designated 
by an authorized agency of Canada" in clause (iv) and 
inserting "Government of a free trade area country (as 
defined m section 516A(fX10)) designated by an authorized 
agency of such coimtry"; 
(5) in paragraph (2) by inserting ", including any extraor-
dinary challenge," after "binational panel proceeding"; 
(6) in paragraph (3)— 
(A) by inserting "or extraordinary challenge committee" 
aft«r "binational panel", and 
(B) by inserting "the NAFTA or" before "the United 
States-Canada .Agreement"; 
(7) by striking out "agency of Canada" in each of para-
graphs (3) and (4) and inserting "agency of a free trade area 
country (as defined in section 516A(fK10))"; and 
(8) in the first sentence of paragraph (4) by inserting ", 
except a judge appointed to a binational panel or an extraor-
dinary challenge committee under section 402(b) of the North 
American Free Trade Agreement Implementation Act," after 
"Any person". 
SEC. 413. CONSEQUENTIAL AMENDMENT TO FREE-TRADE AGREE-
MENT ACT OF 1»88. 
Section 41(Ka) of thie United States-Canada Free-Trade Agree-
ment Implementation Act of 1988 (19 U.S.C. 2112 note) is amended 
by adding at the end the following new sentence: "In calculating 
the 7-year period referred to in paragraph (1), any time during 
which Canada is a NAFTA coimtry (as defined in section 2(4) 
of the North American Free Trade Agreement Implementation Act) 
shall be disregarded.". 
SEC. 414. CONFORMING AMENDMENTS TO TITLE 28, UNITED STATES 
CODE. 
(a) COURT OF INTEIRNATIONAL TRADE.—Chapter 95 of title 28, 
United States Code, is amended— 
(1) in section 1581(i) bv inserting "the North American 
Free Trade Agreement or" before "the United States-Canada 
Free-Trade Agreement"; 
(2) in section 1584— 
(A) by amending the section heading to read as follows: 
*
*
§ 1584. Civil actions under the North American Free Trade 
Agreement or the United States-Canada Free-
Trade Agreement"; and 
(B) by strildng out "777(d)" and inserting "777(f)"; and 
(3) in the table of contents for such chapter by amending 
the entry for section 1584 to read as follows: 
"1584. Civil actions under the North American Free Trade Agreement or the United 
States-Canada Free-Trade Agreement.". 
(b) PARTICULAR PROCEEDINGS.—Sections 2201(a) and 2643(cX5) 
of title 28, United States Code, are each amended by striking 
107 STAT. 2148 
PUBLIC LAW 103-182—DEC. 8, 1993 
out "Canadian merchandise," and inserting "merchandise of a free 
trade area country (as defined in section 516A(fX10) of the Tariff 
Act of 1930),". 
19 use 3451. 
SEC. 415. EFFECT OF TERMINATION OF NAFTA COUNTRY STATUa 
(a) IN GENERAL.—^Except as provided in subsection 0>), on the 
date on which a country ceases to be a NAFTA coimtry, the provi-
sions of this title (other than this section) and the amendments 
made by this title shall cease to have effect with respect to that 
coimtry. 
(b) TRANSITION PROVISIONS.— 
(1) 
PROCEEDINGS REGARDING PROTECTIVE ORDERS AND 
UNDERTAKINGS.—^If on the date on which a country ceases to 
be a NAFTA coimtry an investigation or enforcement proceeding 
concerning the violation of a protective order issued under 
section 777(f) of the Tariff Act of 1930 (as amended by this 
subtitle) or an undertaking of the (jovemment of that country 
is pending, the investigation or proceeding shall continue, and 
sanctions may continue to be imposed, in accordance with the 
provisions of such section 777(f). 
(2) BINATIONAL PANEL AND EXTRAORDINARY CHALLENGE 
C
O
M
M
I
T
T
E
E REVIEWS.—If on the date on which a country ceases 
to be a NAFTA country— 
(A) a binational panel review under article 1904 of 
the Agreement is pending, or has been requested; or 
:
. ? 
(B) an extraordinary challenge committee review under 
article 1904 of the Agreement is pending, or has been 
requested; 
with respect to a determination which involves a class or kind 
of merchandise and to which section 516A(gX2) of the Tariff 
Act of 1930 applies, such determination shall be reviewable 
under section 516A(a) of the Tariff Act of 1930. In the case 
of a determination to which the provisions of this paragraph 
apply, the time limits for commencing an action under 516A(a) 
of the Tariff Act of 1930 shall not begin to run until the 
date on which the Agreement ceases to be in force with respect 
to that country. 
19 use 3431 
SEC. 416. EFFECTIVE DATE. 
The provisions of this title and the amendments made by this 
title take effect on the date the Agreement enters into force with 
respect to the United States, but shall not apply— 
(1) to any final determination described in paragraph (IXB), 
or (2XB) (i), (ii), or (iii), of section 516A(a) of the Tariff Act 
of 1930 notice of which is published in the Federal Register 
before such date, or to a determination described in paragraph 
(2XBXvi) of section 516A(a) of such Act notice of which is 
received by the Government of Canada or Mexico before such 
date; or 
(2) to any binational panel review under the United States-
Canada Free-Trade Agreement, or any extraordinary challenge 
arising out of any such review, that was commenced before 
such date. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2149 
TITLE V—NAITA TRANSITIONAL AD-
JUSTMENT ASSISTANCE AND OTHER 
PROVISIONS 
Subtitle A—NAFTA Transitional 
Adjustment Assistance Program 
NAFTA Worker 
Security Act. 
SEC. 501. SHORT TITLE. 
19 USC 2101 
This subtitle may be cited as the **NAFTA Worker Security 
Act". 
SEC. 502. ESTABUSHMENT OF NAFTA TRANSITIONAL ADJUSTMENT 
ASSISTANCE PROGRAM. 
Chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 
2271 et seq.) is amended by adding at the end the following new 
subchapter: 
''Subchapter D—^NAFTA Transitional A4iustment Assistance 
Program 
'^EC. 250. ESTABUSHMENT OF TRANSITIONAL PROGRAM. 
19 USC 2331. 
"(a) GROUP ELIGIBILITY REQUIREMENTS.— 
"(1) CRITERIA.—A group of workers (including workers in 
any agricultural fiim or subdivision of an agricultural firm) 
shall be certified as eligible to apply for adjustment assistance 
under this subchapter pursuant to a petition filed under sub-
section (b) if the Secretary determines mat a significant number 
or proportion of Uie workers in such workers' nrm or an appro-
priate subdivision of the firm have become totally or partially 
separated, or are threatened to become totally or partially 
separated, and either— 
"(A) that— 
"(i) the sales or production, or both, of such firm 
or subdivision have decreased absolutely, 
"(ii) imports from Mexico or Canada of articles 
like or dircictly competitive with articles produced by 
such firm or subdivision have increased, and 
"(iii) the increase in imports under clause (ii) 
contributed importantly to such workers' separation 
or threat of separation and to the decline in tne sales 
or production of such firm or subdivision; or 
"(B) that there has been a shift in production by such 
workers' firm or subdivision to Mexico or Canada of articles 
like or directly competitive with articles which are produced 
by the firm or subdivision. 
"(2) DEFiNrnoN OF CONTRIBUTED IMPORTANTLY.—^The term 
'contributed importantly*, as used in paragraph (IXAXiii), 
means a cause which is important but not necess£urily more 
important Uian any other cause. 
"(3) REGULATIONS.—^The Secretary shall issue regulations 
relating to the application of the criteria described in paragraph 
(1) in making preliminary findings under subsection (b) and 
determinations under subsection (c). 
"(b) PRELIMINARY FINDINGS AND BASIC ASSISTANCE.— 
107 STAT. 2150 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(1) FILING OF PETITIONS.—A petition for certification of 
eligibility to applv for adjustment assistance under this sub-
chapter may be filed by a group of workers (including workers 
in any agrictdtural firm or suboivision of an agricultural firm) 
or by their certified or recognized union or other duly autiiorized 
representative with the (^vemor of the State in which such 
workers' 
firm 
or subdivision thereof is located. 
"(2) FINDINGS AND ASSISTANCE.—Upon receipt of a petition 
imder paragraph (1), the Governor shall— 
"(A) notify the Secretary that the Governor has 
' : 
received the i)etition; 
*
*
(
B
) within 10 days afl«r receiving the petition— 
"(i) make a preliminanr finding as to whether the 
petition meets the criteria described in subsection (aXD 
(and for purposes of this clause the criteria described 
under subparagraph (AXiii) of such subsection shall 
be disregarded), and 
"(ii) transmit the petition, together with a state-
ment of the finding under clause (i) and reasons there-
for, to the Secretary for action under subsection (c); 
>.? 
and 
"(C) if the preliminary finding under subparagraph 
(BXi) is affirmative, ensure that rapid response and basic 
readjustment services authorized under other Federal law 
are made available to the workers. 
"(c) REVIEW OF PETITIONS BY SECRETARY; CERTIFICATIONS.— 
*(1) I N GENERAL.—The Secretaiy, within 30 days afl»r 
receiving a petition luider subsection (b), shall 
determine 
whether the petition meets the criteria described in subsection 
(aXl). Upon a determination that the petition meets such cri-
teria, the Secretary shall issue to workers covered by the peti-
tion a certification of eligibility to apply for assistance described 
in subsection (d). 
"(2) DENIAL OF CERTIFICATION.—Upon denial of certification 
with respect to a petition imder paragraph (1), the Secretary 
shall review the petition in accordance with the requirements 
of subchapter A to determine if the workers may be certified 
under such subchapter. 
"(d) COMPREHENSIVE ASSISTANCE.—Workers covered by certifi-
cation issued by the Secretary under subsection (c) shall be pro-
vided, in the same manner and to the same extent as workers 
covered under a certification under subchapter A, the following: 
"(1) Employment services described in section 235. 
"(2) Training described in section 236, except that notwith-
standing the provisions of section 236(aX2XA), tne total amount 
of payments for training under this subchapter for any fiscal 
year shall not exceed $30,000,000. 
"(3) Trade rea^ustment allowances described in sections 
231 through 234, except that— 
'^(A) the provisions of sections 231(aX5XC) and 231(c), 
'i .. 
authorizing uie payment of trade readjustment allowances 
upon a finding that it is not feasible or appropriate to 
approve a training program for a worker, snail not be 
applicable to pa3rment of such allow£inces under this sub-
chapter; and 
"(B) notwithstanding the provisions of section 233(b), 
in order for a worker to qualify for trade readjustment 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2151 
allowances under this subchapter, the worker shall be 
enrolled in a training program approved by the Secretary 
under section 236(a) by the later of— 
"(i) the last day of the 16th week of such worker's 
initial unemployment compensation benefit period, or 
'Xii) the last day of the 6th week after the week 
in which the Secretary issues a certification covering 
such worker. 
In cases of extenuating circumstances relating to enrollment 
in a training program, the Secretary may extend the time 
for enrollment 
ror 
a period not to exceed 30 days. 
"(4) Job search allowances described in section 237. 
"(5) Relocation allowances described in section 238. 
"(e) ADMINISTRATION.—^The provisions of subchapter C shall 
apply to the administration of the program under this subchapter 
in the same manner and to the same extent as such provisions 
apply to the administration of the program under subchapters A 
and B, except tiiat the agreement between the Secretarv and the 
States described in section 239 shall specify the procedures that 
will be used to carry out the certification process under subsection 
(c) and the procedures for providing relevant data by the Secretary 
to assist the States in making preliminary 
findings 
under subsection 
(b).". 
SEC. 503. CONFORMING AMENDMENTS. 
(a) REFERENCES.—Sections 221(a), 222(a), and 223(a) of the 
Trade Act of 1974 (19 U.S.C. 2271(a), 2272(a), and 2273(a)) are 
each amended by striking out "assistance under this chaptei^ and 
inserting "assistance under this subchapter". 
(b) BENEFIT INFORMATION.—Section 225(b) of the Trade Act 
of 1974 (19 U.S.C. 2275(b)) is amended by inserting "or subchapter 
D" after "subchapter A" esich place it appears. 
(c) N
O
N
D
U
P
U
C
A
T
I
O
N O
F ASSISTANCE.—Subchapter C of chapter 
2 of title n of the Trade Act of 1974 is amended by adding at 
the end the following new section: 
'^EC. 249A. NONDUPUCATION OF ASSISTANCE. 
19 USC 2322. 
"No worker may receive assistance relating to a separation 
pursuant to certifications under both subchapters A and D of this 
chapter.**. 
(d) JUDICIAL REVIEW.—Section 284(a) of the Trade Act of 1974 
(19 U.S.C. 2395(a)) is amended by inserting "or section 250(c)'* 
afi^r "section 223**. 
(e) TABLE OF CONTENTS.—The table of contents for chapter 
2 of title II of the Trade Act of 1974 is amended— 
(1) by inserting afi«r the item relating to section 249 the 
following new item: 
"Sec. 249A. Nonduplication of assistance."; 
and 
(2) by adding at the end thereof the following new items: 
"SUBCHAPTER D—NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE PROGRAM 
"Sec. 250. Establishment of transitional program.". 
SEC. 604. AUTHORIZATION OF APPROPRIATIONa 
Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is 
amended— 
107 STAT. 2152 
PUBLIC LAW 103-182—DEC. 8, 1993 
(1) by striking "There" and inserting "(a) IN GENERAL.— 
There", 
(2) by inserting ", other than subchapter D" after "chapter", 
and 
(3) by adding at the end the following new subsection: 
"(b) SUBCHAPTER D.—^There are authorized to be appropriated 
to the Department of Labor, for each of fiscal years 1994, 1995, 
1996, 1997, and 1998, such sums as may be necessary to carry 
out the purposes of subchapter D of this chapter.". 
SEC. 806. TERMINATION OF TRANSITION PROGRAM. 
Subsection (c) of section 285 of the Trade Act of 1974 (19 
U.S.C. 2271 preceding note) is amended— 
(1) by striking "No" and inserting "(1) Except as provided 
in paragraph (2), no"; and 
(2) by adding at the end the following new paragraph: 
"(2XA) Except as provided in subparagraph (B), no assistance, 
vouchers, allowances, or other payments may be provided under 
subchapter D of chapter 2 after me day that is the earlier o
f
-
— 
"(i) September 30,1998, or 
"(ii) tiie date on which legislation, establishing a program 
providing dislocated workers with comprehensive assistance 
substantially similar to the assistance provided by such sub-
chapter D, becomes effective. 
"(B) Notwithstanding subparagraph (A), if, on or before the 
day described in subparagraph (A), a worker— 
"(i) is certified as eligible to apply for assistance, under 
subchapter D of chapter 2: and 
"(ii) is otherwise eligible to receive assistance in accordance 
with section 250, 
such worker shall continue to be eligible to receive such assistance 
for anv week for which the worker meets the eligibility requirements 
of such section.". 
19 use 2331 
SEC. 506. EFFECTIVE DATE. 
(a) IN GENERAL.—^The amendments made by sections 501, 502, 
503, 504, and 505 shall take effect on the date the Agreement 
enters into force with respect to the United States. 
(b) COVERED WORKERS.— 
(1) GENERAL RULE.—^Except as provided in paragraph (2), 
no worker shall be certified as eligible to receive assistance 
under subchapter D of chapter 2 of title II of the Trade Act 
of 1974 (as added 1^ this subtitle) whose last total or partial 
separation from a firm (or appropriate subdivision of a firm) 
occurred before such date of entry into force. 
(2) REACHBACK.—^Notwithstanding paragraph (1), any 
worker— 
(A) whose last total or partial separation from a firm 
(or appropriate subdivision of a 
firm) 
occurs— 
(i) after the date of the enactment of this Act, 
and 
(ii) before such date of entry into force, and 
(B) who would otherwise be eligible to receive assist-
ance under subchapter D of chapter 2 of title II of the 
Trade Act of 1974, 
shall be eligible to receive such assistance in the same manner 
as if such separation occurred on or after such date of entry 
into force. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2153 
SEC. 507. TREATMENT OF SELF-EMPLOYMENT ASSISTANCE PRO-
GRABIS. 
(a) GENERAL RULE.—Section 3306 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new sub- 26 use 3306. 
section: 
**(t) SELF-EMPLOYMENT ASSISTANCE PROGRAM.—For the pur-
poses of this chapter, the term 'self-employment assistance program' 
means a program under which— 
(1) individuals who meet the requirements described in 
paragraph (3) are eligible to receive an allowance in lieu of 
regular imemployment compensation under the State law for 
the purpose of assisting such individuals in establishing a 
business and becoming self-employed; 
"(2) the allowance payable to individuals pursuant to para-
graph (1) is payable in the same amoimt, at the same interval, 
on the same terms, and subject to the same conditions, as 
regular imemplo3rment compensation under the State law, 
except that— 
"(A) State requirements relating to availability for 
work, active search for work, and reniscd to accept work 
are not applicable to such individuals; 
"(B) State requirements relating to disqualifying 
income are not applicable to income earned from self-
employment by such individuals; and 
"(C) such individuals are considered to be unemployed 
for the purposes of Federal and State laws applicable to 
unemployment compensation, 
as long as such individuals meet the requirements applicable 
imder this subsection; 
"(3) individuals ma^ receive the allowance described in 
paragraph (1) if such individuals— 
"(A) are eligible to receive regular unemployment com-
pensation under the State law, or would be eligible to 
receive such compensation except for the requirements 
described in subparagraph (A) or (B) of paragraph (2); 
"(B) are identified pursuant to a State worker profiling 
system as individuals likely to exhaust regular unemploy-
ment compensation; and 
"(C) are participating in self-employment assistance 
activities which— 
"(i) include entrepreneurial training, business 
counseling, and technical assistcuice; and 
"(ii) are approved by the State agency; and 
"(D) are actively engaged on a fiill-time basis in activi-
ties (which may include training) relating to the establish-
ment of a business and becoming self-employed; 
"(4) the aggregate number of individuals receiving the 
allowance under the program does not at any time exceed 
5 percent of the number of individuals receiving regular 
unemployment compensation under the State law at such time; 
"(5) the program does not result in any cost to the 
Unemployment TYust Fund (established by section 904(a) of 
the Social Security Act) in excess of the cost that would be 
incurred by such State and charged to such Fund if the State 
had not participated iin such program; and 
"(6) the program meets such other requirements as the 
Secretary of Labor determines to be appropriate.". 
107 STAT. 2154 
PUBLIC LAW 103-182—DEC. 8, 1993 
(b) CONFORMING AMENDMENTS.— 
26 use 3304. 
(1) Section 3304(aX4) of such Code is amended— 
(A) in subparagraph (D), by striking "; and" and insert-
ing a semicolon; 
(B) in subparagraph (E), by striking the semicolon 
and inserting "; and , and 
(C) by adding at the end the folloMong new subpara-
graph: 
"(F) amounts may be withdrawn for the payment of 
allowances under a self-employment assistance program 
(as defined in section 3306(t));''. 
26 use 3306. 
(2) Section 3306(f) of such Code is amended— 
(A) in paragraph (3), by striking "; and" and inserting 
a semicolon; 
(B) in paragraph (4), by striking the period and insert-
ing **; and"; and 
(C) by adding at the end the following new paragraph: 
"(5) amounts may be withdrawn for the payment of allow-
ances under a self-employment assistance program (as defined 
in subsection (t)).". 
(3) Section 303(aX5) of the Social Security Act (42 U.S.C. 
503(aX5)) is amended by striking "; and" and inserting ": Pro-
vided further, That amoimts mav oe withdrawn for the pajrment 
of allowances under a self-employment assistance program (as 
defined in section 3306(t) of the Internal Revenue Code of 
1986); and". 
26 use 3306 
(c) S
T
A
T
E REPORTS.—Any State operating a self-employment 
^°^- 
program authorized by the Secretary of Labor under this section 
shall report annually to the Secretary on the number of individuals 
who participate in the self-employment assistance program, the 
number of individuals who are able to develop and sustain 
businesses, the operating costs of the program, compliance with 
program requirements, and any other r^evant aspects of program 
operations requested by the Secretary. 
26 use 3306 
(d) REPORT TO CONGRESS.—Not later than 4 years after the 
note. 
^ ^ Q
f ^Q enactment of this Act, the Secretary of Labor shall 
submit a report to the Congress with respect to the operation 
of the program authorized under this section. Such report shall 
be based on the reports received 
fi:t>m 
the States pursuant to sub-
section (c) and include such other information as the Secretary 
of Labor determines is appropriate. 
26 use 3306 
(e) EFFECTIVE DATE; SUNSET.— 
"°*®- 
(1) EFFECTIVE DATE.—^The provisions of this section and 
the amendments made by this section shall take effect on 
the date of the enactment of this Act. 
(2) SUNSET.—^The authority provided bv this section, and 
the amendments made by this section, shall terminate 5 years 
after the date of the enactment of this Act. 
Subtitle B—^Provisions Relating to 
Performance Under the Agreement 
19 use 3461. 
SEC. 511. DISCIUMINATORY TAXES. 
It is the sense of the Congress that when a State, province, 
or otiier governmental entity of a NAFTA country discriminatorily 
enforces sales or otiier taxes so as to afford protection to domestic 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2155 
production or domestic service providers, such enforcement is in 
violation of the terms of the Agreement. When such discriminatory 
enforcement adversely affects United States producers of goods 
or United States service providers, the Trade Representative should 
pursue all appropriate remedies to obtain removal of such discrimi-
natory enforcement, including invocation of the provisions of the 
Agreement. 
SEC. 512. BEVIEW OF THE OPERATION AND EFFECTS OF THE AGREE- 
19 USC 3462. 
MENT. 
(a) STUDY.—By not later than July 1, 1997, the President President. 
shall provide to the Congress a comprehensive study on the oper-
ation and effects of the Agreement. The study shall include an 
assessment of the following factors: 
(1) The net effect of the Agreement on the economy of 
the United States, including with respect to the United States 
gross national product, employment, balance of trade, and cur-
rent account balance. 
(2) The industries (including agricultural industries) in the 
United States that have significantly increased exports to Mex-
ico or Canada as a result of the Agreement, or in which imports 
into the United States from Mexico or Canada have increased 
sipuficantly as a result of the Agreement, and the extent 
or any change in the wages, employment, or productivity in 
each such industry as a result of the Agreement. 
(3) The extent to which investment in new or existing 
production or other operations in the United States has been 
redirected to Mexico as a result of the Agreement, and the 
effect on United States employment of such redirection. 
(4) The extent of any increase in investment, including 
foreign direct investment and increased investment by United 
States investors, in new or existing production or other oper-
ations in the United States as a result of the Agreement, 
and the effect on United States employment of such investment. 
(5) The extent to which the Agreement has contributed 
to— 
(A) improvement in real wages and working conditions 
in Mexico, 
(B) effective enforcement of labor and environmental 
laws in Mexico, and 
(C) the reduction or abatement of pollution in the 
region of the United States-Mexico border. 
(b) SCOPE.—^In assessing the factors Usted in subsection (a), 
to the extent possible, the study shall distinguish between the 
consequences oi the Agreement and events that likely would have 
occurred without the Agreement. In addition, the study shall evalu-
ate the efiTects of the Agreement relative to aggregate economic 
changes and, to the extent possible, relative to the effects of other 
factors, including— 
(1) international competition, 
(2) reductions in defense spending, 
(3) the shift from traditional manufacturing to knowledge 
and information based economic activity, and 
(4) the Federal debt burden. 
(c) RECOMMENDATIONS OF THE PRESIDENT.—The study shall 
include any appropriate recommendations by the President with 
respect to the operation and effects of the Agreement, including 
107 STAT. 2156 
PUBLIC LAW 103-182—DEC. 8, 1993 
recommendations with respect to the specific factors listed in sub-
section (a). 
President. 
(d) R
E
C
O
M
M
E
N
D
A
T
I
O
N
S O
P C
E
R
T
A
I
N COMMITTEES.—The Presi-
dent shall provide the study to the Committee on Ways and Means 
of the House of Representatives and the Committeie on Finance 
of the Senate and any other committee that has jurisdiction over 
any provision of United States law that was either enacted or 
amended by the North American Free Trade Agreement 
Implementation Act. Each such committee may hold hearings and 
make recommendations to the President with respect to the oper-
ation and effects of the Agreement. 
SEC. 513. ACTIONS AFFECTING UNITED STATES C
U
L
T
U
R
A
L INDUS-
TRIES. 
Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) 
is amended by adding at the end the following new subsection: 
"(f) SPECIAL RULE FOR ACTIONS AFFECTING UNITED STATES 
CULTURAL INDUSTRIES.— 
"(1) IN GENERAL.—By no later than the date that is 30 
days after the date on which the annual report is submitted 
to Congressional committees under section 181(b), the Trade 
Representative shall identify any act, policy, or practice of 
Canada which— 
"(A) affects cultural industries, 
"(B) is adopted or expanded after December 17, 1992, 
and 
"(C) is actionable under article 2106 of the North Amer-
ican Free Trade Agreement. 
"(2) SPECIAL RULES FOR IDENTIFICATIONS.—For purposes 
of section 302(bX2XA), an act, poliQr, or practice identified 
under this subsection shall be treated as an act, policy, or 
practice that is the basis for identification of a country under 
subsection (aX2), unless the United States has already taken 
action pursuant to article 2106 of the North American Free 
Trade Agreement in response to such act, policy, or practice. 
In deciding whether to identify an act, policy, or practice under 
paragraph (1), the Trade Representative shall— 
"(A) consult with and take into account the views of 
representatives of the relevant domestic industries, appro-
priate committees established pursuant to section 135, and 
appropriate officers of the Federal Government, and 
"(B) take into account the information from such 
sources as may be available to the Trade Representative 
and such information as may be submitted to the IVade 
Representative by interested persons, including information 
contained in reports submitted under section 181(b). 
"(3) CULTURAL INDUSTRIES.—For purposes of this sub-
section, the term 'cultural industries' means persons engaged 
in any of the following activities: 
"(A) The publication, distribution, or sale of books, 
magazines, periodicals, or newspapers in print or machine 
readable form but not including the sole activity of printing 
or t>pesetting any of the foregomg. 
(B) The production, distribution, sale, or exhibition 
of 
film 
or video recordings. 
"(C) The production, distribution, sale, or exhibition 
of audio or video music recordings. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2157 
"(D) The publication, distribution, or sale of music 
in print or machine readable form. 
"(E) Radio communications in which the transmissions 
are intended for direct reception by the general public, 
and all radio, television, and cable broadcasting undertak-
ings and all satellite programming and broadcast network 
services.". 
SEC. S14. REPORT ON IMPACT OF NAFTA ON MOTOR VEHICLE 19 USC 3463. 
EXPORTS TO MEXICO. 
(a) FINDINGS.—^The Congress makes the following findings: 
(1) Trade in motor vehicles and motor vehicle parts is 
one of the most restricted areas of trade between the United 
States and Mexico. 
(2) The elimination of Mexico's restrictive barriers to trade 
in motor vehicles and motor vehicle parts over a 10-year period 
under the Agreement should increase substantially United 
States exports of sucli products to Mexico. 
(3) The Department of Commerce estimates that the Agree-
ment provides the opportunity to increase United States exports 
of motor vehicles and motor vehicle parts by $1,000,000,000 
during the first year of the Agreement's implementation with 
the potential for additional increases over the 10-year transition 
period. 
(4) The United States automotive industry has estimated 
that United States exports of motor vehicles to Mexico should 
increase to more than 60,000 units during the first year of 
the Agreement's implementation, which is substantially above 
the ciirrent level of 4,000 units. 
(b) TRADE REPRESENTATIVE REPORT.—NO later than July 1, 
1995, and annually thereafter through 1999, the Trade Representa-
tive shall submit a report to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House 
of Representatives on how effective the provisions of the Agreement 
are with respect to increasing United States exports of motor 
vehicles and motor vehicle parts to Mexico. Each report shall iden-
tify and determine the following: 
(1) The patterns of trade in motor vehicles and motor 
vehicle parts between the United States and Mexico during 
the preceding 12-month period. 
(2) The level of tariff and nontariff barriers that were 
in force during the preceding 12-month period. 
(3) The amount by which United States exports of motor 
vehicles and motor vehicle parts to Mexico have increased 
from the preceding 12-month period as a result of the elimi-
nation of Mexican tariff and nontariff bsuriers imder the Agree-
ment. 
(4) Whether any such increase in United States exports 
meets the levels of new export opportunities anticipated imder 
the Agreement. 
(5) If the anticipated levels of new United States export 
opportimities are not reached, what actions the Trade Rep-
resentative is prepared to take to realize the benefits antici-
pated under the Agreement, including possible initiation of 
additional negotiations with Mexico for the purpose of seeking 
modifications of the i^eement. 
107 STAT. 2158 
PUBLIC LAW 103-182—DEC. 8, 1993 
SEC. 
515. 
CENTER 
FOR 
THE 
STUDY 
OF 
WESTERN 
HEMISPHERIC 
TRADE. 
(a) AMENDMENT TO THE CBL—The Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2701 et se^.) is amended by inserting 
after section 218 the following new section: 
Texas. 
<«£€. 219. CENTER FOR THE STUDY OF WESTERN HEMISPHERIC 
19 use 2707. 
TRADE. 
Grants. 
««(a) ESTABUSHMENT.—The Commissioner of Customs, after con-
sultation with appropriate officials in the State of Texas, is author-
ized and directed to make grants to an institution (or a consortium 
of such institutions) to assist such institution in planning, establish-
ing, and operating a Center for the Study of Western Hemispheric 
Trade (hereafter in this section referred to as the 'Center*). The 
Commissioner of Customs shall make the first grant not later 
than December 1, 1994, and the Center shall be established not 
later than February 1,1995. 
"(b) SCOPE OF THE CENTER.—^The Center shall be a year-round 
program operated by an institution located in the State of Texas 
(or a consortium of such institutions), the purpose of which is 
to promote and study trade between and among Western Hemi-
sphere coimtries. The Center shall conduct activities designed to 
examine— 
"(1) the impact of the NAFTA on the economies in, and 
trade within, the Western Hemisphere, 
"(2) the negotiation of any future free trade agreements, 
including possible accessions to the NAFTA; and 
"(3) adjusting teriffs, reducing nontariff barriers, improving 
relations among customs officials, and promoting economic rela-
tions among countries in the Western Hemisphere. 
"(c) CONSULTATION; SELECTION CRITERIA.—The Commissioner 
of Customs shall consult with appropriate officials of the Stete 
of Texas and private sector authorities with respect to selecting, 
planning, and esteblishing the Center. In selecting the appropriate 
institution, the Commissioner of Customs shall give consideration 
to— 
"(1) the institution's ability to carry out the programs and 
activities described in this section; and 
"(2) any resources the institution can provide the Center 
in addition to Federal funds provided under this program. 
"(d) PROGRAMS AND ACTIYITIES.-The Center shall conduct the 
following activities: 
"(1) Provide forums for international discussion and debate 
for representatives from countries in the Western Hemisphere 
regarding issues which affect trade and other economic relations 
within the hemisphere, including the impact of the NAFTA 
on individual economies and the desirability and feasibility 
of possible accessions to the NAFTA by such countries. 
"(2) Conduct studies and research projects on subjecte 
which affect Western Hemisphere trade, including teriffs, cus-
toms, regional and national economics, business development 
and finance, production and personnel management, manufac-
turing, agriculture, engineering, transportetion, immigration, 
telecommunications, medicine, science, urban studies, border 
demographics, social anthropology, and population. 
"(3) Publish materials, disseminate information, and con-
duct seminars and conferences to support and educate rep-
resentetives from countries in the Western Hemisphere who 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2159 
seek to do business with or invest in other Western Hemisphere 
countries. 
"(4) Provide grants, fellowships, endowed chairs, and finan-
cial assistance to outstanding scholars and authorities from 
Western Hemisphere countries. 
"(5) Provide grantfi, fellowships, and other financial assist-
ance to qualified gradviate students, from Western Hemisphere 
countries, to study at the Center. 
"(6) Implement academic exchange programs and other 
cooperative research and instructional agreements with the 
complementary North/South Center at the University of Miami 
at Coral Gables. 
"(e) DEFINITIONS.—^For purposes of this section— 
"(1) NAFTA.—The term *NAFTA' means the North American 
Free Trade Agreement.. 
"(2) WESTERN HEMISPHERE COUNTRIES.—The terms West-
em Hemisphere countries', 'countries in the Western Hemi-
sphere', and 'Western Hemisphere' mean Canada, the United 
States, Mexico, countries located in South America, beneficiary 
countries (as defined by section 212), the Commonwealth of 
Puerto Rico, and the United States Virgin Islands. 
"(f) FEES FOR SEMINARS AND PUBUCATIONS.—Notwithstanding 
any other provision of law, a grant made under this section may 
provide that the Center may charge a reasonable fee for attendance 
at seminars and conferences and for copies of publications, studies, 
reports, and other documents the Center publishes. The Center 
may waive such fees in any case in which it determines imposing 
a fee would impose a financial hardship and the purposes of the 
Center would be served by gremting such a waiver. 
"(g) DURATION OF GRANT.—^The Commissioner of Customs is 
directed to make grants to any institution or institutions selected 
as the Center for fiscal years 1994,1995,1996, and 1997. 
"(h) REPORT.—^The Commissioner of Customs shall, no later 
th£ui July 1, 1994, and annually thereafter for years for which 
grants are made, submit a written report to the Committee on 
Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives. The first report shall include— 
"(1) a statement identifying the institution or institutions 
selected as the Center, 
"(2) the reasons for selecting the institution or institutions 
as the Center, and 
"(3) the plan of such institution or institutions for operating 
the Center. 
Each subsequent report shall include information with respect to 
the operations of the Center, the collaboration of the Center with, 
and dissemination of information to, Grovemment policymakers and 
the business community with respect to the study of Western Hemi-
spheric trade by the Cent<3r, and the plan and efforts of the Center 
to continue operations after grants under this section have expired.". 
(b) AUTHORIZATION OI' APPROPRIATIONS.—^There are authorized i9 use 270? 
to be appropriated $10,000,000 for fiscal year 1994, and such sums ^°^-
as may be necessary in the 3 succeeding fiscal years to carry 
out the purposes of section 219 of the Caribbean Basin Economic 
Recovery Act (as added by subsection (a)). 
107 STAT. 2160 
PUBLIC LAW 103-182—DEC. 8, 1993 
19 use 3461 
SEC. 516. EFFECTIVE DATE. 
(a) IN GENERAL.—^Except as provided in subsection O
t
>
)
, the 
provisions of this subtitle shall take effect on the date the Agree-
ment enters into force with respect to the United States. 
(b) EXCEPTION.—Section 515 shall take effect on the date of 
the enactment of this Act. 
Subtitle C—Funding 
PART 1—CUSTOMS USER FEES 
SEC. S21. FEES FOR CERTAIN CUSTOMS SERVICES. 
(a) IN GENERAL.—Section 13031 of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c) is amended— 
(1) by amending paragraph (5) of subsection (a) to read 
as follows* 
"(5XA) For fiscal years 1994, 1995, 1996, and 1997, for 
the arrival of each passenger aboard a commercial vessel or 
commercial aircraft from outside the customs territory of the 
United States, $6.50. 
"(B) For fiscal year 1998 and each fiscal year thereafter, 
for the arrival of each jpassenger aboard a commercial vessel 
or commercial aircraft from a place outside the United States 
(other than a place referred to in subsection (bXlXA) of this 
section), $5." 
(2) by adding at the end of paragraph (1) of subsection 
(b), the folloMring flush sentence: 
"Subparagraph (A) shall not apply to fiscal years 1994, 1995, 
1996, and 1997.", 
(3) in subsection (f)— 
(A) in paragraph (1), by striking "except" and all that 
follows through the end period and inserting: "except— 
"(A) the portion of such fees that is required under 
paragraph (3) for the direct reimbursement of appropria-
tions, and 
"(B) the portion of such fees that is determined by 
the Secretary to be excess fees under paragraph (5).", 
(B) in paragraph (3XA), by striking the first parenthet-
ical and inserting "(other than the fees under subsection 
(a) (9) and (10) and the excess fees determined by the 
Secretary under paragraph (5))", 
(C) in paragraph (4), by striking "under subsection 
(a)" and inserting under subsection (a) (other than the 
excess fees determined by the Secretary imder paragraph 
(5))",and 
(D) by adding at the end thereof the following new 
paragraph: 
^(5) At the close of each of fiscal years 1994, 1995, 1996, 
and 1997, the Secretary of the Treasury shall determine the 
amount of the fees collected under paragraph (5XA) of sub-
section (a) for that fiscal year that exceeds the amount of 
such fees that would have been collected for such fiscal year 
if the fees that were in effect on the day before the effective 
date of this paragraph applied to such fiscal year. The amount 
of the excess fees determined under the preceding sentence 
shall be deposited in the Customs User Fee Accoimt and shall 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2161 
be available for reimbursement of inspectional costs (including 
passenger processing costs) not otherwise reimbursed imder 
this section, and shall be available only to the extent provided 
in appropriations Acts.", and 
(4) in paragraph (3) of subsection (j), by striking "September 
30,1998" and inserting "September 30, 2003". 
(b) EFFECTIVE DATE.—^The amendments made by this section 1
9 use 58c note. 
shall take effect on the date the Agreement enters into force with 
respect to the United States. 
PART 2—INTERNAL REVENUE CODE 
AMENDMENTS 
SEC. 522. AUTHORITY TO DISCLOSE CERTAIN TAX INFORMATION TO 
THE UNITED STATES CUSTOMS SERVICE. 
(a) IN GENERAL.—Subsection (1) of section 6103 of the Internal 
Revenue Code of 1986 (relating to confidentiality and disclosure 26USC6103. 
of returns and return information) is amended by adding at the 
end thereof the following new paragraph: 
"(14) DISCLOSURE OF RETURN INFORMATION TO UNITED 
STATES C
U
S
T
O
M
S SERVICE.—^The Secretary may, upon written 
request from the Commissioner of the United States Customs 
Service, disclose to olTicers and employees of the Department 
of the Treasiiry such return information with respect to taxes 
imposed by chapters 1 and 6 as the Secret£uy may prescribe 
by regulations, solely for the purpose of, and only to the extent 
necessary in— 
"(A) ascertaining the correctness of any entry in audits 
as provided for in section 509 of the Tariff Act of 1930 
(19 U.S.C. 1509), or 
"(B) other actions to recover any loss of revenue, or 
to collect duties, taxes, and fees, determined to be due 
and owing pursuant to such audits." 
(b) CONFORMING AMIINDMENTS,—Paragraphs (3XA) and (4) of 
section 6103(p) of such Code are each amended by striking "or 
(13)" each place it appears and inserting "(13), or (14)". 
(c) EFFECTIVE D A T E . — 
26 use 6io3 
(1) IN GENERAL.—^The amendments made by this section "
°
*
®
-
shall take effect on the date the Agreement enters into force 
with respect to the United States. 
(2) REGULATIONS—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of the Treasury 
or his delegate shall issue temporary regulations to carry out 
section 6103(1X14) of the Internal Revenue Code of 1986, as 
added by this section. 
SEC. 523. U S E 
O F ELECTRONIC FUND TRANSFER SYSTEM FOR 
COLLECTION OF CERTAIN TAXES. 
(a) GENERAL RULE.—Section 6302 of the Internal Revenue Code 
of 1986 (relating to mode or time of collection) is amendec^ by 26 use 6302. 
redesignating subsection ([h) as subsection (i) and by inserting after 
subsection (g) the following new subsection: 
"(h) USE OF ELECTRONIC FUND TRANSFER SYSTEM FOR COLLEC-
TION OF CERTAIN TAXES.— 
"(1) ESTABUSHMENT OF SYSTEM.— 
"(A) IN GENERAL.—^The Secretary shall prescribe such Regulations. 
regulations as may be necessary for the development and 
107 STAT. 2162 
PUBLIC LAW 103-182—DEC. 8, 1993 
implementation of an electronic fund transfer system which 
is required to be used for the collection of depository taxes. 
Such system shall be designed in such manner as may 
be necessary to ensure that such taxes are credited to 
the general account of the Treasury on the date on which 
such taxes would otherwise have been required to be depos-
ited under the Federal tax deposit system. 
"(B) EXEMPTIONS.—The regulations prescribed under 
subparagraph (A) may contain such exemptions as the 
Secretary may deem appropriate. 
"(2) PHASE-IN REQUIREMENTS.— 
"(A) IN GENERAL.—^Except as provided in subparagraph 
(B), the regulations referred to in paragraph (1)— 
"(i) shall contain appropriate procediires to assure 
that an orderly conversion from the Federal tax deposit 
system to the electronic fund transfer system is accom-
plished, and 
"(ii) may provide for a phase-in of such electronic 
fund transfer system by classes of taxpayers based 
on the aggregate undeposited taxes of such taxpayers 
at the close of specified periods and any other factors 
the Secretary may deem appropriate. 
*
*
(
B
) PHASE-IN REQUIREMENTS.—The phase-in of the 
electronic fund transfer system shall be designed in such 
manner as may be necessary to ensure that— 
"(i) during each fiscal year beginning after Septem-
ber 30, 1993, at least the applicable required percent-
age of the total depository taxes imposed by chapters 
21, 22, and 24 shall be collected by means of electronic 
fund transfer, and 
"(ii) during each fiscal year beginning after 
September 30, 1993, at least the applicable required 
percentage of the total other depository taxes shall 
be collected by means of electronic fund transfer. 
"(C) APPUCABLE REQUIRED PERCENTAGE.— 
"(i) In the case of the depository taxes imposed 
by chapters 21, 22, and 24, the applicable required 
percentage is— 
"(I) 3 percent for 
fiscal 
year 1994, 
"(ID 16.9 percent for 
fiscal 
year 1995, 
"(III) 20.1 percent for fiscal year 1996, 
"(IV) 58.3 percent for fiscal years 1997 and 
1998, and 
"(V) 94 percent for fiscal year 1999 and all 
' 
fiscal 
years thereafter. 
"(ii) In the case of other depository taxes, the 
applicable required percentage is— 
"(I) 3 percent for 
fiscal 
year 1994, 
"(II) 20 percent for 
fiscal 
year 1995, 
"(III) 30 percent for 
fiscal 
year 1996, 
"(IV) 60 percent for 
fiscal 
years 1997 and 1998, 
and 
"(V) 94 percent for fiscal year 1999 and all 
fiscal years thereafter. 
"(3) DEFINITIONS.—^For purposes of this subsection— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2163 
"(A) DEPOSITORY TAX.—The term 'depository tax* means 
any tax if ihe S^nretary is authorized to require deposits 
of such tax. 
"(B) ELECTRONIC FUNP TRANSFER.—The term 'elec-
tronic fund transfer* means any transfer of funds, other 
than a transaction originated by check, draft, or similar 
paper instrument, which is initiated through an electronic 
terminal, telephonic instrument, or computer or magnetic 
tape so as to order, instruct, or authorize a financial institu-
tion or other financial intermediary to debit or credit an 
account. 
*
*
(
4
) COORDINATION WITH OTHER ELECTRONIC FUND TRANS-
FER REQUIREMENTS.— 
"(A) COORDINATION WITH CERTAIN EXCISE TAXES.—In 
determining whether the requirements of subparagraph 
(B) of para^aph (2) are met, taxes re<][uired to be paid 
by electromc mnd transfer imder sections 5061(e) and 
5703(b) shall be disregarded. 
"(B) ADDITIONAL REQUIREMENT.—Under regulations, 
any tax retquired to be paid bv electronic fund transfer 
under section 5061(e) or 5703(b) shall be paid in such 
a manner as to ensure that the requirements of the second 
sentence of paragraph (IXA) of this subsection are satis-
fied.", 
(b) EFFECTIVE DATE.— 
26 use 6302 
(1) IN GENERAL.—^The amendments made by this section "
°
*
® 
shall take effect on the date the Agreement enters into force 
with respect to the United Stetes. 
(2) REGULATIONS.—Not later than 210 days after the date 
of enactment of this Act, the Secretary of the Treasury or 
his delegate shall prescribe 
temporary 
regulations imder section 
6302(h) of the Internal Revenue Code of 1986 (as added by 
this section). 
Subtitle D—Implementation of NAFTA 
Supplemental Agreements 
PART 1—AGREEMENTS RELATING TO LABOR 
AND ENVIRONMENT 
SEC. 531. AGREEMENT ON LABOR COOPERATION. 
19 USC 3471. 
(a) COMMISSION FOR LABOR COOPERATION.— 
(1) MEMBERSHIP.—The United States is authorized to 
participate in the Commission for Labor Cooperation in accord-
ance with the North American Agreement on Labor Coopera-
tion. 
(2) CONTRIBUTIONS TO BUDGET.—^There are authorized to Appropriations 
be appropriated to the President (or such agency as the Presi- authorization. 
dent may designate) $2,000,000 for each of fiscal years 1994 
and 1995 for United Stetes contributions to the annual budget 
of the Commission for Labor Cooperation pursuant to Article 
47 of the North American Agreement on Labor Coop|eration. 
Funds authorized to be appropriated for such contributions 
bv this paragraph are in addition to any funds otherwise avail-
able for such contributions. Funds authorized to be appropriated 
-194 O - 94 - 8 : QL. 3 Part 3 
107 STAT. 2164 
PUBLIC LAW 103-182—DEC. 8, 1993 
by this paragraph are authorized to be made available until 
expended. 
(b) DEFINITIONS.—As used in this section— 
(1) the term "Commission for Labor Cooperation" means 
the commission established by Part Three of uie North Amer-
ican Agreement on Labor Cooperation; and 
(2) the term '?^orth American Agreement on Labor 
Cooperation" means the North American Agreement on Labor 
Cooperation Between the Government of the United States 
of America, the Government of Canada, and the Government 
of the United Mexican States (signed at Mexico City, Washing-
ton, and Ottawa on September 8,9,12, and 14,1993). 
19 u s e 3472. 
SEC. 532. AGREEMENT ON ENVIRONMENTAL COOPERATION. 
(a) COMMISSION FOR ENVIRONMENTAL COOPERATION.— 
(1) MEMBERSHIP.—The United States is authorized to 
participate in the Commission for Environmental Cooperation 
m accordance with the North American Agreement on Environ-
mental Cooperation. 
Appropriations 
(2) CONTRIBUTIONS TO BUDGET.—There are authorized to 
authorization. 
jj^ appropriated to the President (or such agency as the Presi-
dent may designate) $5,000,000 for each of fiscal years 1994 
and 1995 for United States contributions to the annual budget 
of the Commission for Environmental Cooperation pursuant 
to Article 43 of the North American Agreement on Environ-
mental Cooperation. Funds authorized to be appropriated for 
such contributions by this paragraph are in addition to any 
fimds otherwise available for such contributions. Funds author-
ized to be appropriated by this paragraph are authorized to 
be made available until expended. 
(b) DEFINITIONS.—^As used in this section— 
(1) the term "Commission for Environmental Cooperation" 
means the commission established by Part Three of the North 
American Agreement on Environmental Cooperation; and 
(2) the term "North American Agreement on Environmental 
Cooperation" means the North American Agreement on 
Environmental Cooperation Between the Government of the 
United States of America, the Government of Canada, and 
the Government of the United Mexican States (signed at Mexico 
City, Washington, and Ottawa on September 8, 9, 12, and 
14,1993). 
19 use 3473. 
SEC. 533. AGREEMENT ON BORDER ENVIRONMENT COOPERATION 
COMMISSION. 
(a) BORDER ENVIRONMENT COOPERATION COMMISSION.— 
(1) MEMBERSHIP.—The United States is authorized to 
participate in the Border Environment Cooperation Commission 
m accordance with the Border Environment Cooperation Agree-
ment. 
Appropriations 
(2) CONTRIBUTIONS TO THE COMMISSION BUDGET.—There 
authorization. 
j^jg authorized to be appropriated to the President (or such 
agency as the President may designate) $5,000,000 for fiscal 
year 1994 and each fiscal year thereafter for United States 
contributions to the budget of the Border Environment Coopera-
tion Commission pursuant to section 7 of Article III of Chapter 
I of the Border Environment Cooperation A^eement. Funds 
authorized to be appropriated for such contributions bjr this 
paragraph are in addition to any funds otherwise available 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2165 
for such contributions. Funds authorized to be appropriated 
by this paragraph are authorized to be made available imtil 
expended. 
(b) CIVIL ACTIONS INVOLVING THE COMMISSION.—For the pur-
pose of any civil action which may be brought within the United 
States by or against the Border Environment Cooperation Commis-
sion in accordance with the Border Environment Cooperation Agree-
ment (including an action brought to enforce an arbitral award 
against the Commission), the Commission shall be deemed to be 
an inhabitant of the Federal judicial district in which its principal 
office within the United States, or its agent appointed for the 
purpose of accepting service or notice of service, is located. Any 
such action to which the Commission is a party shall be deemed 
to arise under the laws of the United States, and the district 
courts of the United States (including the courts enumerated in 
section 460 of title 28, United States Code) shall have original 
jurisdiction of any such action. When the Commission is a defendant 
in any action in a State court, it may at any time before trial 
remove the action into the appropriate district court of the United 
States by following the procedure for removal provided in section 
1446 of title 28, United States Code. 
(c) DEFINITIONS.—^As used in this section— 
(1) the term "Border Environment Cooperation Agreement" 
means the November 1993 Agreement Between the Government 
of the United States of America and the Government of the 
United Mexican States Concerning the Establishment of a Bor-
der Environment Cooperation Commission and a North Amer-
ican Development Bamc; 
(2) the terms "Border Environment Cooperation Commis-
sion" and "Commission" mean the commission established 
pursuant to Chapter I of the Border Environment Cooperation 
Agreement; and 
(3) the term "United States" means the United States, 
its territories and possessions, and the Commonwealth of 
Puerto Rico. 
PART 2—NORTH AMERICAN DEVELOPMENT 
BANK AND RELATED PROVISIONS 
SEC. 641. NORTH AMERICAN DEVELOPMENT BANK 
22 USC 290m. 
(a) ACCEPTANCE OF MEMBERSHIP.—The President is herebv 
authorized to accept membership for the United States in the North 
American Development Bank (hereafter in this part referred to 
as the "Bank") provided for in Chapter II of the Border Environment 
Cooperation Agreement (hereafter in this part referred to as the 
"Cooperation AgreetaenV). 
(b) SUBSCRIPTION OF STOCK.— 
(1) SUBSCRIPTION AUTHORITY.— 
(A) IN GENERAL.—^The Secretary of the Treasury may 
subscribe on behalf of the United States up to 150,000 
shares of the capital stock of the Bank. 
(B) EFFE(3TIVENESS OF SUBSCRIPTION.—Except as pro-
vided in paragraph (3), any such subscription shall be 
effective only to such extent or in such amounts as are 
provided in advance in appropriations Acts. 
(2) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.— 
For payment by the Secretary of the Treasury of the subscrip-
107 STAT. 2166 
PUBLIC LAW 103-182—DEC. 8, 1993 
K 
tion of the United States for shares described in paragraph 
(1), there are authorized to be appropriated $1,500,000,000 
($225,000,000 of which may be used for paid-in capital and 
$1,275,000,000 of which may be used for callable capital) with-
out fiscal year Umitation. 
(3) FUNDING; LIMITATION ON CALLABLE CAPITAL SUBSCRIP-
TIONS.— 
(A) FUNDING.—^For fiscal year 1995, the Secretary of 
the Treasury shall pay to the Bank out of any sums in 
the Treasury not otnerwise appropriated the sum of 
$56,250,000 for the paid-in portion of the United States 
share of the capital stock of tne Bank, 10 percent of which 
may be transferred by the Bank to the President pursuant 
to section 543 to pay for the cost of direct £ind guaranteed 
Federal loans. 
(B) LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS.— 
For fiscal year 1995, the Secretary of the Treasury shall 
subscribe to the callable capital portion of the United States 
share of the capital stock of the Bank in an amount not 
to exceed $318,750,000. 
(4) DISPOSITION OP NET INCOME DISTRIBUTED BY THE FACIL-
ITY.—Any payment made to the United States by the Bank 
as a distribution of net income shall be covered into the Treas-
ury as a miscellaneous receipt. 
(c) COMPENSATION OF BOARD MEMBERS.—NO person shall be 
entitled to receive any salary or other compensation 
fi:t)m 
the Bank 
or the United States for services as a Board member. 
(d) APPLICABILITY OF BRETTON WOODS AGREEMENTS ACT.— 
The provisions of section 4 of the Bretton Woods Agreements Act 
shall apply with respect to the Bank to the same extent as with 
respect to the International Bank for Reconstruction and Develop-
ment and the International Monetary Fund. 
(e) RESTRICTIONS.—^Unless authorized by law, neither the Presi-
dent nor any person or agency shall, on behalf of the United 
States— 
(1) subscribe to additional shares of stock of the Bank; 
(2) vote for or agree to any amendment of the Cooperation 
Agreement which increases the obligations of the United States, 
or which changes the purpose or functions of the Bank; or 
(3) make a loan or provide other financing to the Bank. 
(f) FEDERAL RESERVE BANKS AS DEPOSITORIES.—Any Federal 
Reserve bank that is requested to do so by the Bank shall act 
as its depository^ or as its fiscal agent, and the Board of Grovemors 
of the Federal Reserve System shall supervise and direct the carry-
ing out of these fiinctions by the Federal Reserve banks. 
(g) JURISDICTION OF UNITED STATES COURTS AND ENFORCEMENT 
OF ARBITRAL AWARDS.—For the purpose of any civil action which 
may be brought within the United States, its territories or posses-
sions, or the Commonwealth of Puerto Rico, by or against the 
Bank in accordance with the Cooperation Agreement, including 
an action brought to enforce an arbitral award against the Bank, 
the Bank shaU be deemed to be an inhabitant of the Federal 
judicial district in which its principal office within the United 
States or its agency appointed for the purpose of accepting service 
or notice of service is located, and any such action to which the 
Bank shall be a party shall be deemed to arise under the laws 
of the United States, and the district courts of the United States, 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2167 
including the courts enmnerated in section 460 of title 28, United 
States Code, shall have original jurisdiction of any such action. 
When the Bank is a defendant in any action in a State court, 
it may at any time before trial remove the action into the appro-
priate district court of the United States by following the proceaure 
for removal provided in section 1446 of title 28, United States 
Code. 
(h) ExEMPnoN FROM SECURITIES LAWS FOR CERTAIN SECURI-
TIES ISSUED BY THE BANK; REPORTS REQUIRED.— 
(1) EXEMPTIONS FROM LIMITATIONS AND RESTRICTIONS ON 
THE POWER OF NATIONAL BANKING ASSOCIATIONS TO DEAL IN 
AND UNDERWRITE IN^/ESTMENT SECURITIES OF THE BANK.—The 
seventh sentence of the seventh undesignated paragraph of 
section 5136 of the Revised Statutes of the United States (12 
U.S.C. 24), is amended by inserting "the North American Devel-
opment Bank," after "Inter-American Development Bank,". 
(2) EXEMPTION FROM SECURITIES LAWS FOR CERTAIN SECURI-
TIES ISSUED BY THE BANK; REPORTS REQUIRED.—^Any securities 
issued by the Bank (including any guarantee by the Bank, 
whether or not limited in scope) in connection with the raising 
of funds for inclusion in the Bank's capital resources as defined 
in Section 4 of Article II of Chapter II of the Cooperation 
Agreement, and any securities guaranteed by the Bank as 
to both the principal and interest to which tne commitment 
in Section 3(d) of Article II of Chapter II of the Cooperation 
Agreement is exprcissly applicable, shall be deemea to be 
exempted securities within the meaning of section 3(aX2) of 
the Securities Act of 1933 (15 U.S.C. 77c), and section 3(aX12) 
of the Securities Exchange Act of 1934 (15 U.S.C. 78c). The Reports. 
Bank shall file with the Securities and Exchange Commission 
such annual and other reports with regard to such securities 
as the Commission shall determine to be appropriate in view 
of the special character of the Bank and its operations and 
necessary in the public interest or for the protection of inves-
tors. 
(3) AUTHORITY OP SECURITIES AND EXCHANGE COMMISSION 
TO SUSPEND EXEMPTION; REPORTS TO THE CONGRESS.—The Secu-
rities and Exchemge Commission, acting in consultetion with 
the National Advisory Council on International Monetery and 
Financial Problems, is authorized to suspend the provisions 
of paragraph (2) at any time as to any or all securities issued 
or guaranteed by the Bank during the period of such suspen-
sion. The Commission shall include in ite annual reports to 
Congress such infoirmation as it shall deem advisable with 
regard to the operations and effect of this subsection and in 
connection therewith shall include any views submitted for 
such purpose by any association of dealers registered with 
the Commission. 
SEC. 542. STATUS, IMMUNITIES, AND PRIVILEGES. 
Article VIII of Chapter II of the Cooperation Agreement shall 
have full force and effect in the United Stetes, its territories and 
possessions, and the Commonwealth of Puerto Rico, upon entry 
into force of the Cooperation Agreement. 
SEC. S4S. COMMUNITY ADJUSTMENT AND INVESTMENT PROGRAM. 
(a) THE PRESIDENT.—(1) The President may enter into an agree-
ment with the Bank that facilitotes implementetion by the Presi-
22 use 290m-l. 
22 use 290m-2. 
107 STAT. 2168 
PUBLIC LAW 103-182—DEC. 8, 1993 
dent of a prc^gram for community adjustment and investment in 
support of the Agreement piu^uant to chapter 11 of the Cooperation 
Agreement (hereafter in this sectioii referred to as the "community 
adyjustment and investment program"). 
(2) The President may receive firom the Bank 10 percent of 
the paid-in capital actually paid to the Bank by the United States 
I 
for the President to carry out, without furtner appropriations, 
through Federal agencies and their loan and loan guarantee pro-
grams, the conmiunity a4ju8tment and investment program, pursu-
ant to an agreement oetween the President and the Bank. 
(3) The President may select one or more Federal agencies 
that make loans or guarantee the repasnment of loans to assist 
in canying out the community adjustment and investment program, 
and may transfer the funds received from the Bank to sudi agency 
or agencies for the purpose of assisting in carrying out the commu-
nity adjustment ana investment program. 
(4XA) Each Federal agency selected by the President to assist 
in carrying out the community ac^'ustment and investment program 
shall use the funds transferred to it by the President from the 
Bank to pay for the costs of direct and guaranteed loans, as defined 
in section 502 of the Congressional Budget Act of 1974, and, as 
appropriate, other costs associated with such loans, aU subject 
to the restrictions and limitations that apply to such agenc^s exist-
ing loan or loan guarantee program. 
(B) Fimds transferred to an agency under subparagraph (A) 
shall be in addition to the amount of funds authorized m any 
appropriations Act to be expended by that agency for its loan 
or loan guarantee program. 
President. 
(5) The President shall— 
(A) establish guidelines for the loans and loan gu£u*antees 
to be made under the community a4justment and investment 
program; 
(B) endorse the grants made by the Bank for the community 
a4justment and investment program, as provided in Article 
I, section 1(b), and Article III, section 11(a), of Chapter II 
of the Cooperation Agreement; and 
(C) endorse any loans or guarantees made by the Bank 
for the community adjustment and investment program, as 
provided in Article I, section 1(b), and Article III, section 6 
(a) and (c) of Chapter II of the Cooperation Agreement. 
(b) ADVISORY COMMITTEE.— 
President. 
(1) EsTABUSHMENT.—The President shall establish an 
advisory committee to be known as the Community Adjustment 
and Investment Program Advisory Committee (in this section 
referred to as the "Advisory Committee") in accordance with 
the provisions of the Federal Advisory Committee Act. 
(2) MEMBERSHIP.— 
(A) IN GENERAL.—^The Advisory Committee shall con-
sist of 9 members of the public, appointed by the President, 
who, collectively, represent— 
(i) community groups whose constituencies include 
low-income families; 
(ii) any scientific, professional, business, nonprofit, 
or public interest organization or association which 
is neither affiliated with, nor under the direction of, 
a government; 
(iii) for-profit business interests; and 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2169 
(iv) other appropriate entities with relevant exper-
tise. 
(B) REPRESENTATION.—^Each of the categories described 
in clauses (i) through (iv) of subparagraph (A) shall be 
represented by no fewer than 1 and no more than 3 mem-
bers of the Advisory Committee. 
(3) FUNCTION.—It shall be the function of the Advisory 
Committee— 
(A) to provide advice to the President regarding the 
implementation of the commimity adjustment and invest-
ment program, including advice on the guidelines to be 
established by the Presicfent for the loans and loan guaran-
tees to be made pursusmt to subsection (aX4), advice on 
identifying the needs for adjustment assistance and invest-
ment in support of the goals and objectives of the Agree-
ment, taking into account economic and geographic consid-
erations, and advice on such other matters as may be 
requested by the President; and 
(B) to review on a regular basis the operation of the 
commimity adjustment and investment program and pro-
vide the President with the conclusions of its review. 
(4) TERMS OF MEMBERS.— 
(A) IN GENERAL.—Each member of the Advisory 
Committee shall serve at the pleasure of the President. 
(B) CHAlRPERSON.^The President shall appoint a 
chairperson from among the members of the Advisory 
Committee. 
(C) MEETINGS.—^The Advisory Committee shall meet 
at least annually and at such other times as requested 
by the President or the chairperson. A msgority of the 
members of the Advisory Committee shall constitute a 
quorum. 
(D) REIMBIFRSEMENT FOR EXPENSES.—The members of 
the Advisory Committee may receive reimbursement for 
travel, per diem, and other necessary expenses incurred 
in the performance of their duties, in accordance with 
the Federal Advisory Committee Act. 
(E) STAFF AND FACILITIES.—The Advisory Committee 
may utilize the facilities and services of employees of any 
Federal agency without cost to the Advisory Committee, 
and any such agency is authorized to provide services as 
requested by the Committee. 
(c) OMBUDSMAN.—^llie President shall appoint an ombudsman 
to provide the public with an opportunity to participate in the 
carrying out of the community adjustment and investment program. 
(1) FUNCTION.—It shall be the fimction of the ombudsman— 
(A) to establish procedures for receiving comments from 
the general public on the operation of the community 
adjustment and investment program, to receive such com-
ments, and to provide the President with summaries of 
the public comments; and 
(B) to perform an independent inspection and pro-
grammatic audit of the operation of the community adjust-
ment and investment program and to provide the President 
with the conclusions of its investigation and audit. 
(2) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated to the President, or such agency as 
107 STAT. 2170 
PUBLIC LAW 103-182—DEC. 8, 1993 
the President may designate, $25,000 for fiscal year 1995 and 
for each fiscal year there£ifter, for the costs of the ombudsman. 
(d) REPORTING REQUIREMENT.—The President shall submit to 
the appropriate congressional committees an annual report on the 
commimity adjustment and investment program (if any) that is 
carried out pursuant to this section. Each report shall state the 
^ 
amount of the lo£ui8 made or guaranteed during the 12-month 
period ending on the day before the date of the report. 
22 use 290m-3. 
SEC. 644. DEFINITION. 
For purposes of this part, the term "Border Environment 
Cooperation Agreement" (referred to in this part as the "Cooperation 
Agreement") means the November 1993 Agreement Between the 
(jrovemment of the United States of America and the Government 
of the United Mexican States Concerning the Establishment of 
a Border Environment Cooperation Commission and a North Amer-
ican Development Bank. 
TITLE VI—CUSTOMS MODERNIZATION 
SEC. 601. REFERENCE. 
Whenever in subtitle A, B, or C an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, a part, 
section, subsection, or other provision, the reference shall be consid-
ered to be made a part, section, subsection, or other provision 
of the Tariff Act of 1930 (19 U.S.C. 1202 et seq.). 
Subtitle A—^Improvements in Customs 
Enforcement 
SEC. 611. PENALTIES FOR VIOLATIONS OF ARRIVAL, REPORTING, 
ENTRY, AND CLEARANCE REQUIREMENTS. 
Section 436 (19 U.S.C. 1436) is amended— 
(1) by amending subsection (a)— 
(A) by striHng out "433" in paragraph (1) and inserting 
"431, 433, or 434 of this Act or section 4197 of the Revised 
Statutes of the United States (46 U.S.C. App. 91)", 
(B) by amending paragraph (2) to read as follows: 
"(2) to present or transmit, electronically or otherwise, 
any forged, altered, or false document, paper, information, data 
or manifest to the (IJustoms Service under section 431(e), 433(d), 
or 434 of this Act or section 4197 of the Revised Statutes 
of the United States (46 U.S.C. App. 91) without revealing 
the facts; or", and 
(C) by amending paragraph (3) to read as follows: 
"(3) to fail to make entry or to obtain clearance as required 
by section 434 or 644 of this Act, section 4197 of the Revised 
Statutes of the United States (46 U.S.C. App. 91), or section 
1109 of the Federal Aviation Act of 1958 (49 U.S.C. App. 
1509); or"; and 
(2) by striking out "AND ENTRY" in the section heading 
and inserting "ENTRY, AND CLEARANCE". 
SEC. 612. FAILURE TO DECLARE. 
Section 497(a) (19 U.S.C. 1497(a)) is amended— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2171 
(1) by inserting "or transmitted" after "made" in paragraph 
(IXA); and 
(2) by amending paragraph (2XA) to read as follows: 
(A) if the article is a controlled substance, either $500 
or an amount equal to 1,000 percent of the value of the 
article, whichever amount is greater; and". 
SEC. 613. CUSTOMS TESTING LABORATORIES: DETENTION OF MEIU 
CHANDISE. 
(a) AMENDMENT.—-Section 499 (19 U.S.C. 1499) is amended 
to read as follows: 
«SEC. 499. EXAMINATION OF MERCHANDISE. 
"(a) ENTRY EXAMINATION.— 
"(1) IN GENERAL.—Imported merchandise that is required 
by law or regulation to be inspected, examined, or appraised 
shall not be delivered from customs custody (except under 
such bond or other security as may be prescribed by the Sec-
retary to assure compliance with all applicable laws, regula-
tions, and instructions which the Secretary or the Customs 
Service is authonzed to enforce) imtil the merchandise has 
been inspected, appraised, or examined and is reported by 
the Customs Service to have been truly and correctly invoiced 
and found to comply with the requirements of the laws of 
the United States. 
"(2) EXAMINATION.—The Customs Service— 
"(A) shall designate the packages or quantities of mer-
chandise covered by any invoice or entry which are to 
be opened and examined for the purpose of appraisement 
or otnerwise; 
"(B) shall order such packages or quantities to be sent 
to such place as is designated by the Secretary by regula-
tion for such purpose; 
"(C) may require such additional packages or quantities 
as the SecretJiry considers necessary for such purpose; and 
"(D) shall inspect a svifdcient number of shipments, 
and shall examine a sufficient number of entries, to ensure 
compliance with the laws enforced by the Customs Service. 
"(3) UNSPECIFIED ARTICLES.—If any package contains any 
article not specified in the invoice or entry and, in the opinion 
of the Customs Service, the article was omitted from the invoice 
or entry— 
"(A) with fraudulent intent on the part of the seller, 
shipper, owner, agent, importer of record, or entry filer, 
the contents of the entire package in which such article 
is found shall be subject to seizure; or 
"(B) without fraudulent intent, the value of the article 
shall be added to the entry and the duties, fees, and taxes 
thereon paid accordingly. 
"(4) DEFICIENCY.—If a deficiency is found in quantity, 
weight, or measure in the examination of any package, the 
person finding the deficiency shall make a report thereof to 
the Customs Ser/ice. The Customs Service shall make allow-
ance for the deficiency in the liquidation of duties. 
"(5) iNFORMA'noN REQUIRED FOR RELEASE.—If an examina-
tion is conducted, any information required for release shall 
be provided, either electronically or in paper form, to the Cus-
toms Service at the port of examination. The absence of such 
107 STAT. 2172 
PUBLIC LAW 103-182—DEC. 8, 1993 
Regulations. 
infonnation does not limit the authority of the Customs Service 
to conduct an examination. 
"(b) TESTING LABORATORIES.— 
"(1) ACCREDITATION OF PRIVATE TESTING LABORATORIES.— 
The Customs Service shall establish and implement a proce-
dure, under regulations promulgated by the Secretary, for 
accrediting private laboratories within the United States which 
may be used to perform tests (that would otherwise be per-
formed by Customs Service laboratories) to establish the 
characteristics, quantities, or composition of imported merchan-
dise. Such regulations— 
"(A) shall establish the conditions required for the lab-
oratories to receive and maintain accreditation for purposes 
of this subsection; 
"(B) shall establish the conditions regarding the 
suspension and revocation of accreditation, which may 
include the imposition of a monetaiy penalty not to exceed 
$100,000 and such penalty is in addition to the recovery, 
from a ganger or laboratory accredited under paragraph 
(1), of any loss of revenue that may have occurred, but 
the Customs Service— 
"(i) may seek to recover lost revenue only in cases 
where the ganger or laboratory intentionally falsified 
the analysis or gauging report in collusion with the 
importer; and 
"(ii) shall neither assess penalties nor seek to 
recover lost revenue because of a good faith difference 
of 
professional opinion; and 
"(C) may provide for the imposition of a reasonable 
charge for accreditation and periodic reaccreditation. 
The 
collection 
of 
any 
charge 
for 
accreditation 
and 
reaccreditation under this section is not prohibited by section 
13031(eX6) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(eX6)). 
"(2) APPEAL OF ADVERSE ACCREDITATION DECISIONS.—A lab-
oratory appl3dng for accreditation, or that is accredited, under 
this section may contest any decision or order of the Customs 
Service denjring, suspending, or revoking accreditation, or 
imposing a monetary penalty, by commencing an action in 
accordance with chapter 169 of title 28, United States Code, 
in the Court of International Trade within 60 days after issu-
ance of the decision or order. 
"(3) 
TESTING 
BY 
ACCREDITED 
LABORATORIES.—When 
requested by an importer of record of merchandise, the Customs 
Service shadl authorize the release to the importer of a rep-
resentative sample of the merchandise for testing, at the 
expense of the importer, by a laboratory accredited under para-
graph (1). The testing results from a laboratory accredited 
under paragraph (1) that are submitted by an importer of 
record with respect to merchandise in an entry shall, in the 
absence of testing results obtained from a Customs Service 
laboratory, be accepted by the Customs Service if the importer 
of record certifies that the sample tested was taken from the 
merchandise in the entiy. Nothing in this subsection shall 
be construed to limit in any way or preclude the authority 
of the Customs Service to test or analyze any sample or mer-
chandise independently. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2173 
"(4) AVAILABIUTY OF TESTING PROCEDURE, METHODOLOGIES, 
A
N
D INFORMATION.—^Testing procedxires and methodologies used 
by the Customs Service, and information resulting from any 
testing conducted by the Customs Service, shall be made avail-
able as follows: 
"(A) Testing procedures and methodologies shall be 
made available upon request to any person imless the 
procedures or methodologies are— 
"(i) proprietary to the holder of a copjndght or 
patent related to such procedures or methodologies, 
or 
"(ii) developed by the Customs Service for enforce-
ment purposes. 
"(B) Information resulting from testing shall be made 
available upon request to the importer of record and any 
agent thereof unless the information reveals information 
which is— 
"(i) proprietary to the holder of a copyright or 
patent; or 
"(ii) developed by the Customs Service for enforce-
ment pur{>oses. 
**(5) MISCELLANEOUS PROVISIONS.—For purposes of this 
subsection— 
"(A) any reference to a private laboratory includes a 
reference to a private ganger; and 
''(B) accreditation of private laboratories extends only 
to the performance of functions by such laboratories that 
are within the scope of those responsibilities for determina-
tions of the elements relating to admissibility, quantity, 
composition, or characteristics of imported merchandise 
that are vested in, or delegated to, the Customs Service. 
"(c) DETENTIONS.—^Except in the case of merchandise with 
respect to which the determination of admissibility is vested in 
an agency other than the Customs Service, the following apply: 
"(1) IN GENERAL.—^Within the 5-day period (excluding week-
ends and holidays) following the date on which merchandise 
is presented for customs examination, the Customs Service 
shall decide whether to release or detain the merchandise. 
Merchandise which is not released within such 5-day period 
shall be considered to be detained merchandise. 
"(2) NOTICE OF DETENTION.—The Customs Service shall 
issue a notice to the importer or other party having an interest 
in detained merchandise no later than 5 days, excluding week-
ends and hoUdays, after the decision to detain the merchandise 
is made. The notice shall advise the importer or other interested 
party o
f
— 
"(A) the initiation of the detention; 
"(B) the specific reason for the detention; 
"(C) the anticipated length of the detention; 
"(D) the nature of the tests or inquiries to be conducted; 
and 
"(E) the nature of any information which, if supplied 
to the Customs Service, may accelerate the disposition 
of the detention. 
"(3) TESTING RESULTS.—^Upon request by the importer or 
other party having an interest in detained merchandise, the 
Customs Service shall provide the party with copies of the 
107 STAT. 2174 
PUBLIC LAW 103-182—DEC. 8, 1993 
results of any testing conducted by the Customs Service on 
the mercheuidise and a description of the testing procedures 
and methodologies (unless such procedures or methodologies 
are proprietary to the holder of a copyright or patent or were 
developed by the Customs Service for enforcement purposes). 
The results and test description shall be in sufficient detail 
to permit the duplication and analysis of the testing and the 
results. 
"(4) SEIZURE AND FORFEITURE.—If otherwise provided by 
law, detained merchandise may be seized and forfeited. 
*
*
(
5
) EFFECT OF FAILURE TO MAKE DETERMINATION.— 
*
*
(
A
) The failure by the Customs Service to make a 
final determination with respect to the admissibility of 
detained merchandise within 30 days after the merchandise 
has been presented for customs examination, or such longer 
period if specifically authorized by law, shall be treated 
as a decision of the Customs Service to exclude the mer-
chandise for purposes of section 514(aX4). 
"(B) For purposes of section 1581 of title 28, United 
States Code, a protest against the decision to exclude the 
merchandise which has not been allowed or denied in whole 
or in part before the 30th day after the day on which 
the protest was filed shall be treated as having been denied 
on such 30th day. 
"(C) Notwithstanding section 2639 of title 28, United 
States Code, once an action respecting a detention is com-
menced, unless the Customs Service establishes bv a 
preponderance of the evidence that an admissibility deci-
sion has not been reached for good cause, the court shall 
grant the appropriate relief which may include, but is 
not limited to, an order to cancel the detention and release 
the merchandise.". 
1
9 use 1499 
(b) EXISTING LABORATORIES.—Accreditation under section 
note. 
499(b) of the Tariff Act of 1930 (as added by subsection (a)) is 
not required for any private laboratory (including any ganger) that 
was accredited or approved by the Customs Service as of the day 
before the date of the enactment of this Act; but any such laboratory 
is subject to reaccreditation imder the provisions of such section 
and the regulations promulgated thereunder. 
SEC. 614. RECORDKEEPING. 
Section 608 (19 U.S.C. 1508) is amended— 
(1) by amending subsection (a) to read as follows: 
"(a) REQUIREMENTS.—Any— 
*(1) owner, importer, consignee, importer of record, entry 
filer, or other party who— 
Claims. 
"(A) imports merchandise into the customs territory 
of the United States, files a drawback claim, or transports 
or stores merchandise carried or held under bond, or 
"(B) knowingly causes the importation or transpor-
tation or storage of merchandise carried or held under 
bond into or from the customs territory of the United 
States; 
"(2) agent of any party described in paragraph (1); or 
"(3) person whose activities require the filing of a declara-
tion or entry, or both; 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2175 
shall make, keep, and render for examination and inspection records 
(which for purposes of iMs section include, but are not limited 
to, statements, declarations, documents and electronically generated 
or machine readable data) which— 
"(A) pertain to any such activity, or to the information 
contained in the records required by this Act in connection 
with any such activity; and 
"(B) are normall}^ kept in the ordinary covirse of business."; 
and 
(2) by amending subsection (c) to read as follows: 
*
*
(
c
) PERIOD OF TIME.—The records required by subsections (a) Claims. 
and (b) shall be kept for such period of time, not to exceed 5 
years from the date of entry or exportation, as appropriate, as 
the Secretary shall prescribe; except that records for any drawback 
claim shall be kept until the 3rd anniversary of the date of payment 
of the claim.**. 
SEC. 61S. EXAMINATION OF BOOKS AND WITNESSES. 
Section 509 (19 U.S.C. 1509) is amended as follows: 
(1) Subsection (a) is amended— 
(A) by striking out "and taxes" wherever it appears 
and inserting ", iees and taxes"; 
(B) by amending paragraph (1) to read as follows: 
"(1) examine, or cause to be examined, upon reasonable 
notice, any record (which for purposes of this section, includes, 
but is not limited to, any statement, declaration, document, 
or electronically generated or machine readable data) described 
in the notice with reasonable specificity, which may be relevant 
to such investigation or inquiry, except that— 
"(A) if such record is required by law or regulation 
for the entry of the merchandise (whether or not Uie Cus-
toms Service reciuired its presentation at the time of entry) 
it shall be provided to the Customs Service within a reason-
able time after demand for its production is made, taking 
into consideration the number, type, and age of the item 
demanded; and 
"(B) if a person of whom demand is made under 
subparagraph (A) fails to comply with the demand, the 
person may be subject to penalty imder subsection (g);"; 
(C) by amending that part of paragraph (2) that pre-
cedes subparagraph (D) to read as follows: 
"(2) summon, upon reasonable notice— 
"(A) the person who— 
"(i) imported, or knowingly caused to be imported, 
merchandise into the customs territory of the United 
Stetes, 
"(ii) exported merchandise, or knowingly caused 
merchandise to be exported, to Canada, 
"(iii) transported or stored merchandise that was 
or is carried or held imder customs bond, or knowingly 
caused such transportetion or storage, or 
"(iv) filed a declaration, entry, or drawback claim 
with the Customs Service; 
"(B) any officer, employee, or agent of any person 
described in subparagraph (A); 
107 STAT. 2176 
PUBLIC LAW 103-182—DEC. 8, 1993 
Reports. 
"(C) any person having possession, custody or care 
of records relating to the importation or other activity 
described in subparagraph (A); or"; and 
(D) by striking out the comma at the end of subpara-
graph (D) and inserting a semicolon. 
(2) Subsections (b) and (c) are redesignated as subsections 
(c) and (d), respectively. 
(3) The following new subsection is inserted after subsection 
(a): 
"(b) REGULATORY AUDIT PROCEDURES.— 
"(1) In conducting a regulatory audit under this section 
(which does not include a quantity verification for a customs 
bonded warehouse or general purpose foreign trade zone), the 
Customs Service auditor shall provide the person being audited, 
in advance of the audit, with a reasonable estimate of the 
time to be required for the audit. If in the course of an audit 
it becomes apparent that additional time will be required, the 
Customs Service auditor shall immediately provide a fiuther 
estimate of such additional time. 
"(2) Before commencing an audit, the Customs Service audi-
tor shall inform the party to be audited of his right to an 
entry conference at which time the purpose will be explained 
and an estimated termination date set. Upon completion of 
on-site audit activities, the Customs Service auditor shall sched-
ule a closing conference to explain the preliminary results 
of the audit. 
"(3) Except as provided in paragraph (5), if the estimated 
or actual termination date for an audit passes without the 
Customs Service auditor providing a closing conference to 
explain the results of the audit, the person being audited may 
petition in writing for such a conference to the appropriate 
regional commissioner, who, upon receipt of such a request, 
shall provide for such a conference to be held within 15 days 
after the date of receipt. 
"(4) Except as provided in paragraph (5), the Customs 
Service auditor shall complete the formal written audit report 
within 90 days following the closing conference unless the 
appropriate regional commissioner provides written notice to 
the person being audited of the reason for any delay and 
the anticipated completion date. After application of any exemp-
tion contained in section 552 of title 5, United States Code, 
a copy of the formal written audit report shall be sent to 
the person audited no later than 30 days following completion 
of the report. 
"(5) Paragraphs (3) and (4) shall not apply after the Cus-
toms Service commences a formal investigation with respect 
to the issue involved.". 
(4) Subsection (d) (as redesignated by paragraph (2)) is 
amended— 
(A) by striking out "statements, declarations, or docu-
ments" in paragraph (IXA) and inserting "those"; 
(B) by inserting ", unless such customhouse broker 
is the importer of record on an entry" after "broker" in 
paragraph (IXCXi); 
(C) by striking out "import" in each of paragraphs 
(2XB)and(4XB); 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2177 
(D) by inserting "described in section 508" after "trans-
actions" in each of paragraphs (2XB) and (4XB); and 
(E) by inserting *
*
, fees," after "duties" in paragraph 
(4XA). 
(5) The following new subsections are added at the end 
thereof: 
"(e) LIST OF RECORDS AND INFORMATION.—The Customs Service 
shall identify and publisjti a list of the records or entry information 
that is required to be maintained and produced under subsection 
(aXlXA). 
"(f) RECORDKEEPING COMPLIANCE PROGRAM,— 
"(1) IN GENERAL.^After consultation with the importing Regulations. 
commimity, the Customs Service shall by regulation establish 
a recordkeeping compliance program which the parties listed 
in section 508(a) may participate in after being certified by 
the Customs Service; under paragraph (2). Participation in the 
recordkeeping compliance program by recordkeepers is vol-
untary. 
"(2) CERTIFICATION.—^A recordkeeper may be certified as 
a participant in the recordkeeping compliance program after 
meeting the general recordkeeping requirements established 
under the program or after negotiating an alternative program 
suited to the needs of the recordkeeper and the Customs Serv-
ice. Certification requirements shall take into account the size 
and nature of the im];)orting business and the volume of imports. 
In order to be certified, the recordkeeper miist be able to 
demonstrate that it— 
"(A) understands the legal requirements for record-
keeping, including the nature of the records required to 
be maintained and produced and the time periods involved; 
"(B) has in place procedures to explain the record-
keeping reqmrements to those employees who are involved 
in the preparation, maintenance, and production of 
required records; 
"(C) has in place procedures regarding the preparation 
and maintenance of required records, and the production 
of such records to the Customs Service; 
"(D) has designated a dependable individual or individ-
uals to be responsible for recordkeeping compliance under 
the pro-am and whose duties include maintaining famili-
arity with the recordkeeping requirements of the Customs 
Service; 
"(E) has a record maintenance procedure approved by 
the Customs Slervice for original records, or, if approved 
by the Customs Service, for alternative records or record-
keeping formats other than the original records; and 
"(F) has procedures for notifving the Customs Service 
of occurrences of variances to, and violations of, the require-
ments of the recordkeeping compliance program or the 
negotiated alternative programs, and for taking corrective 
action when notified by the Customs Service of violations 
or problems regarding such program. 
"(g) PENALTIES,— 
"(1) DEFINITION.—^For purposes of this subsection, the term 
'information' means any record, statement, declaration, docu-
ment, or electronically stored or transmitted information or 
data referred to in subsection (aXlXA). 
107 STAT. 2178 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(2) EFFECTS OF FAILURE TO COMPLY WITH DEMAND.—Except 
as provided in paragraph (4), if a person fails to comply with 
a lawful demand for information under subsection (aXlXA) 
the following provisions apply: 
"(A) If the failure to comply is a result of the willful 
feulure of the person to maintain, store, or retrieve the 
demanded information, such person shall be subject to 
a penalty, for each release of merchandise, not to exceed 
$100,000, or an amount equal to 75 percent of the appraised 
value of the merchandise, whichever amount is less. 
''(B) If the failure to comply is a result of the negligence 
of the person in maintaining, storing, or retrieving the 
demanded information, such person shall be subject to 
a penalty, for each release of merchandise, not to exceed 
$10,000, or an amount equal to 40 percent of the appraised 
value of the merchandise, whichever amoimt is less. 
"(C) In addition to any penalty imposed under subpara-
graph (A) or (B) regeirding demanded information, if such 
information related to the eligibility of merchandise for 
a column 1 special rate of duty under title I, the entry 
of such merchandise— 
"(i) if imliquidated, shall be liquidated at the 
applicable colimm 1 general rate of duty; or 
"(ii) if liquidated within the 2-year period preced-
ing the date of the demand, shall be reUquidated, 
notwithstanding the time limitation in section 514 or 
520, at the applicable column 1 general rate of duty; 
except that any liquidation or reliquidation under clause 
(i) or (ii) shall be at the applicable column 2 rate of duty 
if the Customs Service demonstrates that the merchandise 
should be dutiable at such rate. 
"(3) AVOIDANCE OF PENALTY.—^No penalty may be assessed 
under this subsection if the person can show— 
"(A) that the loss of the demanded information was 
the result of an act of God or other natural casualty or 
disaster beyond the fault of such person or an agent of 
the person; 
"(B) on the basis of other evidence satisfactory to the 
Customs Service, that the demand was substantially com-
plied with; or 
"(C) the information demanded was presented to and 
retained by the Customs Service at the time of entry or 
submitted in response to an earlier demand. 
"(4) PENALTIES NOT EXCLUSIVE.—Any penalty imposed 
under this subsection shall be in addition to any other penalty 
provided by law except for— 
^ 
"(A) a penalty imposed under section 592 for a material 
omission of the demanded information, or 
"(B) disciplinary action taken under section 641. 
"(5) REMISSION OR MITIGATION.—A penalty imposed under 
this section may be remitted or mitigated under section 618. 
"(6) CUSTOMS SUMMONS.—^Nothing in this subsection shall 
limit or preclude the Customs Service from issuing, or seeking 
the enforcement of, a customs summons. 
"(7) ALTERNATIVES TO PENALTIES.— 
"(A) IN GENERAL.—^When a recordkeeper who— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2179 
"(i) has been certified as a participant in the 
recordkeeping compliance program under subsection 
(f);and 
"(ii) is generally in compliance with the appro-
priate proc(3dures and reouirements of the program; 
does not produise a demanded record or information for 
a specific release or provide the information by acceptable 
alternative means, tne Customs Service, in the absence 
of willfulness or repeated violations, shall issue a written 
notice of the violation to the recordkeeper in lieu of a 
monetary penalty. Repeated violations by the recordkeeper 
may result in the issuance of penalties and removal of 
certification under the program until corrective action, 
satisfactory to the Customs Service, is taken. 
"(B) CONTEfJTS OF N
O
T
I
C
E
.
—
^
A notice of violation issued 
under subparagi*aph (A) shall— 
"(i) state that the recordkeeper has violated the 
recordkeeping requirements; 
"(ii) indicate the record or information which was 
demanded; and 
"(iii) warn the recordkeeper that future failures 
to produce demanded records or information may result 
in the imposition of monetary penalties. 
"(C) RESPONSE TO NOTICE.—^within a resisonable time 
after receiving ¥nritten notice vmder subparagraph (A), the 
recordkeeper shall notify the Customs Service of the steps 
it has taken to prevent a recurrence of the violation. 
"(D) REGULATIONS.—The Secretary shall promulgate 
regulations to implement this paragraph. Such regulations 
may specify the time periods for compliance with a demand 
for information and provide guidelines which define 
repeated violations for purposes of this paragraph. Any 
penalty issued for a recordkeeping violation shall take into 
account the degree of compliance compared to the total 
number of importations, the nature of the demanded 
records and the recordkeeper's cooperation.". 
SEC. 616. JUDICIAL ENFORCEMENT. 
The second sentence of section 510(a) (19 U.S.C. 151(Ka)) is 
amended by inserting "and such court may assess a monetary 
penalt3r** after "as a contempt thereoP. 
SEC. 617. REVIEW OF PROI^STS. 
Section 515 (19 U.S.C. 1515) is amended by inserting at the 
end the following new sulssections: 
"(c) If a protesting party believes that an application for further 
review was erroneously or improperly denied or was denied without 
authority for such action, it may nle with the Commissioner of 
Customs a written request that the denial of the application for 
further review be set aside. Such request must be filed within 
60 days after the date of the notice of the denial. The Commissioner 
of Customs may review such request and, based solely on the 
information before the Customs Service at the time the application 
for further review was denied, may set aside the denial of the 
application for further review and void the denial of protest, if 
appropriate. If the Commissioner of Customs fails to act within 
60 days after the date of the request, the request shall be considered 
denied. All denials of protests are effective irom the date of original 
107 STAT. 2180 
PUBLIC LAW 103-182—DEC. 8, 1993 
denial for purposes of section 2636 of title 28, United States Code. 
If an action is commenced in the Court of International Trade 
that arises out of a protest or an application for further review, 
all administrative action pertaining to such protest or application 
shall terminate and any administrative action taken subsequent 
to the commencement of the action is null and void. 
"(d) If a protest is timely and properly filed, but is denied 
contrary to proper instructions, the Customs Service may on its 
own initiative, or pursuant to a written request by the protesting 
party filed with tne appropriate district director within 90 days 
after the date of the protest denial, void the denial of the protest.". 
SEC. 618. REPEAL OF PROVISION RELATING TO RELIQUIDATION ON 
ACCOUNT OF FRAUD. 
Section 521 (19 U.S.C. 1521) is repealed. 
SEC. 619. PENALTIES RELATING TO MANIFESTS. 
Section 584 (19 U.S.C. 1584) is amended— 
(1) by amending subsection (a)— 
(A) by striking out "appropriate customs officer" wher-
ever it appears and inserting "Customs Service", 
(B) by striking out "officer demanding the same" in 
paragraph (1) and inserting "officer (whether of the Cus-
toms Service or the Coast Guard) demanding the same", 
and 
(C) by inserting "(electronically or otherwise)" after 
"submission" in the last sentence of paragraph (1); and 
(2) by amending subsection (b)— 
(A) by striking out "the appropriate customs officer", 
"he" (except in paragraph (IXF)), and "such officer" wher-
ever thev appear and inserting "the Customs Service", 
(B) by striking out "written" wherever it appears (other 
than paragraph (IXF)), 
(C) by inserting "or electronically transmit" after 
"issue" wherever it appears, and 
(D) by striking out "his intention" in the first sentence 
of paragraph (1) and inserting "intent". 
SEC. 620. UNLAWFUL UNLADING OR TRANSSmPMENT. 
Section 586 (19 U.S.C. 1586) is amended— 
(1) by inserting ", or of a hovering vessel which has received 
or delivered merchandise while outside the territorial sea," 
after "from a foreign port or place" wherever it appears; and 
(2) by amending subsection (f)— 
(A) by striking out "the appropriate customs officer 
of the" and "the appropriate customs officer within the" 
and inserting "the Customs Service at the"; and 
(B) by striking out "the appropriate customs officer 
is" and inserting "the Customs Service is". 
SEC. 621. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEG-
UGENCE; PRIOR DISCLOSURE. 
Section 592 (19 U.S.C. 1592) is amended— 
(1) by inserting "or electronically transmitted data or 
information" after "document" in subsection (aXlXAXi); 
(2) by inserting "The mere nonintentional repetition by 
an electronic system of an initial clerical error does not con-
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2181 
stitute a pattern of negligent conduct." at the end of subsection 
(aX2); 
(3) by amending subsection G))— 
(A) by amending the first sentence of paragraph 
(IXA)-
(i) by striking out "the appropriate customs officer" 
and inserting "the Customs Service", 
(ii) by striking out "he" and inserting "it", and 
(iii) by striking out "his" and inserting "its", and 
(B) by amending paragraph (2)— 
(i) by striking out "the appropriate customs officer" 
wherever it appears and inserting "the Customs Serv-
ice", 
(ii) by striking out "such officer" wherever it 
appears and inserting "the Customs Service", and 
(iii) by striking out "he" wherever it appears and 
inserting "it"; 
(4) by amending subsection (cX4)— 
(A) by striking "time of disclosure or within thirty 
days, or such longer period as the appropriate customs 
officer may provide, after notice by the appropriate customs 
officer of his" in subparagraph (AXi) and by striking out 
"time of disclosure in 30 days, or such longer period as 
the appropriate! customs officer may provide, after notice 
by the appropriate customs officer of his" in subparagraph 
(B), and inserting in each place "time of disclosure, or 
within 30 days (or such longer period as the Customs 
Service may provide) after notice by the Customs Service 
of its"; and 
(B) by inserting after the last sentence the following: 
"For purposes of uiis section, a formal investigation of 
a violation is considered to be commenced with regard 
to the disclosing party and the disclosed information on 
the date recorded in writing by the Customs Service as 
the date on which facts and circumstances were discovered 
or information was received which caused the Customs 
Service to believe that a possibility of a violation of sub-
section (a) existed."; and 
(5) by amending subsection (d)— 
(A) by striking out "the appropriate customs officer^ 
and inserting "the Customs Service", 
(B) by striking out "duties" wherever it appears and 
inserting "duties, taxes, or fees", and 
(C) by inserting ", TAXES OR FEES" after "DUTIES" 
in the sideheading. 
SEC. 622. PENALTIES FOR FALSE DRAWBACK CLAIMS. 
19 USC 1593a. 
(a) AMENDMENT.—Part V of title IV is amended by inserting 
after section 593 the following new section: 
'^EC. 593A. PENALTIES FOR FALSE DRAWBACK CLAIMS. 
"(a) PROHIBITION.— 
"(1) GENERAL RULE.—^No person, by fraud, or negligence— 
"(A) may seek, induce or affect, or attempt to seek, 
induce, or affect, the pajnoient or credit to that person 
or others of any drawback claim by means o
f
— 
107 STAT. 2182 
PUBLIC LAW 103-182—DEC. 8, 1993 
**(i) any document, written or oral statement, or 
electronically transmitted data or information, or act 
which is material and false, or 
"(ii) any omission which is material; or 
"(B) may aid or abet any other person to violate 
subparagraph (A). 
"(2) EXCEPTION.—Clerical errors or mistakes of fact are 
not violations of paragraph (1) unless they are part of a pattern 
of negligent conduct. The mere nonintentional repetition by 
an electronic system of an initial clerical error does not con-
stitute a pattern of negligent conduct. 
*
*
(
b
) PROCEDURES.— 
"
(
1
) 
PREPENALTY 
NOTICE.— 
"(A) IN GENERAL.—If the Customs Service has reason-
able cause to believe that there has been a violation of 
subsection (a) and determines that further proceedings are 
warranted, the Customs Service shall issue to the person 
concerned a written notice of intent to issue a claim for 
a monetary penalty. Such notice shall— 
"(i) identify the drawback claim; 
"(ii) set forth the details relating to the seeking, 
inducing, or affecting, or the attempted seeking, induc-
ing, or £iffecting, or the aiding or procuring of, the 
drawback claim; 
**(iii) specify all laws and regulations allegedly vio-
lated; 
"(iv) disclose all the material facts which establish 
the alleged violation; 
*
*
(
v
) state whether the alleged violation occurred 
as a result of fraud or negligence; 
"(vi) state the estimated actual or potential loss 
of revenue due to the drawback claim, and, taking 
into accoimt all circumstences, the amount of the pro-
posed monetery penalty; and 
"(vii) inform such person that he shall have a 
reasonable opportunity to make representations, both 
oral and written, as to why a claim for a monetorv 
penalty should not be issued in the amount steted. 
*(B) EXCEPTIONS.—The Customs Service may not issue 
a prepenalty notice if the amount of the penalty in the 
penalty claim issued under paragraph (2) is $1,000 or 
less. In such cases, the Ciistoms Service may proceed 
directly with a penalty claim. 
"(U) PRIOR APPROVAL.—^No prepenalty notice in which 
the alleged violation occurred as a result of fraud shall 
be issued without the prior approval of Customs Head-
quarters. 
(2) PENALTY CLAIM.—^After considering representetions, if 
any, made by the person concerned pursuant to the notice 
issued under paragraph (1), the Customs Service shall deter-
mine whether any violation of subsection (a), as alleged in 
the notice, has occurred. If the Customs Service determines 
that there was no violation, the Customs Service shall promptly 
issue a written stetement of the determination to the person 
to whom the notice was sent. If the Customs Service determines 
that there was a violation. Customs shall issue a written pen-
alty claim to such person. The written penalty claim shall 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2183 
specify all changes in the information provided under clauses 
(i) through (vii) of paragraph (IXA). Such person shall have 
a reasonable opportunity imder section 618 to make representa-
tions, both oral £md written, seeking remission or mitigation 
of the monetary penalty. At the conclusion of any proceeding 
under section 618, the Customs Service shall provide to the 
person concerned a written statement which sets forth the 
final determination, and the findings of fact and conclusions 
of law on which such determination is based. 
"(c) MAXIMUM PENALTIES.— 
"(1) FRAUD.—^A fraudulent violation of subsection (a) of 
this section is pimishable by a civil penalty in an amoimt 
not to exceed 3 times the actual or potential loss of revenue. 
"(2) NEGLIGENCE.— 
"(A) IN GENERAL.—A negligent violation of subsection 
(a) is pimishable by a civil penalty in an amount not 
to exceed 20 percent of the actual or potential loss of 
revenue for the 1st violation. 
"(B) REPETITIVE VIOLATIONS.—If the Customs Service 
determines that a repeat negligent violation occurs relating 
to the same issue, the penalty amount for the 2d violation 
shall be in an amount not to exceed 50 percent of the 
total actu£d or potential loss of revenue. The penalty 
amount for each succeeding repetitive negligent violation 
shall be in an amount not to exceed the actual or potential 
loss of revenue. If the same party commits a nonrepetitive 
violation, that violation shall be subject to a penalty not 
to exceed 20 percent of the actual or potential loss of 
revenue. 
"(3) PRIOR DISCLOSURE.— 
"(A) IN GENERAL.—Subject to subparagraph (B), if the 
person concerned discloses the circumstances of a violation 
of subsection (a) before, or without knowledge of the 
commencement of, a formal investigation of such violation, 
the monetary penalty assessed under this subsection may 
not exceed— 
"(i) if the violation resulted from fraud, an amount 
equal to the actual or potential revenue of which the 
United States is or may be deprived as a result of 
overpajnment of the claim; or 
"(ii) if the violation resulted from negligence, an 
amount equal to the interest computed on the basis 
of the prevailing rate of interest applied under section 
6621 of the Internal Revenue Code of 1986 on the 
amount of actual revenue of which the United States 
is or may be deprived during the period that— 
"(I) l)egins on the date of the overpayment 
of the claim; and 
"(II) ends on the date on which the person 
concerned tenders the amount of the overpayment. 
"(B) CONDITION AFFECTING PENALTY LIMITATIONS.—The 
limitations in subparagraph (A) on the amount of the mone-
tary penalty to be assessed under subsection (c) apply 
only if the person concerned tenders the amount of the 
overpayment made on the claim at the time of disclosure, 
or within 30 days (or such longer period as the Customs 
107 STAT. 2184 
PUBLIC LAW 103-182—DEC. 8, 1993 
Service may provide), after notice by the Customs Service 
of its calculation of the amount of the overpayment. 
"(C) BURDEN OF PROOF.—^The person asserting lack 
of knowledge of the commencement of a formal investiga-
tion has the burden of proof in establishing such lack 
of knowledge. 
"(4) COMMENCEMENT OF INVESTIGATION.—For purposes of 
this section, a formal investigation of a violation is considered 
to be commenced with regard to the disclosing party and the 
disclosed information on the date recorded in writing by the 
Customs Service as the date on which facts and circumstances 
were discovered or information was received which caused the 
Customs Service to believe that a possibility of a violation 
of subsection (a) existed. 
"(5) EXCLUSIYITY.—Penalty cledms imder this section shall 
be the exclusive civil remedy for any drawback related violation 
of subsection (a). 
"(d) DEPRIVATION OF LAWFUL REVENUE.—Notwithstanding sec-
tion 514, if the United States has been deprived of lawful duties 
and taxes resulting from a violation of subsection (a), the Customs 
Service shall require that such duties and taxes be restored whether 
or not a moneta^ penalty is assessed. 
*
*
(
e
) DRAWBACK COMPLIANCE PROGRAM.— 
"(1) IN GENERAL.—^After consultation with the drawback 
trade community, the Customs Service shall establish a draw-
back compliance program in which claimants and other parties 
in interest may participate after being certified by the Customs 
Service imder paragraph (2). Participation in the drawback 
compliance program is volimtary. 
"(2) CERTIFICATION.—A party may be certified as a partici-
pant in the drawback compliance program after meeting the 
general requirements established under the program or after 
negotiating an alternative program suited to the needs of the 
party and the Customs Service. Certification requirements shall 
take into account the size and nature of the party's drawback 
program and the volume of claims. In order to be certified, 
the participant must be able to demonstrate that it— 
"(A) understands the legal requirements for filing 
claims, including the nature of the records required to 
be maintained and produced and the time periods involved; 
"(B) has in place procedures to explain the Customs 
Service requirements to those employees that are involved 
in the preparation of claims, and the maintenance and 
production of required records; 
"(C) h
£
U
3 in place procedures regarding the preparation 
of claims and maintenance of required records, and the 
production of such records to the Customs Service; 
"(D) has designated a dependable individual or individ-
uals to be responsible for compliance under the program 
and whose duties include maintaining familiarity with the 
drawback requirements of the Customs Service; 
"(E) has a record maintenance procedure approved by 
the Customs Service for original records, or, if approved 
by the Customs Service, for alternate records or record-
keeping formats other than the original records; and 
"(F) has procedures for notiMng the Customs Service 
of variances to, and violations of, the requirements of the 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2185 
drawback compliance program or any negotiated alter-
native programs, and for taking corrective action when 
notified by the Customs Service for violations or problems 
regarding such program, 
"(f) ALTERNATIVES TO PENALTIES.— 
"(1) IN GENERAL.—When a party that^ 
"(A) has been certified as a participant in the drawback 
compliance program under subsection (e); and 
"(B) is generally in compliance with the appropriate 
procedures and requirements of the program; 
commits a violation of subsection (a), the Customs Service, 
shall, in the absence of firaud or repeated violations, and in 
lieu of a monetaiy penalty, issue a written notice of the violation 
to the party. Repeatisd violations by a party may result in 
the issuance of penalties and removal of certification under 
the program until corrective action, satisfactory to the Customs 
Service, is taken. 
**(2) CONTENTS OF NOTICE.—^A notice of violation issued 
under paragraph (1) shall— 
''(A) state that the party has violated subsection (a); 
"(B) explain the nature of the violation; and 
**(C) warn the party that fixture violations of subsection 
(a) may result in the imposition of monetary penalties. 
"(3) RESPONSE TO NOTICE.—Within a reasonable time aft«r 
receiving written notice imder paragraph (1), the party shall 
notify the Customs Service of the steps it has taken to prevent 
a recurrence of the violation. 
"(g) REPETITIVE VIOLATIONS.— 
"(1) A party who has been issued a written notice under 
subsection (fXl) and subsequently commits a repeat negligent 
violation involving the same issue is subject to the following 
monetary penalties: 
"(A) 2D VIOLATION.—^An amount not to exceed 20 per-
cent of the loss of revenue. 
"(B) 3RD VIOLATION.—An amount not to exceed 50 per-
cent of the loss of revenue. 
"(C) 4TH AND SUBSEQUENT VIOLATIONS.—An amoimt 
not to exceed 100 percent of the loss of revenue. 
"(2) If a party that has been certified as a participant 
in the drawback compliance program under subsection (e) com-
mits an alleged violation which was not repetitive, the party 
shall be issued a 'warning letter*, and, for any subsequent 
violation, shall be subject to the same maximum penalty 
amounts stated in paragraph (1). 
"(h) REGULATION.—^The Secretary shall promulgate regulations 
and guidelines to implement this section. Such regulations shall 
specify that for piirposes of subsection (g), a repeat negligent viola-
tion involving the same issue shall be treated as a repetitive viola-
tion for a maximum period of 3 years. 
"(i) COURT OF INTERNATIONAL TRADE PROCEEDINGS.—Notwith-
st£inding any other provision of law, in any proceeding commenced 
by the United States in the Court of International Trade for the 
recovery of any monetarj^ penalty claimed under this section— 
"(1) all issues, including the amount of the penalty, shall 
be tried de novo; 
107 STAT. 2186 
PUBLIC LAW 103-182—DEC. 8, 1993 
19 use 1593a 
note. 
Regulations. 
Effective date. 
"(2) if the monetary penalty is based on fraud, the United 
States shall have the burden of proof to estabUsh the alleged 
violation by clear and convincing evidence; and 
"(3) if the monetary penalty is based on negligence, the 
United States shall have the burden of proof to establish the 
act or omission constituting the violation, and the alleged viola-
tor shall have the burden of providing evidence that the act 
or omission did not occur as a result of negligence.", 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
applies to drawback claims filed on and after the nationwide oper-
ational implementation of an automated drawback selectivity pro-
gram by the Customs Service. The Customs Service shall publish 
notice of this date in the Customs Bulletin. 
SEC. 623. DfTERPRETIVE RULINGS AND DECISIONS: PUBUC INFORMA-
TION. 
Section 625 (19 U.S.C. 1625) is amended to read as follows: 
'^EC. 625. INTERPRETIVE 
RULINGS 
AND 
DECISIONS; 
PUBUC 
INFORMATION. 
"(a) PUBLICATION.—Within 90 days after the date of issuance 
of any interpretive ruling (including any ruling letter, or internal 
advice memorandimi) or protest review decision under this chapter 
with respect to any customs transaction, the Secretary shall have 
such ruling or decision published in the Customs Bulletin or shall 
otherwise make such ruling or decision available for public inspec-
tion. 
**(b) APPEALS.—^A person may appeal an adverse interpretive 
ruling and any interpretation of any regulation prescribed to imple-
ment such ruling to a higher level of authority within the Customs 
Service for de novo review. Upon a reasonable showing of business 
necessity, any such appeal shall be considered and decided no 
later than 60 days following the date on which the appeal is 
filed. The Secretary shall issue regulations to implement this sub-
section. 
"(c) MODIFICATION AND REVOCATION.—A proposed interpretive 
ruling or decision which would— 
"(1) modify (other than to correct a clerical error) or revoke 
a prior interpretive ruling or decision which has been in effect 
for at least 60 days; or 
"(2) have the effect of modifying the treatment previously 
accorded by the Customs Service to substantially identical 
transactions; 
shall be published in the Customs Bulletin. The Secretary shall 
give interested parties an opportunity to submit, during not less 
than the 30-day period after the date of such publication, comments 
on the correctness of the proposed ruling or decision. After consider-
ation of any comments received, the Secretary shall publish a 
final ruling or decision in the Customs Bulletin within 30 days 
after the closing of the comment period. The final ruling or decision 
shall become effective 60 days after the date of its publication. 
"(d) PUBLICATION OF CUSTOMS DECISIONS THAT LIMIT COURT 
DECISIONS.—A decision that proposes to limit the application of 
a court decision shall be publisned in the Customs Bulletin together 
with notice of opportunity for public comment thereon prior to 
a final decision. 
"(e) PUBLIC INFORMATION.—^The Secretary may make available 
in writing or through electronic media, in an efficient, comprehen-
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2187 
sive and timely manner, all information, including directives, memo-
randa, electronic messages and telexes which contain instructions, 
requirements, methods or advice necessary for importers and 
exporters to comply with the Customs laws and regulations. All 
information whicn may be made available pursuant to this sub-
section shall be subject to any exemption from disclosure provided 
by section 552 of title 5, United States Code.". 
SEC. 624. SEIZURE AUTHORTTY. 
Section 596(c) (19 U.S.C. 1595a(c)) is amended to read as fol-
lows: 
''(c) Merchandise which is introduced or attempted to be intro-
duced into the United States contrary to law shall be treated 
as follows: 
"(1) The merchandise shall be seized and forfeited if it— 
"(A) is stolen, smuggled, or clandestinely imported or 
introduced; 
"(B) is a controlled substance, as defined in the Con-
trolled Substances Act (21 U.S.C. 801 et seq.), and is not 
imported in accordance with applicable law; or 
"(C) is a contraband article, as defined in section 1 
of the Act of 
August 9,1939 (49 U.S.C. App. 781). 
"(2) The merchandise may be seized and forfeited i
f
— 
*
*
(
A
) its importation or entry is subject to any restriction 
or prohibition which is imposed by law relating to health, 
safety, or consiirvation and the merchandise is not in 
compliance with the applicable rule, regulation, or statute; 
"(B) its importation or entry requires a license, permit 
or other author! zation of an agency of the United States 
Government and the merchsuidise is not accompanied by 
such license, permit, or authorization; 
"(C) it is merchandise or packaging in which copjrright, 
trademark, or trade name protection violations are involved 
(including, but not limitea to, violations of section 42, 43, 
or 45 of the Act of July 5, 1946 (15 U.S.C. 1124, 1125, 
or 1127), section 506 or 509 of title 17, United States 
Code, or section 2318 or 2320 of title 18, United States 
Code); 
"(D) it is trade dress merchandise involved in the viola-
tion of a court order citing section 43 of such Act of July 
5,1946(15U.S.C. 1125); 
"(E) it is merchandise which is marked intentionally 
in violation of section 304; or 
"(F) it is merchandise for which the importer has 
received written notices that previous importations of iden-
tical merchandise from the same supplier were found to 
have been marke 
d in violation of section 304. 
"(3) If the importation or entry of the merchandise is subject 
to quantitative restrictions requiring a visa, permit, license, 
or other similar document, or stamp from the United States 
Government or from a foreign government or issuing authority 
pursuant to a bilateral or multilateral agreement, the merchan-
dise shall be subject to detention in accordance with section 
499 unless the appropriate visa, license, permit, or similar 
document or stamp is presented to the Customs Service; but 
if the visa, permit, license, or similar document or stamp which 
is presented in connection with the importation or entry of 
107 STAT. 2188 
PUBLIC LAW 103-182—DEC. 8, 1993 
the merchandise is counterfeit, the merchandise may be seized 
and forfeited. 
"(4) If the merchandise is imported or introduced contrary 
to a provision of law which governs the classification or value 
of merchandise and there are no issues as to the admissibility 
of the merchandise into the United States, it shall not be 
seized except in accordance with section 592. 
"(5) In any case where the seizure and forfeiture of mer-
chandise are required or authorized by this section, the Sec-
retary may— 
**(A) remit the forfeiture under section 618, or 
"(B) permit the exportation of the merchandise, imless 
its release would adversely affect health, safety, or con-
servation or be in contravention of a bilateral or multilat-
eral agreement or treaty.". 
Subtitle B—^National Customs Automation 
Program 
SEC. 631. NATIONAL CUSTOMS AUTOMATION PROGRAM. 
Part I of title IV is amended— 
(1) by striking out 
i9uscprec 
**PART I—DEFrNTTIONS 
14U1. 
and inserting 
"PART I—DEFINITIONS AND NATIONAL 
CUSTOMS AUTOMATION PROGRAM 
"Subpart A—^Definitions"; 
and 
(2) by inserting after section 402 the following: 
"Subpart B—^National Customs Automation 
Program 
19 use 1411. 
"SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM. 
"(a) ESTABUSHMENT.—The Secretary 
shall 
establish 
the 
National Customs Automation Program (hereinafter in this subpart 
referred to as the Trogram') which shall be an automated and 
electronic system for processing commercial importations and shall 
include the following existing and planned components: 
"(1) Existing components: 
"(A) The electronic entry of merchandise. 
"(B) The electronic entry summary of required informa-
tion. 
**(C) The electronic transmission of invoice information. 
"(D) The electronic transmission of manifest informa-
tion. 
"(E) Electronic pajrments of duties, fees, and taxes. 
"(F) The electronic status of liquidation and reliquida-
tion. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2189 
"(G) The electronic selection of high risk entries for 
examination (cargo selectivity and entry summary selectiv-
ity). 
"(2) Planned components: 
"(A) The electronic filing and status of protests. 
"(B) The electronic filing (including remote filing under 
section 414) of entry information with the Customs Service 
at any location. 
"(C) The electronic filing of import activity summary 
statements and reconciliation. 
"(D) The electronic filing of bonds. 
"(E) The electronic pencuty process. 
"(F) The electronic filing of drawback claims, records, 
or entries. 
"(G) Any other component initiated by the Customs 
Service to carry out the goals of this subpart, 
"(b) PARTICIPATION IN PROGRAM.—The Secretary shall by regu- Regulations. 
lation prescribe the eligibility criteria for participation in the Pro-
gram. Participation in the Program is voluntary. 
"SEC. 412. PROGBAM GOALS. 
19 USC 1412. 
The goals of the Program are to ensure that all regulations 
and rulings that are administered or enforced by the Customs 
Service are administered and enforced in a manner that— 
"(1) is imiform and consistent; 
"(2) is as minimally intrusive upon the normal flow of 
business activity as practicable; and 
"(3) improves cc»mpliance. 
<«EC. 413. IMPLEMENTATION AND EVALUATION OF PROGRAM. 
19 USC 1413. 
"(a) OVERALL PROGRAM PLAN.— 
"(1) IN GENERAL.—Before the 180th day after the date 
of the enactment of this Act, the Secretary shall develop and 
transmit to the Committees an overall plan for the Program. 
The overall Program plan shall set forth— 
"(A) a general description of the ultimate configuration 
of the Program; 
"(B) a description of each of the existing components 
of the Program listed in section 411(aXl); and 
"(C) estimates regarding the stages on which planned 
components of the Program listed in section 411(a)(2) will 
be brought on-line. 
"(2) ADDITIONAL INFORMATION.—In addition to the informa-
tion required under paragraph (1), the overall Program plan 
shall include a statement regarding— 
"(A) the extent to which the existing components of 
the Ptogram currently meet, and the planned components 
will meet, the Program goals set forth in section 412; 
and 
"(B) the efliects that the existing components are cur-
rently having, £ind the effects that the planned components 
will likely have, on— 
(i) importers, brokers, and other users of the Pro-
gram, and 
"(ii) Customs Service occupations, operations, proc-
esses, and systems. 
"(b) IMPLEMENTATION PLAN, TESTING, AND EVALUATION.— 
107 STAT. 2190 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(1) IMPLEMENTATION PLAN.—For each of the planned 
components of the Program listed in section 411(aX2), the Sec-
retary shall— 
"(A) develop an implementation plan; 
"(B) test the component in order to assess its viability; 
"(C) evaluate the component in order to assess its 
contribution toward achieving the program ^oals; and 
"(D) transmit to the Committees the implementation 
plan, the testing results, and an evaluation report. 
In developing an implementation plan under subparagraph (A) 
and evaluating components under subparagraph (C), the Sec-
retary shall publish a request for comments in the Customs 
Bulletin and shall consult with the trade commimit^, including 
importers, brokers, shippers, and other affected parties. 
"(2) IMPLEMENTATION.— 
"(A) The Secretary may implement on a permanent 
basis any Program component referred to in paragraph 
(1) on or after the date which is 30 days after paragraph 
dXD) is complied with. 
"(B) For purposes of subparagraph (A), the 30 days 
shall be computed by excluding— 
"(i) the days either House is not in session because 
of an adjournment of more than 3 days to a day certain 
or an ac(}oumment of the Congress sine die, and 
"(ii) any Saturday and Sunday, not excluded under 
*
• • 
clause (i), when either House is not in session. 
"(3) EVALUATION AND REPORT.^The Secretary shall— 
*
*
(
A
) develop a user satisfaction sxirvey of parties 
participating in the Program; 
"(b) evaluate the results of the user satisfaction survey 
on a biennial basis (fiscal years) and transmit a report 
J 
to the Committees on the evaluation by no later than 
the 90th day after the close of each 2d fiscal year; 
"(C) with respect to the existing Program component 
listed in section 411(aXlXG) transmit to the Committees— 
"(i) a written evaluation of such component before 
the 180th day after the date of the enactment of this 
section and before the implementation of tiie planned 
Program components listed in section 411(aX2) (B) and 
' 
-' 
(C),and 
' 
"(ii) a report on such component for each of the 
3 full fiscal years occurring after the date of the enact-
ment of this section, which report shall be transmitted 
f 
not later than the 90th day after the close of each 
such year; and 
"(D) not later than the 90th day after the close of 
' 
fiscal year 1994, and annually thereafter through fiscal 
year 2000, transmit to the Committees a written evaluation 
with respect to the implementation and effect on users 
of each oi the planned Program components listed in section 
411(aX2). 
In carrying out the provisions of this paragraph, the Secretary 
shall publish requests for comments in the Customs Bulletin 
and shall consult with the trade community, including import-
ers, brokers, shippers, and other affected parties. 
"(c) • COMMITTEES.—^For purposes of this section, the term 
'Committees' means the Committee on Ways and Means of the 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2191 
House of Representatives and the Committee on Finance of the 
Senate. 
"SEC. 414. REMOTE LOCATION FILING. 
19 USC 1414. 
"(a) CORE ENTRY INFORMATION.— 
"(1) IN GENERAL.—^A Program participant may file electroni-
cally an entiy of merchandise with the Customs Service from 
a location other than the district designated in the entry for 
examination (hereafter in this section referred to as a 'remote 
location') i
f
— 
"(A) the Customs Service is satisfied that the partici-
pant has the capabilities referred to in paragraph (2XA) 
regarding such method of filing; £md 
"(B) the participant elects to file from the remote loca-
tion. 
"(2) REQUIREMENirS.-
"(A) IN GENERAL.—In order to qualify for filing from 
a remote location, a Program participant must have the 
capability to provide, on an entry-by-entry basis, for the 
following: 
"(i) The electronic entry of merchandise, 
"(ii) The electronic entry summary of reqmred 
information. 
"(iii) The electronic transmission of invoice 
information (when required by the Customs Service), 
"(iv) The electronic pa3mient of duties, fees, and 
taxes. 
"(v) Such other electronic capabilities within the 
existing or planned components of the Program as 
the Secretary shall by regulation require. 
"(B) RESTRICTION ON EXEMPTION FROM REQUIRE-
MENTS.—^The Customs Service may not permit any exemp-
tion or waiver from the requirements established by this 
section for participation in remote entry filing. 
"(S) CONDITIONS ON FILING UNDER THIS SECTION.—The Sec-
retary may prohibit a Program participant from participating 
in remote location filing, and may remove a Program participant 
from participation in remote location filing, if the participant— 
"(i) fails to meet all the compliance requirements and 
operational standards of remote location filing; or 
"(ii) fails to eidhere to all applicable laws and regula-
tions. 
"(4) ALTERNATIVE FILING.—^Any Program participant that 
is eligible to file entrjt information electronically from a remote 
location but chooses not to do so in the case of £my entry 
must file any paper documentation for the entry at the des-
ignated location referred to in subsection (d). 
*
*
(
b
) ADDITIONAL ENTRY INFORMATION.— 
"(1) IN GENERAL.—^A Program participant that is eligible 
under subsection (a) to file entiy information from a remote 
location may, if the Customs Service is satisfied that the partici-
pant meets the requirements imder paragraph (2), also elec-
tronically file from the remote location additional information 
that is required by the Customs Service to be presented before 
the acceptance of entity summary information and at t^e time 
of acceptance of entry summsiry information. 
107 STAT. 2192 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(2) REQUIREMENTS.—The Secretaiy shall publish, and 
periodically update, a list of those capabilities within the exist-
ing and planned components of the Program that a Program 
participant must have for purposes of this subsection. 
"(3) FlUNG OF ADDITIONAL INFORMATION.— 
"(A) IF INFORMATION ELECTRONICALLY ACCEPTABLE.— 
A Program participant that is eligible under paragraph 
(1) to file additionsd information from a remote location 
shall electronically file all such information that the Cus-
toms Service can accept electronically. 
"(B) ALTERNATIVE FILING.—If the Customs Service can-
not accept additional information electronically, the Pro-
gram participant shall file the paper documentation with 
respect to the information at the appropriate filing location. 
"(C) APPROPRIATE LOCATION.—^For purposes of subpara-
graph (B), the 'appropriate location* is— 
"(i) before January 1, 1999, a designated location; 
and 
"(ii) afl«r December 31,1998— 
"(I) if the paper documentation is required 
for release, a designated location; or 
"(11) if the paper documentation is not required 
' — 
for release, a remote location designated by the 
Customs Service or a designated location. 
"(D) OTHER.—A Program participant that is eligible 
imder paragraph (1) to file additional information electroni-
cally from a remote location but chooses not to do so 
must file the paper docimientation with respect to the 
information at a designated location. 
"(c) POST-ENTRY SUMMARY INFORMATION.—A Program partici-
pant that is eligible to file electronically entry information under 
subsection (a) and additional information under subsection (b) from 
a remote location may file at any remote location designated by 
the Customs Service any information required by the Customs 
Service after entry summary. 
"(d) DEFINITIONS.—As used in this section: 
"(1) The term 'designated location' means a customs ofilce 
located in the customs district designated by the entry filer 
for purposes of customs examination of the merchandise. 
"(2) The term *Program participant' means, with respect 
to an entry of merchandise, any party entitled to make the 
entry under section 484(aX2XB).''. 
SEC. 632. DRAWBACK AND REFUNDS. 
(a) AMENDMENTS.—Section 313 (19 U.S.C. 1313) is amended 
as follows: 
(1) Subsection (a) is amended— 
(A) by inserting "or destruction under customs super-
vision" after "Upon the exportation"; 
(B) by inserting "provided that those articles have not 
been used prior to such exportation or destruction," after 
"manufactured or produced in the United States with the 
use of imported merchandise,"; 
(C) by inserting "or destruction" after "refunded upon 
the exportation"; and 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2193 
(D) by striking out "wheat imported after ninety days 
after the date of me enactment of this Act" and inserting 
"imported wheat". 
(2) Subsection (b) is amended— 
(A) by striking out "duty-free or domestic merchandise" 
and inserting "any other merchandise (whether imported 
or domestic)"; 
(B) by inserting ", or destruction under customs super-
vision," after "there shall be allowed upon the exportation"; 
(C) by inserting "or destroyed" after "notwithstanding 
the fact that none of the imported merchandise may actu-
ally have been used in the manufacture or production of 
the exported"; 
(D) by inserting ", but only if those articles have not 
been used prior to such exportation or destruction" after 
"an amount of drawback equal to that which would have 
been allowable had the merchandise used therein been 
imported"; and 
(E) by inserting "or destruction imder customs super-
vision" after "but the total amoimt of drawback allowed 
upon the exportation". 
(3) Subsection (c) is amended to read as follows: 
"(c) MERCHANDISE NOT CONFORMING TO SAMPLE OR SPECIFICA-
TIONS.—^Upon the exportatiion, or destruction imder the supervision 
of the Customs Service, of merchandise— 
"(1) not conforming to sample or specifications, shipped 
without the consent of the consignee, or determined to be 
defective as of the time of importation; 
"(2) upon which the duties have been paid; 
"(3) which has been entered or withdrawn for consumption; 
and 
"(4) which, within 3 years after release from the custody 
of the Customs Service, has been returned to the custody of 
the Customs Service for exportation or destruction under the 
supervision of the Customs Service; 
the full amoimt of the duties paid upon such merchandise, less 
1 percent, shall be refunded as drawback.". 
(4) Subsection (j) is amended to read as follows: 
"(j) UNUSED MERCHANDISE DRAWBACK.— 
"(1) If imported merchandise, on which was paid any duty, 
tax, or fee imposed imder Federal law because of its 
importation— 
"(A) is, before the close of the 3-year period beginning 
on the date of importation— 
"(i) exported, or 
"(ii) destroyed under customs supervision; and 
"(B) is not used within the United States before such 
exportation or destruction; 
then upon such exportation or destruction 99 percent of the 
amount of each duty, tax, or fee so paid shall be refunded 
as drawback. The exporter (or destroyer) has the right to claim 
drawback under this paragraph, but may endorse such right 
to the importer or any intermediate party. 
"(2) If there is, with respect to imported merchandise on 
which was paid any duty, tsix, or fee imposed under Federal 
law because of its importation, any other merchandise (whether 
imported or domestic), that— 
107 STAT. 2194 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(A) is commercially interchangeable with such 
imported merchandise; 
"(B) is, before the close of the 3-year period beginning 
on the date of importation of the imported mercheindise, 
either exported or destroyed under customs supervision; 
and 
"(C) before such exportation or destruction— 
"(i) is not used Mrithin the United States, and 
"(ii) is in the possession of, including ownership 
while in bailment, in leased facilities, in transit to, 
or in any other manner under the operational control 
of, the party claiming drawback imder this paragraph, 
if that party— 
"(I) is the importer of the imported merchan-
dise, or 
"(II) received from the person who imported 
and paid any duty due on the imported merchan-
dise a certificate of delivery transferring to the 
party the imported merchandise, commercially 
interchangeable merchandise, or any combination 
of imported and commercially interchangeable 
merchandise (and any such transferred merchan-
dise, regardless of its origin, will be treated as 
the imported merchandise and any retained mer-
chandise will be treated as domestic merchandise); 
then upon the exportation or destruction of such other 
merchandise the amount of each such duty, tax, and fee 
paid regarding the imported merchandise shall be refunded 
as drawback, but in no case mav the total drawback on 
the imported merchandise, whether available under this 
paragraph or any other provision of law or any combination 
thereof, exceed 99 percent of that duty, tax, or fee. 
**(3) The performing of any operation or combination of 
operations (including, but not limited to, testing, cleaning, 
repacking, inspecting, sorting, refurbishing, freezing, blending, 
repairing, reworking, cutting, slitting, adjusting, replacing 
components, relabelmg, disassembling, ana unpacking), not 
amounting to manufacture or production for drawback purposes 
under the preceding provisions of this section on— 
"(A) the imported merchandise itself in cases to which 
paragraph (1) applies, or 
"(B) the commercially interchangeable merchandise in 
cases to which paragraph (2) applies, 
shall not be treated as a use of that merchandise for purposes 
of applying paragraph (IXB) or (2X0).". 
(5) Subsection (1) is amended by striking out "the fixing 
of a time limit within which drawback entries or entries for 
refund under any of the provisions of this section or section 
309(b) shall be filed and completed," and inserting "the author-
ity for the electronic submission of drawback entries". 
(6) Subsection (p) is amended to read as follows: 
"(p) SUBSTITUTION OF FINISHED PETROLEUM DERIVATIVES.— 
"(1) IN GENERAL.—^Notwithstanding any other provision of 
this section, i
f
— 
"(A) an article (hereafter referred to in this subsection 
as the 'exported article') of the same kind and quality 
as a qualified article is exported; 
•• 
C 
• 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2195 
"(B) the requirements set forth in paragraph (2) are 
met; and 
"(C) a drawback claim is filed regarding the exported 
article; 
the amoimt of the duties paid on, or attributable to, such 
qualified article shall be refimded as drawback to the drawback 
claimant. 
"(2) REQUIREMENTS.—^The requirements referred to in para-
graph (1) are as follows: 
"(A) The exporter of the exported article— 
"(i) manufactured or produced the qualified article 
in a quantity equal to or greater than the quantity 
of the exported article, 
"(ii) purchased or exchanged, directly or indirectly, 
the qualified article from a manufacturer or producer 
described in subsection (a) or (b) in a quantity equal 
to or greater than the quantity of the exported article, 
"(iii) imported the qualified article in a quantity 
equal to or greater than the quantity of the exported 
article, or 
"(iv) purchased or exchanged, directly or indirectly, 
an imported qualified article from an importer in a 
quantity equal to or greater than the quantity of the 
exported article. 
"(B) In the C
£
U
3
e of the requirement described in 
subparagraph (AXii), the manufacturer or producer pro-
duced the qualified article in a quantity equal to or greater 
than the quantity of the exported article. 
"(C) In the case of the requirement of subparagraph 
(AXi) or (AXii), the exported article is exported during 
the period that the qualified article described in subpara-
graph (AXi) or (AXii) (whichever is applicable) is manufac-
tured or produced, or within 180 days after the close of 
such period. 
"(D) In the case of the requirement of subparagraph 
(AXi) or (AXii), the specific petroleimi refinery or production 
facUity which made the qualified article concerned is identi-
fied. 
"(E) In the case of the requirement of subparagraph 
(AXiii) or (AXiv), the exported article is exported within 
180 days after the date of entry of an imported qualified 
article described in subparagraph (AXiii) or (AXiv) (which-
ever is appUcable). 
"(F) Except as otherwise specifically provided in this 
subsection, the drawback claimant complies with all 
requirements of this section, including providing certifi-
cates which esteblish the drawback eligibility of articles 
for which drawback is claimed. 
"(G) The manufacturer, producer, importer, exporter, 
and drawback claimant of the qualified article and the 
exported article maintain all records required by regulation. 
"(3) DEFINITION OF QUALIFIED ARTICLE, ETC.—For purposes 
of this subsection— 
"(A) The term 'qualified article' means an article— 
*(i) described in— 
69-194 O - 94 - 9 : QL. 3 Part 3 
107 STAT. 2196 
PUBLIC LAW 103-182—DEC. 8, 1993 
. . 
"(I) headings 2707, 2708, 2710, 2711, 2712, 
2713, 2714, 2715, 2901, and 2902 of the Har-
monized Tariff Schedule of the United States, or 
"(ID headings 3901 through 3914 of such 
Schedule (as such headings apply to liquids, 
pastes, powders, granules, and flakes), and 
(ii) which is— 
"(I) manufactured or produced as described 
in subsection (a) or (b) from crude petroleimi or 
a petroleum derivative, or 
"(II) imported duty-paid. 
' 
"(B) An exportea article is of the same kind and quality 
as the qualified article for which it is substituted under 
this subsection if it is a product that is commercially inter-
changeable with or referred to under the same eignt-digit 
classification of the Harmonized Tariff Schedule of the 
United States as the qualified article. 
"(C) The term 'drawback claimant' means the exporter 
of the exported article or the refiner, producer, or importer 
of such article. Any person eligible to file a drawback 
claim under this subparagraph may designate another per-
son to file such cledm. 
"(4) LIMITATION ON DRAWBACK.—The amount of drawback 
payable under this subsection shall not exceed the amount 
of drawback that would be attributable to the article— 
"(A) manufactured or produced under subsection (a) 
or (b) by the manufacturer or producer described in clause 
(i) or (ii) of paragraph (2XA), or 
"(B) imported under clause (iii) or (iv) of paragraph 
(2XA).''. 
(7) The following new subsections are inserted after sub-
section (p): 
"(q) PACKAGING MATERIAL.—^Packaging material, when used 
on or for articles or merchandise exported or destroyed under sub-
section (a), (b), (c), or (j), shall be eligible under such subsection 
for refund, as drawback, of 99 percent of any duty, tax, or fee 
imposed under Federal law on tne importation of such material, 
"(r) FILING DRAWBACK CLAIMS.— 
"(1) A drawback entry and all documents necessary to 
complete a drawback claim, including those issued by the Cus-
toms Service, shall be filed or applied for, as applicable, within 
3 years after the date of exportation or destruction of the 
articles on which drawback is claimed, except that any landing 
certificate required by regulation shall be filed within the time 
limit prescribed in such regulation. Claims not completed within 
the 3-year period shall be considered abandoned. No extension 
will be gr£uited unless it is established that the Customs Service 
was responsible for the untimely filing. 
"(2) A drawback entry for refund filed pursuant to any 
subsection of this section shall be deemed filed pursuant to 
any other subsection of this section should it be determined 
that drawback is not allowable under the entry as originally 
filed but is allowable under such other subsection, 
"(s) DESIGNATION OF MERCHANDISE BY SUCCESSOR.— 
"(1) For purposes of subsection (b), a drawback successor 
may designate imported merchandise used by the predecessor 
before the date of succession as the basis for drawback on 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2197 
articles manufactured by the drawback successor after the date 
of succession. 
"(2) For purposes of subsection (jX2), a drawback successor 
may designate— 
"(A) imported merchandise which the predecessor, 
before tiie date of succession, imported; or 
"(B) imported merchandise, commercially^ interchange-
able merchandise, or any combination of imported and 
commercially interchangeable merchandise for which the 
successor received, before the date of succession, from the 
person who imported and paid any duty due on the 
imported merchandise a certificate of delivery transferring 
to the successor such merchandise; 
as the basis for drawback on merchandise possessed by the 
drawback successor afler the date of succession. 
"(3) For purposes of this subsection, the term 'drawback 
successor* means an entity to which another entity (in this 
subsection referred to as the 'predecessor*) has transferred by 
written agreement, merger, or corporate resolution— 
^ 
"(A) all or substantially all of the rights, privileges, 
immunities, powers, duties, and liabilities of the prede-
cessor; or 
"(B) the assets and other business interests of a divi-
sion, plant, or other business unit of such predecessor, 
but only if in such transfer the value of the transferred 
realty, personalty, and intangibles (other than drawback 
rights, inchoate or otherwise) exceeds the value of all trans-
ferred drawback rights, inchoate or otherwise. 
"(4) No drawback shall be paid under this subsection until 
either the predecessor or the drawback successor (who shall 
also certifyr that it has the predecessor's records) certifies that— 
"(A) the transferred merchandise was not and will 
not be claimed by the predecessor, and 
"(B) the predecessor did not and will not issue any 
certificate to any other person that would enable that per-
son to cltdm drawback, 
"(t) DRAWBACK CERTIFICATES.—^Any person who issues a certifi-
cate which would enable another person to claim drawback shall 
be subject to the recordkeeping provisions of this chapter, with 
the retention period beginning on the date that such certificate 
is issued. 
"(u) EuGiBiuTY O
F ENTERED OR WITHDRAWN MERCHANDISE.— 
Imported merchandise that has not been regularly entered or with-
drawn for consumption shall not satisfy any requirement for use, 
exportation, or destruction imder this section. 
"(v) MULTIPLE DRAWBACK CLAIMS.—Merchandise that is 
exported or destroyed to satisfy any claim for drawback shall not 
be the basis of any other claim for drawback; except that appropriate 
credit and deductions for claims covering components or ingredients 
of such merchandise shall be made in computing drawback pay-
ments.". 
(b) APPUCATION OF AMENDMENT TO FINISHED PETROLEUM I9USCI313 
DERIVATIVES.—Notwithstanding section 514 of the Tariff Act of »o*e 
1930 (19 U.S.C. 1514) or anv other provision of law, the amendment 
made by paragraph (6) of subsection (a) shall apply to^ 
(1) claims filed or liquidated on or after January 1, 1988, 
and 
107 STAT. 2198 
PUBLIC LAW 103-182—DEC. 8, 1993 
(2) claims that are unliquidated, under protest, or in litiga-
tion on the date of the enactment of tiiis Act. 
SEC. 
6
3
3
. 
EFFECTIVE 
DATE 
OF 
RATES 
OF 
DUTY. 
Section 315 (19 U.S.C. 1315) is amended— 
Regulations. 
(1) by Striking out "appropriate customs officer in the form 
and manner prescribed by r^ulations of the Secretary of the 
Treasury," in the first sentence of subsection (a) and inserting 
"Customs Service by written, electronic or such other means 
as the Secretary by regulation shall prescribe,"; 
(2) by striking out "ciistoms custodjr" in the first sentence 
of subsection (b) and inserting "custody of the Customs Service"; 
and 
} 
(3) by striking out "paragraph 813" in subsection (c) and 
inserting "chapter 98 of the Harmonized Tariff Schedule of 
the United States". 
SEC. 634. DEFINITIONS. 
Section 401 (19 U.S.C. 1401) is amended— 
(1) by amending subsection (k) to read as follows: 
"(k) The term *hovering vessel* means— 
"(1) any vessel which is found or kept off the coast of 
the United States within or without the customs waters, if, 
from the history, conduct, character, or location of the vessel, 
it is reasonable to believe that such vessel is being used or 
may be used to introduce or promote or facilitate the introduc-
tion or attempted introduction of merchandise into the United 
States in violation of the laws of the United States; and 
"(2) any vessel which has visited a vessel described in 
paragraph (1)."; and 
(2) by inserting at the end thereof the foUoMang new sub-
sections: 
"(n) The term 'electronic transmission' means the transfer of 
data or information through an authorized electronic data inter-
cheinge system consisting of, but not limited to, computer modems 
and computer networks. 
"(o) The term 'electronic entry* means the electronic trans-
mission to the Customs Service of— 
"(1) entry information required for the entry of merchan-
dise, and 
"(2) entry summary information required for the classifica-
tion and appraisement of the merchandise, the verification 
of statistical information, and the determination of compliance 
with applicable law. 
"(p) The term 'electronic data interchange system* means any 
estabhshed mechanism approved by the Commissioner of Customs 
through which information can be transferred electronically. 
"^) The term 'National Customs Automation Program' means 
the program established imder section 411. 
"(r) The term 'import activity summary statement* refers to 
data or information transmitted electronically to the Customs Serv-
ice, in accordance with such regulations as the Secretary prescribes, 
at the end of a specified period of time which enables the Customs 
Service to assess properly the duties, taxes and fees on merchandise 
imported during that period, collect accurate statistics and deter-
mine whether any other applicable requirement of law (other than 
a requirement relating to release fi:t>m customs custody) is met. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2199 
"(s) The term Reconciliation' means an electronic process, initi-
ated at tiie request of an importer, under which the elements 
of an entry, other than those elements related to the admissibility 
of the merchandise, that are undetermined at the time of entry 
summary are provided to the Customs Service at a later time. 
A reconciliation is treated as an entry for purposes of liquidation, 
reliquidation, and protest.". 
SEC. 635. MANIFESTS. 
Section 431 (19 U.S.C. 1431) is amended— 
(1) hy amending subsections (a) and (b) to read as follows: 
**(a) IN GENERAL.—^^Every vessel required to make entry under 
section 434 or obtain clearance under section 4197 of the Revised 
Statutes of the United States (46 U.S.C. App. 91) shall have a 
manifest that complies with the requirements prescribed imder 
subsection (d). 
*
*
(
b
) PRODUCTION OF MANIFEST.—^Any manifest required by the 
Customs Service shall I
b
e signed, produced, delivered or electroni-
cally transmitted by the master or person in charge of the vessel, 
aircraft, or vehicle, or by any other authorized agent of the owner 
or operator of the vessel, aircraft, or vehicle in accordance with 
the requirements prescribed under subsection (d). A manifest may 
be supplemented b
^
r bill of lading data supplied by the issuer 
of sucii bill. If any irregularity of omission or commission occurs 
in any way in respect to any manifest or bill of lading data, 
the owner or operator of the vessel, aircraft or vehicle, or any 
party responsible for such irregularity, shall be liable for any fine 
or penalty prescribed by law with respect to such irregularity. 
The Customs Service may take appropriate action against any 
of the parties.**; and 
(2) by inserting after subsection (c) the following new sub-
section: 
"(d) REGULATIONS.— 
"(1) IN GENERAL,.-The Secretary shall by regulation— 
"(A) speci^»r the form for, and the information and 
data that must be contained in, the manifest required 
by subsection (a); 
"(B) allow, at the option of the individual producing 
the manifest and subject to paragraph (2), letters and 
documents shipments to be accounted for by summary 
manifesting procedures; 
"(C) prescriibe the manner of production for, and the 
delivery for electronic transmittal of, the manifest required 
by subsection (a); and 
"(D) prescribe the manner for supplementing manifests 
with bill of lading data under subsection (b). 
"(2) LETTERS AND DOCUMENTS SHIPMENTS.—For purposes 
of paragraph (IXB)— 
*
*
(
A
) the Customs Service may require with respect 
to letters and documents shipments— 
"(i) that they be segregated by country of origin, 
and 
"(ii) additional examination procedures that are 
not necessary for individually manifested shipments; 
"(B) standard letter envelopes and standard document 
packs shall be segregated from larger document shipments 
for purposes of customs inspections; and 
107 STAT. 2200 
PUBLIC LAW 103-182—DEC. 8, 1993 
Regulations. 
"(C) the term letters and documents' means— 
"(i) data described in General Headnote 4(c) of 
the Harmonized Tariff Schedule of the United States, 
"(ii) securities and similar evidences of value 
described in heading 4907 of such Schedule, but not 
monetary instruments defined pursuant to chapter 53 
of title 31, United States Code, and 
"(iii) personal correspondence, whether on paper, 
cards, photographs, tapes, or other media.". 
SEC. 636. INVOICE CONTENTS. 
Section 481 (19 U.S.C. 1481) is amended— 
(1) by amending subsection (a)— 
(A) by amending the matter preceding paragraph (1) 
to read as follows: "IN GENERAL.—All invoices of merchan-
dise to be imported into the United States and any elec-
tronic equivalent thereof considered acceptable by the Sec-
retary in regulations prescribed under this section shall 
set forth, in written, electronic, or such other form as 
the Secretary shall prescribe, the following:", 
(B) by amending paragraph (3) to read as follows: 
"(3) A detailed description of the merchandise, including 
the commercial name by which each item is known, the grade 
or quality, and the marks, numbers, or sjonbols imder which 
sold by the seller or manufacturer in the country of exportation, 
together with the marks and numbers of the packages in which 
the merchandise is packed;", and 
(C) by amending paragraph (10) to read as follows: 
**(10) Any other fact that the Secretary may by regulation 
require as being necessary to a proper appraisement, examina-
tion and classification of tne merchandise. ; 
(2) by amending subsection (c) to read as follows: 
"(c) IMPORTER PROVISION OF INFORMATION.—Anv information 
required to be set forth on an invoice may alternatively be provided 
by any of the parties qualifying as an 'importer of record' imder 
section 484(aX2XB) by such means, in such form or manner, and 
within such time as the Secretary shall by regulation prescribe."; 
and 
(3) by inserting before the period at the end of subsection 
(d) the following: and may allow for the submission or elec-
tronic transmission of partial invoices, electronic equivalents 
of invoices, bills, or other documents or parts thereof, required 
under this section". 
SEC. 637. ENTRY OF MERCHANDISE. 
(a) AMENDMENTS TO SECTION 484.—Section 484 (19 U.S.C. 
1484) is amended to read as follows: 
«SEC. 484. ENTRY OF MERCHANDISE. 
"(a) REQUIREMENT AND TIME.— 
"(1) Except as provided in sections 490, 498, 552, 553, 
and 336(j), one of the parties qualifying as 'importer of record' 
under paragraph (2XB), either in person or by an agent author-
ized by the party in writing, shall, using reasonable care— 
"(A) make entry therefor by filing with the Customs 
Service— 
"(i) such documentation or, pursuant to an elec-
tronic data interchange system, such information as 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2201 
is necessary to enable the Customs Service to deter-
mine whether the merchandise may be released from 
customs custody, and 
"(ii) notification whether an import activity sum-
mary statement will be filed; and 
"(B) complete the entry by filing with the Customs 
Service the declared value, classification and rate of duty 
applicable to tlie merchandise, and such other documenta-
tion or, piirsuant to an electronic data interchange system, 
such other information as is necessary to enable the Cus-
toms Service to— 
"(i) properly assess duties on the merchandise, 
''(ii) collect accurate statistics with respect to the 
merchandise, and 
"(iii) determine whether any other applicable 
requirement of law (other than a reqmrement relating 
to release from customs custody) is met. 
**(2XA) The docimientation or information required under Regulations. 
paragraph (1) with respect to any imported merchandise shall 
be filed or transmitted in such manner and within such time 
periods as the Secretary shall by regulation prescribe. Such 
regulations shall provide for the filing of import activity sum-
mary statements, (:x)vering entries or warehouse withdrawals 
made during a calendar month, within such time period £is 
is prescribed in regulations but not to exceed the 20th day 
following such calendar month. 
"(B) When an entry of merchandise is made under this 
section, the reqmred documentation or information shall be 
filed or electronically transmitted either by the owner or pur-
chaser of the merchandise or, when appropriately designated 
by the owner, purchaser, or consignee of the merchandise, 
a person holding a valid license under section 641. When a 
consignee declares on entry that he is the owner or purchaser 
of merchandise the Customs Service may, without liability, 
accept the declaration. For the purposes of this Act, the 
importer of record must be one of the parties who is eligible 
to file the documentation or information required by this sec-
tion. 
"(C) The Secretary, in prescribing regulations to carry out 
this subsection, shall establish procedures which insure the 
accuracy and timeliness of import statistics, particularly statis-
tics relevant to the classification and valuation of imports. 
Corrections of erroi*s in such statistical data shall be transmit-
ted immediately to the Director of the Bureau of the Census, 
who shall make corrections in the statistics maintained by 
the Bureau. The Secretary shall also provide, to the maximimi 
extent practicable, for the protection of the revenue, the enforce- 
-
ment of laws govciming the importation and exportation of 
merchandise, the facilitation of the commerce of the United 
States, and the equal treatment of all importers of record 
of imported merchandise. 
"(b) RECONCILIATIOI^I.— 
"(1) IN GENEii\L.—^A party that electronically transmits 
an entry summary or import activity siunmary statement may 
at the time of filing such summaiy or statement notify the 
Customs Service of his intention to file a reconciliation pursuant 
to such regulations as the Secretary may prescribe. Such rec-
107 STAT. 2202 
PUBLIC LAW 103-182—DEC. 8, 1993 
onciliation must be filed by the importer of record within such 
time period as is prescribed by regulation but no later than 
15 months following the filing of the entry simimary or import 
activity summary statement; except that the prescribed time 
period for reconciliation issues relating to the assessment of 
antidimiping and countervailing duties shall require filing no 
later than 90 dajrs after the Customs Service advises the 
importer that a period of review for antidumping or countervail-
ing duty purposes has been completed. Before filing a reconcili-
ation, an importer of record shall post bond or other security 
pursuant to such regulations as the Secretary may prescribe. 
"(2) REGULATIONS REGARDING AD/CV DUTIES.—The Sec-
retary shall prescribe, in consultation with the Secretary of 
Commerce, such regulations as are necessary to adapt the 
reconciliation process for use in the collection of antidumping 
and coimtervailing duties. 
"(c) RELEASE OF MERCHANDISE.—The Customs Service may per-
mit the entry and release of merchandise from customs custody 
in accordance with such regulations as the Secretary may prescribe. 
No officer of the Customs Service shall be liable to any person 
with respect to the delivery of merchandise released from customs 
custody in accordance with such regulations. 
"(d) SIGNING AND CONTENTS.—Entries shall be signed by the 
importer of record, or his agent, unless filed pursuant to an elec-
tronic data interchange system. If electronically filed, each trans-
mission of data shall be certified by an importer of record or 
his agent, one of whom shall be resident in the United States 
for purposes of receiving service of process, as being true and 
correct to the best of his knowledge and belief, and such trans-
mission shall be binding in the same manner and to the same 
extent as a signed document. The ent^ shall set forth such facts 
in regard to the importation as the Secretary may require and 
shall be accompanied by such invoices, bills of lading, certificates, 
and documents, or their electronically submitted equivalents, as 
are required by regulation. 
"(e) PRODUCTION OF INVOICE.—^The Secretary may provide by 
regulation for the production of an invoice, parts thereof, or the 
electronic equivalents thereof, in such manner and form, and under 
such terms and conditions, as the Secretary considers necessary. 
"(f) STATISTICAL ENUMERATION.—The Secretary, the Secretary 
of Commerce, and the United States International Trade Commis-
sion shall establish from time to time for statistical purposes an 
enumeration of articles in such detail as in their judgment may 
be necessary, comprehending all merchandise imported into the 
United States and exported from the United States, and shall 
seek, in coi^junction with statistical programs for domestic produc-
tion and programs for achieving international harmonization of 
trade statistics, to establish the comparability thereof with such 
enumeration of articles. All import entries ana export declarations 
shall include or have attached thereto an accurate statement speci-
fying, in terms of such detailed enumeration, the kinds and quan-
tities of all merchandise imported and exported and the value 
of the total quantity of each kind of article. 
"(g) STATEMENT OF COST OF PRODUCTION.—Under such regula-
tions as the Secretary may prescribe, the Customs Service may 
require a verified statement from the manufacturer or producer 
showing the cost of producing the imported merchandise, if the 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2203 
Customs Service considers such verification necessary for the 
appraisement of such merchandise. 
*
*
(
h
) ADMISSIBILITY OF DATA ELECTRONICALLY TRANSMITTED.— 
Any entry or other information transmitted hy means of an author-
ized electronic data interchange system shall be admissible in anv 
and all administrative and judicial proceedings as evidence of such 
entry or information.". 
(b) AMENDMENT TO SECTION 771.—Section 771 (19 U.S.C. 1677) 
is amended by adding at the end the following new paragraph: 
"(23) ENTRY.—The term 'entry* includes, in appropriate 
circimistances as determined by the administering authority, 
a reconciliation entry created under a reconciliation process, 
defined in section 401(s), that is initiated by an importer. 
The liability of an importer under an antidumping or counter-
vailing duty proceeding for entries of merchandise subject to 
the proceemng will attach to the corresponding reconciliation 
entry or entries. Suspension of liquidation of the reconciliation 
entry or entries, for the purpose of enforcing this title, is 
equivalent to the suspension of liquidation of the corresponding 
individual entries; but the suspension of liquidation of the 
reconciliation entry or entries for such purpose does not pre-
clude liquidation for any other purpose.". 
SEC. 
6
3
8
. 
APPRAISEMENT 
AND 
OTHER 
PROCEDURES. 
Section 500 (19 U.S.C. 1500) is amended— 
(1) by striking out The appropriate customs officer" and 
inserting The Customs Service ; 
(2) by striking out "appraise" in subsection (a) and inserting 
"fix the final appraisement oF; 
(3) by striking out "ascertain the" in subsection (b) and 
inserting "fix the fmal"; 
(4) by amending subsection (c)— 
(A) by inserting "final" after "fix the", and 
(B) by inserting ", taxes, and fees" after "duties" wher-
ever it appears; andf 
(5) by amending subsections (d) and (e) to read as follows: 
"(d) liquidate the entry and reconciliation, if any, of such 
merchandise; and 
"(e) give or transmit, pursuant to an electronic data inter- Regulations. 
change system, notice of such liquidation to the importer, his 
consignee, or agent in such form and manner as the Secretary 
shall by regulation prescribe.". 
SEC 639. VOLUNTARY REUQUTOATIONS. 
Section 501 (19 U.S.C. 1501) is amended— 
(1) by striking out "the appropriate customs officer on 
his own initiative" ;and inserting the Customs Service"; 
(2) by inserting "or transmitted" after "given" wherever 
it appears; and 
(3) by amending the section heading to read as follows: 
'^EC. 501. VOLUNTARY REUQUIDATIONS BY THE CUSTOMS SERVICE.". 
SEC. 640. APPRAISEMENT REGULATIONS. 
Section 502 (19 U.S.C. 1502) is amended— 
(1) by amending subsection (a)— 
(A) by inserting "(including regulations establishing 
procedures for the issuance of binding rulings prior to 
the entry of the merchandise concerned)" after "law'\ 
107 STAT. 2204 
PUBLIC LAW 103-182—PEC. 8, 1993 
Regulations. 
Regulations. 
(B) by striking out '^rts of entry, and" and inserting 
•^rts of enti^. The Secretary", 
(C) b^ inserting "or classifying" after ''appraising" 
wherever it appears, and 
(D) by striking out "such port" and inserting "any 
port, and may direct any customs officer at any port to 
review entries of merchandise filed at any other port"; 
and 
(2) bv striking out subsection (b) and redesignating sub-
section (c) as subsection (b). 
SEC. 641. LIMITATION ON UQUIDATION. 
Section 504 (19 U.S.C. 1504) is amended— 
(1) by amendii^ subsection (a)— 
(A) by striking out "Except as provided in subsection 
(b)," and inserting "Unless an entry is extended imder 
subsection (b) or suspended as required by statute or court 
order,", 
(B) by striking out "or" at the end of paragraph (2), 
(C) by inserting "or" after the semicolon at the end 
of paragraph (3), and 
(D) by inserting the following new paragraph after 
para^aph(3): 
(4) if a reconciliation is filed, or should have been filed, 
i, 
the date of the filing under section 484 or the date the reconcili-
ation should have been 
filed;"; 
and 
(2) by amending subsections (b), (c), and (d) to read as 
follows: 
"(b) EXTENSION.—^The Secretary may extend the period in which 
to liquidate an entry if— 
"(1) the information needed for the proper appraisement 
or classification of the merchandise, or for insuring compliance 
with applicable law, is not available to the Customs Service; 
or 
"(2) the importer of record requests such extension and 
shows good cause therefor. 
The Secret£ury shall give notice of an extension under this subsection 
to the importer of record and the surety of such importer of record. 
Notice shall be in such form and manner (which may include 
electronic transmitted) as the Secretary shall by regulation pre-
scribe. Any entry the liquidation of wmch is extended under this 
subsection shall be treated as having been liquidated at the rate 
of duty, value, quantity, and amount of duty asserted at tiie time 
of entry by the importer of record at the expiration of 4 years 
from the applicable date specified in subsection (a). 
"(c) N
O
T
I
C
E O
F SUSPENSION.—If the liq^uidation of any entry 
is suspended, the Secretary shall by regulation require that notice 
of the suspension be provided, in such manner as the Secretary 
considers appropriate, to the importer of record and to any author-
ized agent and surety of such importer of record. 
"(d) REMOVAL OF SUSPENSION.—When a suspension required 
by statute or court order is removed, the Customs Service shall 
liquidate the entry within 6 months after receiving notice of the 
removal from the Department of Commerce, other agency, or a 
court with jurisdiction over the entiv. Any entry not liouidated 
bv the Customs Service within 6 months after receiving such notice 
snail be treated as having been liquidated at the rate of duty, 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2205 
value, quantity, and amount of duty asserted at the time of entry 
by the importer of record.**. 
SEC. 
642. 
PAYMENT 
OF 
DUTIES 
AND 
FEES. 
(a) AMENDMENT TO SECTION 505.—Section 505 (19 U.S.C. 1505) 
is amended to read as follows: 
'«EC. 
SOS. 
PAYMENT 
OF 
DUTIES 
AND 
FEES. 
"(a) DEPOSIT OF ESTIMATED DUTIES, FEES, AND INTEREST.— 
Unless merchandise is entered for warehouse or transportation, 
or imder bond, the importer of record shall deposit with the Customs 
Service at the time of making entrv, or at such later time as 
the Secretary may prescribe by regulation, the amount of duties 
and fees estimated to be payable thereon. Such regulations may 
provide that estimated duties and fees shall be deposited before 
or at the time an import activity summary statement is filed. 
If an import activity summary statement is filed, the estimated 
duties and fees shall be deposited together with interest, at a 
rate determined by the Secretary, accruing from the first date 
of the month the statement is required to be filed until the date 
such statement is actually filed. 
"(b) COLLECTION OR REFUND OF DUTIES, FEES, AND INTEREST 
DUE UPON LIQUIDATION OR REUQUIDATION.—The Customs Service 
shall collect any increased or additional duties and fees due, 
together with interest thereon, or refund any excess moneys depos-
ited, togetiier with intei'est thereon, as determined on a liquidation 
or reliquidation. Duties, fees, and interest determined to be due 
upon liquidation or reliquidation are due 30 days after issuance 
of the bill for such payment. Refunds of excess moneys deposited, 
together with interest thereon, shall be paid within 30 days of 
liquidation or reliquidation. 
"(c) INTEREST.—Interest assessed due to an imdei^pajnnent of 
duties, fees, or interest shall accrue, at a rate determined by the 
Secretary, from the d^tte the importer of record is required to 
deposit estimated duties, fees, and mterest to the date of liquidation 
or reliquidation of the applicable entry or reconciliation. Interest 
on excess moneys deposited shall accrue, at a rate determined 
by the Secretary, from the date the importer of record deposits 
estimated duties, fees, and interest to the date of liquidation or 
reliquidation of the applicable entry or reconciliation. 
"(d) DELINQUENCY.—If duties, fees, and interest determined 
to be due or refunded are not paid in full within the 30-day period 
specified in subsection (b), any unpaid balance shall be considered 
delinquent and bear interest by 30-day periods, at a rate determined 
by the Secretary, from the date of liquidation or reliquidation imtil 
the full balance is paid. No interest shall accrue during the 30-
day period in which payment is actually made.". 
(b) CONFORMING AMENDMENT.—Subsection (d) of section 520 
(19 U.S.C. 1520(d)) is repealed. 
SEC. 643. ABANDONMENT AND DAMAGE. 
Section 506 (19 U.S.C. 1506) is amended— 
(1) by striking out "the appropriate customs officer" and 
"such customs officer" wherever they appear and inserting "the 
Customs Service"; 
(2) by amending paragraph (1)— 
(A) by striking out not sent to the appraiser's stores 
for" and inserting released without an", 
107 STAT. 2206 
PUBLIC LAW 103-182—DEC. 8, 1993 
(B) by striking out "of the examination packages or 
quantities of merchandise", 
(C) bv striking out "the appraiser's stores" and insert-
ing "the Customs Service", ana 
(D) by inserting "or entnr" after "invoice", and 
(3) by amending paragraph (2)— 
(A) by inserting ", electronically or otherwise," aft»r 
"files", and 
(B) by striking out "ynritten". 
SEC. 644. CUSTOMS OFFICER'S IMMUNITY. 
Section 513 (19 U.S.C. 1513) is amended to read as follows: 
'^EC. 513. CUSTOMS OFFICER'S IMMUNITY. 
"No customs officer shall be liable in any way to any person 
for or on account o
f
— 
"(1) any ruling or decision regarding the appraisement 
or the classification of any imported merchandise or regarding 
the duties, fees, and taxes charged thereon, 
"(2) the collection of an;^ dues, charges, duties, fees, and 
taxes on or on account of any imported merchandise, or 
"(3) any other matter or thing as to which any person 
might under this Act be entitled to protest or appeal fi'om 
the decision of such officer.". 
SEC. 645. PROTESTS. 
Section 514 (19 U.S.C. 1514) is amended— 
(1) by amending subsection (a)— 
(A) by striking out "appropriate customs officer" in 
the text preceding paragraph (1) and inserting "Customs 
Service", 
(B) by inserting "or reconciliation as to the issues con-
tained therein," after "entry," in paragraph (5), 
(C) by striking out "and" and inserting "or" at the 
end of paragraph (6), 
(D) by striking out the comma at the end of paragraph 
(•7) and inserting a semicolon, and 
'^^_ 
(E) by striHng out "appropriate customs officer, who" 
in the text following paragraph (7) and inserting "Customs 
Service, which"; 
(2) by amending subsection (b) by striking out "appropriate 
customs officer" andinserting"Customs Service"; 
(3) by amending the first sentence of subsection (cXD to 
read as follows: "A protest of a decision made under subsection 
(a) shall be filed in writing, or transmitted electronically pursu-
ant to an electronic data interchange system, in accordance 
with regulations prescribed by the Secretary. A protest must 
/ 
set forth distinctlv and specifically— 
"(A) eacn decision described in subsection (a) as to 
which protest is made; 
"(B) each category of merchandise affected by each 
decision set forth under paragraph (1); 
"(C) the nature of each objection and the reasons there-
for; and 
"(D) any other matter required by the Secretary by 
regulation."; 
(4) by redesignating paragraph (2) of subsection (c) as 
paragraph (3) and by striking out "such customs officer^ in 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2207 
such redesignated paragraph and inserting '*ihe Customs Serv-
ice"; 
(5) by designating the last sentence of paragraph (1) of 
subsection (c) as pai'agraph (2); 
(6) by striking out customs officer" in subsection (d) and 
inserting "Customs Service"; and 
(7) by amending the section heading to read as follows: 
'nSEC. 514. PROTEST AGAINST DECISIONS OF THE CUSTOMS SERVICE.". 
SEC. 646. REFUNDS AND ERRORS. 
Section 520 (19 U.S.C. 1520) is amended— 
(1) by inserting "or reconciliation" after "entry" in para-
graphs (1) and (4) oi; subsection (a); and 
(2) by amending subsection (c)-— 
(A) by strildng out "appropriate customs officer" wher-
ever it appears and inserting "Customs Service", 
(B) by inserting "or reconciliation" aft«r "reliquidate 
an entry", and 
(C) by inserting ", whether or not resulting from or 
contained in electronic transmission," aft«r "inadvertence" 
the first place it appears in paragraph (1). 
SEC. 
647. 
BONDS 
AND 
OTHER 
SECURITY. 
Section 623 (19 U.S.C. 1623) is amended— 
(1) by inserting "and the manner in which the bond may 
be filed with or, pursuant to an authorized electronic data 
interchange system, transmitted to the Customs Service" after 
"form of such bond" in subsection (bXD; and 
(2) by inserting at the end of subsection (d) the following 
new sentence: "Any bond transmitted to the Customs Service 
pursuant to an authorized electronic data interchange system 
shall have the same force and effect and be bindfing upon 
the parties thereto as if such bond were manually executed, 
signed, and filed.". 
SEC. 648. CUSTOMHOUSE BROKERS. 
Section 641 (19 U.S.C. 1641) is amended— 
(1) by adding at the end of subsection (aX2) the following 
new sentence: "It also includes the preparation of documents 
or forms in any format and the electronic transmission of 
documents, invoices, bills, or parts thereof, intended to be filed 
with the Customs Service in furtherance of such activities, 
whether or not signed or filed by the preparer, or activities 
relating to such preparation, but does not include the mere 
electronic transmission of data received for transmission to 
Customs."; 
(2) by amending subsection (cXD to read as follows: 
"(1) IN GENERAI^.—Each person panted a customs broker's Regulations. 
license under subsection (b) shall be issued, in accordance with 
such regulations aa the Secretary shall prescribe, either or 
both of tne following: 
"(A) A national permit for the conduct of such customs 
business as the Secretary prescribes by regulation. 
"(B) A permit for each customs district in which that 
person conductft customs business and, except as provided 
in paragraph (2), regularly employs at least 1 individual 
who is licensed imder subsection (!bX2) to exercise respon-
107 STAT. 2208 
PUBLIC LAW 103-182—DEC. 8, 1993 
sible supervision and control over the ciistoms business 
conducted by that person in that district."; 
(3) by inserting at the end of subsection (c) the following 
new paragraph: 
"(4) APPOINTMENT OF SUBAGENTS.—Notwithstanding sub-
section (cXD, upon the implementation bv the Secreta^ under 
section 413(bX2) of the component of tne National Customs 
Automation Program referred to in section 411(aX2XB), a 
licensed broker may appoint another licensed broker holding 
a permit in a customs district to act on its behalf as its subagent 
in that district if such activity relates to the filing of information 
that is permitted by law or regulation to be filed electronically. 
A licensed broker appointing a subagent pursuant to this para-
graph shall remain liable for any and all obligations arising 
under bond and any and all duties, taxes, and fees, as well 
as any other liabilities imposed by law, and shall be precluded 
from delegating to a subagent such liability."; 
(4) by amending subsection (dX2XB)— 
(A) by striking out "appropriate customs officer" and 
inserting "Customs Service" in the first and third sentences, 
(B) by striking out "he" and inserting "it" in the third 
sentence, 
(C) by striking out "15 days" and inserting "30 days" 
in the third sentence, 
(D) by striking out "the appropriate customs officer 
and the customs broker; they" and inserting "the Customs 
Service and the customs broker; which" in the sixth sen-
tence, 
(E) by striking out "his" and inserting "the" in the 
seventh sentence, and 
(F) by striking out "for his decision" and inserting 
"for the decision" in the eighth sentence; and 
(5) by amending subsection (0 by striking out "United 
States Customs Service." and inserting "Customs Service. The 
Secretary may not prohibit customs brokers from limiting their 
liability to other persons in the conduct of customs business. 
For purposes of this subsection or any other provision of this 
Act pertaining to recordkeeping, all data required to be retained 
by a customs broker may be kept on microfilm, optical disc, 
magnetic tapes, disks or drums, video files or any other elec-
Reguiations. 
trically generated medium. Pursuant to such regulations as 
the Secretary shall prescribe, the conversion of data to such 
storage medium may be accomplished at any time subsequent 
to the relevant customs transaction and the data may be 
retained in a centralized basis according to such broker's busi-
ness system.". 
SEC. 649. CONFORMING AMENDMENTS. 
(a) PLACE OF ENTRY AND UNLADING.—Section 447 (19 U.S.C. 
1447) is amended by striking out "the appropriate customs officer 
shall consider" and inserting "the Customs Service considers". 
(b) UNLADING.—Section 449 (19 U.S.C. 1449) is amended by 
striking out "appropriate customs officer of such port issues a 
permit for the unlading of such merchandise or baggage," and 
inserting "Customs Service issues a permit for the unla(ting of 
such merchandise or baggage at such port,". 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2209 
Subtitle C—^Miscellaneous Amendments to 
the Tariff Act of 1930 
SEC. 651. ADMINISTRATIVE EXEMPTIONS. 
Section 321 (19 U.S.C. 1321) is amended— 
(1) by amending: subsection (aXl)— 
(A) by striking out "of less than $10" and inserting 
"of an amount specified by the Secretary by regulation, 
but not less than $20,", 
(B) by inserting ", fees," after "duties" wherever it 
appears, and 
(C) by striking out "and" at the end thereof; 
(2) by amending subsection (aX2)— 
(A) by striking out "shall not exceed—" and inserting 
"shall not exceed an amount specified by the Secretary 
by regulation, but not less than—\ 
(B) by strildng out "$50" and "$100" in subparagraph 
(A) and inserting "$100" and "$200", respectively, 
(C) by striking out "$25" in subparagraph (B) and 
inserting "$200", 
(D) by striking out "$5" in subparagraph (C) and insert-
ing "$200*, and 
(E) by striking the period at the end thereof and insert-
ing "; and", and 
(3) by inserting a new paragraph (3) at the end of sub-
section (a) to read as follows: 
"(3) waive the collection of duties, fees, and taxes due 
on entered merchandise when such duties, fees, or taxes are 
less than $20 or such greater amount as may be specified 
by the Secretary by regulation."; and 
(4) by amending subsection (b)— 
(A) by striking out "to diminish any dollar amount 
specified in subsection (a) and"; and 
(B) by striking out "such subsection" wherever it 
appears and inserting "subsection (a)". 
SEC. 652. REPORT OF ARRIVAL. 
Section 433 (19 U.S.C. 1433) is amended— 
(1) by amending subsection (aXl)— 
(A) by striking out "or^ at the end of subparagraph 
(B), 
(B) by inserting "or" after the semicolon at the end 
of subparagraph (C), and 
(C) by adding after subpara^aph (C) the following: 
"(D) any vessel which has visited a hovering vessel 
or received merchandise while outside the territorial sea;"; 
(2) by striking out "present to customs officers such" in 
subsection (d) and inserting "present, or transmit pursuant 
to an electronic daUi interchange system, to the Customs Serv-
ice such information, data,"; and 
(3) by amending subsection (e) to read as follows: 
"(e) 
PROHIBITION ON DEPARTURES AND DISCHARGE.—Unless 
otherwise authorized by law, a vessel, aircraft or vehicle after 
arriving in the United States or Virgin Islands may, but only 
in accordance with regulations prescribed by the Secretary— 
"(1) depart trom the port, place, or airport of arrival; or 
107 STAT. 2210 
PUBLIC LAW 103-182—DEC. 8, 1993 
"(2) discharge any passenger or merchandise (including 
baggage).". 
SEC. 6S8. ENTRY OF VESSELa 
Section 434 (19 U.S.C. 1434) is amended to read as follows: 
•^EC. 434. ENTRY; VESSELS. 
"(a) FORMAL ENTRY.—Within 24 hours (or such other period 
of time as may be provided imder subsection (cX2)) after the arrival 
at any port or place in the United States of— 
"(1) any vessel 
firom 
a foreign port or place; 
"(2) any foreign vessel from a domestic i)ort; 
"(3) any vessel of the United States having on board bonded 
merchandise or foreign merchandise for which entry has not 
been made; or 
"(4) any vessel which has visited a hovering vessel or 
- 
has delivered or received merchandise while outsicfe the terri-
torial sea; 
the master of the vessel shall, unless otherwise provided by law, 
make formal entry at the nearest customs facility or such other 
place as the Secretary may prescribe by regulation. 
"(b) PRELIMINARY ENTRY.—The Secretary may by regulation 
permit the master to make preliminary entry of the vessel with 
the Customs Service in lieu of formal entry or before formal entry 
is made. In permitting preUminar^ entrv, the Customs Service 
shall board a sufificient nimiber of vessels to ensure compliance 
with the laws it enforces. 
*
*
(
c
) REGULATIONS.—^The Secretary may by regulation— 
"(1) prescribe the manner and format in which entry under 
subsection (a) or subsection (b), or both, must be made, and 
such regulations may provide that any such entry may be 
made electronically pursuant to an electronic data interchange 
system; 
"(2) provide that— 
(A) formal entry must be made within a greater or 
lesser time than 24 hours after arrival, but in no case 
more than 48 hours after arrival, and 
"(B) formal entry may be made before arrival; and 
"(3) authorize the Customs Service to permit entry or 
preliminary entry of any vessel to be made at a place other 
than a designated port of entry, under such conditions as may 
be prescribed.". 
SEC. 654. UNLAWFUL RETURN OF FOREIGN VESSEL PAPERS. 
Section 438 (19 U.S.C. .1438) is amended— 
(1) by striking out "section 435" and inserting "section 
434"; 
(2) by inserting ", or regulations issued thereunder," after 
"ofthis Act";and 
(3) by striking out "the appropriate customs officer of the 
port where such vessel has been entered." and inserting "the 
Customs Service in the port in which such vessel has entered.". 
SEC. 6SS. VESSELS NOT REQUIRED TO ENTER. 
Section 441 (19 U.S.C. 1441) is amended— 
(1) by amending the text preceding paragraph (1) to read 
as follows: "The following vessels shall not be required to make 
entry under section 434 or to obtain clearance under section 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2211 
4197 of the Revised Statutes of the United States (46 U.S.C. 
App. 91):"; 
(2) by amending paragraph (3) to read as follows: 
''(3) Any vessel carrjdng passengers on excursion from the 
United States Virgin Islancb to the British Virgin Islands and 
returning, i
f
— 
(A) the vessel does not in any way violate the customs 
or navigation laws of the United States; 
*
*
(
B
) the vessel has not visited any hovering vessel; and 
**(C) the master of the vessel, if there is on board any 
article required by law to be entered, reports the article to 
the Customs Service immediately upon arrival."; 
(3) by redesignating para^aphs (4) and (5) as paragraphs 
(5) and (6), respectively, and mserting after paragraph (3) the 
following: 
"(4) Any United States docimiented vessel with recreational 
endorsement or any imdocimiented United Stetes pleasiire vessel 
not engaged in trade, i
f
— 
(A) the vessel complies with the reporting requirements 
of section 433, and with the customs and navigation laws 
of the United Stetes; 
"(B) the vessel has not visited any hovering vessel; and 
"(C) the master of, and any other person on board, the 
vessel, if the master or such person has on board anv article 
required by law to be entered or declared, reports such article 
to the Customs Service immediately upon arrival;"; 
(4) by amending paragraph (6) (as so redesignated) by 
striking out "enrolled and licensed to engage in the foreign 
and coasting trade in the northern, northeastern, and norm-
western frontiers" and inserting "documented imder chapter 
121 of title 46, United Stetes Code, with a Great Lakes endorse-
ment"; and 
(5) by amending the section heading to read as follows: 
*«£€. 441. EXCEPTIONS 
TO 
VESSEL 
ENTRY 
AND 
CLEARANCE 
REQUIREMENTS.^ 
SEC. 656. UNLADING. 
Section 448(a) (19 U.S.C. 1448(a)) is amended— 
(1) by amending the first sentence— 
(A) by striking out "enter)" and inserting "enter or 
clear)", 
(B) by striking out "or vehicle arriving from a foreign 
port or place" and inserting "required to make entiy imder 
section 434, or vehicle required to report arrival under 
section 433,", 
(C) by inserting "or transmitted pursuant to an elec-
tronic date interchange system" after "issued", and 
(D) by striking out the colon after "officer" and the 
proviso and inserting a period; 
(2) by amending the second sentence— 
(A) by striking out ", preliminary or otherwise,", and 
(B) by inserting ", electronically pursuant to an author-
ized electronic data interchange system or otherwise," after 
"mav issue a permit"; 
(3) by striking out the last sentence and inserting the 
following: "The owner or master of any vessel or vehicle, or 
agent thereof, shall notify the Customs Service of any merchan-
107 STAT. 2212 
PUBLIC LAW 103-182—DEC. 8, 1993 
dise or baggage so unladen for which entry is not made within 
Regulations. 
the time prescribed by law or regulation. The Secretary shall 
by regulation prescribe administrative penalties not to exceed 
$1,000 for each bill of lading for which notice is not given. 
Any such administrative penalty shall be subject to mitigation 
ana remittance under section 618. Such unentered merchandise 
or baggage shall be the responsibility of the master or person 
in charge of the importing vessel or vehicle, or agent thereof, 
until it is removed from the carrier's control in accordance 
with section 490."; and 
(4) by striking out "the appropriate customs officer" and 
"such customs officer" wherever they appear and inserting "the 
Customs Service". 
SEC. 657. DECLARATIONS. 
Section 485 (19 U.S.C. 1486) is amended— 
(1) by amending subsection (a)— 
(A) by inserting "or transmit electronically" after "file", 
and 
(B) by inserting "and manner" after "form"; 
(2) by amending subsection (d)— 
(A) by striking out "A importer" and inserting "An 
importer", and 
(B) by striking out "a importer" and inserting "an 
importer"; and 
(3) by inserting after subsection (0 the following new sub-
section: 
"(g) EXPORTED MERCHANDISE RETURNED AS UNDELIVERABLE.— 
Regulations. 
With respect to any importation of merchandise to which Greneral 
Headnote 4(e) of tne Harmonized Tariff Schedule of the United 
States applies, any person who gained any benefit from, or met 
any obligation to, the United States as a result of the prior expor-
tation of such merchandise shall, in accordance with regulations 
prescribed by the Secretary, within a reasonable time inform the 
Customs Service of the return of the merchandise.". 
SEC. 658. GENERAL ORDERS. 
Section 490 (19 U.S.C. 1490) is amended— 
(1) by amending subsection (a) to read as follows: 
"(a) INCOMPLETE ENTRY.— 
"(1) Whenever— 
"(A) the entry of any imported merchandise is not 
made within the time provided by law or by regulation 
prescribed by the Secretary; 
"(B) the entry of imported merchandise is incomplete 
because of failure to pay the estimated duties, fees, or 
interest; 
"(C) in the opinion of the Customs Service, the entry 
of imported merchandise C£mnot be made for want of proper 
documents or other cause; or 
"(D) the Customs Service believes that any merchan-
dise is not correctly and legally invoiced; 
the carrier (unless subject to subsection (c)) shall notify the 
bonded warehouse of such imentered merchandise. 
"(2) After notification under paragraph (1), the bonded 
warehouse shall arrange for the transportation and storage 
of the merchandise at the risk and expense of the consignee. 
The merchandise shall remain in the bonded warehouse imtil— 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2213 
"(A) entry is made or completed and the proper docu-
ments are produced; 
**(B) the information and data necessary for entry are 
transmitted to the Customs Service pursuant to an author-
ized electronic data interchange system; or 
"(C) a bond is given for the production of docimients 
or the transmittal of data."; 
(2) by amending subsection (b)— 
(A) by amending the heading for subsection (b) to read 
as follows: 
"(b) REQUEST FOR POSSESSION BY CUSTOMS.—", and 
(B) by striking out "appropriate customs officer" and 
inserting "Customs Service ; and 
(3) by adding at the end the following new subsection: 
"(c) GOVERNMENT MERCHANDiSE.^Any imported merchandise Regulations. 
that— 
"(1) is described in any of paragraphs (1) through (4) of 
subsection (a); and 
"(2) is consigned to, or owned by, the United States Govern-
ment; 
shall be stored and disposed of in accordance with such rules 
and procedures as the Secretary shall by regulation prescribe.". 
SEC. 659. UNCLAIMED MERCHANDISE. 
Section 491 (19 U.S.C. 1491) is amended— 
(1) by amending subsection (a)— 
(A) by striking out "customs custody for one year" 
in the first sentence and inserting "in a bonded warehouse 
pursuant to section 490 for 6 months", 
(B) by striking out "public store or bonded warehouse 
for a period of one year" in the second sentence and insert-
ing "pursuant to section 490 in a bonded warehouse for 
6 months", 
(C) by striking out "estimated duties and storage" in 
the first sentence and inserting "estimated duties, taxes, 
fees, interest, storage,", 
(D) by inserting "taxes, fees, interest," after "duties," 
wherever it appears, and 
(E) by striking out "duties" in the last sentence and 
inserting "duties, taxes, interest, and fees"; and 
(2) by redesignating subsection (b) as subsection (e) and 
inserting after subsection (a) the following new subsections: 
"(b) NOTICE OF TITLE VESTING IN THE UNITED STATES.—At 
the end of the 6-month period referred to in subsection (a), the 
Customs Service may, in lieu of sale of the merchandise, provide 
notice to all known interested parties that the title to such merchan-
dise shall be considered to vest in the United States free and 
clear of any liens or encumbrances, on the 30th day cifter the 
date of the notice imless, before such 30th day— 
"(1) the subject merchandise is entered or withdrawn for 
consimiption; and 
"(2) payment is made of all duties, taxes, fees, transfer 
and storage charges, and other expenses that may have accrued 
thereon. 
"(c) RETENTION, TRANSFER, DESTRUCTION, OR OTHER DISPOSI-
TION.—If title to any merchandise vests in the United States by Regulations. 
operation of subsection (b), such merchandise may be retained 
107 STAT. 2214 
PUBLIC LAW 103-182—DEC. 8, 1993 
by the Customs Service for official use, transferred to any other 
Federal agency or to any State or local agency, destroyed, or other-
wise disposed of in accordance with such regulations as the Sec-
retary shall prescribe. All transfer and storage charges or expenses 
accruing on retained or transferred merchandise shall be paid by 
the receiving agency. 
"(d) PETITION.—^Whenever any partjr, having lost a substantial 
interest in merchandise by virtue of title vesting in the United 
States under subsection (b), can establish such title or interest 
to the satisfaction of the Secretary within 30 days after the day 
on which title vests in the United States iinder subsection (b), 
or can establish to the satisfaction of the Secretary that the party 
did not receive notice under subsection (b), the Secretary may, 
upon receipt of a timely and proper petition and upon finding 
that the facts and circumstances warrant, pay such party out of 
the Treasury of the United States the amount the Secretary believes 
the party would have received under section 493 had the merchan-
dise been sold and a proper claim filed. The decision of the Secretarv 
with respect to any such petition is final and conclusive on all 
parties."; and 
(3) by amending subsection (e) (as so redesignated) by 
striking out "appropriate customs officer" in paragraph (3) and 
inserting "Customs Service". 
SEC. 660. DESTRUCTION OF MERCHANDISE. 
Section 492 (19 U.S.C. 1492) is amended— 
(1) by inserting ", retained for official use, or otherwise 
disposed oP after "destroyed"; and 
(2) by striking out "appropriate customs officer" and insert-
, 
ing "Customs Service". 
SEC. 661. PROCEEDS OF SALE. 
Section 493 (19 U.S.C. 1493) is amended— 
(1) by inserting "taxes, and fees," after "duties,"; 
(2) by striking out "by the appropriate customs officer"; 
and 
(3) by striking out "such customs officer" and inserting 
"the Customs Service". 
SEC. 662. ENTRY UNDER REGULATIONS. 
Section 498(a) (19 U.S.C. 1498(a)) is amended— 
(1) by amending paragraph (1) to read as follows: 
"(1) Merchandise, when— 
"(A) the aggregate value of the shipment does not 
exceed an amount specified by the Secretary by regulation, 
but not more than $2,500; or 
"(B) different commercial facilitation and risk consider-
ations that may vary for different classes or kinds of mer-
chandise or dinerent classes of transactions may dictate;"; 
and 
(2) by striking out "$10,000" in paragraph (2) and inserting 
"such amounts as the Secretary may prescribe". 
SEC. 663. AMERICAN TRADEMARKS. 
Section 526(eX3) (19 U.S.C. 1526(eX3)) is amended— 
(1) by striking out "1 year" and inserting "90 days"; and 
(2) by striking out "appropriate customs officers" and insert-
ing "the Customs Service . 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2215 
SEC. 664. SmPUFIED RECORDKEEPING FOR MERCHANDISE TRANS-
PORTED BY PIPELINE. 
Part IV of title IV is amended by inserting after section 553 
the following new section: 
'^EC. 553A. RECORDKEEPING FOR MERCHANDISE TRANSPORTED BY 19 USC 1553a. 
PIPELINE. 
'Merchandise in Customs custody that is transported by pipe-
line may be accounted for on a quantitative basis, based on the 
bill of lading, or equivalent document of receipt, issued by the 
pipeline earner. Unless the Customs Service has reasonable cause 
to suspect fraud, the Customs Service may accept the bill of lading, 
or equivalent document of receipt, issued by the pipeline carrier 
to the shipper and accepted by tne consignee to maintain identity. 
Hie shipper, pipeline operator, and consignee shall be subject to 
the recordkeeping reqmrements of sections 508 and 509.". 
SEC. 666. ENTRY FOR WAREHOUSE. 
Section 557(a) (19 U.S.C. 1557(a)) is amended— 
(1) by designating the first 2 sentences of such subsection 
as paragraph (1); 
(2) by striking out in such paragraph (1) (as so designated) 
*
*
: Provided, That the total period oT time for which such mer-
chandise may remain in bonded warehouse shall not exceed 
5 years from the date of importation." and inserting the follow-
ing: "; except that— 
"(A) the total period of time for which such merchandise 
may remain in bonded warehouse shall not exceed 5 years 
from the date of importation; and 
"(B) turbine fuel may be withdrawn for use under section 
309 without the payment of duty if an amount equal to the 
quantity of fuel withdrawn is shown to be used within 30 
days aner the day of withdrawal, but duties (together with 
interest payable from the date of the withdrawal at the rate 
of interest established under section 6621 of title 26, United 
States Code) shall be deposited by the 40th day aiter the 
day of withdrawal on fuel that was withdrawn in excess of 
the quantity shown to have been so used during such 30-
day period."; and 
(3) by designating the remaining sentences of such sub-
section as paragraph (2). 
SEC. 666. CARTAGE. 
The first sentence of section 565 (19 U.S.C. 1565) is amended 
to read as follows: The cartage of merchandise entered for ware-
house shall be done by— 
"(1) cartmen appointed and licensed by the Customs Serv-
ice; or 
"(2) carriers designated under section 551 to carry bonded 
merchandise; 
who shall give bond, in a penal sum to be fixed by the Customs 
Service, for the protection of the Government against any loss 
of, or damage to, me merchandise while being so carted.". 
SEC. 667. SEIZURE. 
Section 612 (19 U.S.C. 1612) is amended— 
(1) by amending subsection (a)— 
107 STAT. 2216 
PUBLIC LAW 103-182—DEC. 8, 1993 
(A) by striking out "the appropriate customs officer^, 
"such officer" and "the customs officer" wherever they 
appear and inserting "the Customs Service", and 
(B) by striking out "the appraiser's return and his" 
and inserting "its"; and 
(2) by amending subsection (b) to read as follows: 
Regulations. 
"(fe) jf the Customs Service determines that the expense of 
keeping the vessel, vehicle, aircraft, merchandise, or baggage is 
disproportionate to the value thereof, the Customs Service may 
promptly order the destruction or other appropriate disposition 
of such property imder regulations prescribed by the Secretary. 
No customs officer shall be liable for the destruction or other 
disposition of property made pursuant to this section.". 
SEC. 668. UMTTATION ON ACTIONS. 
Section 621 (19 U.S.C. 1621) is amended— 
(1) by inserting "any dutv under section 592(d), 593A(d), 
or" before "any pecimiary penalty"; and 
(2) by striking out "discovered:" and all that follows there-
after and inserting the following: "discovered; except that— 
"(1) in the case of an alleged violation of section 592 or 
593A, no suit or action (including a suit or action for restoration 
of lawful duties under subsection (d) of such sections) may 
be instituted unless commenced within 5 years after the date 
of the alleged violation or, if such violation arises out of fraud, 
within 5 years after the date of discovery of fraud, and 
"(2) the time of the absence from the United Stetes of 
the person subject to the penalty or forfeiture, or of any conceal-
ment or absence of the property, shall not be reckoned within 
the 5-year period of limitation.". 
SEC. 669. 
COLLECTION OF FEES 
ON BEHALF OF OTHER 
AGENCIES. 
The Tariff Act of 1930 is amended by inserting after section 
528 the following new section: 
19 use 1529. 
'^EC. 529. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES. 
"The Customs Service shall be reimbursed from the fees col-
lected for the cost and expense, administrative and otherwise, 
incurred in collecting any fees on behalf of any government agency 
for any reason.". 
SEC. 670. AUTHORITY TO SETTLE CLAIMS. 
The Tariff Act of 1930 is amended by inserting after section 
629 the following new section: 
19 use 1630. 
'^EC. 630. AUTHORITY TO SETTLE CLAIMS. 
"(a) IN GENERAL.—^With respect to a claim that cannot be 
settled imder chapter 171 of title 28, United Stetes Code, the 
Secretory may settle, for not more than $50,000 in any one case, 
a claim for damage to, or loss of, privately owned property caused 
by an investigative or law enforcement officer (as defined in section 
2680(h) of title 28, United Stetes Code) who is employed by the 
Customs Service and acting within the scope of his or her employ-
ment. 
"(b) LIMITATIONS.—^The Secretery may not pay a claim under 
subsection (a) that— 
"(1) concerns commercial property; 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2217 
"(2) is presented to the Secretary more than 1 year after 
it occurs; or 
"(3) is presented by an officer or employee of the United 
States Government and arose within the scope of employment, 
''(c) FINAL SETTLEMENT.—A claim may be paid under this sec-
tion onJy if the claimant; accepts the amount or settlement in com-
plete satisfaction of the claim. . 
SEC. 671. USE OF PRIVATE COLLECTION AGENCIES. 
The Tariff Act of 1930 is amended by inserting after section 
630 the following new section: 
"SEC. 631. USE OF PRIVATE COLLECTION AGENCIES. 
19 USC 1631. 
"(a) IN GENERAL.—^Notwithstanding any other provision of law, Contracts. 
the Secretary, under such terms and conditions as the Secretary 
considers appropriate, shall enter into contracts and incur obliga-
tions with one or more persons for collection services to recover 
indebtedness arising under the customs laws and owed the United 
States Government, but only after the Customs Service has 
exhausted all administi'ative efforts, including all claims against 
applicable surety bonds, to collect the indebtedness. 
"(b) CONTRACT REQUIREMENTS.—Any contract entered into 
under subsection (a) shall provide that— 
"(1) the Secretaiy retains the authority to resolve a dispute, 
compromise a claim, end collection action, and refer a matter 
to the Attorney Greneral to bring a civil action; and 
"(2) the person is subject to— 
"(A) section 552a of title 5, United States Code, to 
the extent provided in subsection (m) of such section; and 
"(B) laws and regulations of the United States Govern-
ment and State governments related to debt collection prac-
tices.**. 
Subtitle D—^Miscellaneous Provisions and 
Consequential and Conforming Amend-
ments to Other Laws 
SEC. 681. AMENDMENTS TO THE HARMONIZED TARIFF SCHEDULE. 
(a) RETURN SHIPMENTS.—General Note 4 of the Harmonized 
Tariff Schedule of the United States is amended— 
(1) by striking out "and** at the end of subdivision (c); 
(2) by inserting "and" after "1930," in subdivision (d); 
(3) by inserting after subdivision (d) the following: 
"(e) articles exported from the United States which are 
returned within 45 days after such exportation from the United 
States as imdeliverable and which have not left the custody 
of the carrier or foreign customs service,"; and 
(4) by adding at the end the following new sentence: "No 
exportation referred to in subdivision (e) may be treated as 
satisfying any requirement for exportation in order to receive 
a benefit from, or meet an obligation to, the United States 
as a result of such exportation.". 
(b) ENTRY NOT REQUIRED FOR LOCOMOTIVES AND RAILWAY 
FREIGHT CARS.— 
107 STAT. 2218 
PUBLIC LAW 103-182—DEC. 8, 1993 
(1) The Notes to chapter 86 of such Schedule are amended 
by inserting after note 3 tiie following new note: 
"4. Railway locomotives (provided for in headings 8601 and 8602) 
and railway freight cars (provided for in heading 8606) on which 
no duty is owed are not subject to the entry or release requirements 
for imported merchandise set forth in sections 448 and 484 of 
the Tariff Act of 1930. The Secretary of the Treasury may by 
regulation estabUsh appropriate reporting requirements, including 
the requirement that a bond be posted to ensure compliance.". 
(2) The U.S. Notes to subchapter V of chapter 99 of such 
Schedule are amended by inserting after note 8 the following 
new note: 
'^. Railway freight cars provided for in subheadings 9905.86.05 
and 9905.86.10 are not subject to the entry or release requirements 
for imported merchandise set forth in sections 448 and 484 of 
the Tariff Act of 1930. The Secretary of the Treasury may by 
regulation estabUsh appropriate reporting requirements, including 
the requirement that a bond be posted to ensure compliance.", 
(c) INSTRUMENTS OF INTERNATIONAL TRAFFIC—The U.S. Notes 
to subchapter III of chapter 98 of such Schedule is amended by 
inserting after note 3 the following new note: 
"4. Instruments of international traffic, such as containers, lift 
vans, rail cars and locomotives, truck cabs and trailers, etc. are 
exempt from formal entry procedures but are required to be 
accounted for when imported and exported into and out of the 
United States, respectively, through the manifesting procedures 
required for all international carriers by the United States Customs 
Regulations. 
Service. Fees associated with the importation of such instruments 
of international traffic shall be reported and paid on a periodic 
basis as required by regulations issued by the Secretary of the 
Treasury and in accordance with 1956 Customs Convention on 
Containers (20 UST 30; TIAS 6634).". 
SEC. 682. CUSTOMS PERSONNEL AIRPORT WORK SHIFT REGULATION. 
Section 13031(g) of the Consolidated Omnibus Budget Reconcili-
ation Act of 1985 (19 U.S.C. 58c(g)) is amended— 
(1) by striking out "In addition to the regulations required 
under paragraph (2), the" and inserting "The"; 
(2) by striking out paragraph (2); and 
(3) by redesignating paragraph (3) as paragraph (2). 
SEC. 683. USE OF H
A
R
B
O
R M
A
I
N
T
E
N
A
N
C
E TRUST FUND A
M
O
U
N
T
S F
O
R 
ADMINISTRATIVE EXPENSES. 
26 use 9505. 
(a) IN GENERAL.—Paragraph (3) of section 9505(c) of the 
Internal Revenue Code of 1986 (relating to expenditures from Har-
bor Maintenance Trust Fund) is amended to read as follows: 
"(3) for the pajrment of all expenses of administration 
incurred by the Department of the Treasury, the Army Corps 
of Engineers, and the Department of Commerce related to 
the administration of subchapter A of chapter 36 (relating 
to harbor maintenance tax), but not in excess of $5,000,000 
for any fiscal year.". 
26 use 9505 
(b) E
F
F
E
C
T
I
V
E DATE.—The amendment made by subsection (a) 
'^°^- 
shall apply to fiscal years beginning after the date of the enactment 
of this Act. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2219 
SEC. 684. AMENDMENTS T() TITLE 28, UNITED STATES CODE. 
(a) AMENDMENTS REILATING TO ACCREDITATION OF PRIVATE LAB-
ORATORIES.—^Title 28 of the United States Code is amended as 
follows: 
(1) Section 1581(g) is amended by— 
(A) striking out "and" at the end of paragraph (1); 
(B) by strimng out the period at the end of paragraph 
(2) and inserting "; and"; and 
(C) by adding at the end the following: 
**(3) any decision or order of the Customs Service to deny, 
suspend, or revoke accreditation of a private laboratory imder 
section 499(b) of the Tariff Act of 1930. . 
(2) Section 2631(g) is amended by inserting at the end 
the following new para^aph: 
"(3) A civil action to review any decision or order of the Customs 
Service to deny, suspend,, or revoke accreditation of a private labora-
tory under section 499(b) of the Tariff Act of 1930 may be com-
menced in the Court of International Trade by the person whose 
accreditation was denied, suspended, or revoked.". 
(3) Section 2636 is amended— 
(A) by redesignating subsection (h) as subsection (i); 
and 
(B) by inseiting after subsection (g) the following new 
subsection: 
**(h) A civil action contesting the denial, suspension, or revoca-
tion by the Customs Sei-vice of a private laboratory's accreditation 
under section 499(b) of the Tariff Act of 1930 is barred unless 
commenced in accordance with the rules of the Court of Inter-
national Trade within 60 days after the date of the decision or 
order of the Customs Service.". 
(4) Section 2640 is amended— 
(A) by redesignating subsection (d) as subsection (e); 
and 
(B) by inserting after subsection (c) the following new 
subsection: 
"(d) In any civil action commenced to review anv order or 
decision of the Customs Service under section 499(b) of the Tariff 
Act of 1930, the court shall review the action on the basis of 
the record before the Customs Service at the time of issuing such 
decision or order.". 
(5) Section 2642 is amended by inserting before the period 
the following: "or laboratories accredited by the Customs Serv-
ice under section 499(b) of the Tariff Act of 1930". 
(b) APPUCATION OF SUBSECTION (a) AMENDMENTS.—For pur- 28usci58i 
poses of applying the amendments made by subsection (a), any 
"°^-
decision or order of the Customs Service denjdng, suspending, or 
revoking the accreditation of a private laboratory on or after the 
date of the enactment of this Act and before regulations to imple-
ment section 499(b) of the Tariff Act of 1930 are issued shall 
be treated as having been denied, suspended, or revoked under 
such section 499(b). 
(c) JURISDICTION OF COURT.—Section 1582(1) of title 28, United 
States Code, is amended by inserting "593A," after "592,". 
(d) FILING OF OFFICIAL DOCUMENTS.—Section 2635(a) of title 
28, United States Code, is amended to read as follows: 
"(a) In any action commenced in the Court of International 
Trade contesting the denial of a protest imder section 515 of the 
107 STAT. 2220 
PUBLIC LAW 103-182—DEC. 8, 1993 
Tariff Act of 1930 or the denial of a petition under section 516 
of such Act, the Customs Service, as prescribed by the rules of 
the court, shall file with the clerk of the court, as part of the 
official record, any document, paper, information or data relating 
to the entry of merchandise and the administrative determination 
that is the subject of the protest or petition.". 
SEC. 
6
8
5
. 
TREASURY 
FORFEITURE 
FUND. 
Section 9703 of title 31, United States Code (as added by 
Public Law 102-393), is amended— 
(1) by redesignating subparagraphs (E), (F), (G), (H), and 
(I) of subsection (a)(2) as subparagraphs (F), (G), (H), (I), and 
(J), respectively; 
(2) by inserting after subparagraph (D) of subsection (aX2) 
the following new subparagraph: 
"(E) the pa3anent of claims against employees of the 
Customs Service settled by the Secretary under section 
630 of the Tariff Act of 1930;"; and 
(3) by striking out "shall" the first place it appears in 
subsection (e) and inserting "may". 
SEC. 686. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED 
STATES. 
(a) TECHNICAL AMENDMENTS.—The Revised Statutes of the 
United States are amended as follows: 
(1) Section 2793 (19 U.S.C. 288, 46 U.S.C. App. Ill, 123) 
is amended— 
(A) by striking out "Enrolled or licensed vessels 
engaged in the foreign and coasting trade on the northern, 
northeastern, and northwestern frontiers of the United 
States," and inserting "Documented vessels with a coast-
wise. Great Lakes endorsement,"; and 
(B) by striking out the first semicolon and all the 
text that follows thereafter and inserting a period. 
(2) Section 3126 (19 U.S.C. 293) is amended— 
(A) by striking out "Any vessel, on being duly registered 
in pursuance of the laws of the United States," and insert-
ing "Any United States documented vessel with a registry 
or coastwise endorsement, or both" and 
(B) by striking out all the text occurring after the 
first sentence. 
(3) Section 3127 (19 U.S.C. 294) is amended by striking 
out "in registered vessels" and inserting "a United States docu-
mented vessel with a registry or coastwise endorsement, or 
both,". 
(4) Section 4136 (46 U.S.C. App. 14) is amended by striking 
out— 
(A) "The Secretary of Commerce may issue a register 
or enrollment" and inserting "The Secretary of Transpor-
tation may issue a certificate of documentation witn a 
coastwise endorsement"; and 
t 
(B) "Secretary of Commerce," and inserting "Secretary 
of Transportation,". 
(5) Section 4336 (46 U.S.C. App. 277) is amended— 
(A) by striking out "register or enrollment or license 
of any vessel" and inserting "certificate of dociunentation 
of any documented vessel"; and 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2221 
(B) by striking out "Secretary of the Treasury is not 
required to have its register or enrollment or license" and 
inserting "Secretary of Transportation is not required to 
have its certificate of dociimentation". 
(b) CLEARANCE REQUIREMENTS.—Section 4197 of such Revised 
Statutes (46 U.S.C. App. 91) is amended to read as follows: 
^nSEC. 4197. CLEARANCE; VESSELa 
"(a) WHEN REQUIRED; VESSELS OF THE UNITED STATES.—Except 
as otherwise provided by law, any vessel of the United States 
shall obtain clearance from the Customs Service before proceeding 
frt>m a port or place in the United States— 
"(1) for a foreign port or place; 
"(2) for another port or place in the United States if the 
vessel has on board bonded merchandise or foreign merchandise 
for which entry has not been made; or 
"(3) outside the territorial sea to visit a hovering vessel 
or to receive merchandise while outside the territorial sea. 
"(b) WHEN REQUIRED; OTHER VESSELS.—Except as otherwise 
provided by law, any vessel that is not a vessel of the United 
States shall obtain clearance from the Customs Service before 
proceeding from a port or place in the United States— 
"(1) for a foreign port or place; 
"(2) for anotner port or place in the United States; or 
"(3) outside the territorial sea to visit a hovering vessel 
or to receive or deliver merchandise while outside the territorial 
sea. 
"(c) REGULATIONS.—^The Secretary of the Treasury may by 
regulation— 
"(1) prescribe the manner in which clearance under this 
section is to be obtained, including the documents, data or 
information which shall be submitted or transmitted, pursuant 
to an authorized date interchange system, to obtain the clear-
ance; 
"(2) permit the Customs Service to grant clearance for 
a vessel under this section before all requirements for clearance 
are complied with, but only if the owner or operator of the 
vessel files a bond in an amoimt set by the Secretary of the 
Treasury conditioned upon the compliance by the owner or 
operator with all si>ecified requirements for clearance within 
a time period (not exceeding 4 business days) established by 
the Secretary of the Treasury; and 
"(3) authorize the Customs Service to permit clearance 
of any vessel to be obtained at a place other tnan a designated 
port of entry, under such conditions as he may prescribe.". 
SEC. 687. AMENDMENTS TO TITLE 18, UNITED STATES CODE. 
Section 965(a) of title 18, United States Code, is amended— 
(1) by striking out "sections 91, 92, and 94 of Title 46" 
and inserting "section 431 of the Tariff Act of 1930 (19 U.S.C. 
1431) and section 4197 of the Revised Statutes of the United 
States (46 U.S.C. App. 91),"; 
(2) by striking out "the collector of customs for the district 
wherein such vessel is then located" and inserting "the Customs 
Service"; and 
(3) by striking out "the collector Uke" and inserting in 
lieu thereof "the Customs Service like". 
107 STAT. 2222 
PUBLIC LAW 103-182—DEC. 8, 1993 
SEC. 688. AMENDMENT TO THE ACT TO PREVENT POLX.UTION FROM 
SHIPS. 
Section 9(e) of the Act to Prevent Pollution from Ships (94 
Stat. 2301, 33 U.S.C. 1908(e)) is amended by striking out "shall 
refuse or revoke" and all of the text following Uiereafter and insert-
ing "shall refuse or revoke the clearance required by section 4197 
of the Revised Statutes of the United States (46 U.S.C. App. 91). 
Clearance may be granted upon the filing of a bond or other surety 
satisfactory to the Secretary. . 
SEC. 689. MISCELLANEOUS TECHNICAL AMENDMENTS. 
(a) ACT OF OCTOBER 3, 1913.—The Act of October 3, 1913, 
is amended— 
46 use app. 
(1) in section IV, J, subsection 1 (19 U.S.C. 128) by striking 
^
^
^
- 
out 'Sregistered as a vessel of the United States," and inserting 
"documented under chapter 121 of title 46, United States 
Code,"; and 
(2) in section IV, J, subsection 3 (19 U.S.C. 131)— 
(A) by striking out "vessels of the United States" and 
inserting "United States documented vessels"; and 
(B) by striking out "registered as a vessel of the United 
States." and inserting "documented under chapter 121 of 
title 46, United States Code.". 
(b) ACT OF AUGUST 5, 1935.—Section 4 of the Act of August 
5,1935 (19 U.S.C. 1704) is amended— 
(1) by striking out "whenever the collector of customs of 
the district in which any vessel is, or is sought to be, registered, 
enrolled, Ucensed, or numbered," and inserting "when the Sec-
retary of Transportation"; 
(2) by striking out "such collector" and inserting "the Sec-
retary of Transportation"; 
(3) by striking out "said collector shall revoke the registry, 
enrollment, license, or niunber of such vessel" and inserting 
"the Secretaiy of Transportation shall revoke any endorsement 
on the vessel's certificate of documentation or number (when 
the Secretary is the authority issuing the number imder chapter 
123 of title 46, United States Code)"; and 
(4) by striking out "Such collector and all persons" and 
inserting "The Secretary of Transportation and all persons". 
(c) ACT OF NOVEMBER 6, 1966.—Sections 2(e) and 3(e) of the 
Act of November 6, 1966 (46 U.S.C. App. 817d(e) and 817e(e)) 
are each amended— 
(1) by striking out "The collector of customs at" and insert-
ing "At": and 
(2) by inserting ", the Customs Service" after "subsection 
(a) of this section". 
SEC. 
6
9
0
. 
REPEAL 
OF 
OBSOLETE 
PROVISIONS 
OF 
LAW. 
(a) REVISED STATUTES.—^The following provisions of the Revised 
Statutes of the United States are repealed: 
(1) So much of section 2792 as is codified at 19 U.S.C. 
289 and 46 U.S.C. App. 110 and 112 (as in effect on the 
date of the enactment of this Act). 
(2) Section 3111 (19 U.S.C. 282). 
(3) Section 3118 (19 U.S.C. 286). 
. 
(4) Section 3119 (19 U.S.C. 287). 
(5) Section 3122 (19 U.S.C. 290). 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2223 
(6) Section 3124 (19 U.S.C. 291). 
(7) Section 3125 (19 U.S.C. 292). 
(8) Section 4198 (46 U.S.C. App. 94). 
(9) Section 4199 (46 U.S.C. App. 93). 
(10) Section 4201 (46 U.S.C. App. 96). 
(11) Section 4207. 
(12) Section 4208 (46 U.S.C. App. 102). 
(13) Section 4213 (46 U.S.C. App. 101). 
(14) So much of section 4221 as is codified at 46 U.S.C. 
App. 113 (as in effect on the date of the enactment of this 
Act). 
(15) Section 4222 (46 U.S.C. App. 126). 
(16) Sections 4306, 4307, and 4308 (46 U.S.C. App. 351 
through 353). 
(17) Section 4332 (46 U.S.C. App. 274). 
(18) Section 4348 (46 U.S.C. App. 293). 
(19) Section 4358 (46 U.S.C. App. 306). 
(20) Section 4361 (46 U.S.C. App. 307). 
(21) Sections 4362 through 4369 (46 U.S.C. App. 308 
through 315). 
(22) Sections 4573 through 4576 (46 U.S.C. App. 674 
through 677). 
(b) TARIFF ACT OF 1930.—The following sections of the Tariff 
Act of 1930 are repealed: 
(1) Section 432 (19 U.S.C. 1432). 
(2) Section 435 (19 U.S.C. 1435). 
(3) Section 437 (19 U.S.C. 1437). 
(4) Section 439 (19 U.S.C. 1439). 
(5) Section 440 (19 U.S.C. 1440). 
(6) Sections 443, 444, and 445 (19 U.S.C. 1443, 1444, and 
1445). 
(7) Section 465 (19 U.S.C. 1465). 
(8) Section 482 (19 U.S.C. 1482). 
(9) Section 583 (19 U.S.C. 1583). 
(10) Section 585 (19 U.S.C. 1585). 
(c) MISCELLANEOUS PROVISIONS.—^liie following provisions are 
(1) Section 1 of the Act of February 10, 1900 (46 U.S.C. 
App. 131). 
(2) Section 2 of the Act of April 29, 1908 (46 U.S.C. App. 
127). 
(3) Section 1 of the Act of July 1, 1916 (46 U.S.C. App. 
130). 
(4) Sections 1 and 2 of the Act of July 3, 1926 (46 U.S.C. 
App. 293a and 293b). 
(5) The last undesignated paragraph of section 201 of the 
Act of 
August 5,1935 (19 U.S.C. 1432a), is repealed. 
(6) The Act of June 16,1937 (19 U.S.C. 1435b). 
(7) The Act of May 4,1934 (46 U.S.C. App. 91a). 
(8) Section 1403(b) of the Water Resources Development 
Act of 1986 (Public Law 99-662; 26 U.S.C. 4461 note). 
SEC. 691. REPORTS TO CONGRESS. 
(a) ANTIDUMPING AND COUNTERVAILING DUTY COLLECTIONS.— i9 use mm. 
The Commissioner of Customs shall before the 60th day of each 
fiscal year after fiscal year 1994 submit to Congress a report regard-
107 STAT. 2224 
PUBLIC LAW 103-182—DEC. 8, 1993 
ing the collection during the preceding fiscal year of duties imposed 
imder the antidumping and countervailing duty laws. 
(b) CES FEE REPORT.— 
(1) AMENDMENT.—Section 9501(c) of the Omnibus Budget 
Reconciliation Act of 1987 (19 U.S.C. 3 note) is amended by 
adding at the end the following new paragraph: 
"(3) The Commissioner of Customs is authorized to obtain 
from the operators of centralized cargo examination stations 
information regarding the fees paid to them for the provision 
of services at these stations.". 
(2) REPORT.—^Within 9 months after the date of the enact-
ment of this subsection, the Commissioner of Customs shall 
submit to the Committees referred to in section 9501(c) of 
the Omnibus Budget Reconciliation Act of 1987, a report setting 
forth— 
(A) an estimate of the aggregate amount of fees paid 
to operators of centralized cargo examination stations dur-
ing fiscal year 1993; and 
(B) the variations, if any, among customs districts with 
respect to the amounts of the fees charged for centralized 
cargo examination station services. 
(c) COMPLIANCE WITH CUSTOMS LAWS.—Section 123 of the Cus-
toms and Trade Act of 1990 (19 U.S.C. 2083) is amended— 
(1) by redesignating subsection (d) as subsection (e), and 
(2) by inserting after subsection (c) the following: 
''(d) COMPLIANCE PROGRAM.—The Commissioner of Customs 
shall— 
"(1) devise and implement a methodology for estimating 
the level of compliance with the laws administered by the 
Customs Service; and 
"(2) include as an additional part of the report required 
to be submitted imder subsection (a) for each of fiscal years 
1994, 1995, and 1996, an evaluation of the extent to which 
such compliance was obtained during the 12-month period 
preceding the 60th day before each such fiscal year.". 
(d) COURIER SERVICES COMPLIANCE REPORT.—^The Commis-
sioner of Customs shall initiate a compliance review of certain 
courier services which may not be eligible for benefits under the 
regulations of the Customs Service prescribed in part 128 of title 
19 of the Code of Federal Regulations and shall submit a report 
to Congress on the results of such review within 1 year after 
the date of the enactment of this Act. 
PUBLIC LAW 103-182—DEC. 8, 1993 
107 STAT. 2225 
, 682. EFFECTIVE DATE. 
19 USC 58c 
This title takes effect on the date of the enactment of this 
Act. 
Approved December 8, 1993. 
LEGISLATIVE HISTORY—H.R. 3450 (S. 1627): 
HOUSE REPORTS: No. 103-361, Pt. 1 (Comm. on Ways and Means), Ft. 2 (Comm. on 
Banking, Finance and Urban Affairs), and Pt. 3 (Comm. on 
Energy and Commerce). 
SENATE REPORTS: No. 103-189 accompanying S. 1627 (Comm. on Finance, Comm. 
on Agriculture, Nutrition, and Forestry, Comm. on Commerce, 
Science, £ind Transportation, Comm. on Governmenteil Affairs, 
Comm. on the Judiciary, and Comm. on Foreign Relations). 
CONGRESSIONAL RECORD, Vol. 139 (1993): 
Nov. 17, considered and passed House. 
Nov. 18, S. 1627 considered in Senate. 
Nov. 19, 20, H.R. 3450 considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 29 (1993): 
Dec. 8, Presidential remarks.